Against the backdrop of a slowdown in global economic growth and a continuous weakening of external demand,many export enterprises are facing unprecedented challenges.Among them,D/P (Documents against Payment,i.e.payment before documents),a settlement method traditionally regarded as relatively safe,has also exposed its potential risks.

Risk Background and Cases

A certain chemical export enterprise A in Hubei,whose main markets are in South America,Egypt,Pakistan,etc.Affected by the price fluctuations of raw materials in the chemical industry,in the second half of last year,some buyers put forward various requests after the goods were shipped,such as changing the payment method,returning the goods,and reducing the price.Facing these sudden risks,the enterprise promptly reported to Sinosure and established a special risk disposal team with Sinosure to formulate a targeted risk disposal plan.

Risk Disposal Measures

Suspend shipments to risky areas to ensure that previous risks are properly handled.

For buyers who are willing to take delivery of goods but have temporary financial difficulties,after analysis,agree to release the documents on the premise that the original buyer bears the demurrage charges.

For buyers who want to take delivery of goods but cannot obtain the bill of lading due to logistics,bank,etc.assist in handling the goods.

For buyers who request a price reduction,after several rounds of communication,reach a price - reduction plan satisfactory to both parties and release the documents.

Enlightenment from the Cases

Do not ignore the settlement risks of D/P: In the current global economic situation,even the seemingly safe D/P settlement method may become ineffective.

Attach importance to special customs policies: For countries with strict return requirements,such as Egypt,India,Pakistan,and Turkey,export enterprises need to communicate with buyers in advance and reach a consensus.

Clarify the buyers intention: Before shipping,confirm the buyers intention to receive the goods again and keep communication evidence.

Make full use of export credit insurance: When the D/P settlement method cannot be carried out,the settlement method can be changed,and the credit insurance company will bear the risk.

Overall,facing the increasingly complexenvironment,export enterprises should prepare in advance,establish a risk early - warning mechanism and response strategies to ensure that they can respond quickly and effectively when risks occur,minimizing losses.