Documentary collection

A method of payment under which the shipping documents relating to a particular cargo are released to the importer on payment (documents against payment D/) or acceptance (documents against acceptance D/A) of a documentary draft drawn on him by the…

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Documentary credit

Documentary credit means the same thing than “letter of credit”. Traders and bankers in some parts of the world (US, Asia) tend to use the term “letter of credit” or the abbreviation “L/C”, while some bankers (in Europe) prefer to…

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Documentary instructions

The formal list and description of documents (primarily shipping documents) a buyer requires of the seller, especially in a documentary letter of credit.

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Documents against acceptance (D/A)

Collection terms of payment that require the drawee to accept a draft or drafts drawn for future maturity at the presenting bank prior to receiving the accompanying documents. Typically, such collections include a document that restricts possession or ownership, thereby…

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Documents against payment (D/P)

Collection terms of payment that require the drawee to pay a draft prior to receiving the accompanying documents. Typically, such collections include a document that restricts possession or ownership, thereby forcing the drawee to honour the draft in order to…

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