Commercial draft refers to a negotiable instrument issued by the drawer to authorize the acceptor to unconditionally pay a certain amount to the payee or holder on the due date. It can be divided into commercial acceptance draft and bank acceptance draft by different acceptors. 

Notes for business handling:

The settlement by commercial draft is available in both local and non-local transaction. 

The issuance of a commercial draft must have a true and legal commodity trade. 

All commercial drafts must be ordered and are allowed to be endorsed. 

The acceptance period of a commercial draft shall be determined by the concerned both parties, and shall not exceed six months at most for a paper commercial draft, and not exceed one year at most for an electronic commercial draft. 

Before the due date of the commercial draft, the payee and the endorsee shall present it to the drawer bank for payment. Where the presentment for payment is made beyond ten days, the drawer shall reject the payment. 

The acceptor bank of a bank acceptance draft shall calculate and charge the handling fee for acceptance at 0.0005% of the face amount of the draft. 

If a commercial draft is lost, the holder losing the commercial draft may notify the drawee to report the loss and stop payment. 

For a undue bank acceptance draft meeting relevant conditions, the holder may apply to the bank for discount.