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Draft on Document Collection Basis
Posted: Wed Mar 07, 2012 8:34 am
by Gemini
Dear all,
In Documentary Collection basis, as beneficiary bank I often ask draft to the beneficiary. My question is which party should be drawn at the draft, is it drawn on paying bank or drawn on applicant ? Thank for your explanation.
Draft on Document Collection Basis
Posted: Thu Mar 15, 2012 1:01 pm
by leekaiyin55
Dear Gemini,
Under Documentary Collection, it is the drawer (i.e. exporter/ beneficiary) who draws the draft on the drawee (i.e. importer) for payment (i.e. D/P) or for acceptance (i.e. D/A). It differs from LC transaction in which drawee is drawn on the LC issuing bank.
Basically, the role of banks under Documentary Collection are an agent rather than acting as parties understaking to pay.
Draft on Document Collection Basis
Posted: Tue Mar 20, 2012 1:20 pm
by Gemini
Dear Lee,
thank you for your explanation,since i am new at this trade services group.
Regards,
Draft
Posted: Fri Mar 23, 2012 4:47 pm
by vinodkoli
Draft is drawn in the name of Importer
Draft
Posted: Sun Jun 03, 2012 11:03 pm
by sandeep_mt
Draft presented under Documentary collection should be drawn on drawee not on collecting or presenting bank.
Draft on Document Collection Basis
Posted: Tue Jun 19, 2012 4:19 pm
by Toufiqul Huq
Draft will be drawn on Importer. But will be presented through remitting bank.
Draft on D/C
Posted: Fri Sep 21, 2012 4:57 am
by aemrek
Other comments cleared that the difference between drawee`s position on D/C and L/C. The drawee is the importer on D/C and draft has to be drawn on the importer.
Draft on Document Collection Basis
Posted: Thu Sep 27, 2012 5:45 pm
by Virendra
Agree with Lee!!!
