Write short notes on Documents against Acceptance and Certificate of Origin.
Documents against Acceptance:
Along with bill of exchange drawn on the importer, exporter sends certain documents with specific information or instructions that documents will be handed over to the importer after he accepts the bill of exchange or pays it. If documents are to be released against acceptance of the bill, the arrangement is called documents against acceptance.
It is also written as D/A. Under D/A, the importer has to pay the bill of exchange on the due date in order to close the transaction. It involves some time because exporter waits for the payment till the bill is finally paid for. In other words, D/A is a method of receiving payment from importer whereby the documents are released to the importer on acceptance of a bill of exchange.
Certificate of Origin:
It is a document showing place of origin sent to the importer in order to enable him to take advantage of preferential treatment as regards customs duties. Certificate of origin is one among many shipping documents that is forwarded to importer’s bank by the exporter’s bank along with the bill of exchange. To get these documents back, the importer has to pay the bill of exchange or accept it and fulfill all the formalities required to get the goods cleared from customs authorities.