FAQFAQ

Documentary Collection - Frequently Asked Questions

Do I have a guarantee for payment as an exporter?

No. Trading on a collection basis means that documents will not be handed over until payment has been made or a draft has been accepted, but in contrast to a documentary credit, the buyer is not obliged to pay or accept a draft.

Which documents must I present as an exporter?

There is no simple answer as to what documents must be presented under a collection – it depends on what you have arranged with your buyer. Typical documentation includes a bill of lading (or a transport document), invoice, certificate of origin, insurance certificate (if required) and bill of exchange.

Can payment wait until the arrival of the goods?

The international rules for collections do not stipulate when the importer must make payment. You can certainly defer the payment until the goods arrive unless you have arranged otherwise with the seller.

As an importer, can I waive charges?

The importer cannot waive charges under a collection if the collection instructions state that this is not permitted.

 
Although Danske Bank has taken care in the preparation of these questions and answers, it cannot accept responsibility for any loss, injury, or damage (consequential or otherwise) resulting from any action taken in the information set out herein. The information and any opinions are not intended to be a complete guide to the subjects covered and do not provide specific advice. The information is intended to be general only and you should seek specific advice before taking any action.

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