A Cash against documents CAD or D/P is a simple mehtod to make payment HOWEVER its not safe either!!

If a supplier accepts a CAD or D/P(documents against payment) then the supplier must load the container onto the ship , the carrier line then generates the ocean bill of lading and then that original along with the suppliers original invoice, insurance certifictae, certificate of origin, packing list (an all relevant copies of the originlals for customs) is then sent to the buyers bank.

Banks ahndle the D/P docs and related info NOT the buyer or supplier themselves.

Ifg the supplier goes ahead and does all of this then the buyers bank is informed that the docs have arrived and the buyer then releases the funds payable via TT thru the buyers bank to the suppliers bank.

The problem with D/P is that the buyer can back out at ANYTIME of the transaction. So what they could mean is that the supplier can go thru all of the procedures required, load the container on the ship and then the buyer can simply back out of the deal. Now the supplier is stuck with the container on the ship going to a country with NO buyer!

It is NOT the banks responsibility to make sure a buyer pays under a D/P! DO NOT use D/P unless you know the buyer already and dealt with them prior or else get a security deposit in advance of at least 25% of the invoices value TT'fd to your bank. This way if the buyer backs out you at least have their depsoit and the liklelyhod the buyer will back out of the deal if they already paid a despoit is slim.

Its NOT that simple using a D/P!! You MUST insdure your buyer is not going to screw you over if they have not paid a deposit!

IS DP SHIPMENT SAFE AND DOES FRAUD HAPPEN IN THIS TYPE OF PAYMENT ?PL ADVICE

WE HAD SHIPED AN SHIPMENT LAST 3 MONTHS BACK ON D/P AT SIGHT AS PAYMENT AND THE SHIPMENT CONSIGNED TO BUYER BANK.BUT NOW THE GOODS HAVE BEED CLEARED BY CUSTOMER AND WE STILL NOT RECIEVED THE PAYMENT IN OUR BANK AND BUYER BANK NOT RESPONDING TO OUR REPEATED REMAINDERS AND BUYER HAS TOLD THAT HE HAS PAYED THE BILL(BUT NOT GIVING PROOF) AND ALWAYS ASKS TO CHECK WITH MY BANK.AND OUR BANK ALWAYS SAYS NO REPLIES FROM BUYER BANK ,PL CHECK WITH BUYER.

PL ADVICE IF BUYER CAN RELEASE GOODS WITHOUT PAYING AND GET AWAY IN D/P AT SIGHT PAYMENTS ??
AND IF BANK IN LEGALLY RESPONSIBLE IN THIS MATTER ??
WE LOOK FORWARD YOUR KIND REPONSES FROM THE EXPERIENCED PERSONS IN THIS REGARD.,