Export Documentary Collection

The documentary collection is frequently used in international trade, however it is an unguaranteed settlement method.

  • You can rest assured that the importer will not come into possession of the documents and the merchandise unless he has paid according to your instructions
  • Processing of documents and payments are handled on your behalf
  • Being subject to the international rules of the International Chamber of Commerce in Paris, URC 522, that clearly define the responsibilities of each party to the transaction, Documentary Collections are used to diminish potential risks or disputes in international trade transactions
  • Usually, they are used in strong commercial relationships, with reliable partners, whereby you wish to exercise a certain level of control
  • If you are seeking additional protection, you should consider using an Export Letter of Credit

Description

How does the Export Documentary Collection work:

  • You, acting as the exporter, deliver goods and instruct your bank to forward the commercial and/or financial documents to the importer’s bank
  • The importer’s bank will not release the documents unless the importer has paid or accepts to effect payment , according to the collection instructions received.

Potential risks:

  • The risk stays with you, since the payment is effected only after the goods have been shipped or  whilethe goods are in transit and/or  warehoused
  • The banks involved in this transaction do not guarantee payment

For your export needs, trade internationally through our simple and accessible services:        

  • Trade faster and more secured
  • Access our international expertize

Important information

Talk to a specialist

Bogdan Ilie

Documentary Business Expert

Tel: 0373.516.271

E-mail: DTB.TradeFinance.DocumentaryBusiness@bcr.ro

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