Best Trade Solution

Dear all
Please clear me following matters:
1.Why we send bill of exchange with a collection document to forwarding bank/issuing bank?
2.Is it mandatory to endorse the bill of exchange? Why or why not?

Your any logical answer is valuable for me.

rdgs,
Sohel

Hi Pal,

Bill of exchange is a mean of payment that could be transferred, negotiated, discounted etc. It could be used as a proof that you have paid your debts.
If issued at sight has a little meaning but in cse of usance, tenor etc, it could be sent , to be accepted and than discounted before maturity. The seller could advance/finance and ease its cash flow. Bill of lading must be endorsed to facilitate the identity of the holder in due course, the right holder. Banks were happy to discount bills of exchange as they could re-discounted them with Central Banks in case of necessity. Now, other means of payment, if issued transferable could represent a way to finance and refinance the holders, i.e. companies and banks. In documents against acceptance , bills of exchange are issued and remitted , via a bank, to the buyer with commercial documents, documents that will delivered against acceptance, the accepted bills will be presented at maturity for collection and paid, if unpaid, probably protested, in this case seller risks all on buyer trustworth. Accepted bills of exchange could be avalised, backed or guaranteed by banks or other company. So the seller risk will be divided on two, buyer and guarantor, better if a bank.
The use of bills of exchange in documentary credit is not useful and sometime expensive due to stamp duties.
I know that my post is not exhaustive, so, other comments appreciated.
Ciao

if exporter's bank didnt sent Bill of exchange Under URC522 Collection on DA/Acceptances Import Bill, in case of non payment from Drawee, what are legal steps that exporter's bank can take.

If bill of exchange is considered to be in transaction then it MUST be in there or else it will raise the eyebrows of the banks.
The legal steps are Note>Protest>Court