Features
A document collection is a trade transaction in which the exporter hands over to their bank the task of collecting payment for goods from the importer’s bank. The exporter’s bank sends the goods shipping documents to the importer’s bank together with the payment instructions.
The export documents are only released to the importer against two conditions.
- Documents against Payment Collection (D/P):The importer receives the goods delivery documents only against payment.
- Documents against Acceptance Collection (D/A):Delivery documents are handed over against acceptance of a bill of exchange or a promise of payment at a specified time.
