Chapter 15 - PARTIES OF DOCUMENTARY COLLECTION

In this chapter we have described the various parties involved in the process of collection, their main duties and responsibilities etc.

The Seller: ( Drawer )

·         This is the party who is the initiator of the collection process.

·         In most of the cases he is the supplier / exporter / drawer of the bill of exchange.

Remitting Bank:

·         It is the Bank (normally the Principal’s banker) that sends the collection and collect the amount from the drawee on behalf of the drawer.

Collecting Bank:

·         Generally the Bank in the buyer’s country.

·         Receive the collection from the remitting bank and informs the drawee of the respect of the collection with a request to make payment as per the terms and conditions of the collection.

·         Undertake the responsibility for remitting the amount collected from the drawee to the remitting bank.

Presenting Bank:

·         It is the Bank that makes documents available to the buyer (the drawee) in terms of the instructions received from the remitting bank.

·         In case the drawee do not maintain an account with the collecting bank, the collecting bank forwards the documents / collection to the buyer’s bank, which assumes the role of the presenting bank.

·         As per URC Presenting bank is also the Collecting bank.

The Buyer: ( Drawee )

·         The person or entity named as the Drawee or Importer under the collection.

·         In most of the cases he is the person / entity who has imported / bought the goods / services and is responsible for making the payment under the collection.