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To Tekle: If D/P feasible in this situation?
Post 1 of 4
marcharies
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Morning,everyone!

We are in garment trade,One customer from India would like to purchase our stock shirts,he asked us to ship goods for Dubai port,and accept D/P as payment terms.I advise L/C,he don't agree with,the reason he given is that -----"l/c i can do but inspection in dubai ?bcos quality we hv to chek.i told u china quality maybe gud in samples but in 10000pcs quality may be not good.so we hv to chek at least 200pcs in random boxes.if D/P,need not chek,only one box chek in dubai port".

Is that has anything to do with different payment terms?

He assured me the commercial bank of Dubai is trustwothy.And another fact is that he is not buyer,but middleman who get commssion 3 to 5%.

I studied some cases about risks of D/P,either the buyer get docments from the buyer's bank without pay,or the buyer don't take goods in time.

So, Can someboby here give me some advices? Thanks in advance.

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20 Jan 2008 18:14
Post 2 of 4
Replying to [marcharies]: If you dont know them I would never accept this form of payment. They can get a satisfactory inspection in China. The problem is they dont want to pay for it and the second thing is if they don't accept your quality your shippment is held hostage because they could refuse to pay, forcing you to sell to another buyer or pay for return shipping. Besides this the method of payment has nothing to do with AQL's. Why would they only check one box? It doesnt make any sense.

One option to this may be for them to sign a contract with your company enforceable in India which requires that shipment is to be inspected by a professional auditor service of your choosing in the event that they refuse payment due to quality. Also require them to put up a performance bond to cover the cost of the professional inspection and return shipping to your buisness in the event that they refuse to pay.

Best regards,

Ranger
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Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos... More

22 Jan 2008 09:03
Post 3 of 4
marcharies
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Overall Ranking MVP:95 Rank:55,514
Replying to [Ranger]:Thank you,Ranger,thank you for your valuable advice.I know what's next now.[em1]
23 Jan 2008 17:20
Post 4 of 4
Replying to [marcharies]: Glad I could help[em15]

Ranger
SIGNATURE:
About Our Company

Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos... More

23 Jan 2008 18:00
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