Purnaa Standard Terms and Conditions
I. Sampling/Product Development
1. Pre-Production Packages: Purnaa offers three packages for sampling or product development with service offerings and prices as follows:
(Local Nepal customers may qualify for discounted rates.)
2. Other pre-production charges:
a. Additional Copies/Salesman Samples – 2x the per piece production estimate (assuming minimum order)
b. Setup Charges for Screen Printing or Leather Embossing (approximately $15 per block)
c. Sample fabric costs – If fabric for sampling needs to be imported or more is needed than is required for sample making due to supplier minimums, the customer will bear these costs. This will be communicated to the customer before making the purchase.
d. Shipping to send the samples to the customer – shipping a single piece is approximately $40.
e. Grading - $6 per pattern piece per size (usually done after sampling but before production)
3. Sampling/Product Development Payment and Pricing:
a. A non-refundable 50% deposit on the customer's package is due before Purnaa begins. Deposit payment serves as an official request for Purnaa to make a sample.
b. Sampling does not obligate a production order.
c. Purnaa’s packages assume 1 style. For additional styles sampled and ordered simultaneously, the extra package is available at a 50% reduced price. (Exclusion: Does not apply for local Nepal customers as local rates are already discounted.)
d. Additional revisions or re-development beyond what is included in the customer's package are available at an additional charge depending on the complexity of the changes that the customer needs.
e. In rare cases, if it is found that the customer's project doesn’t fit the planned package, it may be re-assigned to a different package.
f. Balance payment is due before Purnaa ships samples.
4. Timely Communication with Project Manager: A Purnaa Project Manager will be assigned to work with the customer. Purnaa Project Managers are the customer’s point of contact at Purnaa for updates about progress. During pre-production steps, Purnaa often has follow-up questions for the customer about the details of the development. It is helpful for the customer to stay in close communication with the project manager to ensure timely completion of the customer's products. Because product sampling, material sourcing, and development usually require several back-and-forth communications between the project manager and the customer, Purnaa will schedule sample sewing only during times the customer will be available to answer e-mail questions within 1 business day.
5. Sending Patterns to Purnaa: Patterns sent to Purnaa must be accompanied by a sample or toile made from those patterns to show that the pattern has been tested and to demonstrate construction details.
6. Sending Packages to Purnaa: When sending items to Nepal, the customer must use FedEx, UPS, DHL or a similar courier company. (Regular or National Postal Services usually take a very long time to arrive and are unreliable in Nepal.) The customer recognizes that they need to declare a total value below $20 and label it “SAMPLE NOT FOR RESALE”, otherwise there will be a 30%+ tax to retrieve the package from customs.
Packages heavier than 10kg volumetric weight must be split or will be considered a commercial shipment and undergo a lengthy and expensive customs process. All fees associated with taxes, customs duty, etc will be billed to the customer.
To: Purnaa Enterprises Pvt Ltd
Care of: Rakesh Maharjan, Purnaa Shipping Coordinator
Street Address: Wai-Wai Factory Chowk, Bhaisepati
Mobile Phone: +977 9841228577
Office Phone: +977 01.5591762
7. Sending Sample Materials to Purnaa: If the customer desires samples to be sewn from materials provided by the customer, the customer must include enough material for at least 4 samples, to accommodate necessary sewing tests and revisions.
1. Confirming a Production Order: Once Purnaa understands all order details from the customer, Purnaa will generate an official Sales Order for the customer to sign, which serves as the Purnaa production contract and indicates the customer agrees to the terms outlined in this document. The customer's order is confirmed once the customer returns a signed copy of the Sales Order and sends a down-payment worth 50% of the Sales Order or the value of the material, whichever is higher. Purnaa does not reserve production time for orders without a signed Sales Order and down-payment. Order details needed before generating a sales order include, but are not limited to:
a. Screenprint files, size, placement, color, etc.
b. All fabric & trims
c. All colorways and size breakdown confirmed
d. All label and tag designs
e. Size Grading specs
f. Approval of Quality Control Standards
g. Approval of final sample
2. Product Pricing and Specifications:
a. Purnaa will produce products according to the customer’s final sample specifications and in accordance with the prices and quantities specified on the Sales Order.
b. The customer agrees to the design-specification of the products in the Sales Order as sampled, and recognizes that any requested changes after this time, when possible, will result in increased cost and delayed delivery.
c. Due to fluctuating market prices, materials prices are subject to change if an order is not finalized within 30 days after Purnaa sends a Sales Order.
d. The customer agrees to a possible variation in the delivered quantity of +/-10% per color, size, and style.
3. Production Payment:
a. To confirm the order, the customer agrees to give a down-payment of 50% of the Sales Order or the cost of materials needed to produce the products in the Sales-Order, whichever is larger. Purnaa will not move ahead in scheduling production or ordering materials before receiving all order details and the down-payment.
b. All prices are in US Dollars.
c. Billing terms are C&F (include shipping charges, but not import tax) with the destination of the customer’s provided an address or port of landing.
d. Due to Nepali export law, Purnaa must receive full balance payment or a letter of credit before shipping.
e. The customer must bear all bank fees for wire payments (fees depend on bank and amount sent) or credit card payments (usually 3%).
f. When sending a wire, please:
- Check that the sender is paying the wire fees. If a wire is received for less than an invoice amount, the customer will be asked to send a second wire to make up the difference.
- For the recipient of the wire, use the exact company name shown on your invoice or sales order (i.e. "Purnaa PBC" for US wires or "Purnaa Enterprises Pvt. Ltd." for Nepal wires). Wire transfers that arrive without the correct recipient name will be returned by the bank to you and could delay your order.
a. Purnaa will make every reasonable effort to ship by the shipment date agreed to and will inform the customer immediately if it appears shipping will be delayed.
b. If the customer decides to delay production after materials have been purchased, late fees will apply for any materials or finished product in storage at Purnaa for more than 2 months.
c. If the customer delays payment after the final production invoice has been sent, late fees will apply to any materials or finished product in storage at Purnaa for more than 30 days.
d. Purnaa will make every effort to keep all materials or finished products in good condition but is not liable for possible damages to raw materials or finished goods in storage due to customer-caused delays.
5. Shipping and Delivery:
a. The customer may specify the desired shipping method. Purnaa will arrange the shipping and bill the customer for the cost of shipping, or ship on an Ex Works basis. Purnaa agrees to search for competitive shipping rates on behalf of the customer and provide shipping quotes as requested. Purnaa is not responsible for damage, loss, or delay once goods leave Purnaa’s premises.
b. The customer agrees to pay all applicable import duties, taxes, and clearing fees within the destination country. (Shipping with air cargo to an airport often results in an approximate $200 charge for clearing fees with an agent.)
c. Unless otherwise directed by the customer with sufficient advance notice, all shipments will be sent to the address specified on the Sales Order.
d. Due to limited storage space at Purnaa, Purnaa may require that production batches lasting longer than six weeks have multiple batch shipments. In most cases, a portion of the down payment will be applied proportionally, and the balance payment will be due for each shipment.
6. Quality Guarantee and Dealing with Defective Products:
a. If the customer finds major defects in production and the batch fails inspection done according to Acceptable Quality Limit (AQL) Normal Inspection, general level II, at 2.5 for major defects, the customer will inform Purnaa of the defects within 30 days of delivery, including the number of defective items found and photo proof of defects. Major defects include holes, obvious un-removable stains, measurements outside standard allowable tolerances, or other defects that would render the product not-sellable as agreed by both parties.
b. If defects are found in excess of the above standards, Purnaa will compensate the customer for the defective items that are above the standard (i.e. exceeding allowable qty) in one of the following ways:
c. If the customer will ship defective items back to Purnaa at their own expense, Purnaa will give a credit to the customer for a future order at the FOB Kathmandu value or cost to repair the defective items (whichever is lesser) or repair or replace items and return to the customer at Purnaa’s expense.
d. If the cost of the customer repairing the products is cheaper than shipping the products back to Purnaa, Purnaa may agree to credit the customer the value of the cost to repair the items.
e. Purnaa will not be responsible for the quality of any materials provided by the customer, or for design details created or approved by the customer that render the product defective.
7. Quality Seconds Identified in Production: For slightly-irregular products identified during production, the customer agrees to choose one of the following: (Generally, there are 1%-3% irregular items after each production run, but sometimes more.)
a. Either to purchase slightly-irregular products at 50% discount from the Sales Order pricing (These are separated & clearly labeled so there is no mixing with regular products. They can be useful for brand sample sales, or free samples exchanged for product reviews, etc)
b. Or to give Purnaa permission to sell the slightly-irregular items in its factory outlet in Kathmandu Nepal. (These are not billed to the customer but sold locally to recoup the cost that Purnaa has invested. At the customer's written request given at the time of order, the customer's labeling can be removed from these products before they are sold.)
8. Fabric Overstock / Scraps: For any materials sourced by Purnaa, the customer pays only for the materials utilized in their finished & shipped products, as per our FOB pricing model. Overstock and/or scrap material is paid for by Purnaa and belongs to Purnaa. Purnaa will make every effort to utilize this fabric in a sustainable manner.
III. General Terms
1. Confidentiality and Communications:
a. Purnaa agrees to keep all designs submitted by the customer confidential and to never share patterns or design specifications with others.
b. The customer agrees to follow Purnaa’s Communication Policy in regard to public marketing and communication about Purnaa.
c. Any samples or patterns created according to the customer’s design specifications are the property of the customer. Purnaa agrees to return them to the customer at any time at the cost of the customer.
2. Communicating about Purnaa: Before production, the customer will need to review and sign Purnaa’s communications agreement. Purnaa has some guidelines about communicating about its staff and mission in a way that protects the dignity and privacy of Purnaa’s staff and that also helps to ensure that Purnaa is communicated about in a consistent way. In this document, the customer will also have a chance to confirm how they would like Purnaa to communicate about their company.
3. Good Faith: Purnaa and the customer agree to work together in good faith and resolve any disagreements in a timely and understanding manner and work toward win-win solutions for both parties.