- •Banking 1 documentary credit
- •1.1 The importer applies to the bank for opening the credit
- •1.2 The buyer places an order and informs the seller of the opening of the l/c
- •1.3 The seller receives the order and confirms it
- •1.4 The bank advises the seller that the credit is available (I.E. Confirms the credit)
- •1.5 The seller sends the documents to the bank
- •Documentary credit part II
- •2.1 The buyer replies to the seller’s request to prolong the time of delivery and discusses amendments to the l/c
- •2.2 The buyer advises the bank of the amendment agreed upon with the seller
- •3.1 The buyer informs the seller of discrepancies in the documents
- •3.2 The buyer advises the seller of payment and asks to comply with the requirements of the credit
- •4 The bank advises the buyer of payment
- •Part II
- •Vocabulary
- •Part II
- •Part II
- •Banking 2 documentary collection. Some aspects of commercial banking
- •1.1. The collection order of a bank
- •1.2 Documents are presented for collection
- •1.3 A collection order is not acknowledged
- •1.4 Returning the accepted drafts
- •1.5 Payment guarantee granted by the bank
- •2 Letter of guarantee
- •2.1 Correspondance on letter of guarantee
- •2.2 Payment guarantee granted by the bank
- •2.3 Performance guarantee granted by the bank
- •Part II
- •3 Some aspects of commercial banking
- •3.1 Opening a current account
- •3.2 Problems on standing order
- •3.3 Request for an overdraft
- •3.4 Advice of granting an overdraft
- •Vocabulary
- •Part II
- •Part II
- •Transportation
- •1.1 Request for a quotation for delivery by road
- •Quotation for delivery by road
- •1.3 Advice of delivery from consignor to consignee
- •1.4 Waybill
- •2.1 Delivery by rail
- •2.2 Consignor's reply
- •2.3 Railway bill
- •3.1 Delivery by air. Enquiry for freight rates
- •3.2 Quotation for delivery by air
- •3.3 Airway bill
- •1.4 Waybill
- •2.3 Railway bill
- •3.3 Airwaybill
- •Consignment; to consign
- •Vocabulary
- •Marine transportation
- •Request for freight rates and sailings
- •Shipping company’s reply
- •1.3 Shipping instructions sent to a shipping company
- •1.4 Instructions to a forwarding agent
- •1.5 Advice of despatch
- •1.6 Bill of lading
- •2.1 Telex enquiry for a time-charter
- •2.2 Enquiry for a time-charter
- •2.3 Offer of a vessel for carrying ore
- •2.4 Shipbroker’s reply confirming the fixture of a vessel
- •2.5 General charter
- •1.6 Bill of lading
- •2.5 General charter
- •Liner vs tramp
- •Cargo, freight, load
- •Shipping conference
- •Baltic Exchange
- •Loading dates
- •Vocabulary
- •Packing and marking
- •1.1 Enquiry to a container company
- •1.2 Container company’s reply
- •2.1 Customer’s instructions to packer
- •2.2 Packer’s information to customer
- •3 Information about marking
- •Barrel, cask, hogshead, keg
- •2. Paint vs dye
- •3. Stevedore, stevedores
- •Vocabulary
- •Contract of carriage
- •Carnet; tir Carnet; tir; cmr
- •Vocabulary
- •Insurance
- •Request for marine insurance quotation
- •1.2. Quotation for marine insurance
- •1.3. Claim
- •1.4. Reply to claim
- •2.1. Request for open cover
- •2.2. Quotation for open cover
- •2.3 Notification of shipment under open cover
- •Indemnification vs indemnity
- •Average
- •Average adjuster, average adjustment
- •4. Assessor
- •5. Underwriter
- •6. Interest
- •Vocabulary
1.1. The collection order of a bank
Here is a collection order sent by Moscow Narodny Bank Limited (remitting bank) to the Vnesheconombank (collecting bank).
MOSCOW NARODNY BANK Limited
Telephone Address SWIFT Address Telex Registered Address Cables:
Date: 18 October 20__.
Vnesheconombank Remitter (Their Ref.) Moscow, Russia Smith and Co., Ltd. |
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WE ENCLOSE THE UNDERMENTIONED DOCUMENTS FOR COLLECTION – OUR REF. B.C. ... WHICH PLEASE QUOTE IN ALL CORRESPONDENCE |
AMOUNT GBP 25,000.00 |
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DRAWEE NOVOIMPORT |
DATE OF BILL 18 January 20__ |
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DRAWER SMITH and Co., LTD. |
TERM: SIGHT |
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Please acknowledge receipt by return |
B/E |
Invoice |
Ins. Policy |
Weight List |
Origin Cert. |
B/L |
AWB |
Qual. Cert. |
Pack List |
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Original Mail |
x |
x |
x |
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Duplicate Mail |
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B/L date … Vessel TRISTAR Goods FABRICS |
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PLEASE FOLLOW THE INSTRUCTIONS MARKED «X» |
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Deliver documents against payment. |
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x |
If unpaid please protest. |
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If unpaid do not protest. |
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x |
Advise non-payment by mail/airmail/cable stating reason. |
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x |
Collect all your charges. |
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x |
Collect our charges as follows: GBP 58,00 |
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Collect interest at __% per annum. |
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x |
Advise us if interest/charges refused. |
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x |
Remit proceeds to us by cheque/payment. |
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Authorize us by Airmail/Cable to debit your account with proceeds. |
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Funds to be Eligible for Credit to External Account. |
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Remit proceeds to ________________________________ |
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x |
Deliver documents against acceptance/undertaking. |
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x |
Please advise us of acceptance and maturity date retaining the accepted bill/undertaking for presentation at maturity. |
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Please return the accepted bill to us. |
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Please ensure when returning the bill to us that: (a) it bears the name and address of the bank to which it must be presented for payment at maturity; (b) the date of acceptance is shown if the maturity date is not specified. |
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If unaccepted please protest. |
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If unaccepted please do not protest. |
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Advise non-acceptance by mail/airmail/cable stating reason. |
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x |
If still refused on arrival of carrying vessel, please land and warehouse the goods. |
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If still refused on arrival of carrying vessel, please insure the goods against fire and theft. |
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Do not insure. |
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Payment/Presentation may be deferred pending arrival of carrying vessel. |
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STAGES OF DOCUMENTARY COLLECTIONS
STAGE 1 Establishing the terms of collection
The exporter stipulates the terms of payment in his offer or agrees them with the buyer in the contract of sale.
STAGE 2 Collection order and passage of documents
When the order has been awarded or the contract of sale has been signed, the exporter dispatches the goods direct to the address of the buyer. At the same time, he arranges for all the necessary documents (invoice, bill of lading, insurance certificate, etc.) to be prepared and sends them to his own bank (the remitting bank) together with the collection order. The remitting bank sends the documents, together with the necessary instructions, to the collecting bank.
STAGE 3 Presentation of documents and settlement
The collecting bank informs the buyer of the receipt of the documents and notifies him of the terms of their release. The buyer makes payment, or accepts the bill of exchange, and in return receives the documents. The collecting bank then transfers the collected amount to the remitting bank, which credits it to the exporter’s account.
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