Documentary collection

In the case of D/A collections, the buyer receives the commercial documents on accepting the bill of exchange. The bill of exchange will then be held by the collecting/presenting bank until it matures, and then presented to the buyer for payment at that time. (The bill of exchange does not have to be returned to the remitting bank or exporter when it has been accepted, and then sent back once again to the collecting/present bank to obtain payment when the bill matures.)

Here are some examples of the terminology.

1) 30 days' sight D/P means that

• payment is due 30 days after presentation of the documents to the buyer

• the bill of exchange must be presented to the buyer for acceptance as soon as the documents have been received from the remitting bank

• the underlying documents will not be handed over to the buyer until 30 days later (ie when the buyer is to make payment on the maturity of the bill).

(If the buyer wants to obtain the documents sooner, perhaps in order to obtain the documents of title when the goods have arrived in the country, he can do so by making payment of the bill before its maturity date.)

2) 60 days' sight D/A means that

• the bill of exchange must be presented, to the buyer for acceptance as soon as the documents have been received from the remitting bank

• on acceptance of the bill by the buyer, the presenting/collecting bank will release the other documents to the buyer (including the documents of title, if they are part of the collection)

• the bill will be payable 60 days after acceptance. The presenting/collecting bank will hold the bill, and claim payment not later than this date.

3) There is no effective difference between 30 days' sight D/P and 30 days' sight D/A unless the documents involved in the collection include a document of title to the goods, ie a bill of lading.

Дата добавления: 2015-09-07