Dear All
URC 522 - Article 2 a stated that ""Collection" means the handling by banks of documents as defined in sub-Article 2(b), in accordance with instructions received, in order to:
1. obtain payment and/or acceptance,or
2. deliver documents against payment and/or against acceptance,
My query is that:
A. What is the different between to obtain payment and DP- deliver document against payment?
B. Can you translate a collection instruction " DP 90 days from BL date ?
Your comment will be highly appreciated.
Khratha
DP 90 days from bill of lading date
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khratha
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picant
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URC 522
Hi Pal,
The rules reflect the necessary steps for an exporter to send documents to the importer, via banks; documents that could be paid immediately or undertake to pay at a later date(acceptance of a draft, Irrevocable undertaking simple or backed by a bank guarantee, etc), documents that grant the possibility to take up the goods from a carrier or forwarder.
D/P 90 days from B/L date means that you have to pay immediately against document, if the remittance contains shipping documents, or you can wait 90 days after b/l date if it is only an invoice or a simple receipt to be collected at maturity, however the document can be delivered to drawee only after payment. This is used when the goods have been already delivered on OPEN ACCOUNT BASIS, the exporter asks a bank for an advance and the bank sends the invoice to the importer's bank to be sure that the latter will pay it correctly to the proper account.
Other comments appreciated
Ciao
The rules reflect the necessary steps for an exporter to send documents to the importer, via banks; documents that could be paid immediately or undertake to pay at a later date(acceptance of a draft, Irrevocable undertaking simple or backed by a bank guarantee, etc), documents that grant the possibility to take up the goods from a carrier or forwarder.
D/P 90 days from B/L date means that you have to pay immediately against document, if the remittance contains shipping documents, or you can wait 90 days after b/l date if it is only an invoice or a simple receipt to be collected at maturity, however the document can be delivered to drawee only after payment. This is used when the goods have been already delivered on OPEN ACCOUNT BASIS, the exporter asks a bank for an advance and the bank sends the invoice to the importer's bank to be sure that the latter will pay it correctly to the proper account.
Other comments appreciated
Ciao
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nesarul
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collection
Dear,
Query One:
Obtain payment and/or acceptance- this related to clean collection as define into sub-article 2(c)
DP: this related to documentary collection as defined in sub-article 2(d).
Query 2:
Document will only released upon receive of payment....
Sub-article 7(c):
Query One:
My comments:What is the different between to obtain payment and DP- deliver document against payment?
Obtain payment and/or acceptance- this related to clean collection as define into sub-article 2(c)
DP: this related to documentary collection as defined in sub-article 2(d).
Query 2:
My Comments:Can you translate a collection instruction " DP 90 days from BL date ?
Document will only released upon receive of payment....
Sub-article 7(c):
Nesar" If a collection contains a bill of exchange payable at a future date and the collection instruction indicates that commercial documents are to be released against payment, documents will be released only against such payment and the collecting bank will not be responsible for any consequences arising out of any delay in the delivery of documents"
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inkrmp
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B. Can you translate a collection instruction " DP 90 days f
Hi,
This kind of tenor is also called as Longsight tenor. It is used to give cushion to both the Seller and the Buyer i.e. the Seller always wants to hold the ownership of goods until he's paid for it and the Buyer always wants to delay the payment.
Hence in this case, the documents will not be delivered to the Buyer until he pay for the goods as such the Seller's interest is protected and the Buyer have the cushion period to make the payment anytime within the 90 days period.
Cheers
This kind of tenor is also called as Longsight tenor. It is used to give cushion to both the Seller and the Buyer i.e. the Seller always wants to hold the ownership of goods until he's paid for it and the Buyer always wants to delay the payment.
Hence in this case, the documents will not be delivered to the Buyer until he pay for the goods as such the Seller's interest is protected and the Buyer have the cushion period to make the payment anytime within the 90 days period.
Cheers