D/A: Practical Example: Navigating the 7 Hidden Steps for Smooth Mango Exports from India to Germany

An Indian mango exporter, Sunny Mango Exports, based in Mumbai, India, has secured a deal to supply a German importer, Fresh Fruits GmbH, based in Hamburg, Germany, with a shipment of Alphonso mangoes, a premium variety known for its rich flavor and aroma. The agreed-upon contract specifies a payment term of Documents against Acceptance (D/A).

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Also Read | Payment Terms for Exports

Step-by-Step Process:

Contract of Sale:

Sunny Mango Exports and Fresh Fruits GmbH enter into a formal contract of sale, outlining the details of the transaction, including the number of mangoes (5,000 cartons), the price (€10 per carton), the delivery terms (CIF Hamburg), and the payment terms (Documents against Acceptance).

Also Read | Documents against Acceptance (D/A)

Also Read | Documents against Payment (D/P)

Shipment and Documentation:

Sunny Mango Exports carefully selects packs and inspects the mangoes to ensure they meet the agreed-upon quality standards. They then prepare the necessary shipping documents, including:

  • Commercial invoice: A detailed invoice from Sunny Mango Exports to Fresh Fruits GmbH, listing the number of mangoes, unit price, total amount (€50,000), and payment terms (D/A)
  • Packing list: A document detailing the contents of the shipment, including the number of cartons, their weight, and any special handling instructions.
  • Bill of lading: A document issued by the shipping company, Ocean Express, outlining the terms of the shipment, including the ports of origin (Mumbai) and destination (Hamburg), the details of the goods, and the responsibilities of each party.
  • Certificate of origin: A document issued by the Indian government certifying that the mangoes originate from India.
  • Phytosanitary certificate: A document issued by the Indian plant health authority certifying that the mangoes are free from pests and diseases and meet the phytosanitary requirements of Germany.

Presentation of Documents:

Sunny Mango Exports presents the shipping documents to their bank, HDFC Bank, along with instructions to send them to Fresh Fruits GmbH’s bank, Deutsche Bank, against acceptance of a bill of exchange. HDFC Bank reviews the documents to ensure they are complete and compliant with the terms of the contract of sale.

Preparation of a Bill of Exchange:

HDFC Bank prepares a bill of exchange, which serves as a promise by Fresh Fruits GmbH to pay Sunny Mango Exports the agreed-upon amount (€50,000) at a predetermined date (30 days after acceptance).

Acceptance of the Bill of Exchange:

HDFC Bank sends the bill of exchange to Deutsche Bank, which presents it to Fresh Fruits GmbH for acceptance. Upon acceptance, Fresh Fruits GmbH becomes legally obligated to pay the amount by the specified due date.

Release of Documents:

Once Fresh Fruits GmbH accepts the bill of exchange, Deutsche Bank releases the shipping documents to the importer, allowing them to clear customs and take possession of the mangoes at the port of Hamburg.


Fresh Fruits GmbH makes the agreed-upon payment (€50,000) to Deutsche Bank on the due date specified in the bill of exchange. Deutsche Bank then transfers the payment to HDFC Bank, which credits Sunny Mango Exports’ account.

FAQs on Documents against Acceptance (D/A):

  1. Q: What are the key considerations for using Documents against Acceptance (D/A)?

    Ans: Carefully evaluate the creditworthiness of the importer.
    Ensure accurate and timely preparation of shipping documents.
    Communicate effectively with your bank throughout the D/A process.
    Consider using D/A in conjunction with other trade finance instruments, such as credit insurance, to mitigate risks.

  2. Q: What are the different types of Documents against Acceptance?

    Ans: D/A at Sight: Acceptance of the bill of exchange is required immediately upon presentation.
    D/A at Usance: Acceptance is required at a predetermined date after the presentation of the bill of exchange.

  3. Q: What are the sample banking names mentioned in the scenario?

    Ans: Exporter’s Bank: HDFC Bank (India)
    Importer’s Bank: Deutsche Bank (Germany)


The use of Documents against Acceptance (D/A) as the payment term facilitated a smooth and secure transaction between the Indian mango exporter and the German importer. Sunny Mango Exports gained assurance of payment upon acceptance of the bill of exchange, while Fresh Fruits GmbH received deferred payment until they inspected the mangoes. This trade finance mechanism balanced the risk and control between the parties, enabling a successful international business transaction.

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