The role of bill of exchange in export business

How bill of exchange works in export trade? 

Are export sales under a bill of exchange safe for an exporter in a DA terms of payment? 

What is a bill of exchange? 

How does Bill of Exchange function in Export and Import business?

In an international trade, bill of exchange is a negotiable instrument made by seller/exporter addressed to the buyer/importer.

Once after shipping goods, the required documents for import along with bill of exchange are submitted with exporter’s bank to send to foreign buyer through buyer’s bank. The said bill of exchange draws in duplicate as per specified format.  Bill of exchange contains the reference details of shipment, amount of invoice to be receivable from overseas buyer, the time of payment to be effected, bank details etc.  A sample body structure of a bill of exchange is as follows:

"On 60 days from the date of bill of lading, please pay an amount of USD 0000  to this first of exchange (second of exchange unpaid), to the order of xyz bank against invoice number 0000.   To: xyz bank "

The bill of exchange is drawn on the letter head of exporter and signs under and sends to buyer through his bank.  Once after reaching documents to overseas buyer, he accepts bill of exchange by signing on bill of exchange.   On maturity date of bill of exchange, the buyer effects amount of proceeds to the supplier of goods through his bank. 

he legal strength of bill of exchange in international trade under DA terms of payment has to be discussed with the experience of traders, as I personally have no recommendations on this mechanism.