Any difference between DP and DAP terms of payment?

 


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Any difference between DP and DAP terms of payment?

 

Some of the traders in Importers and Exporters have this clarification about the terms of payment, whether DP and DAP are same? Are there any difference between DP and DAP in payment terms.

No difference between DP and DAP in payment terms

In a payment terms are concerned, DP and DAP are one of the same. DP and DAP is same as it elaborates as Documents against Payments. Some in trade call as DP and some call as DAP. The meaning of both is Documents against Payment. However, in terms of delivery, DAP means Delivered at Place with a named destination place.

 

What is DP/DAP in terms of payment?

 

Once after goods exported, the documents under the said shipment along with original bill of lading are sent to authorize bank by exporter. The exporter’s bank sends the said documents for import clearance to the overseas buyer through buyer’s bank. Once after receipt of original documents by overseas buyer’s bank at destination, the buyer’s bank notifies buyer to ‘accept documents’ by paying the required amount mentioned in the exporter’s invoice. The consignee need to pay the invoice value of exports at the time of accepting documents from his bank. The importer (consignee) takes delivery of goods once after obtaining necessary import documents.  Also read Also read    Advance payment the best way of terms for business     Letter of credit - How does LC work?    Is DP terms of payment safe in export business?         Documents against Acceptance. - How reliable the terms of payment in exports

 

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