Exporting & Importing Goods/CAD


Dear sir,
please confirm full meaning of cad because still we have not getting right ans.

Richa Rawat

CAD stands for "Cash Against Delivery."
There are pro and cons to this method of payment.
You can find a great explanation here: http://www.tradeindia.com/communities/6/3129/Payment-Modes-Finance-Issues/Cash-A

I have posted their explanation below.

Advantages to the seller:

(a) Goods are in his effective (note the word 'effective') possession till drawee/buyer/importer pays for them;

(b) Since the bills are on D/P basis, no time is wasted. The bills are presented to the buyer at the first opportunity. The seller comes to know very early whether the drawee would pay or not. Warning signs, if at all they are to come, appear very early on his radar.

(c) The seller has a very experienced, reliable and professional banking system to work for him, acting on his precise instructions. Changes or deviations must have his prior approval.

(d) There are a clear and a definite set of rules (URC 522) to guide the collection process, and the expertise of the ICC to back it up. The entire transaction remains transparent to all parties concerned.

Disadvantages to the seller:

(a) There is no guarantee that the buyer will take delivery of the consignment. No agreement or contract can force a buyer to accept the consignment.

(b) If buyer wishes to play truant and delays taking delivery, it may lead to demurrages and other incidental costs, compromising seller’s bargaining power.

(c) Legal remedy for breach of contract can be long and a costly process.

(d) In case of failure of the buyer, the seller would either have to pay the cost of carriage for return of the goods, or find an alternate buyer at the same or a new destination – leading to additional costs.

Disadvantages to the buyer:

(a) Unless he has paid for the goods, he is unable to take possession and satisfy himself as to the correctness in terms of quality and quantity.

(b) Once payment has been made, he cannot reclaim the funds. Refund is possible only with the consent of the seller.

I hope that this helps to answer your question.

Exporting & Importing Goods

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Ruth Ross


I am a US based importing/product sourcing agent. I assist companies with product sourcing, manufacturing, logistics and distribution. My area of specialty is importing to the US from China, Pakistan and other countries. I also help foreign companies with distribution services through our warehouse so that they can easily do business in the US through internet websites and selling platforms such as eBay and Amazon. We handle order fulfillment and warehousing to make shipping to US customers fast and cost effective for overseas companies. With the help of our pick and pack services, companies never have to step foot on US soil to do business here.


I have become an expert in this field by my hands on involvement in operating an internet based company which is involved in foreign trade. I have handled my own product sourcing, importing, logistics, and order fulfillment so now I can answer your questions and use my skills to assist you to do business in the United States and Canada.

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