Procedures for importing and exporting goods > Import and export services > T/T PAYMENT, D/A, D/P PAYMENT WHAT ?
In doing business with foreign countries, how to use payment methods reasonably and safely so as not to take risks is an issue that needs to be thought about and concerned, now I would like to share with you how. is T/T payment, D/A payment, and D/P payment.
Viewing: What is t/t payment
What is T/T payment
?ie telegraphic transfer means you pay the seller an amount of money through the bank where you have a $, wallet For example, on my invoice and contract, the shipment value is $10,000, which in the contract’s terms clearly states that 30% of the goods will be transferred in advance and the remaining 70% after receiving the bill of lading.
Since then, the bank will base on that term to pay the seller an amount of $3000 in advance, and the remaining 70% will be paid when the seller provides the buyer with a draft bill of lading. The buyer will take this draft bill and bring it to the bank and ask to pay the rest to the seller. (30/70% or 40/60% or 50%, 50% of that depends on the agreement in the contract between the two parties. Please)
So what is the risk of T/T payment? And how to avoid the risk?
+ T/T payment is a form of payment, if you want to be safe in doing business with your first-time business partner, you should understand more about shipping methods, to combine shipping methods and shapes. payment method, you will reduce the risk of money transfer, but not absolutely.
+ You will have 100% risk if you pay T/T (30% in advance and 70% after having draft bill) and buy under CNF or CIF shipping terms (generally group C and delivery at buyer port). why ? Because buying according to CNF or CIF price terms, the seller actively transports the goods to the buyer’s port, the buyer is passive, doesn’t know when the goods will leave the port, and when they will return to Vietnam, while the payment condition is 30 % in advance and 70% paid after having a draft bill, of course the seller sends the buyer a draft bill.
The buyer will not check if the bill is real or fake if he has no experience, so when he sees a ship bill, he thinks they have already shipped the goods, brought out the remaining 70%, but who would have thought that the bill was fake. so what? sitting in Vietnam waiting for the goods to come back, nt with the seller, called him, he said ok ok, wait to go and wait for the goods to arrive, but wait forever but can’t see, later contact again, no reply or reply . So it is considered that you have lost 100% of your money because of the crime of trusting people too much…
How to reduce the risk of payment t/t
If you want to reduce your risk from 100% to 30%, I have this idea. The contract is also T/T payment and the payment condition is also 30% prepaid and 70% paid after draft bill, but I will change a little bit that the shipping condition is FOB, ie the seller ships goods to the port of the seller and do all export procedures, the remaining transportation of goods to Vietnam is taken care of by the buyer, (the buyer will hire a carrier in Vietnam to receive the goods in the seller’s country, when the If you sell and deliver, you will have to issue a draft bill of lading, if you have delivery, you will issue a bill, if you don’t deliver, you will not be able to issue a bill) This bill will be a 100% real draft bill.
See also: What is Origin – Meaning of Origin
Why ? because the issuer of the bill of lading is the agent of the carrier at the top of Vietnam, if they deceive you, you can sue them, because you know their office, know their company very well and add that you do the right thing. agree with them, so this issue will give you more peace of mind, you will not be deceived because of this case.
So why do I say to reduce the risk from 100% to 30%, because if you meet a bad guy, you transfer 30% to him, he will always consider you 3000% gone, but I guarantee that The other 70% it doesn’t fool you, because you buy on FOB terms. You are responsible for shipping the item.
p/s: buying goods should buy at FOB price and selling goods should sell at CNF or CIF price (generally group C) because whoever book the ship (shipping the goods) considers that person as the owner of the goods. In general, the form of T/T is to take the contract or invocie to the bank to ask them to transfer the money to the seller, but it is important to read the payment conditions in the case, which is to pay 100% of the goods or how much, prepaid. or pay after having the bill of lading then there is a way to negotiate with them.
Doing business with China or any other country is the same, it is best to pay the cost once to go to their warehouse, see the size and how the company works, and make the best decision. (this is also the way that Koreans and Japanese people are using when buying goods in Vietnam, just fly straight to the warehouse, see the warehouse, see the company, see this and that, the price is a little high is ok) because you are not afraid of being cheated .
See also: What is Discourse – 22 Definitions of Discourse
What is D/P Payment
?D/P : (Documents against payment): Delivery of money, delivery of documents (money handing over), that is, the buyer wants to receive the shipment documents To open a customs declaration, it means paying the bank immediately, the bank will release the documents immediately. and always.D/A: (Document against Acceptance): ie the seller is very good, then you buy it, go to the bank to get a set of documents and go through customs and receive the goods, you just need to sign the deed. To the bank (bills of exchange), A has already obtained a set of documents. The bank will be responsible for claiming your money later. ^^ it’s so good and scary ^^^ it seems that this form has been forgotten now, no seller accepts it anymore.