Name

Import Documentary Collection

Introduction

Entrusted by a foreign correspondent bank or an affiliated bank, and according to their instructions, Bank of China Brussels Branch collects payments from importer and delivers relevant commercial documents to the importer.

Functions

It is used for international trade settlement in two forms: documents against payment (D/P) and documents against acceptance (D/A).

Features

1. Low cost. Low fees charged by the entrusting bank can help customers reduce the financial expenses and control the costs.

2. Simple procedures. Compared with L/C, the collection has simple procedures and is easy to use;

3. Less occupied fund. No advance payment is required when the exporter prepares and ships the goods. The goods documents can be obtained immediately, and the goods become disposable upon payment or acceptance;

4. Improve the cash flow. With D/A, the importer can immediately obtain the goods documents and dispose the goods after acceptance, and can make payments later when the cash inflow is generated by the sales of goods, greatly improving the turnover of funds and the company’s financial position and solvency.

Charges

The charges are subject to the charging principle and rate applied in the relevant rules of Bank of China Brussels Branch.

Target Customers

International trade customers who use documentary collection for settlement. The consideration is mainly based on the following factors:

1. Importers who want to pay to the exporters with lower cost and simpler procedure compared with L/C.

2. Importers with sufficient working capital can use D/P.

3. Importers with insufficient working capital who want the exporters to grant the financing facility of forward payment can choose D/A provided that they have a good business relationship with the exporters.

Applicant Qualifications

1. The applicants shall hold business license legally approved, registered and annually checked as well as other valid certificates sufficient to prove the legitimacy and scope of operation;

2. The qualification of import and export operation.

Required Documents

Applicants shall submit the following documents to the bank under D/P: payment voucher, and the verification certificate of the import trade payment in foreign exchange.

Procedure

1. The foreign exporter initiates collection by submitting the relevant documents to its bank after the preparation and shipment of goods;

2. Exporter's bank mails the collection documents to Bank of China, who advises the importer to pay (D/P) or accept (D/A) as instructed;

3. After the importer has made payment or acceptance to the exporter via Bank of China, the Bank shall release the documents to the importer;

4. When the acceptance under D/A is due, the importer shall pay to the exporter via Bank of China.

Tips

1. Under D/A, customers must make acceptance of the forward draft and make payment as the draft is due;

2. Customers may also apply for trade finance such as import advance under documentary credit or overseas import bill advance from our bank.