Page 141 - eBook: EXIM for Beginner

Bill of Exchange

Usance Bill/ Time Bill

Usance Bill/ Time Bill:

• Usance means the law allowed period between the bill’s date

and the bill’s payment. Usance bill is also known as time bill

because the time for the bill’s payment is specifically

mentioned on it. It is viewed as a time-bound bill as it

mentions specific time and period on it.

• These bills are payable at a specific period ‘after sight’ or ‘after

date’ of the bill. ‘After sight’ denotes that the due date is

calculated from the bill’s presentation date for the drawee’s

acceptance. ‘After date’ denotes that the due date is

calculated from the bill’s date.

• A usance or time bill is adequately stamped while drawing

because it attracts different stamp duty varying based on

usance period and the bill’s value.