collection

1、Documents against documents D/A,Exporter,Remitting bank,Collecting bank,Importer,6Collecting bank keeps accepteddraft for exporter and at maturity, presents it for payment.,The risk is that buyer would not pay after

2、taking the goods，thoughgoods have been taken away.,Document against payment D/P at sight,Exporter,Remitting bank,Collectingbank,Importer,Only one presentmentfor payment,Documents against payment at tenor D/P at tenor

3、,Exporter,Remitting bank,Collectingbank,Importer,5After payment at maturity, buyer gets documents.,Why doing so ?,Documents against time promissory note made by buyer,Exporter,Remitting bank,Collecting bank,Importer,

4、6Collecting bank keeps promissorynote for seller and at maturity, presents it for payment.,The risk is that buyer wouldnot pay after taking the goods.,Presenting bank,USAexporter,USARemitting bank,Hong KongCollecti

5、ng bank,Tianjinimporter,Tianjin Presenting bank,,In case of need,Exporter,RemittingBank,Collecting Bank,Importer,Case of need mightbe seller’s close friendor agency in importing country, who would arrange shippi

6、ng backthe goods or selling the goods to other buyer in importing country.,Types of collection(1): Documentary Collection,Seller/principal,Carrier,RemittingBank,Collecting Bank,Buyer/drawee,Documents are released

7、 to importer against his payment or acceptance/,Sometimes,importer pays against commercialdocuments, e.g. commercial invoice withoutfinancial draft to avoid stamp duty.,Type of collection(2): Clean Collection,Exporter

8、,RemittingBank,Collecting Bank,Importer,1,2,3,Post receipt is sent to buyer’s country together with sample by post office.,Post office,4,5,Importer takes the advice to post office and get sample against it.,Payment mus

9、t be made through bank,,,,Dividend warrant and time promissory notecan also be used in clean collection,Types of collection(3): Direct Collection,Seller/principal,Carrier,RemittingBank,Collecting Bank,Buyer/drawee,,

10、Exporter/principal,Remitting Bankprincipal,Collecting Bank,Collection order = Collection Instruction,1,2 They are the same in contents, for remitting bank carry out order given by exporter (principal).,,,,,,Exporter,

11、Remitting bank,Collecting bank,Importer,Banks endeavor to collect forprincipals, but not responsiblefor unfavorable results.,Outward collection and inward collection,Risks for exporter under documentary collection,Expo

12、rter,Remitting bank,Collectingbank,importer,1. Refuse to pay or accept time draft on some small inadvertent infraction of the sales contract.,2. Demand deep cut down of price, or refuse to accept the goods.,3.

13、 A heavy storage charge, fire insurance, demurrage and great expenses and time delay if court action is taken.,Exporter,Remitting bank,Collectingbank,Importer,Risks for exporter under term payment,Carrier,1,2 A