Definition of Documentary collection:
Document Submission (D / C) is prescribed because exporters receive payment from importers in exchange for shipping documents and funds and the documents are sent through their respective banks.
Document submission is the process by which an exporting bank collects money from an importing bank in exchange for a listing document. Submission of documents is a commercial process in which the exporter authorizes his bank to act as a collection agent for payment of goods sent to the buyer.
An international trade procedure in which an importer exports a bank in a country to collect and transfer remittance payments from an exporter. The exporter sends the shipping and deposit documents to your bank (in your own country), which sends them to the same bank in the importing country. Foreign banks (also known as presentation banks) provide shippers and ownership documents (need to receive remittances) in exchange for money (for drafted documents) to importers or the company's payment obligations. (For regulatory acceptance documents). The bank involved in the transaction works only in trust to receive payments, but (unlike documented loans) does not offer a suicide attack. You are solely responsible for the correct compliance with the exporter's collection instructions and can sue any importer who refuses to pay or refuse to pay on behalf of the exporter (see protest).
How to use Documentary collection in a sentence?
- With the billing document, the exporter allows your bank to act as a billing agent for the payment of goods sent to the buyer.
- Document submission is the process by which an exporting bank collects money from an importing bank in exchange for shipping documents.
- The Compensation Document (D / P) compels the importer to pay cash for the cost of the project. An Unauthorized Document (D / A) requires the importer to pay by a certain date in the future.
Meaning of Documentary collection & Documentary collection Definition