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tions. Documents Against Payment (D/P) Documents Against Acceptance (D/A) Cheque and Bank Draft In exporting to the offshore countries, payment by cheque and bank draft occur more often in a small order, ranging from a few hundred to a couple of thousand . dollars. Cheques and bank drafts are often used in open account and consignment trade arrangements. Both large and small panies may default in their payments, regardless of the amount involved. In times of economic uncertainty, both large and small panies may go out of business. It is important to receive the cheque or bank draft before releasing the shipment. Unless the integrity of the importer is known, it is very important to wait until the cheque or bank draft has cleared before the shipment. International clearing of cheques and bank drafts takes 3 to 4 weeks usually (except in a sight draft with a paying bank in the seller39。s country). Not all cheques and bank drafts are genuine, and not all genuine cheques carry a cash value (please refer to the FlyByNight Importers for related information). Trade Arrangements Using the Cheque and Bank Draft Open Account In an open account trade arrangement, the goods are shipped to a buyer without guarantee of payment. Quite often, the buyer does not pay on the agreed time. Unless the buyer39。s account (the name and address of the seller39。s bank account number are required by the buyer39。s way in the undervalue arrangement. The undervalue arrangement uses two sets of documents. For example, an importer contracted 1,000 pieces of product X at FOB US$8 e