In foreign trade, the documentary remittance is a type of payment where:
- The payment occurs in the place where the buyer is located.
- The seller gives the documentary remittance.
- The bank has no obligation to certify the legal validity of the documents.
- The seller has to pay for all the costs unless otherwise mentioned in the contract.
For the buyer: Payment is made only upon delivery of goods by the seller and presentation of the required documents in the bank.
For the seller: Forwarding documents are made available to the buyer only after the payment has been effected.