It's the first time that our company will import goods from China  and Japan.From China we will pay L\C at sight and from Japan by T.T. WE would like to know the process of each payment and the advantages\disadvantages if anyboby knows(especially what time we must pay).Also we want to know what ASAP means?(except as soon as possible) Thank you very much.

T/T just means that you transfer the funds according to the agreement. This usually means paying some percentage before production and the rest before/at time of shipment.


You can ask to pay the second and larger sum when you see a copy of the Bill of Lading..so you know that merchandise has been loaded. Then the supplier can send the B/L or make an express release after receiving proof of the T/T.


L/C at sight means that the documents (including the B/L) must arrive at your bank before the bank p the money on to the supplier. So payment is usually a week or two later than the T/T method. An L/C can be opened with credit (deferred payment..to be paid after 30, 60 days or more). SInce it is an L/C the supplier knows he will get his money and may be willing to give credit...(But i think this is rare in the far east).

Thank you very much for your answer.I want to ask you something else if you know... We have agree about T.T. payment with our supplier but he has already start the production but he didnt ask to us money, so we have to pay all the money when he send us the papers?Thank you again!

Quoting from [sam dik]:


Thank you very much for your answer.I want to ask you something else if you know... We have agree about T.T. payment with our supplier but he has already start the production but he didnt ask to us money, so we have to pay all the money when he send us the papers?Thank you again!

Actually you will be required to pay before the supplier ships.  It called payment against a copy of the Bill of Lading.  The document needed for you to take ownership of the goods at the port of import.

Ranger