Commercial Operating Framework
These Terms and Commercial Conditions constitute the legal framework governing all third-party contract manufacturing, formulation development, private label packaging, and international export orders executed by LEP India Cosmetics Pvt. Ltd. ("Manufacturer / Company") with its brand partners, distributors, and procurement clients ("Client").
1 Scope of Services & Contract Manufacturing
LEP India Cosmetics Pvt. Ltd. provides turn-key and toll manufacturing services encompassing custom cosmetic R&D formulation, pilot batch testing, bulk compounding, automated filling, induction sealing, labeling, cartoning, and global export compliance documentation across skin care, hair care, body care, lip care, and baby care categories.
2 Formulation Ownership & Intellectual Property (IP)
Intellectual property rights regarding cosmetic formulations are categorized as follows:
- Client-Funded Custom Formulations: Formulations engineered from ground-up specifically for and funded by the Client remain the exclusive intellectual property of the Client upon settlement of all development fees and milestone commercial orders.
- LEP India Stock Base Formulations: Proprietary base formulations, emulsification matrices, and patented ingredient complexes developed by LEP India Cosmetics remain the intellectual property of the Company, with the Client granted an exclusive or non-exclusive commercialization right for finished labeled products.
- Client Trademarks & Artwork: All brand logos, label artworks, trade secrets, and packaging designs supplied by the Client remain the sole intellectual property of the Client.
3 MOQ, Batch Scheduling & Production Tolerances
Production schedules are executed following official Purchase Order (PO) sign-off and advance milestone payment:
Standard SKU MOQs vary between 500 to 5,000 units depending on formulation complexity, custom active ingredients, and tooling requirements.
Bulk filling operations allow a standard manufacturing variance of ±5% on final packaged yields due to automated line calibration and tare weights.
Standard domestic production lead time is 18 to 28 business days post raw material & packaging approval; export orders scheduled per shipping vessel bookings.
4 Quality Control, Batch Testing & Release Protocols
Every production batch manufactured at our cleanroom facility undergoes comprehensive In-Process Quality Control (IPQC) and Finished Goods QC testing before dispatch:
- Certificate of Analysis (COA): An authentic batch-specific COA containing physical, chemical, and microbiological test parameters is provided with every consignment.
- Microbiological Purity: Formulations are screened for total viable aerobic count, yeast, mold, and absence of specified pathogens (S. aureus, P. aeruginosa, E. coli, C. albicans).
- Control Retention Samples: Physical batch retention samples are stored in climate-controlled archival rooms for 36 months to ensure comprehensive post-market traceability.
5 Quotations, Invoicing & Payment Terms
All commercial transactions are governed by agreed Pro-Forma Invoices (PI) and Contract Manufacturing Service Agreements:
- Domestic Orders (India): Standard terms require a 50% advance upon PO confirmation and batch scheduling; balance 50% prior to dispatch from factory gates.
- International Export Orders: 50% advance against Pro-Forma Invoice via Wire Transfer (T/T) / Irrevocable LC; balance 50% against scanned Bill of Lading (B/L) and export customs documentation.
- Taxes & Duties: GST (India) or applicable export tariffs, customs duties, port handling, and destination import taxes are calculated per prevailing statutory guidelines.
6 Shipping, Export Compliance & International Incoterms
International consignments are executed under standard Incoterms® 2020 (EXW, FOB, CIF, or CFR):
7 Inspection Period, Defects & Limitation of Liability
The Client shall inspect all delivered consignments within 7 business days of physical receipt at destination warehouse. Any discrepancy regarding physical quantities, packaging defects, or COA specification variance must be notified in writing with batch numbers and supporting photographic evidence.
LEP India Cosmetics Pvt. Ltd.'s liability for any verified defect in manufacturing shall be limited strictly to batch replacement or credit reimbursement for the affected units. The Company shall not be liable for indirect, consequential, or post-distribution retail loss.
8 Governing Law & Jurisdiction
These Terms & Commercial Conditions and all manufacturing contracts shall be governed by, construed, and enforced in accordance with the laws of the Republic of India. In the event of any legal dispute arising out of commercial contracts, the competent courts located in New Delhi / Haryana, India shall have exclusive jurisdiction.
Have Questions Regarding Commercial Contract Terms?
Our legal and enterprise operations team is available to assist with contract manufacturing agreements, customized NDA documentation, and international export compliance terms.
