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There are a number of different payment methods that can be
used when you deal with us. Three mostly used are T/T payment
in advance and L/C.
T/T means telegraphic transfer, or simply wire transfer. It's
the simplest and easiest payment method to use.
T/T payment in advance is usually used when the sample and
small quantity shipments are transported by air. The reason
why is that the documents like air waybill, commercial invoice
and packing list will be sent to you along with the shipment
by the same plane. As soon as the shipment arrives, you can
clear the customs and pick up the goods with the documents.
As it's acknowledged, T/T payment in advance presents risk
to the importer if the supplier is not an honest one.
For us, T/T advance payment is required for some high-value
samples (see our samples ordering
policy) and small quantity
order shipped by air.
It takes 3-4 days for us to received the wire transfer made
from anywhere in the world.
An irrevocable Letter of Credit is also an often used payment
method. It is often referred to an L/C. Letters of Credit
are formal payment methods that offer a lot of protection
to the parties.
Simply put, a letter of credit is a letter written by the
importer's bank to the exporter. It verifies that the payment
will be guaranteed when the bank is presented with the concrete
documents (bill of lading, and freight documents). Most letters
of credit are "irrevocable" once the importer has had them
sent.
A letter of credit usually includes applicant (you, the importer),
beneficiary (our I/E agent), opening bank, negotiating bank,
specification and quantity of the goods, amount of money,
loading port and destination port, shipment date, the validity
date of the L/C, terms and conditions agreed by both the importer
and seller, and the documents required by the importers (bill
of lading, commercial invoice, packing list, insurance certificate,
etc.)
The L/C payment procedure is usually as follows:
a. You (the importer) applies to open the L/C to us (the seller)
through a bank who can open the L/C in your country.
b. The opening bank will inform The Bank of China that the
L/C has been opened.
c. The Bank of China will inform us that the L/C has been
established.
d. We'll check all the terms and conditions listed in the
L/C. If all terms and conditions are acceptable, we'll arrange
the shipment within the time specified in the L/C.
e. After the goods are loaded onto the ship without any damage,
the captain will issue the clean bill of lading to us.
f. We will submit the clean bill of lading and other relevant
documents to The Bank of China to gather the payment. Only
with clean bill of lading can you claim the ownership of the
goods.
g. The Bank of China will send the clean bill of lading and
relevant documents to your bank (the opening bank).
h. The opening bank will inform you that all documents are
received.
i. You will go to the bank to make the payment to get the
clean bill of lading and relevan documents.
j. With all of these documents, you can clear the import Customs
and pick up the goods after the goods arrive on the destination
sea port.
L/C is used for the larger quantity order shipped by sea.
The typical L/C scenario takes 14-21 days to complete.
There is no payment method that is perfectly safe to both
the importer and supplier at the same time. But, we still
have got to do business, right? So, we hold it's crucial to
develop a long-term relationship with our customers based
on mutual trust.
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