Drawer
contract
Drawee
1)Document s,draft and application
pay 3)Presenting 4)pay/ accept 5)release 7)paydraft ment Presenting documents 2)Documents,draft and for payment Collection instruction 6)payment
Chapter four

Collection
4.1 The concept of collection 4.2 Basic parties to a collection 4.3 Procedures of a collection 4.4 Types of collection 4.5 Terms of releasing documents 4.6 Documents in collection 4.7 Risks involved and protection URC522
4.6 Documents in collection

Collection bill


The bill’s drawer is the exporter, the payer is the importer, the payee is : 1) beneficiary ; 2) remitting bank; 3) collecting bank.

4.2 Basic parties

委托人 principal--seller(drawer)
collection application

托收行 remitting bank/寄单行
collection instruction

代收行 collecting bank
提示行 presenting bank

D/P at a fixed time after sight
Procedures
time draft; first presenting for acceptance;when the accepted一般是为避免在运输途中买方资金的占压，远 draft matures, presenting it for payment, then releasing documents to buyer. 期期限以货物运输的在途时间为宜。 why?
Amount and currency terms of releasing documents
disposal of proceeds upon collection
4.3 Procedures of a collection
4.4 Types of collection

clean collection
Exchange for___ _______ D/P or D/A A t ___sight of this first bill of exchange (second unpaid) to the order of __123______ the sum of____________ To: _____________ for ________ signature
Collection is an arrangement whereby the seller draws a draft on the buyer , and /or shipping documents are forwarded to his bank, authorizing it to collect the money from the buyer through its correspondent bank . Based on commercial credit
•
Drawer
1)Documents, draft and application
contract
Drawee
Remitting bank
5)docu 7)payment 3)Presenting 9)payment -ments draft 4)Accept 6)present -ing for 2)Documents,draft and payment Collection instruction 8)payment

documentary collection
Collection on financial documents being accompanied by commercial documents or collection on commercial documents without financial documents. The documents will be released to the importer only when payment or acceptance is made.
Collecting bank
Documents against other terms
Hale Waihona Puke 部分凭即期付款，其余凭承兑远期汇票交单 （ Delivery of documents against partial payment)

“Delivery of documents against part of collection to be paid at sight and the balance by the way of the acceptance of a separate draft payable at a future date .” 凭本票交单(against P/N) 凭付款承诺交单(against letter of undertaking to pay) 凭信托收据交单(against trust receipt) 凭保函交单(against letter of guarantee)
Remitting bank
Collecting bank
Red letter stands for D/P at a fixed time after sight
Documents against acceptance
The collecting bank is allowed to release the documents to the drawee only against the acceptance of a draft. • the exporter extends credit to the importer.
Drawn clause： Drawn against shipment of
*** from *** to*** for collection
for payment on demand, draft is not
necessary

direct collection
The seller obtains his bank’s pre-numbered direct collection letter, thus enabling him to sent his documents directly to his bank’s correspondent bank for collection.
4.1 Concept of collection
URC522 Art.2
Collections means the handling by banks, on instructions received, of documents, in order to: • 1)obtain acceptance and/or payment; • 2)deliver commercial documents against acceptance or payment; • 3)deliver documents on other terms and conditions.
The URC522 doesn't include it .
4.5 Terms of releasing documents

Documents against payment，D/P


D/P at sight
D/P at … days after sight

Documents against acceptance，D/A
付款人 payer -- buyer (drawee) 需要时的代理 principal’s representative in case of need
Collection application

clearly indicating the intention and requirement of the principal.

D/A at …days after sight D/A at …days after B/L date

Documents against other terms and conditions
Documents against payment
the collecting bank is allowed to release the documents to the drawee only against full and immediate payment
Collection on financial instruments only, documents are sent directly by the exporter to the importer.
Relatively slow compared to T/T Furthermore, the paying bank under a clean collection has the right of recourse for the refunding of collection proceeds. Payment instrument: a draft, a check or a money order, the tenor of which can be at sight or a future time.