Topic 8 - Documentary collections

Question 1

What is the difference between a remitting bank and a presenting bank?

Answer 1

Remitting bank = the sellers bank

Presenting bank = the buyers bank

Question 2

Clean Collection

Answer 2

Clean collection

The payment of a draft by the buyer on a sight basis

or

Acceptance of a draft and payment on the due date

Question 3

What are Documentary Collections?

Answer 3

Documentary collections is the collection of sales proceeds as well as the delivery of documents by a bank on behalf of sellers and buyers respectively.

Documents released can be done through either:

1) D/P - documents against payment
2) D/A - documents against acceptance of a term draft

Question 4

Which ICC publication governs the following:

1) Documentary collections
2) Documentary credit

Answer 4

1) Documentary collections = URC 522
2) UCP 600