What Is a Documentary Bill?

A documentary bill is a bill of exchange accompanied by a full set of shipping documents. It is a type of commercial bill of exchange that serves two purposes: (1) It is the credit certificate of a related party. (2) is a proof of property rights. Both current documentary drafts and payment and presentation under collection (D / P) documentary drafts are based on payment as a condition for transfer of property rights. Forward documentary drafts and acceptances under delivery (D / A) ), The documentary draft is subject to the acceptance of the payer as a condition for the transfer of property rights. In contemporary international trade settlement, documentary drafts are generally used as credit instruments and payment vouchers for international settlement. ^[1]

Documentary draft

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A documentary bill is a bill of exchange accompanied by a full set of shipping documents. It is a type of commercial bill of exchange that serves two purposes: (1) It is the credit certificate of a related party. (2) is a proof of property rights. Both current documentary drafts and payment and presentation under collection (D / P) documentary drafts are based on payment as the transfer of property rights. ), The documentary draft is subject to the acceptance of the payer as a condition for the transfer of property rights. In contemporary international trade settlement, documentary drafts are generally used as credit instruments and payment vouchers for international settlement. ^[1]

Documentary drafts, also known as credit drafts and bills of exchange, need to be attached

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Payment against Documentary Draft A common payment method in the collection business. After the exporter loads the goods, the importer pays the bill of exchange and the freight document forwarded by the bank. The collection methods can be divided into two types according to the conditions of delivery of the bill of exchange and freight documents to the importer: (1) payment presentation, which means that the exporter entrusts the bank to collect the freight order only if the importer pays the purchase price in advance The certificate is handed over to the importer, usually marked "D / P" on the bill; (2) Acceptance and presentation, which means that after the importer accepts the bill of exchange, the receiving bank can deliver the freight document to the importer, and import The merchant shall pay the payment when the bill of exchange is due. See "Document Collection", "Payment Delivery" and "Acceptance Document". Method of Delivery of Documents Method, see "Document Collection Method".

Method of Releasing Documents [also known as documentary collection conditions. See "Documentary Conditions for Documentary Collection".

Documents against Payment (D / P)] The collection method in which the importer only pays the documents after the payment is made by the importer. The documents used in documentary collection usually include the document of title. It is further divided into: (1) spot payment presentation, that is, the importer obtains the document after sight of the payment; (2) forward payment presentation, that is, the importer obtains the document after paying the payment when the bill is due. If When the goods arrive first and the payment date does not arrive, the importer can pay the redemption note in advance, or issue a trust receipt to the collection bank to advance the debit document and guarantee the payment on time. However, in some Latin American countries, the practice of forward payment delivery is not recognized. , But treat all forward payment documents as acceptance documents.