Question

A. T
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Which everne have the puso
Khaь:
85 Differentiate between demeruatil
• and non demanatic aocument​

Answer 1

Answer:

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• DA in payment term of international trade means, Documents against Acceptance. DP in payment term of imports and exports means Documents against Payments.  How to distinguish between Documents against Acceptance and Documents against Payment in Exports and Imports?

•   Both DA and DP are the terms of payment related to acceptance of shipping documents pertaining to each consignment from buyer’s bank. Under a DA terms of payment, importer accepts documents on the basis of an assurance to effect payment by accepting necessary bill of exchange. The importer collects shipping documents required to take delivery of imported goods from his bank after such assurance on payment at mutually agreed maturity date of payment.

• In a DP payment terms, the imported need to effect payment against respective import consignment, before collecting documents for delivery of imported goods.

• I have written a couple of articles in detail about Documents against Acceptance and Documents against Payment. You may kindly go through the same also to have a clear idea on this subject of DA and DP with their difference.

• I hope, I could satisfy you on this subject about difference between Documents against Acceptance – DA and Documents against Payment – DP.