Payment Terms

The Panama Canal Authority shall make a payment within thirty (30) calendar days after the submission of a complete invoice and delivery of the object of the contract or purchase order.

Calculation of the thirty (30) day-period will begin the day after the latest of these dates:

  1. Date in which the proper invoice (along with the clearance certificates and any other document required by the Authority) is actually received by the designated billing office.
  2. Date in which the office designated in the contract or purchase order as “Ship To” actually receives the goods or services object of the contract.
  3. Date in which the office designated in the contract or purchase order as “Ship To” actually accepts the goods or services object of the contract, when the contract or purchase order includes an inspection and acceptance clause.

The 30-day period shall be reduced if the contractor offers to the Authority a prompt payment discount.

Examples of payment due date calculations:

First example: Goods were received in the latter date.

Invoice and other documents received date
5-JAN-2004
Goods received date
8-JAN-2004
Payment due date
7-FEB-2004

Second example: Invoice and additional documents were received in the latter date.

Goods received date
15-JAN-2004
Invoice and other documents received date
20-JAN-2004
Payment due date
19-FEB-2004

Delays in the payment attributable to the Authority

When a delay occurs in the payment process attributable to the Authority, interest estimated shall be recognized and paid automatically for the delay period at the LIBOR rate at three (3) months, valid at the beginning of each quarter.