DC sent directly to presenting bank by principal

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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Hossam
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Joined: Tue Jul 15, 2014 12:58 pm
First Name: Hossam
Last Name: Hammoudeh
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DC sent directly to presenting bank by principal

Post by Hossam » Tue Jul 15, 2014 1:07 pm

Dear All
does URC 522 still applies when a seller send documents along with collection instructions directly to buyer's bank?
no prsenting bank involvement
regards

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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Yes

Post by picant » Wed Jul 16, 2014 9:22 pm

Hi Pals,

URC 522 are rules for the parties that recall them in their actions.
A part problems with AML, KYC etc, seller may send directly documents for collection quoting URC 522, problem will arise in identifying the party.
Some US Seller they were used to send "direct collection" on behalf of its bank, asking the collecting bank to consider the collecton as received directly by a bank. To save money or time? I dont know.
Other comments appreciated
Ciao

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