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Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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angel
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Most Urget: Pls Reply Soon

Post by angel » Thu Jun 12, 2014 6:02 pm

We received Dox under collection URC 522 Rule on DA(Acceptance) bases. which were accepted by the drawee to make payment on due date.we sent the swift to exporter bank that "dox are accepted by drawee and we will remit the proceed on due date upon availability of funds from importer". on due date importer didnt make pmt to bank.

Now after two years, exporter's bank send us swift and claimed all unpaid Doxs.

how its possible in DA collection?

pls reply me in the light of URC522 Rule what we should do now?? who is liable for pmt?

Ur urgent reply will be appreciated.

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picant
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Details

Post by picant » Fri Jun 13, 2014 5:40 pm

Hi Pal,

normally in D/A, the draft is drawn on buyer.
Then after acceptance the collecting bank will state: it is holding the accepted draft for payment at maturity.
If unpaid, at maturity, the collecting bank will inform the remitting bank, following the instructions given in case of dishonour, protest or other.
So normally the liability is to follow such instructions.
Please check if the drawee in the draft is your bank too.
Let me know
Ciao

suhailr
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urc522

Post by suhailr » Mon Jun 16, 2014 1:05 am

URC522 Article 26c3 states to the effect that presenting bank should endeavour to ascertain the reasons for non-payment and/or non-acceptance and advise accordingly without delay, the bank from which it received the collection instruction. Also presenting bank should send without delay advise of non-payment and advise of non-acceptance to the bank from which it received the collection instruction. On receipt of such advice from the presenting bank the remitting bank should give appropriate instructions as to the further handling of documents. If such instructions are not received within 60 days after its advice of non payment the documents may be returned to the bank from which colection instruction was received without any further responsibility on part of rhe [presenting bank.

So you have it vry clearly spelt out in the URC 522 - the responsibility of the presenting bank does not arise if there was a proper adviceof non payment.

More views welcome - interesting to note what the presenting bank's position should be in case such advice of non-payment was not given to the remitting/collecting bank.

angel
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DA Acceptance

Post by angel » Mon Jun 16, 2014 11:27 am

picant wrote:Hi Pal,

normally in D/A, the draft is drawn on buyer.
Then after acceptance the collecting bank will state: it is holding the accepted draft for payment at maturity.
If unpaid, at maturity, the collecting bank will inform the remitting bank, following the instructions given in case of dishonour, protest or other.
So normally the liability is to follow such instructions.
Please check if the drawee in the draft is your bank too.
Let me know
Ciao
Dear Sir,
Thanks for ur reply,

we didn't receive Bill of exchange from beneficiary or bank.

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picant
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pay attention...

Post by picant » Mon Jun 16, 2014 8:10 pm

Hi Pals,


by which buyer's undertaking you have delivered the documents?
Let me know?
Ciao

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OUR BE Format

Post by angel » Tue Jun 17, 2014 10:30 am

picant wrote:Hi Pals,


by which buyer's undertaking you have delivered the documents?
Let me know?
Ciao
We take undertaking of buyer on BE (drawn on importer to the order of our bank ) from our own ends.But its clear that BE not received from Bene's bank along with other shipping dox.

i pasted BE here:''.............

BILL OF EXCHANGE


US$ 15,500.00

Dated: October 04, 2012



DRAWN UNDER OUR IMPORT CONTRACT NO. ..... DATED 11-07-2012

AT 90 DAYS FROM BILL OF LADING DATE (26-09-2012) DUE DATE DECEMBER 25, 2012 OF THIS SOLE BILL OF EXCHANGE PAY TO THE ORDER (Our Bank NAME )VALUE RECEIVED.

USD 15,500

USD (AMOUNT IN WORDS)


DRAWN ON

(IMPORTER NAME)

For And Behalf of
OUR BANK


Please ans according to ....

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