Lesson 10 International Trade Documentary CollectionsLesson 10 International Trade Documentary CollectionsLearning ObjectivesProcedures of Documentary collectionsAdvantages and disadvantages of documentary collectionsParties involved in a documentary collectionForms of documentary collectionsDocumentary collectionsProcedure14. The exporter will issue instructions to his banker (remitting bank) as to how the transaction is to be handled2. The remitting bank encloses the bill and documents with its own detailed instructions (from the lodgement by the exporter) to the collecting bankDocumentary Credit ProcedureImporterExporter1. Sale Contract3. The overseas collecting bank will arrange presentation of the Bill of Exchange to the buyerThe exporter retain control of goods until payment or at least promise of payment is receivedbased on the use of a Bill of ExchangeBill of Exchange, or draft, is a cheque that the exporter draws on the importers bank accountBefore it is valid, the importer must sign it, thereby signifying acceptance to pay2 types of Bill of Exchange - on demand/at sight, or at termDocument against Payment (D/P) - at sight instructions will be to release documents after paymentthe seller instructs that the draft be presented on arrival of the goods (goods by sea come later after documents)the collecting bank will send the funds to the remitting bank where, they will be credited to the exporters accountDocuments against Acceptance (D/A) - at term (after sight)Normally a term draft will be drawn at 30, 60 or 90 days after sight or at a specific dateOnce the draft is accepted by the buyer, the collecting bank may release the documents credit riskfor sight collection: the exporter retains control of the goods until payment is received (however, should the draft be dishonoured, then customs, warehousing and insurance expenses may be incurred)for after sight collections: when draft has been accepted, the documents are released and the exporter loses control of the goodsexchange risk - existtransfer risk - exist期末考试要求以及评分标准 翻译部分（20分）： 要求：1.每个同学英文原文的内容不得少于A4两页，如果页中有图表或者空白部分，应酌情补足；分 2.翻译稿不要求打印（即打印稿件没有加分）； 3.使用机器翻译的，一经查实，以不及格论处；答辩时对译文内容一问三不知的，同上； 4.每位同学必须用铅笔划出至少5处在翻译过程中觉得有困难，拿不准的地方；划出三处自己翻译得比较满意的地方；分 5.对文中出现的专业名词、术语，请用色笔标注，并做到正确翻译、理解清楚、概念准确分 答辩表现（10分）：回答正确分；英文方式可获得加分分； 基础知识测试（10分）： 两种方式选择：我给出知识点列表，但考试时不允许携带任何笔记；（相当于闭卷）不给知识点列表，允许同学携带大小笔记一页（只能书写一面，相当于半开卷） 评分标准：解答正确分；英文方式可获得加分分 The collection instructions should be in line with the terms of the commercial contract.The collection procedure is based on the integrity and impartiality of the world banking systemThe banks involved make a charge. The parties to the sales contract decide in advance which of these charges each is to bear,ExporterImporterRemitting BankCollecting Bankdrawee bankProblem - buyer does not collect goods when retail prices drops. - goods under valued, under insuredAt sight:If the buyer refuses payment -> the overseas collecting bank would not release the documents of title -> the exporter still retains control of goodsTerm bill:1. Documents are to be released on acceptance (to finance the buyer after arrival of the goods) -> representing the buyers legal undertaking to pay at maturity2. Documents are to be released on payment of a term bill (demurrage costs for the exporter). This practice not encouraged.Dishonoured billThe exporter should carefully consider such aspects as the protection, storage and insurance of the goods, whether:he requires the dishonoured bill protested and whetherhe should nominate a party as case of need in the locality.Term bill:If the buyer does not wish to carry the finance until the buyer pays, he may ask his bank to negotiate or buy the bill:(my words) The exporter presents the documents to his bank -> the bank would pay him the value of the bill (less charges) ->his bank would send the bill (proceeds) overseas for collection, but with a right of recourse to the exporter if the bill is not paid