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09 March, 2022

D/P Bills & D/A Bills

 A document against payment bills (D/P bills) is an arrangement under which an exporter instructs the presenting bank to hand over shipping and title documents (see document of title) to the importer only if the importer fully pays the accompanying bill of exchange or draft. Also called cash against documents.

A document against acceptance bills (D/A bills) is an arrangement in which an exporter instructs a bank to hand over shipping and title documents (see document of title) to an importer only if the importer accepts the accompanying bill of exchange or draft by signing it.