Product Name

Inward Collection

Product Description

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

Product Functions

Upon receipt of documents from the remitting bank, in accordance with instructions received, the bank (collecting bank) collects payment/acceptance from the importer (the drawee) and releases the relevant commercial documents to the importer.There are two types of inward collection: D/P and D/A. Under D/P terms, import documents are released to the importer against payment. Under D/A terms, documents are released to the importer against acceptance.

Product Features

1. Low cost - low banking fees, help reduce financial expenses and control the costs;

2. Easy to use - simple procedures and easy to use compared to L/Cs;

3. Reduce funds occupation - no advance payment 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 cash flow - with D/A, the importer can immediately obtain the goods document and dispose the goods after acceptance, and can make payments later as the inflow of cash are generated by the sale of goods. With almost no occupation of funds, the company's financial position and solvency can be greatly improved.

Eligible Applicants

1. Importers who wish to pay to exporters with lower cost and simpler procedures than L/Cs.

2. Importer with sufficient liquidity may use D/P.

3. Importers with insufficient liquidity who need exporters to grant financing facility of forward payment may choose D/A provided that they have a good business relationship with exporters.

Application Requirements

1. The applicant shall be approved and registered in accordance with the law, and hold a business license that has passed the annual inspection or other valid certificates which fully prove its legal operation and scope of business;

2. The applicant shall have the qualification to engage in import and export trade.

Application Procedures

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

2. Exporter's bank mails the collection documents to Bank of China and we will notify 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, we 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.

Gentle Reminder

1. Under D/A terms, the exporter should accept the draft in accordance with relative local law and pay at maturity.

2. Importers are welcome to apply for BOC's trade finance under such inward collection.