Chapter 5 Collection.ppt

Chapter 5;URC522;;The URC was developed by the International Chamber of Commerce (ICC) in Paris. It is revised and updated from time-to-time; the current valid version is ICC publication No. 522. ;Definition;Documents ;Commercial documents ;Inward collection ;Outward collection ;;clean collection;documentary collection;direct collection;; In a direct collection，the exporter assumes the role of remitting bank and forwards documents directly to the presenting or collecting bank. The specific steps of a direct collection are summarized as follows： The exporter and the importer agree to do business by entering into a sales contract； The exporter ships the goods and then prepares the documents specified in the sales contract，among which is the direct collection letter；;The exporter sends the collection letter to the foreign bank by a courier or express. A copy is sent to the exporters bank. The exporter’s bank makes a brief data entry for future follow up purposes，and debits the exporters account for its fee； The collecting or presenting bank will follow the instructions in the direct collection letter as if they were received from its correspondent bank. The collecting or presenting bank presents the drafts and documents for acceptance or payment. ;parties in a collection;;Collection order ;a collection order includes the following items： Details of the principal including full name，postal address，and if applicable，telex，telephone and fax numbers，and the authorized signature； Details of the drawee including full name，postal address，or the domicile at which presentation is to be made and if applicable，telex，telephone and fax numbers，the name and address of the bank with which the drawee holds an account，and the account number； Amount and currency to be collected： A list of documents and the numerical count of each aocument； The terms and conditions upon which payment and/or acceptance is to be obtained and the terms of delivery of documents，such as D/P，D/A，etc.；