How To Know That Collection Instruction Requires Avail

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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Chamnan
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How To Know That Collection Instruction Requires Avail

Post by Chamnan » Fri May 24, 2013 12:53 pm

Dear Expert

Could you told me in the covering schedule which instruction that we know this collection require avail?

Thanks

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picant
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Aval

Post by picant » Sat May 25, 2013 1:05 pm

Hi Pal,

Normally the remittance letter contains instructions for payment (D/P) or acceptance (D/A). In your case you will add to acceptance instructions "AND YOUR BANK'S AVAL" and the way that the sentence is "PLEASE DELIVER DOCUMENTS AGAINST DRAWEE' ACCEPTANCE OF THE DRAFT AND YOUR BANK'S AVAL". PLEASE RETURN THE ACCEPTED AND AVALISED DRAT TO OURSELVES or HOLD THE DRAFT FOR COLLECTION AT MATURITY or the like.
Other comments appreciated
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moneo
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AVAL draft

Post by moneo » Sun May 26, 2013 8:25 am

Under collection they must present a draft drawn on the collecting bank name (drawee's bank) and can not be drawn on the customer name, However, that draft must supported by their clear instruction to AVAL the draft.

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picant
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Partial agreement

Post by picant » Sun May 26, 2013 5:52 pm

Hi Pals,

IMHO aval is something to add to acceptance, acceptance is made by the drawee, aval by a third party/bank.
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LLawrence
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Re: How To Know That Collection Instruction Requires Avail

Post by LLawrence » Sun Apr 21, 2019 4:10 pm

Whether the bill requires avalisation or not - it will be mentioned on the bank schedule.
Nevertheless, if you don't get bill avalised you could contact your bank for more info - the worst case scenario they will say that the bill is not avalised. It's a common practice where banks forget to mention that bill needs to be avalised.

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