What is an Advance Payment in International Trade?



Explain an Advance Payment.

Advance Payment is a payment done by an importer to the exporter before shipment.

This method is most beneficial from exporter perspective as he receives funds in advance. The payment may be received either as soon as the order is confirmed or any time before shipment. The exporter may be willing to impose the term as a pre-condition only when he knows that the goods are in overwhelming demand and the goods are of rare-nature. Advance payments may be also used to negotiate a reduced price or to cover initial supply costs.

However with a buyer’s point of view, advance payment carries little risk, as he advances payment before dispatch of goods. Advance payment of term in exports and imports is picked by a purchaser only when he knows the seller in details on genuineness as a seller.

For international sales, wire transfers and credit cards are the most commonly used cash-in-advance options accessible to exporters. With the advancement of the Internet, escrow services turning into another cash-in-advance option for small export transactions.







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Xahid: I need to export Leineaphate Herbal Extract Oil from india to the Europe. What is the procedure? Do i have to obtain permission from the wild life or NOC.

Saravanavenkatesh: when a seller refuse to send neither goods nor the buyer money , how can the buyer get their money back which is made as advance payment ?

Arifulla khan: leineaphate herbal extract oil suppliers in india

Rajendran Nadar: Dear sir, We are Shipping and logistic service provider. Our foreign buyer ordered material with a party in India and send the advance, but party sent only half payments material and balance they are not refunding to them. what steps we have to take ?? regards, Rajendran Nadar Mobile No. +91-9375813217

Vijay: Advance payment send to exporter but not exporting our murchandise

Hasitha: Can an Advance payment be made after shipment? (before clearing the shipment) A payment made after the shipment has arrived in port and before clearing the same, will that considered as an advance payment or an open account payment

Admin: Once after customs export customs clearance, documents related to RBI (GR) would have auto transmitted if digitally filed, or hard copy of GR would have submitted with bank. Then, at that point of time, RBI can not account advance amount after shipment effected. However, you may contact your authorised dealer bank for further assistance to account the same.

Vaseem choudhary : I phone 12

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