国际结算英文课件：Chapter 3 Collection

1、In this chapter, you will learn:Definition, parties and procedures of collection;Risk protection and financing under collection methods;The content of collection instruction and collection bill.Chapter 3 CollectionI. The definition of collection Collection is a kind of payment system, in which credi

2、tors submit financial documents or commercial documents or both for obtaining proceeds to the remitting bank and ask it to entrust his relational bank (collecting bank) to make the documents available to the payer. Collection means in accordance with instructions received, the handling by banks of:

3、(1)obtain payment and/or acceptance of financial documents, or (2) delivering documents against payment and/or acceptance, or (3) delivering documents on other terms and conditions.(URC522)Section 1 Outline of CollectionP39Principal: exporter, drawer, consignor, payeeRemitting bank: exporters bank,

4、payee of the collection bill, endorseeCollecting bank: importers bank, presenting bank, endorsee or payee of the collection billDrawee: importer, payerII.Parties to collection1. Clean CollectionIt refers to collection of financial documents not accompanied by commercial documents.It is often used to

5、 collect remaining funds, advance in cash, sample expense, etc.2. Documentary Collection It means collection of financial documents accompanied by commercial documents or commercial documents not accompanied by the financial documents.III. Classification of collectionsPrincipalPayerRemitting BankCol

6、lecting BankShipment PaymentApplication /Documentary BillReceiptCollection InstructionDocumentary BillPresentationDelivery bill against PaymentDelivery bill against AcceptanceCredit adviceIV. The procedure of documentary collectionDocuments against Payment (D/P) D/P at sightacceptance D/P (D/P at se

7、veral days after sight)Documents against Acceptance (D/A)Trust Receipt(T/R)Classification of Documentary Collection PayerCollecting Bank2. acceptance1. Presentation for acceptance3. Presentation for payment at maturity4.payment5. Delivery documents PrincipalRemitting BankShipmentPayment: credit prin

8、cipal accountCollection instruction/d billCollection InstructionDocumentary BillCredit adviceThe procedure of acceptance D/P: PayerCollecting Bank2. acceptance1. Presentation for acceptance3. Delivery documents 4. Presentation for payment at maturity5. payment PrincipalRemitting BankShipmentPayment:

9、 credit principal accountCollection instruction/d billCollection InstructionDocumentary BillCredit adviceThe procedure of D/A: I. Interest，Charges and Others1. Interest Interest to be collected must be indicated rate of interest, interest period, basis of calculation in Collection Instruction.e.g. P

10、lease collect interest for delay in payment calculated from maturity to the date of actual payment at the rate of X% p.a. on the basis of 360 days a year from the drawee . Waive /(do not waive) interest if refused by the drawee. Section 2 Notice of Problems in CollectionIf the seller wishes to have

11、the buyer paid the collection charges, in instruction he may indicate:Collection charges/expenses outside China are for account of the draweeWaive(do not waive) charges if refused by the draweeCollection charges may not be waived and the drawee refuses to pay such charges，the presenting bank will no

12、t deliver documents2. Chargesin collection instruction:Do not protest in case of dishonourProtest forNon-acceptance Non-paymentWe will give instruction to you upon receipt of cableair mail advice of Non-acceptanceNon-payment with reasons3. protest1.The remitting bank has maintained an account with t

13、he collecting bank remitting bankcollecting bankCollection Instruction：When collected please credit our account with you under your Cableair mail advice to us Credit advice: Your a/c has been credited. II. Instructions for proceeds received in the Collection Instruction 2. The collecting bank has ma

14、intained an account with the remitting bank remitting bankcollecting bankCollection Instruction： Please collect the proceeds and authorize us by Cableairmail to debit your account with us Debit advice: Your a/c has been debited Payment order: We hereby authorize you to debit our account(a/c No.)3.Th

15、e remitting bank has maintained an account with the X bank X bankcollecting bankCollection Instruction： Please collect and remit the proceeds to X Bank for credit our account with them under their Cableairmail advice to us The proceeds is remitted to you for credit of A banks account (a/c No.)Credit advice: Your a/c has been credited. remitting bankIII. Collection Instruction and Collection Bill1. Collection Instruction /Covering Letter Remitting bank makes it according to the application given by the principal（Attachment）2.Collection BillDrawer: Princ