Mode of payments in international trade of Exports and Imports Posted on 08 April 2023 Category : For Beginners The information provided here is part of Export import business Course online I have written detailed articles about mode of payments in international trade seperately in this web blog. So let me provide below links of the same articles about mode of payment in international trade. These links help you to have a good information about mode of payment in international trade. Mode of payments in Exports and Imports: The Major ways of making payment for export of goods are: 1. Advance payment - Read in Detail here - Advance payment the best way of terms for business 2. Letter of credit.( L.C.) You can also read more information by clicking Letter of credit - How does LC work? What are the advantages of Letter of Credit to Exporter? How LC is benefited to Importer? Are there any disadvantages to importer for a consignment under Letter of Credit? What are the disadvantages of LC to an exporter? Who are the parties involved in Letter of Credit? How to check authenticity of LC? What is Prime Banker? Yes, I am sure, once after going through that articles you will have a good knowledge about Letter of Credit. 3. DP basis - Documents against Payments: Read in detail here - Is DP terms of payment safe in export business? How does Bill of Lading work in DP payment terms? 4. D.A terms means Documents against Acceptance - Documents against Acceptance. - How reliable the terms of payment in exports How to make DA mode of payment safe I hope, the above links help you to know more about the terms of payment in internatinal trade. Would you like to add more information about terms of payment in export and import of international business? Share below your experience about terms of payment under international business. Write below about this article - Terms of Payment in International business.The above information is a part of Online international business guide course Other details on how to import export How to send export samples to foreign buyer? Tips to send samples to foreign buyer What is Terms of Delivery in Imports and exports What is LC Letter of Credit in export import business Explain DDU terms in export import trade. What is DDU delivery Difference between BRC and FIRC Difference between Pro forma Invoice and Commercial Invoice in Export Import Trade. Do pro- forma invoice accepts for import customs clearance? Excise and Customs - Click here to read complete notification under Budget 2014 How to get Export Orders? How to settle dispute in Exports and Imports? Click here to know India Trade Classification(ITC) Click here to know HS code of other product/commodity Pre shipment bank finance to suppliers for exports through other agencies Types of export containers Measurement of export containers Foreign Trade Policy of India 2015-2020 MEIS, Merchandise Exports from India Scheme SEIS, Service Exports from India Scheme Merge your Commercial Invoice and Packing List for all your future exports Export procedures and documentation Is Airway bill a documents of title? Is Customs House Agents (CHA ) required to be appointed mandatory? Is DP terms of payment safe in export business? Is Letter of Credit LC safe for an Importer? Is ON BOARD CERTIFICATE required for LC negotiation Maintain quality of goods - a prime factor in exports Master collect House collect How does Letter of Credit work? How does STP units work in India? How does TT (Telegraphic Transfer) work? Master Collect House Prepaid Master prepaid House collect Master prepaid house prepaid Material used for testing is eligible for Modvat Mode of payments in international trade Mode of transport under EX WORKS/FCA/CPT/CIP/DAT/DAP/DDP/FAS/FOB/CFR/CIF MSDS Material Safety Data Sheet Multiple Country Textile Declaration Negotiation procedures and formalities of export bills Non receipt of Cargo Arrival Notice, Can importer sue against shipping company OBJECTIVES OF CUSTOMS CONTROL for EXPORT GOODS OBL not released OBL not surrendered no telex release Office to contact Phytosanitary inspection in India Offices to obtain RCMC Who can inspect import cargo in US Who decides shipping carrier on FOB shipments Who gets benefited with my articles in this website Options under central excise clearance Packing of export goods - How important in International business? Parties in LC Payment procedures in Triangular exports Payment terms POD Proof of Delivery – How important in Imports Post export incentives Comments gerlon L. Concepcion: On 01 August 2013 In international trade, what it means L/C letter of credit, are there any laws protecting this type of transactions? Anil Jhaveri: On 25 November 2013 Hello, How can I avail benefit of duty drawback scheme, if I do not get BRC from my bank ? As I am receiving funds by Paypal, I do not have FIRC which is essential for banks to give BRC ? Please advise. Regards, Surendran Kollerath: On 08 March 2014 Hi Anil Jhaveri, There should be an account of receipt of amount from your overseas buyer against your export. Please consult your authorized bank Arif khan: On 14 April 2014 HI SIR, I am interested to export and import bussiness but I have no any idea pls suggest me what can I do Pushpa Shirsat: On 18 February 2015 I have 10 year experience in CHA. & now joined Offshore area. I have some difficulties and expected solution from your end. 1. We are the Shipping Agent & have IEC copy, We got a contract from Vessel Owner for Importing the Vessel in India. the vessel owner & his charterer is now having own IEC to import the Vessel, In India they insist us to Import on our IEC, Can we Import the Vessel on behalf of Vessel Owner or Charterer, because we are not owner & our Name is not mentioned there consortium contract. 2.I have little bit confused about the 200 & 12 nautical mile area was designated by customs for payment of customs Duty Admin: On 18 February 2015 Hello Pushpa Shirsat, You can import either with your IEC or with other's IEC as you have mentioned. However, the responsibilities and obligations to act as an Importer transfers accordingly. About nautical miles, you may read our article - MEANING OF EXPORTS AND IMPORTS in this website. Admin: On 18 February 2015 Hello Pushpa Shirsat, You can import either with your IEC or with other's IEC as you have mentioned. However, the responsibilities and obligations to act as an Importer transfers accordingly. About nautical miles, you may read our article - MEANING OF EXPORTS AND IMPORTS in this website. Admin: On 18 February 2015 Hello Pushpa Shirsat, You can import either with your IEC or with other's IEC as you have mentioned. However, the responsibilities and obligations to act as an Importer transfers accordingly. About nautical miles, you may read our article - MEANING OF EXPORTS AND IMPORTS in this website. Admin: On 18 February 2015 Hello Pushpa Shirsat, You can import either with your IEC or with other's IEC as you have mentioned. However, the responsibilities and obligations to act as an Importer transfers accordingly. About nautical miles, you may read our article - MEANING OF EXPORTS AND IMPORTS in this website. Admin: On 18 February 2015 Hello Pushpa Shirsat, You can import either with your IEC or with other's IEC as you have mentioned. However, the responsibilities and obligations to act as an Importer transfers accordingly. About nautical miles, you may read our article - MEANING OF EXPORTS AND IMPORTS in this website. anjiv upadhayaya: On 06 April 2015 Hi..sir i think everyone is using Lc in export now a days. and 4 types of Lc could u tell me the different between all four. sidhant raheja : On 13 October 2015 We manufacture industrial process equipments - mainly heat exchangers. I recently received an enquiry from Saudi, for which I need to send the quotation, but we have a few doubts while incorporating the terms and condition. We already have an import export number registered. Kindly answer our queries, some help will be very helpful sir so that we are on the safe side while sending our quote. 1. Should the quotation be in Rupees or Dollars? 2. We always request for some advance, then intermediary payment (as per material fabricated i.e. job completed), then last payment before dispatch and after inspection by the buyer. (This is for domestic clients, and we send certain part of equipment to our domestic clients, and then receive further payment for rest of the equipments, as inspection and dispatch is easy for domestic clients ) 3. What all taxes are involved while exporting? For domestic clients we charge sales tax and vat on manufacturing, and service tax on design, inspection etc. Sir, we are relatively a very new company, hence we lack experience in export. If you can also share your phone number for some telecommunication we will be very grateful. sutha: On 03 November 2015 very very supper usefull wepsite K VENUGOPAL: On 13 January 2016 can we receive import collection documents directly from seller abroad. how can we know KYC of the seller. The payment terms in import collection documents is through MT 103, which is direct credit to the exporter. share your opinion Meera P.Ramjatan: On 17 August 2016 I came through website and first of all - my big thanks to you for the free advice you give about setting up of a Company in Bangalore. We would like to set up an International Trading company in ~Bangalore and would appreciate. Bindesh Patel: On 24 March 2017 Sir, Our Payment terms is " 50% after getting Air Way Bill and Balance on after post clearance in USA" request you to clarify the following things. 10 can I sent documents directly to the party? if yes then also suggest name of documents & how it prepared.