If shipment is made under a time draft, the exporter is paid as soon as the products have been shipped and the draft is presented to the importer for payment.

Question

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If shipment is made under a time draft, the exporter is not paid immediately upon shipping but rather at a specified future date agreed upon by both parties. The importer accepts the draft upon presentation, thereby agreeing to pay at the agreed-upon future date.

If Shipment Is Made Under a Time Draft, the Exporter