EXPORT PAYMENT

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This query is : Resolved

sakthees (Querist)

29 July 2026 Dear Sir,
We have received a purchase order from M/s. XXX Ltd. for USD 22,000. Against this proforma invoice, we have received an advance payment of USD 10,000. However, the remittance was received from an individual instead of M/s. XXX Ltd.
We approached our bank for guidance, and they advised that the following documents should clearly mention the buyer's company name and the relationship between the remitter and the buyer:
Commercial Invoice
Bill of Lading
Shipping Bill
A declaration explaining the relationship between the remitter (individual) and M/s. XXX Ltd.
In this situation, could you please advise whether any additional documents should be obtained from the customer before we proceed with the shipment? For example, would it be advisable to obtain:
A letter from M/s. XXX Ltd. confirming that the advance payment made by the individual was on their behalf.
A declaration or authorization from the individual confirming the payment was made on behalf of M/s. XXX Ltd.
Any other supporting documents required for banking or export compliance.
Kindly advise the complete documentation required to avoid any issues during export documentation, bank negotiation, or realization of export proceeds.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

04 November 2026 To resolve this safely, obtain a tripartite understanding/letters—specifically, an authorization letter from the individual remitter and a confirmation letter from M/s. XXX Ltd.—stating that the payment is made on the buyer's behalf. Ensure all export documents (Invoice and Shipping Bill) consistently name M/s. XXX Ltd. as the buyer.

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