A buyer recently proposed that the seller be paid after the goods were shipped arrived at the buyer's port and inspected by the buyer.  What protection is there for the seller in this case?

Quoting from [Trini]:


A buyer recently proposed that the seller be paid after the goods were shipped arrived at the buyer's port and inspected by the buyer.  What protection is there for the seller in this case?

      Obviously !  No protection  at all  !!

      You did not  mention  by what instrument  the payment is ? 

      In  One conditional :  IRREVOCABLE , L/C  usance  or  certain days  after arrival  goods.

      it is still  got 50 : 50 chance.  (speculation). not  recommended.

     

      In context of protection ( safe payment) :

      1. Ask buyer to  provide a bank guaranty  in value of the merchandising invoice. 

          But  seller must ask and give a clear in details of  goods-specification,  what are exactly

          buyer want/request to get (goods) and  seller  really  meet with the specification. 

          Unless,  only endless dispute  and a long way stagnation of suspended payment there!

      2. Instead of above choice,  better  to ask buyer to do a pre-shipment inspection at seller

           place  rather than at  destinayion buyer place. this also can be authorized to Inspection

          agent  (SGS  etc). to inspect the goods in quantity and quality before shipment.

          and  ask the payment  by  Irrevocable L/C  or BG  either one.

    

      That is if  via  Bank  Institution, 

      If  others  (Escrow/ Pay Pal / TT /  etc) =  me , No comment ....have a nice day  Triini

         

Quoting from [Trini]:


A buyer recently proposed that the seller be paid after the goods were shipped arrived at the buyer's port and inspected by the buyer.  What protection is there for the seller in this case?

Trini, since you don't know the seller maybe you should ask them for a Standby letter of Credit, if they dont want to pay until the product is inspected. 

You could also do the following:

Ship the goods and consigned to a bonded warehouse for inspection.  Which means the buyer can come and inspect the goods but can not remove them from the premises until such time they have T/T you the funds.  Asside from this the buyer needs to issue you a Standby letter of credit for an amount = to your shippment costs both to their Port of Entry and back to your Port of Loading + storage at the bonded warehouse + 7% - 10% of the total amount of the Pro Forma Invoice.   This allows them to actually aquire a much smaller SBLC than that of the whole amount.  But it assures you of the costs to return your goods to you plus damages that could be incurred by their inspection.

You could also do as Oneuni said by asking them for an Irrevocable, confirmed, L/C by ussance say 90 days.  Under UCP 600 all L/C's are considered Irrevocable unless the credit actually states "Revocable".  The confirmation adds some security to the deal for you because the confirming bank then becomes the guarantee on the L/C. 

But, as there can be pitfalls in any form of payment if you don't understand how they work or how they can be manipulated it would be best if you sought advice from a Documentary Credit Specialist in your own country.   Only someone that you allow to have exact details to the deal can help you.  Otherwise, everything said here is speculative upon the information you provide.

Best regards,

Ranger

Quoting from [Trini]:

A buyer recently proposed that the seller be paid after the goods were shipped arrived at the buyer's port and inspected by the buyer.  What protection is there for the seller in this case?

       To : Mr Ranger,

       Perfect ...excatly 

       Speculative  subject  ....

Quoting from [Trini]:


A buyer recently proposed that the seller be paid after the goods were shipped arrived at the buyer's port and inspected by the buyer.  What protection is there for the seller in this case?

     My dear Mr Catalyst, 

     Please ... Trini will  get  " grogy " ( ...Minder strasse).

     Well,  Trini Mr Catalyst was right too,  nothing is perfect and exact on the earth. Only God.

     1. If your buyer do not mind, use Usance LC  with  "X" days.

     2. If both are doubt than to minimize the unnecessary "cost" and loss, do as Mr Ranger's

         said :  Stand by L/'C and the Bounded area ( Zone exclusive) warehouse. for it.

     And  the  other stage ( pre-qualification) before dealing is :  APPROVAL SAMPLE !

    Do not go further stage with Payment/Shipment, Unless the  Sample (object) of merchandise

    had been approved/accepted by both of Buyer/Seller.

    The only way to  bright up the cloud  in the Sky of it  is :  The sample of product.

    With this approval sample by both:  Then the details of specification that will be transacted or

    TRADE could be write down clearly as well in the L/C as a part (clausula) in it.

    that the way,  make it simple and clear from early stage, do not make a puzzle.

    Cheers  and  Chaao

    

  

   

Frankly there is no certainity for such a transaction unless you know the buyer.