payment of bills of collection

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;
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payment of bills of collection

Post by jojo » Wed Sep 21, 2016 3:18 pm

dear all,
we received docs and released them agaist sight payment of the drawee (subject to rule 522),however our local rules require some extra docs must be presented by the drawee after his receipt of said docs to effect the payment for example custom declaration , inspection certificate just to make sure that he has imported goods .now the drewee failed to present the said docs and he informed the drawer that our bank delay the payment.
the RMT Bank request us to pay or send back the original docs,
your view are aprraciated

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art 17 e 18 URC 522

Post by picant » Mon Oct 24, 2016 5:37 pm

Hi Pal,

deliver of documents must be made against payment, money that must be transferable abroad.
If some extra documents are necessary to import the goods is a good question to be resolved by buyer and seller. Collecting bank will avoid to deliver documents, informing the remitting bank , if, under local laws, the payment or the return will be possible under Customs authorization.
Other comments appreciated

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payment of bills of collection

Post by bodebowale » Thu Apr 06, 2017 4:55 pm

Even though the documentary collection is guided by URC 522; which are international rules, the local rules still needs to be followed. The drawee is a local organisation that is why your bank is the collection bank, so the drawee cannot say it is ignorant of these local rules. My opinion is that the original docs be sent back.

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Re: payment of bills of collection

Post by saikumar1208 » Tue Sep 12, 2017 12:30 pm

As per URR docs must be released only after payment. As documents are realesed before effecting the payment and the customer is not ready to present the bill of entry ( proof of import of goods) or any customs declaration, this might not be genuine trade transaction. It is better to conduct Enhanced due deligince on both the parties.

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