Collections
Preparation

Banks act only as a collecting agent for the exporter; therefore, it is important that the exporter furnish complete and definite instructions for each collection item.

Contact Us to sign up for our direct collection service.

Once you have signed up for this service you may use the following step-by-step instructions to assist you with the preparation of your documentary collection letters.

Note: We strongly suggest that our customers familiarize themselves with the Uniform Rules for Collection (ICC Publication No. 522).

Collection Bank Abroad

Collecting Bank's name and address (this information is usually obtained from the buyer/drawee).

Date

Date collection prepared by you.

Drawer's Reference Number

Your reference number.

Date of Draft

Date draft prepared.

Tenor

The terms of payment for the draft.

Amount

Amount of collection (specify currency).

Note: Many countries call their currency "dollars" so you must specify if in U.S. dollars or, for example, Australian dollars.

Drawer and Address

Complete name and address of exporter (seller).

Drawee and Address

Complete name and address of buyer (upon whom the draft is drawn).

Documents

Indicate the number of copies of each type of document. If no documents are attached, indicate "clean."

Release of Documents

Indicate whether the documents should be released to the buyer against payment or against acceptance. Normally, documents will be released against payment of sight draft and against acceptance of a time draft.

Protest

Definite instructions should be given as to whether or not the draft should be protested in the event of dishonor; otherwise, the collecting bank abroad will not know what action is required. Absence of instructions does not allow any assumption as to protesting and may cause extra expense and delay.

Note: Protesting in some countries is very expensive and may have little legal significance while in other countries protesting has very serious legal/economic consequences for your customer.

Charges

If you wish the buyer to pay charges such as the bank charges and postage, you should so indicate; otherwise such charges are deducted from the proceeds. In some instances, payment may be delayed by a drawee's refusal to pay bank charges. To avoid this, you may wish to waive these charges to the buyer, and this should be indicated. Should you indicate "Do Not Waive Charges," you may jeopardize payment of the entire collection.

Special Instructions

Any other instructions peculiar to a specific item should be noted.

Payment Instructions

Check one box only.

Note: Any further questions to the above procedures can be answered by contacting International Trade Services at 1-888-464-7804.