Drawee Made Payment To Drawer Directly Under D/A Colletion

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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Joined: Thu Mar 31, 2011 2:33 pm
First Name: Chamnan
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Drawee Made Payment To Drawer Directly Under D/A Colletion

Post by Chamnan » Wed Mar 27, 2013 7:13 am

Dear all

On the due date of D/A payment, we've confirmed by the drawee that they have make payment to the drawer by TT, so in this situation how should the collecting bank do?

Thanks
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picant
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Joined: Wed Aug 20, 2008 1:49 pm

URC 522

Post by picant » Wed Mar 27, 2013 12:01 pm

Hi Pal,

Documents against acceptance, you have delivered documents against acceptance of a draft but on maturity drawee states having already paid the goods by TT, OK?
You have to follow the instructions of the remitting bank, specially for Protest and inform said bank about the situation and wait.
If the presenting bank instructed you to protest the draft, you have to do so.
Probably the drawee and drawer will comunicate to avoid protest, if no instructions to protest you will inform promptly the remitting bank and wait.
After 60 days if no answer from remitting bank, you will return the unpaid draft, asking for charges.
Other comments appreciated
Ciao
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