Export Documentary Collection

1. Product Definition

The export documentary collection is a type of settlement service in which the exporter entrusts Bank of Shaoxing, by presenting the shipping documents, such as draft-attached bill of lading (B/L) and commercial invoices, to Bank of Shaoxing, to collect goods payment from the importer through the collecting bank.

2. Service Advantages

1. Professional examination of documents enables fast document forwarding;
2. Easy operation helps lower the cost. Compared with the letter of credit, the handling procedures are simple and easy to go through, so the banking cost is lower;
3. Control of title of goods helps reduce risks. The importer cannot take the documents and pick up goods until making payment or acceptance. Compared with the method of cash on delivery, the importer bears lower risks.

3. Applicable Scope.

It is suitable for exporters having long-term stable business relationships with importers.

4. Business Procedures

1. Presenting of documents. The customer presents relevant documents to the Bank;
2. Examination and delivery of documents. After checking relevant documents against the “Liaison Sheet for Documents Presentation by the Customer” and ensuring that they are correct, the Bank will, according to the collection instruction of the exporter, deliver the documents to the designated collecting bank, which will then advice the importer to make payment and acceptance to take such documents;
3. Receipt and transfer of exchange. After receiving the exchange, Bank of Shaoxing will transfer the funds into the relevant account specified by the exporter and go through relevant formalities for verification and writing-off of export proceeds.