Documents Against Payment Clause Samples
The 'Documents Against Payment' clause requires that the buyer can only obtain the shipping or title documents for goods after making full payment to the seller. In practice, this means that the seller's bank will release the necessary documents—such as the bill of lading or commercial invoice—to the buyer only when payment is received, typically through a bank acting as an intermediary. This arrangement ensures that the seller retains control over the goods until payment is secured, thereby reducing the risk of non-payment and providing assurance that the buyer will fulfill their financial obligations before taking possession of the goods.
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Documents Against Payment. Payment shall be effected in accordance with the Uniform Rules for Collections (1995 revision, International Chamber of Commerce Publication No. 522) by the collection of a documentary sight draft (the “Sight Draft”), a form of which is attached hereto as Exhibit 5, drawn by the Seller on the Buyer. Immediately following the clearance of US Customs in the United States, Seller shall deliver to its bank (the “Sellers Bank” or the “Remitting Bank”) (i) the completed Sight Draft and letter of instructions, (ii) an invoice, (iii) the ▇▇▇▇ of lading endorsed by the Seller, (iv) the insurance certificate, and (v) such other documents as are required by Buyer in order to clear customs at the Point of Delivery. Seller’s Bank will remit the Sight Draft and supporting documents to the Buyer’s bank (“Buyer’s Bank”) for payment by Buyer with instructions that the supporting documents may only be provided to Buyer upon the payment by Buyer of the Sight Draft by wire transfer in accordance with the wire transfer instructions set forth in Exhibit 6.