The documentary collection is a payment tool, in case of which the exporter transfers the documents to the importer via the executing bank with the purpose of receiving payment.
Documentary collection payment types:
- D/P – documents against payment – The documents are provided to the purchaser only after the purchaser implements payment in exchange for products.
- D/A – documents against acceptance – The documents are provided to the purchaser with the condition of implementing payment in exchange for those products in the future.
The advantages of documentary collection are:
- A comparatively simple procedure and low cost.
- The deals are regulated by the international rules of “Uniform Rules for Collections” (URC522) of the International Chamber of Commerce.
- The fact of product delivery is confirmed by commercial and financial documents, which are sent to the importer’s bank by the exporter’s bank.
- The importer is able to receive the products before implementing the payment.
For more information in relation to Trade Finance and/or Documentary operations please contact:
International Relations and Trade Finance Division, Chief Specialist
Tel: +374 10 511 250
International Relations and Trade Finance Division, Specialist
Tel: +374 10 511 226