Please be honest in your answers as it will have an affect on new topics to be covered in this forum.

Quoting from [Ranger]:


Please be honest in your answers as it will have an affect on new topics to be covered in this forum.

      many of us confusing with : Incoterm and payment terms

      Only know :   t/t  or by L/c

      and in terms :  fob , c&f and cif . 

      other than that is Apple and Orange

      e.g :  D/P will be as down payment 

               D/A  is  document against

     

     

Quoting from [Oneuni]:

Quoting from [Ranger]:



Please be honest in your answers as it will have an affect on new topics to be covered in this forum.

      many of us confusing with : Incoterm and payment terms


      Only know :   t/t  or by L/c


      and in terms :  fob , c&f and cif . 


      other than that is Apple and Orange


      e.g :  D/P will be as down payment 


               D/A  is  document against 

As always in the past, Oneuni has come up with interesting questions that are always a pleasure to respond to. 

"Payment terms" relate to the various ways the buyer and the seller use to settle their dues. When a seller sells goods (or services), he expects to get paid (or compensated). The payment can be in cash or in kind (as in barter trade where one type of goods is exchanged for another; no payment of cash takes place).

In all our discussions we are concerned with how and when this transfer of "cash" from the buyer to the seller takes place. (Do note that by the term "cash" we also mean transfer from one bank account to another, payment by cheque, bank draft etc.; the term includes all modes of payment.) Mor ethan "how", the issue us "when", i.e. before the buyer gets the goods, or after - and so on.

INCOTERMS has nothing to do with payment terms described above. These terms include those we generally know about e.g. C&F, FOB, CIF etc. These are related to shipment, delivery and the passing or risk on the goods from the seller to the buyer.

"Payment terms" relate to thevarious ways the buyer and the seller use to settle their dues. When a seller sells goods (or services), he expects to get paid (or compensated).The payment can be in cash or in kind (as in barter trade where one type of goods is exchanged for another; no payment of cash takes place).

In all our discussions we are concerned with how and when this transfer of "cash" from the buyer to the seller takes place.  More than "how", the issue us "when", i.e. before the buyer gets the goods, or after - and so on.

INCOTERMS has nothing to do with payment terms described above. These terms include those we generally know about e.g. C&F, FOB, CIF etc. These are related to shipment, delivery and the passing or risk on the goods from the seller to the buyer.

Mr Catalyst .... you hit the target ...

Exactly : Payment vs Incoterms in export - import

- In most of transaction and negotiation correspondcnce

The traders either Buyers or Sellers , use incoterms fob , c&f & cif

so the Inquiry, the Profroma Invoice/quotation, The Invoice are under these

thus they paid (the prices) by these terms ....by the habits

Actually is What they paid

- Whilst payment-method here (as above explain) is the settlement for both

It is about How they pay and be paid. and When it will be paid.