WHAT—— What is export collection?

•Entrusted by the exporter, the bank, with the financial and commercial documents submitted by the exporter, collects payment from the importer via its foreign correspondent banks or sister-branches.

•Export collection can be classified into two types, namely documents against payment (D/P) and documents against acceptance (D/A).

WHY——Why choose outward collection?

•Convenient and easy to operate as compared with letter of credit;

•Low banking charges, helping the exporter to save expenses and control costs;
•The importer can pick up the goods only after acceptance or payment. As for the exporter, the risk is relatively lower than that of credit sale.

WHEN——When to use export collection?

•The credit standing of the importer is well known and the exporter has sufficient funds to prepare the goods and make shipment.

•D/P is recommended when the exporter in a seller’s market.

•D/A is recommended when the exporter in a buyer’s market and importer asks for credit sale. Compared with remittance, the forward payment is relatively guaranteed.

HOW——How to operate the outward collection business?

•The Operation flow

•Attentions

1.When entrusting the bank to do the operation of outward collection, the exporter should provide: a. Collection order; b. Full set of documents for collection;

2.Client doing such business for the first time should also provide the followings: a. Original (duplicate) business license; b. Import-export business operation license; c. Letter of authorization of the legal representative.

3.In case of non-payment or non-acceptance, the exporter is suggested to entitle the collecting bank in time to assist in disposing the goods;

4.Under D/A, the payment, in fact, is deferred to the maturity day. It is suggested that the relative costs, such as interests, should be included into the price during the commercial negotiation.

ADVANTAGES – Advantages of Bank of China

•Predominant reputation —— BANK OF CHINA has a long history of over 90 years and has been awarded “the Best Bank in China” by “Euromoney” for successively 8 times. With the progressively improved system of corporate governance, overall integration of operation flow, wholly-upgraded service efficiency and rich financial products, BANK OF CHINA has continued to advance toward its goal of becoming a leading universal international bank;

•First-class professional service —— BANK OF CHINA, as the first bank in china to provide international settlement business, has absorbed a pool of talented experts. The bank has maintained the largest share of the domestic market and has always been the best against its Chinese peers in this regard;

•Rich financing products —— Full range of trade financing products such as export bill purchase and export discounting are provided to satisfy your extensive demands;

•Safe and timely clearing business —— With four major clearing center, that is US dollar clearing center- New York Branch; Hong Kong dollar clearing center- Bank of China (Hong Kong); Euro clearing center -Frankfurt Branch and Japanese yen clearing center-Tokyo Branch, BANK OF CHINA stands as the leader in domestic market for foreign currency clearing businesses;

•Advanced technology level —— BANK OF CHINA became one of the first bank to  participate SWIFT in 1993. Sophisticated SWIFT system provides our clients with robust guaranty of convenient and high-speed collection service.

•Global network —— With 12529 domestic branches, 560institutions scattered in Hong Kong, Macao and oversea areas and nearly 4000 agency banks, BANK OF CHINA, exclusively in domestic market, has established a multi-nation and multi-layer high-speed global payment network established through 90 years accumulation;

•Effectively risk-evading system —— The first bank in china to offer Renminbi forward purchases and sales for foreign exchange, BANK OF CHINA accumulated rich experiences in helping the clients to dissolve overall exchange risks.