Documents against Payments - D.A.P or D/P



What do you mean by Documents against Payments in International Trade?


Documents against Payment – DP/DAP is a term of payment in international trade. It relies on an instrument generally used in international trade called a bill of exchange or draft.

In this term, the documents under consignment are delivered to buyer/importer only after collecting payment of goods by buyer’s bank. The exporter ships the goods and submits Shipping documents to importers Bank with their instructions to discharge documents to the importer against payment, where the importer needs to pay the exporter when the documents being released from the Bank. The collecting bank hands over the shipping documents including the document of title only when the importer has paid the bill.

Simply, D/P is an arrangement in which a seller directs the presenting bank to release shipping and title documents to the buyer only if the importer completely pays the accompanying bill of exchange or draft.








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zaid: I am a new exporter and I have got my first order of 20000 aud. My buyer first asked me to send him all the goods and then he will pay me but i felt it being took risky. So i asked him to do it bank to bank. Now he is saying that he will send me payment after i send him original BL copy. DAP is document against payment so I think payment must be done before sending original document otherwise if he takes original BL and doesn’t do payment and takes away the goods. What will i do?

Asad majeed: The documents were sent on DP basis through bank but the customer bank released the same without payment what remedy is available to me?

George Fernandas: Customer requested shippinig documents through bank against which they already paid 100% payment.

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