Chapter four Collection
• 4.1 An Overview of Collection • 4.2 Documentary Collection
Practice • 4.3 Risk Protection and Financing
under Collection
4.1 An Overview of Collection
• documentary collection
Collection on financial documents being accompanied by commercial documents or collection on commercial documents without financial documents. Only the draft drawn is paid or accepted, will the documents be released to the importer.
• Application of URC522 • Release of Commercial Documents • Liabilities and Disclaimers of Banks • Interest, Charges and Expenses • Actions Taken in Dishonor • Partial payment
Drawer
contract
Drawee
1)Documents, 9)payment
3)Presenting draft
5)docu -ments 7)payment
draft and
4)Accept 6)present
application
2)Documents,draft and
-ing for
Contents
• Content: ➢ details of the principal and drawee ➢ a list of documents ➢ Amount and currency to be collected ➢ terms of releasing documents 交单条件 ➢ disposal of proceeds upon collection 票款收
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.
• 4.1.1 Definition of collection • 4.1.2 Basic parties to a
collection • 4.1.3 Types of collection
4.1.1 Definition 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.
“please collect and remit the proceeds to x Bank for credit of our account with them under their cable/airmail advice to us.”
4.2.3 Uniform Rules for Collection
documents
“upon first presentation the buyers shall pay against documentary draft drawn by the sellers at sight. The shipping documents are to be delivered against payment only.”
4.2 Documentary Collection Practice
• 4.2.1 Procedure of Documentary Collection
• 4.2.2 Collection Application Form and Order
• 4.2.3 Uniform Rules for Collection
4.1.2 Parties to Collection
• 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 • 付款人 payer - buyer (drawee) • 需要时的代理 principal’s representative in
Procedures
Drawer
contract
Drawee
1)Documents, draft and
application
7)payment
Remitting bank
3)Presenting draft
2)Documents,draft and Collection instruction
6)payment
collection instruction：”upon collection, please credit the proceeds to our account with you under airmail/cable advice to us.”
collection instruction: “Please collect proceeds and authorize us by airmail/cable to debit your account with us.”
conditions
Documents against payment
the collecting bank is allowed to release the documents to the drawee only against full and immediate payment
• D/P at sight sight draft; pay on presentation for
4.2.1 Procedure of Documentary Collection
Terms of releasing documents
• documents against payment，D/P D/P at sight D/P at … days after sight
• documents against acceptance，D/A • documents against other terms and
4)pay/ pay accept
Presenting for paymen5t)release
documents
Collecting bank
Yellow letter stands for D/P at a fixed time after sight
Documents against acceptance
Collection instruction
payment
Remitting
Collecting
bank
8)payment
bank
Documents against other terms
• 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 .”
• against P/N • against letter of undertaking to pay • against trust receipt • against letter of guarantee
4.2.2 Collection Application Form and Order
• D/P at a fixed time after sight
time draft; first presenting for acceptance;when the accepted draft matures, presenting it for payment, then releasing documen
4.1.3 Types of collection
• clean collection
Collection on financial instruments only, sometimes accompanied by invoice, etc. Documents are sent directly by the exporter to the importer. The exporter is in fact shipping on open-account terms.
解释和说明：
• 凡在托收指示书中注明按URC522行事的托收业务，本规则对 有关当事人均具有约束力。