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Advanced Trade Finance & Special Customs Procedures

Usance / Tenor

Also known as: Usance, Tenor, Time Draft

Usance, or tenor, refers to the credit period allowed for payment under a time draft or deferred-payment letter of credit — for example thirty, sixty, or ninety days after sight or after the bill of lading date — as opposed to payment at sight. A usance arrangement lets the buyer receive and often sell the goods before paying, while the seller can discount the accepted draft for immediate cash. The tenor defines exactly when payment falls due, making it a key negotiated term that balances the buyer's need for financing against the seller's desire for prompt funds.

The JFS takeLicensed customs broker · Filer 82G

Deferral is financing, not a discount. The dutiable price is the full price payable, whenever the money actually moves — importers who net the financing cost out of the entered value are understating it.

Where it matters for compliance

  • Payment timing does not reduce transaction value.

Related terms

Bill of ExchangeA bill of exchange, or draft, is a written, unconditional order by one party (the drawer, typically the exporter) instructing another party (the drawee, usually the importer or its bank) to pay a specified sum either on sight or at a defined future date.Letter of CreditA letter of credit is a written undertaking by a bank, issued at the request of a buyer, to pay a seller a defined amount provided the seller presents documents that strictly comply with the terms stated in the credit.

Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.