Short answer: Typical terms are T/T with a deposit and balance before or against documents, or L/C at sight for larger and first-time orders; shipments are quoted FOB, CFR, CIF or DAP.
Payment methods
- T/T (telegraphic transfer): the most common arrangement — a deposit to start production, with the balance paid before loading or against scanned shipping documents.
- L/C at sight: used for larger orders, new trading relationships, or where your internal rules require bank security. Usance L/C terms can be arranged for established customers.
Incoterms in practice
- FOB: you control the ocean freight and insurance; you need a forwarder at the load port.
- CFR / CIF: the supplier arranges freight (and insurance under CIF) to your discharge port.
- DAP: delivered to a named place in your country, with import clearance and duties still on you.
What to confirm in writing
The Incoterm and named port or place, the currency, bank charges allocation, document set, price validity, and whether the price includes pallets and export packing. Comparing two offers on different Incoterms is a common source of error — see how to normalise quotes before you award an order.