MAKING PAYMENT

The payment method varies with the different terms and conditions of the contract.

If the payment is to be made by irrevocable L/C, the importer should effect payment through his bank when the bank presents all required documents to him. If the importer or his bank finds any discrepancies in the documents, they may return the documents and ask the exporter to modify and present them again. Of course, they may accept such documents also if they don't foresee any risks. In which case they do so at their own risk.

If the payment is to be made by Usance L/C, the importer should confirm the payment by accepting the bill of exchange drawn by the exporter.

If the payment is to be made by collection, the importer should sign on the "Notice of Payment by Collection" and effect payment(in D/P) or accept the bill of exchange in exchange for the documents(in D/A).

If the contract stipulates payment by T/T, the importer should effect payment through his bank on the designated date.

When making payment, the importer should present import contract, commercial invoice, packing list, import declaration sheet and import verification sheet to the bank. He may purchase foreign exchange or use his deposit to effect the payment.

As for the procedure of payment by T/T and collection, please refer to: Procedure of Payment by T/T and Procedure of Payment by Collection