Documents Against Payment definition
Documents Against Payment means that the exporter issues a commercial bill to the importer, through the remitting bank, and asks the importer to make payment via the collecting bank in the importing country. After making payment at the collecting bank in favor of the importer, the importer can obtain the shipping documents for arranging to take the goods from customs. In this regard, both parties can experience low risks. But in fact, exporters will experience more risks because importers may probably abandon the shipped goods and won’t go to make payment.
Examples of Documents Against Payment in a sentence
The payment will be in US Dollars and made by SWIFT transfer in DAP-procedure (Documents Against Payment.