What Is a Collection Fee?

Collection refers to a settlement method in the import and export trade where the exporter issues a draft with the importer as the payer and entrusts the bank of the exporter to collect the payment from the importer through its branch or agent bank on the importer's side. ^[1] Including D / P (Payment Presentation) and D / A (Acceptance Presentation).

collection

Collection belongs to

Collection involves four main parties, namely the client, the payer, the collecting bank and the collecting bank.

A client is a party that entrusts a bank to handle collection operations. In international trade practice, the exporter issues a bill of exchange, entrusting the bank to collect money from the foreign importer (debtor).

The payer is the object that the bank presents the documents according to the instructions of the collection instruction. The payer in the collection business, that is, the buyer or debtor in the business contract.

The collecting bank, also called the billing bank, refers to the bank entrusted by the entrusted party to handle the collection, usually the bank where the exporter is located.

Collecting bank refers to the bank that accepts the entrustment of the collecting bank and collects money from the payer, usually the collecting bank or the correspondent bank where the collecting bank is located.

According to whether the freight is submitted to the bank at the time of collection

Documentary collection

In order to receive the money as soon as possible, the exporter should pay attention to the following points of the document:

(1). The amount of money order must be consistent.

(2). Signature or stamp of the drafter

(3). Endorsement of draft

(4). The issuer and issuer of the bill of exchange must be the same.

(5). The bill of exchange must be consistent with the invoice and other documents.

(6). The price clause is CIF. An insurance policy is required. The amount of insurance policy must exceed the invoice value.

(7). The terms of carriage are consistent with the terms of price.

(8). Whether endorsement is required according to the requirements of the transport documents.

(9). The description of the goods in various documents must be consistent.

2. Light ticket collection

(1). Name, type, term, amount, currency of the bill.

(2). Name and address of payee.

(3). Name and address of the payer.

(4) Endorsement of bills.

(5). Whether the forward notes are accepted.

(6). Interest terms of notes.

(7). Name and signature of the issuer of the note.

(8). Other terms