How document against payment works in international trade procedure
During an international trade procedure, the importers country acts on behalf of an exporter for receiving and sending money for shipment. Many companies facilitate international trade transaction by offering a documentary collection facility. Under this contract, the suppliers know that documents will be released to the importer by document against payment. In this article, we will discuss the document against payment. So let's start. Documentary collections are of two types:- Document against payment (DP) – Sight Documents Document against acceptance (DA) – Term Documents According to this service the documents of shipping are sent to the beneficiary bank which in turn to be delivered to the party based on the instruction. The documents are sent to the buyer in exchange of Document against payment as per the terms of payment. Many traders are able to procure goods without making any payment in advance unless the goods are delivered by the seller. Import documentary collections I