Documentary collection

A documentary collection is a payment settlement and payment security form in foreign trade, in which the payer with the participation of credit institutions documents against payment or acceptance of bills of exchange will be handed out.

The interests of the exporter of goods or capital goods on a contractual settlement of the payment and the interests of the importer are compensated on a contractual delivery.

It applies, however, for the importer: This instrument is used exclusively for payment processing. A guarantee for the quality and / or quantity of the delivered goods is not accepted here. This is only possible by appropriate documentation regarding letter of credit.

There are no legal regulations. However, the banks processing base their contractual relationship always the "Uniform Rules for Collections " ( ERI) Revision 1995 - ICC Publication 522 - " International Chamber of Commerce, Paris ( ICC) as a basis.

Types of documentary collections

The documentary collection can be handled in two different ways. Firstly, the documents can be handed over to the importer against payment (Documents against payment) or similar documents against acceptance of a bill of exchange or delivery of a promise to pay will be handed out. In the second form is the payment until a later date due ( Documents against acceptance ). During the exporter in Documents against payment guarantee has that the importer receives only the documents handed out after he has paid, he does not have this security in Documents against acceptance, as the importer receives the documents after delivery of a promise to pay. However, this says nothing about the liquidity of the importer on the due date of payment. If at this time the account of the importer which do not have adequate coverage or no special credit lines available, the bank is the importer - even though the documents were handed over to the - not execute payment. This problem can be obviating that the documents handed over will be subject to the Hinauslegung a guarantee for the redemption of the collection on the due date by the importer's bank. Usually, this warranty is created when forbearance shops in the form of a Guarantee of the Bank on the exchange, which the bank enters the liability under the bill.

The general rule is that a collection contains no obligation for redemption by the importer's bank. This is the case only in the letter of credit.

Completion

In the underlying purchase contract between exporter and importer the payment is first agreed on the document collection. The exporter 's bank extends a debt collection documents and issued this a collection order. These documents are usually:

  • Certificate of origin usually certified by a chamber of commerce in the country of origin
  • Commercial invoice, consular rare in certified form (this is in practice only in trade with countries from the Middle East before )
  • Lading or shipping documents, such as bill of lading, air waybill, bill of lading, Abladebestätigung, postal receipt etc.
  • Customs invoice bill that customs clearance in the importing country is ( procedural requirements vary )
  • Insurance policy for transportation,
  • If necessary change for acceptance by the importer and / or his bank
  • Other documents such as quality certificates or manuals

The exporter's bank sends the documents to the collection instruction to a named by the importer bank or a correspondent bank in the importer's country. Under certain circumstances, the order is electronically via SWIFT announced before -. The importing country notifies the switched bank to the importer the existence of the collection order after examining the documents for completeness and substantive compliance with the collection instruction.

In some cities (Hamburg, Cologne, Bremen, etc.), there is the space - Usance that the documents are left very credible ( and creditworthy ) importers in trust for further consideration during a business day. However, only a formal examination of the papers shall be made by the importer, any further use of the documents is excluded.

The importer has the bank to receive the collection documents and to make payment, or accepts an accompanying change, if that is provided. Then it gets handed to the documents. A special security when the exporter if the documents the right is linked to the return of the goods; this is for Sea Waybills ( bills of lading ) and Warrants of the case.

If the collection documents not received by the importer, the goods will be sent back in accordance with instructions of the exporter's bank or stored and made ​​available to the Bank.

Usually calculate the switched banks commission for collection processing and the associated therewith foreign payments.

From the settlement of a debt collection incurred the following legal relationships:

  • Order to get the exporter to his bank, the collection ( agency agreement )
  • Behalf of the exporter's bank to a correspondent bank in the country of import Euers hand over the documents only against the agreed payment ( agency agreement )
  • Between the bank of the importer and the importer only arises with the order for receiving the documents and the processing of the payment, an agency agreement. The Bank is not responsible for the validity of the documents, as these are controlled by a collection only for completeness.

See also: Letter of Credit, Incoterms in the configuration of sponsorship and passage of risk of the goods

  • Foreign Trade
  • Payments
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