DA in payment term of international trade means, Documents against Acceptance.

DP in payment term of imports and exports means Documents against Payments.

How to distinguish between Documents against Acceptance and Documents against Payment in Exports and Imports?

Both DA and DP are the terms of payment related to acceptance of shipping documents pertaining to each consignment from buyer’s bank. Under a DA terms of payment, importer accepts documents on the basis of an assurance to effect payment by accepting necessary bill of exchange. The importer collects shipping documents required to take delivery of imported goods from his bank after such assurance on payment at mutually agreed maturity date of payment.

In a DP payment terms, the imported need to effect payment against respective import consignment, before collecting documents for delivery of imported goods. Under a payment terms – Documents against Payments, the bank delivers documents required for import clearance only after receiving the value of goods from the importer. The buyer takes delivery of goods with the original transport document of title delivered by his bank after effecting payment under sale of goods mentioned in the document. The buyer’s bank in turn, sends the said amount to seller’s bank as per banking procedures and formalities under international trade.