1. Purpose & Escrow Structure
HALBEX protects buyer funds by holding them in escrow and releasing them to the Seller only against verified delivery milestones. No direct buyer-to-seller payment occurs. These terms explain the structure, the separation of funds, and the conditions for release and withholding.
2. Federal Bank Escrow Rules
Buyer funds are held in an escrow account maintained with Federal Bank in India. HALBEX is the escrow principal and operates the account in accordance with the applicable escrow agreement and these terms.
- Funds are credited to the escrow account on receipt of the buyer's payment instruction.
- Funds are released only on HALBEX's instruction following verified milestones.
- Escrow balances are reconciled daily and are never commingled with HALBEX operating funds.
- Interest, if any, accrues for the benefit of the party entitled to the underlying funds under the release conditions.
3. Strict 3-Line Pricing Separation
Every HALBEX invoice separates the transaction into three distinct lines so goods value and logistics value are never mixed. Goods value is settled through escrow, while logistics value is settled directly between the relevant banks (Bank-to-Bank).
3-line settlement separation
| Line | Description | Settlement channel |
|---|---|---|
| 1. Goods value | The price of the goods (product cost). | Goods Escrow — released to the Seller on verified milestones. |
| 2. Logistics value | Freight, insurance and destination logistics. | Logistics Bank-to-Bank — settled directly with the logistics partner, never through Goods Escrow. |
| 3. HALBEX service fee | Platform, compliance and escrow service charges. | Deducted from escrow or billed separately as shown at checkout. |
No commingling
Goods value and logistics value are kept strictly separate. A logistics invoice is never paid from Goods Escrow, and a goods release is never delayed by a logistics dispute (and vice versa).
4. Dual Payment Options
Buyers may fund their order through either of two supported payment options, as shown at checkout.
- Full advance escrow — 100% of the goods value is funded into escrow before shipment and released against verified milestones.
- Milestone escrow — the goods value is funded in agreed instalments, each released against a defined delivery or document milestone.
The available option depends on the order, the destination and the Seller's credit terms. Logistics value is always settled separately Bank-to-Bank.
5. Escrow Funding & Milestones
Release milestones are defined at order acceptance and typically include document verification, pre-shipment inspection, shipment confirmation, and delivery. Each milestone is objective and verifiable, and HALBEX documents the evidence that triggered each release.
6. Release Conditions
- A milestone is reached when its documentary or physical condition is verified by HALBEX.
- The 8-hour document-verification protocol must return a clean outcome before a document milestone releases.
- If a milestone is disputed, the Four-Eyes Escrow Dispute Mediation process in the Quality Dispute, Cargo Claims & Refund Policy applies. Only the verified disputed amount is held pending resolution; the undisputed balance is released to the seller immediately.
7. Tax & Statutory Withholding (Section 194C / 194Q)
Where Indian tax law requires withholding at source, HALBEX deducts the statutory amount from the relevant payment and deposits it with the authorities, issuing the applicable TDS certificate to the payee.
Applicable withholding provisions
| Provision | Applies to | Rate (indicative) |
|---|---|---|
| Section 194C | Payments to contractors for carriage of goods / logistics services. | 1% (individual/HUF) or 2% (others) — subject to threshold and current law. |
| Section 194Q | Purchase of goods where the buyer's purchases from a seller exceed the statutory threshold in a financial year. | 0.1% of the purchase consideration exceeding the threshold. |
Rates are indicative
Withholding is applied at the rates in force at the time of payment, after considering thresholds, exemptions and the payee's declarations. Actual rates and applicability are determined per transaction.
8. GST & Invoicing
GST is applied on the HALBEX invoice as required by law, including zero-rated export invoicing under a Letter of Undertaking (LUT) where applicable. The Buyer is responsible for destination duties and taxes unless the selected Incoterm states otherwise.
9. Refunds & Failed Transactions
If an order is cancelled or fails before any milestone releases, the un-released escrow balance is returned to the Buyer's funding source. Refund timing and any deductions (for example non-refundable inspection or certification fees already incurred) are governed by the Quality Dispute, Cargo Claims & Refund Policy.
10. Disputes & Mediation
Escrow disputes are resolved through the Four-Eyes Escrow Dispute Mediation process: two independent HALBEX reviewers examine the evidence and agree a recommendation before any disputed funds are released. Only the disputed amount is held under Four-Eyes mediation; the undisputed balance is released to the seller immediately. The parties may escalate an unresolved dispute under the governing-law provisions of the Master Terms of Service.
11. Contact
Questions about escrow, settlement or withholding may be directed to legal@halbex.com or raised from the escrow and payments surface in the buyer portal.