chapter 5 colectionchapter 5 collectionchapter 5 collectionchapter 5 collection.ppt

Chapter 5 Collection URC522 The Bills for Collection process is governed by a set of rules, published by the International Chamber of Commerce (ICC) called Uniform Rules for Collections document number 522 (URC522). Over 90% of the worlds banks adhere to this document - pick up a copy from the ICC (See contact details below) or your bank and familiarise yourself with the contents. The Uniform Rules for Collection (URC 522) is the internationally recognized codification of rules unifying banking practice regarding collection operations for drafts and for documentary collections. ? 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 Collection means in accordance with instructions received, the handling by banks of: Obtaining payment and/or acceptance of financial documents, or Delivering documents against payment and/or against acceptance, or Delivering documents on other terms and conditions. Documents Financial documents: Documents relating to payment. The bill of exchange is the financial document most commonly used in collections and L/C. Promissory notes are sometimes used in collections. Commercial documents Documents relating to the consignment itself, eg. (1)??Commercial invoice正式签证的贸易发票 (2)?? Packing list装箱单 (3)?? Transport document运输单据 (4)?? Insurance document保险 (5)?? Certificate of origin货物原产地证明书 Inward collection How a Collecting or Presenting bank will refer to a collection. Collection that has been received from an overseas bank or exporter for presentation to a buyer in this country. Outward collection How the Remitting bank refers to a collection. Collection being sent overseas to collecting bank(s) for presentation to buyer There are three kinds of collections,namely : (1)clean collection (2) documentary collection (3)direct collection clean collection clean collection means collection o