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Product Name
Export Collection
Product Description
Requested by the exporter, the bank, with the financial and commercial documents submitted by the exporter, collects payment from the importer via its foreign correspondent banks or sister-branches.
Product Functions
Export collection can be classified into two types, namely documents against payment (D/P) and documents against acceptance (D/A).
Product Features
1. Low cost. Low banking fees, help reduce financial expenses and control the costs.
2. Easy to use. Simple procedures, easy to use as compared with L/Cs.
3. Lower risk. The importer can only take delivery of the goods after acceptance or payment, which helps reduce the risks for the exporter as compared with open account sales.
Eligible Applicants
1. Exporters know the credit status of the importers and have sufficient funds for preparation and delivery of goods;
2. In the sellers' market, the exporters are advised to choose D/P and in the buyers' market where the importers are asking for financial facility, the exporters may choose D/A.
Application Requirements
1. The applicant shall be approved and registered in accordance with the law, and hold a business license that has passed the annual inspection or other valid certificates which fully prove its legal operation and scope of business;
2. The applicant shall have the qualification to engage in import and export trade.
Required Documents
The following documents are required when applying for export collection: the power of attorney for collection and the complete set of documents for documentary collection.
Application Procedures
1. The exporter submits relevant documents to Bank of China for collection after preparation and delivery of goods.
2. Bank of China mails the documents for collection to the foreign collecting bank.
3. The foreign collecting bank presents the received documents to the importer.
4. The importer makes the due payment to Bank of China via the collecting bank and Bank of China pays it to the exporter.
Gentle Reminder
1. In case the importer refuses to make payment or acceptance, it would be better if you timely authorize the collecting bank to help you make arrangements for your goods;
2. You have actually extended the payment time of the importer under D/A, so you are advised to consider interest-related costs when determining price.
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