chapter 4 colectionchapter 4 collectionchapter 4 collectionchapter 4 collection.ppt

Chapter 4 Collection Lecturer: Evangeline Wu In this chapter: An overview of collection Procudures of a Documentary collection transaction Terms of releasing documents Documentary Collection Practice Risk Protection and Financing Under Collection Methods Which of the following is a payment term under collection? The buyer shall pay 100% the sales proceeds in advance by Demand Draft to reach the Sellers not later than Oct. 15. The buyers shall open through a bank acceptable to the sellers an irrevocable sight letter of credit to reach the sellers 30 days before the month of shipment, valid for negotiation in China until the 15th day after the month of shipment. 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. Important terminologies: Principal :委托人 Remitting bank： 托收行 Collecting bank： 代收行 Presenting bank： 提示行 Case of need： 需要时代理人 Clean collection：光票托收 Documentary collection：跟单托收 Collection order：托收委托书 Outward collection：出口托收, Inward collection：进口托收 Release documents: 交单 D/P at sight：即期付款交单; D/P after sight：远期付款交单; D/A：承兑交单 Trust receipt ：信托收据 Import bill advance：进口押汇 Collection Bill Purchased 出口押汇 Collect payment/ proceed: 托收货款 Definition of Collection: Collection is an arrangement whereby the goods are shipped and the relevant bill of exchange is drawn by the exporter on the importer, and/or document(s) is sent to the exporter’s bank with clear instructions for collection through one of its correspondent banks located in the domicile of the importer. 托收是债权人签发汇票，委托银行向国外债务人代为收款的一种结算方式。 Basic procedure Characteristic of collection It is base on trader’s credit. Banks involved in a collection business serve as intermediaries authorized by seller to collect payment from the buyer by a draft drawn by the seller on the buyer. Collection is a type of reverse remittance Drawer: principal, exporter Drawee: importer Tenor: depends on term of releasing do