D/A Term

Using D/A term, the exporter gives a grant of deferred payment to the importer. If the exporter is assured of the importer’s integrity, he may grant him a credit facility. The process for D/A up to arrival of the documents at the reimbursing bank in the importer’ country is the same as that of D/P. After the reimbursing bank notifies the importer on the arrival of the documents, the importer checks the documents and agrees on payment (promise to pay at the later date), then the bank hands over the document to the importer.