Protest

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; besttradesolution.com
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akomolpa
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Joined: Thu Mar 12, 2009 5:04 pm

Protest

Post by akomolpa » Tue Jun 02, 2009 3:30 pm

Dear all,
Is it necessary to specify the instruction to Protest for non-payment or non-acceptance?

rgds,

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picant
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Art 24 URC 522

Post by picant » Tue Jun 02, 2009 11:20 pm

Dear Pal,

in your remittance scedule you have to indicate the actions to be taken in case of no-payment or no-acceptance. Some countries need protest to enter in legal action against drawee, but in URC you have to request it, even if a statement by the collecting bank may be sufficient. As art 24 continues that banks are not obliged to protest, some countries could instruct their banks to protest.

Other comments appreciated

Ciao

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loankim
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URC 522 ART 24

Post by loankim » Fri Jun 05, 2009 12:49 pm

HI all,

Protesting the bill i.e., a legal action to seek payment from the importer, does not guarantee that payment will be made.
Your collection instruction should contain a field regarding protesting of the bill if unpaid. This field would appear to have been "ticked" when sending the documents to the collecting bank.
If not, the collecting bank sometimes sends MSG such as: “ Protesting will only be done on your confirmation and legal fee min GBP100.00. We will protest if no reply within 5 days ". it means, The collecting bank is stating that they will protest the bill (via a Notary Public) if it is not paid within 5 days. The exporter will be liable for the GBP100 fee and this would be deducted from the proceeds.If the fee is not acceptable, you should revert to the collecting bank and withdraw the request for protest in the event of non-payment.
your comments are welcome !
rgds,

LLawrence
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Re: Protest

Post by LLawrence » Fri Apr 19, 2019 3:46 am

There is no harm to ask for a protest. It is not guaranteed that the payment will be made after the protest, however it still useful when the case comes to court. The court will ask exporter whether he went trough 'note' and 'protest' before hitting the case to the court.

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