Before authorizing shipment, a buyer should confirm the agreed payment method, the event that triggers final payment, and whether payment must be received before the goods are shipped. The cited guide confirms that cash-in-advance payment is received before shipment. For a letter of credit, it says payment is made to the beneficiary (exporter) provided that the terms and conditions stated in the letter have been met; it does not establish that this payment must occur before shipment.
How to check the payment arrangement
| Payment arrangement | What the cited guide confirms | What the buyer should confirm before shipment |
|---|---|---|
| Cash in advance | Payment is received before the goods are shipped. | The written terms clearly provide for payment before shipment, and there is confirmation that payment has been received. |
| Letter of credit | Payment is made to the beneficiary (exporter) when the terms and conditions stated in the letter have been met. | Each stated condition has been identified and satisfied. Shipment itself should not be treated as proof that those conditions are met. |
For cash in advance, the buyer should check the payment status rather than rely only on an intention or schedule to pay. For a letter of credit, the buyer should review the letter itself and turn its stated terms and conditions into a transaction-specific checklist. Any unclear condition should be resolved in writing before shipment.
The written quote, payment instructions, and letter-of-credit terms should also be compared for consistency. If their wording differs, the buyer should request clarification rather than assume that a general description of the payment arrangement settles the final obligation.
What still requires transaction-specific confirmation
The cited material does not specify a payment amount or currency, fees, deadlines, refund or cancellation terms, a required document list, or a shipment schedule. It also does not reproduce the conditions contained in any particular letter of credit. Those details cannot be verified from the cited guide and must be confirmed through the written terms applicable to the transaction.
The two payment arrangements described are not presented as an exhaustive list or a recommendation. The buyer therefore needs to confirm which arrangement actually applies and exactly when payment becomes due or is released.