Documentary And Clean Collection

[MIA19]

Hi,
how do you read art. 2 of urc 522
How do you define clean collection?
Would you say that:
clean collection is documentary collection containing only financial documents
or
is not considered as documentary collection than
collections are: documentary collection and clean collections
regards

[picant]

Hi Pal,

URC 522 more specific:
Clean collection :collection of financial documents not accompanied by commercial documents.

"Financial documents " means bill of exchange, promissory notes, cheques or other similar instruments used for obtaining the payment of money.

So in case of documents against acceptance, you will have documentary collection and a clean collection in cashing the draft/promissory note at maturity.
Other comments appreciated.

PS.Concerning the applicable commissions, in case of simple collection, i.e. a single invoice, some italian banks charge clean collection fees.

[bodebowale]

Clean collection is when only financial documents are collected on behalf of the buyer, while documentary collection can be collection of either financial and other documents OR collection of other documents alone. My thought

[picant]

Hi Pal,

an invoice alone is a clean collection, so a draft or bill of exchange..
ciao

[dv01001]

Just emphasize for clear understanding. thanks for your reading
- Clean collection include financial documents (eg: bill of exchange, promissory note...) WITHOUT commercial documents
- Documentary collection include one of following cases:
+ Financial documents along WITH commercial documents (eg: transport docs, commercial invoice...)
+ Commercial documents WITHOUT financial documents

[picant]

Hi Pal,

the difference is in collecting fees, in Italy clean collections have a minor charge and it is possible to
apply it to invoice only too.
Ciao