Chapter 11 - GENERAL- DOCUMENTARY COLLECTIONS

URC 522 governs the operation of Documentary Collections.

A documentary collection is a process, in which the seller instructs his bank to forward documents related to the export of goods to the buyer's bank with a request to present these documents to the buyer for payment, indicating when and on what conditions these documents can be released to the buyer.

Collections - Documents against Payment (D/P)

Both the buyer and the seller agrees that the seller will dispatch the goods to the buyer (through the Bank) and forward the documents to the buyer’s bank and the buyer will  make payment for the goods (in full or part) and take delivery of the goods.

Collections - Documents against Acceptance (D/A)

Both the buyer and the seller agrees that the seller will dispatch the goods to the buyer (through the Bank) and forward the documents to the buyer’s bank and the buyer will accept the bill of exchange and take delivery of the goods. The buyer will make payment for the goods (in full or part) at an agreed future date.