Documents against acceptance, or D/A, releases documents after the importer accepts a time draft promising payment on a future date. The accepted draft creates a payment obligation due at maturity, while the importer receives the documents before cash is paid.
How is Documents Against Acceptance (D/A) used?
The exporter ships the goods and sends the collection documents and a time draft through its bank. The collecting bank releases the documents when the importer accepts the draft, creating a promise to pay at maturity. The importer can obtain the documents before cash payment, so the exporter remains exposed until the accepted draft is actually paid.
What the file should show
Keep the time draft, acceptance, maturity date, released documents, collection messages and final payment or protest evidence.
What does Documents Against Acceptance (D/A) not establish?
D/A exposes the exporter to importer credit risk after document release. Acceptance is not the same as bank-guaranteed payment.
