What Is Documents Against Acceptance (DA)?

Under DA, the exporter ships the goods and sends the documents and a time bill of exchange to the buyer through banks. The bill says the amount is payable after a set period, for example 60 days after sight. The collecting bank gives the buyer the documents once the buyer signs the bill as accepted. That signature is a written promise to pay on the due date. The buyer can then clear the goods and sell them before paying. The exporter therefore depends on the buyer's honesty and finances, because the bank does not guarantee payment unless it separately adds an aval or guarantee.

For example, a Jaipur handicraft exporter ships goods worth USD 15,000 to a shop in Germany on 60 days DA terms. The German bank gives the shop the documents after the shop accepts the bill. The shop pays USD 15,000 when the 60 days end.

• Credit risk: The buyer holds the goods before paying. If the buyer does not pay at maturity, the exporter has only the accepted bill and the contract to rely on.
• FEMA realisation: The credit period counts against the time allowed for realisation. Regulation 5 of the 2026 FEMA export regulations sets the overall period, so choose a credit term that fits inside it.
• Financing: An accepted bill can sometimes be discounted by a bank, which gives the exporter money earlier. See export factoring and bill discounting.
• Insurance: Because the risk is higher, exporters often look at export credit insurance. See ECGC policies for exporters.

A DA collection gives documents to the buyer on acceptance of a time bill and collects the money later. The sequence follows a DP collection until the buyer receives the documents.

1. The exporter and buyer agree DA terms and the credit period in the contract.
2. The exporter ships the goods and draws a usance bill of exchange on the buyer.
3. The exporter lodges the bill and documents with the AD bank with a collection instruction.
4. The collecting bank abroad presents the bill, and the buyer signs it as accepted.
5. The collecting bank gives the buyer the documents and keeps the accepted bill.
6. At maturity the buyer pays, the foreign bank remits, and the AD bank credits the exporter.

You offer DA terms in the contract or proforma invoice, naming the credit period and the due date basis, and then lodge a usance bill with your bank. Agree the terms before shipment, because they cannot easily be changed later.

1. Write 'documents against acceptance' and the number of days in the contract, for example 60 days from bill of lading date.
2. Assess the buyer's payment record and the country risk, and consider credit insurance.
3. Fix the due date basis (from sight or from shipment date) so both sides read the bill the same way.
4. Draw the usance bill of exchange and prepare the invoice, transport document and packing list.
5. Lodge everything with your AD bank, with instructions on protest, charges and what happens on non-payment.
6. Track maturity, remind the buyer and keep the AD bank informed of any delay.

DA releases documents on acceptance and the buyer pays later. DP releases documents only on payment. DA suits trusted buyers who need credit time, and DP suits exporters who want to hold the documents until money is paid.

• Payment guaranteed: Acceptance is the buyer's promise, not a bank's. A bank only guarantees a bill if it adds its own guarantee.
• Same as DP: DP and DA differ on when the buyer gets the documents. See what DP is.
• Same as LC: A letter of credit includes a bank's undertaking and DA does not. See what a letter of credit is.
• Credit time is free: A longer credit period delays cash and affects working capital, hedging and the realisation timeline.
• Buyer must pay early: The buyer is not expected to pay before the due date unless the contract or bill says so.

• Documents against payment (DP): A collection where documents are released only on payment.
• Bill of exchange: The written order to pay that the buyer accepts.
• Bill of lading: The transport document released to the buyer.
• Export factoring: Selling or financing export receivables before the due date.
• Letter of credit: A bank's undertaking to pay against complying documents.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. RBI, FEMA (Export and Import of Goods and Services) Regulations, 2026 (FEMA 23(R)/2026-RB), Regulation 5 (realisation period) (checked 9 Oct 2026)
2. RBI, A.P. (DIR Series) Circular No. 20 dated 16 January 2026, Supersession of the Master Directions on export and import of goods and services (checked 9 Oct 2026)