When an importer receives title to the goods shipped by the exporter only upon the importers payment for those goods,the transaction is referred to as:

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The transaction described is known as documents against payment (D/P) or cash against documents (CAD). The exporter sends shipping documents (such as the bill of lading and commercial invoice) to the importer's bank, which will only release them to the importer once they have made payment for the goods. This provides security for the exporter and ensures that the importer is committed to paying for the goods before receiving them.

When an Importer Receives Title to the Goods Shipped by the Exporter