Payments

• Suppliers Payment Portal
• How to register

1. Requirements that must fulfill the clearance certificates
(income tax and social security contributions) submitted
along with the supplier’s invoice:

• • The name of the contractor described in the clearance
    certificates must meet the same name described in
    the invoice and the purchase order or contract.
  • The Panamanian tax identification number (RUC) and
    check digit (DV) described in the certificates must
    meet the same RUC and DV described in the supplier’s
    invoice.

2. Procedure for submission of clearance certificates

• • The contractor must submit the originals and a copy
    of both certificates along with the invoice. The certificates
    must be in effect at the moment the invoice is submitted.
  • The original certificates will be returned to the
    contractor once they are matched with the copies.

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.

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

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.

The Authority shall accept a request from a contractor
for assigning payments due or to become due under a contract
to a financial or governmental institution. A payments
assignment contract must fulfill the following requirements:

• Must be for the total amount of the contract or purchase
  order. The Authority shall not accept payment assignments
  for individual invoices.
• Assignments must be directed to only one institution.

The payment assignment contract must be submitted
with the following documents:

• A written notice to the Contracting Officer,
  signed by the authorized representative of the assignor,
  requesting the payment assignment.
• Authorization of the assignor Board of Directors
  to carry out the payment assignment contract.
• Public Registration Certificates of the assignor
  and assignee (or equivalent in case of foreign companies)
• Authorization of the insurance company or any
  other entity guarantor of the contract.
• Copy of the personal identification documents
  of the assignor and assignee legal representatives.
  If any of these individuals were not resident of
  the Republic of Panama, the personal identification
  documents submitted must be acceptable to the parties.
• Valid clearance certificates issued by the Ministry of Economics and Finance, (Internal Revenue Directory) as well as by the Social Security Institution, for assignees and assignors domiciled in the Republic of Panama.

The payments assignment contract must:

• Make reference to the contract or purchase order whose
  payments are being assigned to a third party.
• Include a statement indicating that the payments assignment
  contract is for all payments due or to become due under
  a purchase order or contract.
• Indicate that all parties (assignor and assignee)
  release the Authority of any liability resulting from
  the execution of such payment assignment contract.
• Upon acceptance of the payment assignment by the Authority,
  the contractor must write the following wording on each
  invoice submitted for payment:

“Invoice corresponds to a contract with a payment
assignment”

The Authority shall make a payment within thirty (30)
calendar days after the contractor submits a complete
invoice along with any required documents and delivers
the goods or services, object of the contract or purchase
order.

To reduce the 30-day period to make a payment, the Authority
accepts the offering of prompt payment discounts. Discounts
will be taken whenever they are proven to be economically
beneficial for the Authority.

A prompt payment discount may be offered before, during
or after a supplier invoice is submitted. Discounts will be offered for all invoices submitted to the Authority by the contractor.
In doing so, the contractor must send, by fax, a written
notice offering the prompt payment discount. See
an example of the notice.
Please send the letter to the following e-mail addresses
info-proveedores@pancanal.com.

Calculation of a discount payment date:

To calculate a discount payment date the following parameters
have to be taken into consideration:

• The latest of the dates established by the Authority
  for processing the payment. Refer to Payment
  Terms.
• The discount offered.

Examples of discount payment date calculations:

Discount Offered: 2% in 15 days, net 30.

First example: Goods were received in the latter date.

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

Important notice: The acceptance of
a discount does not exempt the contractor from complying
with the Invoice Requirements and the Payment Terms.

For additional information feel free to contact the Accounts
Payable Unit, Accounting Division, at
info-proveedores@pancanal.com.