Understanding Acceptance in International Trade: A Guide

Jakarta, Pintu News – In the current era of globalization, trade between countries is becoming increasingly vital. Acceptance is one of the important instruments in international trade that allows importers and exporters to conduct transactions more safely and efficiently. This article will explain in depth about acceptance, how it works, and provide examples of its application in trade activities.

Definition of Acceptance

Acceptance is a contractual agreement where the importer agrees to pay an agreed amount for the goods received at a specified date in the future. This process commonly occurs in international trade where documents are presented to obtain approval for payment.

By signing the document, the buyer or importer declares “accepted” or similar terms, indicating a commitment to pay. When the document has been accepted, the importer becomes the responsible party to pay by the set due date. This guarantees the exporter that they will receive payment for the goods that have been shipped. This process not only strengthens trust between traders but also minimizes the risk of financial loss.

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Acceptance Work Process

In international trade, acceptance is usually involved in document collection. The exporter’s bank is in charge of collecting funds from the importer’s bank once the documents listing the goods being shipped are submitted to the buyer. The importer has the option to accept or reject the documents.

If the documents are accepted, the importer is obliged to pay the invoice according to the agreed terms. With the documents in hand, the importer can then pick up the goods at the port or point of entry. This ensures that the goods purchased are as stated in the documents. This process not only facilitates payment but also efficient and secure delivery of the goods.

Types of Acceptance

There are two main types of acceptances in international trade: Documents Against Acceptance (D/A) and Documents Against Payment (D/P). In D/A, the importer is provided with documents by their bank and must agree to pay according to set terms, usually through a time draft.

A time draft is a legal contract that binds the importer to pay the exporter at a predetermined date in the future. Whereas D/P requires prepayment by the importer before the documents can be released by the bank. This method is also known as Cash Against Documents or Sight Draft, as payment is made when the documents are seen. Both methods offer different levels of security for exporters and importers, depending on their agreements and trading conditions.

Example of Acceptance Implementation

For example, suppose a tablet and computer manufacturing company like Apple Inc. requires electrical components from a supplier in China. The Chinese company requests a time draft that requires Apple, as the importer, to pay within 60 days of receipt of the documents.

The goods are shipped to the US port, and the documents are sent from the Chinese bank to the importer’s bank in the US. After the goods arrive at the port, the US bank presents the documents to Apple. The importer accepts the documents and agrees to pay the invoice within 60 days for the cost of the goods. With the documents in hand, Apple can pick up the goods at the port and use them as needed.

Conclusion

Acceptances play a crucial role in facilitating international trade transactions. With a good understanding of how acceptances work and what they are, companies can reduce risk and improve efficiency in global trade. These instruments not only facilitate payments but also ensure safe and timely delivery of goods.

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Reference

• Investopedia. Acceptance. Accessed on July 29, 2025