Concept of draft: A draft is issued by the drawer, which requires the payer to unconditionally pay a certain amount of bills to the payee or holder at sight or within a certain period of time. So the payer is not necessarily the drawer! In most cases, the payer is the debtor of the drawer and the drawer is the creditor of the payer. Just like an issuing bank in a letter of credit, it opens a letter of credit with its own bank credit and promises to the exporter that as long as the exporter exports goods that meet the documents, it will pay. So it is the exporter who draws the draft and asks the payer (the issuing bank) to pay.

In addition: domestic bills of exchange, such as commercial acceptance bills, are issued by the drawer and delivered to the payee, who requests payment from the drawee recorded in the bill, and the drawee assumes the payment obligation. This is because before the ticket is issued, there is a capital relationship between the drawee and the drawer, there is a certain capital exchange between the drawer and the drawee, or the drawee has a debt to the drawer.

So there is not much difference in concept between international settlement bills and domestic settlement bills!