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Exports Mitra

Terms of Payment

3
  • Documents Against Acceptance (DA) Terms of Payment
  • Documents Against Payment (DP) Terms of Payment
  • Advance Terms of Payment

Documentation

7
  • Proforma Invoice and Commercial Invoice in exports
  • Packing List and Bill of Lading in Exports
  • Bill of Lading in exports. Contents and Types of Bill of Lading
  • Shipping Bill: Definition, Types, and Importance in International Trade
  • Airway Bill in exports
  • Certificate of Origin: What it is, Types, and who issues it
  • INCOTERMS

Letter of Credit

3
  • What is Letter of Credit? How is it useful to trade?
  • Types of Letters of Credit
  • Parties to a Letter of Credit

Export regulations and policies in India

8
  • Free Trade Agreements (FTA) and their impact on exports
  • Import-Export Code (IEC). What it is and how to obtain IE code
  • Directorate General of Foreign Trade (DGFT) and its role
  • Duty drawback schemes for Indian exporters
  • Preferential market access (PMA) for Indian exporters
  • Special Economic Zones (SEZ) and their benefits
  • Export Promotion Capital Goods (EPCG) scheme
  • Foreign Trade Policy (FTP) and its objectives

International trade agreements and treaties

2
  • World Trade Organization (WTO) and its principles
  • Dispute settlement mechanisms in trade agreements

Export Financing and Banking Services

2
  • Pre-shipment Finance
  • Post-Shipment Finance

International Trade Organizations

6
  • International Chamber of Commerce (ICC) and its role
  • United Nations Conference on Trade and Development (UNCTAD)
  • International Trade Centre (ITC)
  • International Monetary Fund (IMF) and it’s role in International Trade
  • Asia-Pacific Economic Cooperation (APEC)
  • The South Asian Association for Regional Cooperation (SAARC)

Export Promotion Councils

14
  • Chemicals and Allied Products Export Promotion Council (CAPEXIL)
  • Services Export Promotion Council (SEPC)
  • Indian Oil Seeds & Produce Export Promotion Council (IOPEPC)
  • Pharmaceutical Export Promotion Council (Pharmexcil)
  • Export Promotion Council for EOUs & SEZ Units (EPCES)
  • The Plastics Export Promotion Council (PLEXCONCIL)
  • Cashew Export Promotion Council of India (CEPCI)
  • Shellac Export Promotion Council (SEPC)
  • Gem and Jewellery Export Promotion Council (GJEPC)
  • Sports Goods Export Promotion Council (SGEPC)
  • Council for Leather Exports (CLE)
  • Basic Chemicals, Pharmaceuticals, and Cosmetics Export Promotion Council (Chemexcil)
  • Project Exports Promotion Council of India (PEPC)
  • Engineering Export Promotion Council (EEPC)

Chambers of Commerce

7
  • Associated Chambers Of Commerce & Industry of India (ASSOCHAM)
  • Confederation of Indian Industry (CII)
  • Federation of Indian Chambers of Commerce and Industry (FICCI)
  • Federation of Indian Export Organisations (FIEO)
  • Indian Chamber of Commerce (ICC)
  • India Trade Promotion Organisation (ITPO)
  • India International Trade Centre (IITC-India)

Organization

4
  • APEDA
  • Marine Products Export Development Authority (MPEDA)
  • Footwear Design and Development Institute (FDDI)
  • EXIM Bank

Preferential Trade Agreements

2
  • The Bangkok Agreement: Asia-Pacific Trade Agreement (APTA)
  • SAARC Preferential Trading Arrangement (SAPTA)
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Documents Against Payment (DP) Terms of Payment

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What is Documents Against Payment (DP) #

Documents Against Payment (DP) is another payment term used in international trade for exports. In this method, the exporter ships the goods to the importer and sends the shipping documents to their bank, which then forwards them to the importer’s bank. The importer can receive the documents only upon making payment to the exporter. Once payment is made, the importer can receive the shipping documents and take possession of the goods.

Advantages of DP terms of payment in exports include: #

  • Reduced risk of non-payment: With DP terms, payment is made before the importer can receive the shipping documents. This significantly reduces the risk of non-payment or delayed payment.
  • Simplicity: DP terms are relatively simple and straightforward compared to other payment methods.
  • Prompt payment: Since payment is made before the shipping documents can be released, the exporter can receive payment promptly and efficiently.

Disadvantages of DP terms of payment in exports include: #

  • Risk of goods being held up: In some cases, the importer’s bank may hold onto the shipping documents until the payment is made. This can delay the release of the goods and cause additional costs and delays for the exporter.
  • Lack of flexibility: DP terms may not be as flexible as other payment methods, such as DA terms, since payment has to be made before the shipping documents can be released.
  • Limited credit period: The importer may have a limited period to make payment, which can be challenging if they are waiting for payment from their own customers or facing cash flow problems.

To summarize, DP terms of payment in exports offer reduced risk of non-payment, simplicity, and prompt payment. However, they may lack flexibility and have a limited credit period, which can be challenging for some importers. Exporters should carefully consider the risks and benefits of DP terms of payment and ensure that they have adequate safeguards in place to mitigate the risks.

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Updated on March 9, 2023
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Table of Contents
  • What is Documents Against Payment (DP)
  • Advantages of DP terms of payment in exports include:
  • Disadvantages of DP terms of payment in exports include:
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