Import Documentary Collection

1. Product Definition

It is a kind of settlement method in which, serving as the collecting bank, Bank of Shaoxing, under the entrustment of the exporter’s bank (collection bank), presents the documents to the importer for the documents against payment or acceptance, and pays the received funds to the collection bank.

2. Service Advantages

1. The low banking charge helps to save the financial cost;
2. With a low ratio of capital tie-up, no advance payment is required at the stages of stock-up and shipment, thus no funds are tied up. After making payment of goods or acceptance, the importer can immediately get the goods documents and handle the goods.

3. Applicable Scope.

1. Importers who hope to make payment of goods to exporters in a way that is easier with lower cost compared with L/C;
2. If an importer has sufficient working capital, it is advised to choose the way of documents against payment (D/P);
3. If an importer needs the financing convenience of forward payment from the exporter due to its insufficient working capital and has established a good partnership with the exporter, it is advised to choose the way of documents against acceptance (D/A).

4. Business Procedures

1. After stocking up and shipping goods, the foreign exporter submits relevant documents to its bank for collection;
2. The exporter’s bank delivers the collection documents to the Bank, and then the Bank advises the importer of documents against payment (D/P) or documents against acceptance (D/A) according to relevant instructions;
3. After making payment or acceptance to the exporter via the Bank, the importer can receive the above documents from the Bank;
4. Upon the maturity of acceptance under D/A, the importer makes payment to the exporter via the SRRCB.