1. PRESENTATION ON INTERNATIONAL TRADE PAYMENT PROCESSES-OPEN ACCOUNT

2. OUTLINE Introduction Post payment Documents required- post payment
Advance Payment
Documents required – Advance
Reconciliation

3. INTRODUCTION INTERNATIONAL TRADE PRODUCTS
Mandate
Involved in facilitating payment for goods and/or services between importers and exporters through authenticated request from either an importer or a bank to facilitate such payments.
Methods/ Modes of Payment
Post payment
Advance Payments

4. Post Payment Trade Definition
Post payment aka Open account is an arrangement between the buyer and the Seller whereby the buyer will pay the Seller after the Buyer received the goods, e.g. 30 -, , etc. days from shipment date depending on the agreement between the Importer and Exporter.
When to use Open Account Trade:
Strong & long outstanding relationship between buyer and seller
Buyer must be financially sound
Country risk of buyer’s country must be minimal
Seller must be able to provide credit to the buyer

5. DOCUMENTS REQUIRED FOR PAYMENT
Original commercial invoice duly stamped by MRA.
Original Customs & Excise Declaration( form 12) duly stamped and authenticated by MRA.
Original Bill of lading, RCN or Airway Bill duly stamped by MRA.
Certificate of origin duly stamped by MRA.
Authenticated letter of authority to debit customers account

6. Advance Payments
AKA prepayment is an arrangement whereby the Buyer pays the Seller before the goods/services have been shipped/performed or before the goods have been manufactured.
When to use Prepayment Trade:
After acquiring full information of the seller and are assured that they are not fraudsters
Seller requires some deposit before manufacture

7. DOCUMENTS REQUIRED FOR PAYMENT
Proforma invoice or contract between seller and buyer
Vat Free
Has advance payment term
Full address of the Seller and buyer
Banking details of supplier
Form E (Imports only).
Authenticated letter of authority to debit an account

8. RECONCILIATION ON PREPAYMENT
Submission of customs cleared documents (stamped by MRA) upon receipt and clearance of goods as per Exchange Control compliance requirements.
Release Order
Form 12
Commercial Invoice
Transport Document
Failure to reconcile after 90 days results in suspension of customer account on Prepayments.

11. Thank you for your attention
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