Q.Write short notes on : (Compulsory)

D/P releases documents only on payment; D/A releases them on acceptance of the bill, with payment made later.

In the Tamil Nadu HSC Class-11 Commerce syllabus, export procedure includes how documents of title are released to the importer through the banks.

(i) Document against Payment (D/P):

• The exporter draws a bill of exchange (a sight bill) and sends the shipping documents through his bank to the importer's bank.
• The importer's bank delivers the documents to the importer only after the importer pays the amount of the bill.
• Thus the importer cannot take delivery of the goods until payment is made — payment first, documents afterwards. It gives more security to the exporter.

(ii) Document against Acceptance (D/A):

• The exporter draws a usance (time) bill payable on a future date and sends the documents through the bank. …