Does Draft to be Accepted by Drawee under Usnace DP

cdcs2011 · Post by **cdcs2011** » Mon Oct 01, 2012 4:26 pm

FOR D/P TENOR BILL, DOES A DRAFT IS REQUIRED AND TO BE ACCEPTED BY DRAWEE?
IF IT IS ACCEPTED BY DRAWEE, CAN THE DRAWEE GET THE DOCUMENTS BY ACCEPTANCE THE DRAFT?

senaka · Post by **senaka** » Tue Oct 02, 2012 6:19 pm

Drafts are not required under a deferred payment credit, only a deferred payment undertaking from the Nominated bank/Issuing bank & the applicant respectively.
Senaka.

senaka · Post by **senaka** » Tue Oct 02, 2012 6:33 pm

Second thoughts if the question raised under documentary collections, There is no term of payment called Usance DP. Either it must be DP-Documents against Payment or D/A Documents against acceptance.
Senaka.

picant · Post by **picant** » Wed Oct 03, 2012 8:38 pm

Hi Pal,

D/p is payable at sight. It exists a request from banks of some Countries for acceptance of a usancedraft and delivery of the documents only on payment.
This conforts exporters as documents were at buyers bank before the arrival of goods and D/P is based on the arrival of documents and not of the goods at destination.
Other comments appreciated
Ciao

aemrek · Post by **aemrek** » Tue Oct 09, 2012 12:14 am

Agreed with Senaka`s first comment