Necessity of Draft in a DA Document

[Tareq]

When we need not take Bill Stamp in a DA Document ? When bill of Exchange is mandatory in a DA document? Is there any reference where necessity of Bill of Exchange in a contract document (DA/DP) articulated? Can it possible to use the word "Deffered" in a contract document?

[picant]

Hi Pal,

bill of exchange is, normally, an official undertaking by the drawee, if unpaid at maturity may be protested or noted.
If this is valid in domestic trade, in international trade this "title" looses its power.
So, to avoid unnecessary stamp duty, traders invented ILE (irrevocable letter of engagement) or IWU(irrevocable written undertaking) signed by buyer on receipt of documents at its own bank. In case of non payment at maturity, as bill of exchange, you need a good lawyer to sue the buyer and try to obtain the sum you owe.
Other comments appreciated
Ciao

[LLawrence]

Bill of exchange a financial doc that you can use to sue importer if he won't make the payment.
It is used mainly for D/A as for D/P importer have to make the payment anyway prior getting the docs. D/A also gives a chance to importer to make the payment in e.g. 30+ days. However, while the product is 'collection' - the payment is never guaranteed.