Glossary of International Trade Terms
Absolute Quota: A fixed limit on the quantity of goods that can be imported into a country during the quota period, usually one year.
Acceptance: A drawee’s signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee’s signature alone. In documentary collections where the exporter (seller) draws a draft on the purchaser, the purchaser does not become legally liable to make payment until he receives the draft and accepts it. Then, at the maturity date of the draft, the drawee should pay. However, if the drawee fails to pay, there is no bank guarantee of payment even if the presentation of the draft was made to the purchaser through banking channels.