1、Documents against documents D/A,Exporter,Remitting bank,Collecting bank,Importer,6Collecting bank keeps accepted draft for exporter and at maturity , presents it for payment.,The risk is that buyer would not pay after taking the goods，though goods have been taken away.,Document against payment D/P a

2、t sight,Exporter,Remitting bank,Collecting bank,Importer,Only one presentment for payment,Documents against payment at tenor D/P at tenor,Exporter,Remitting bank,Collecting bank,Importer,5After payment at maturity, buyer gets documents.,Why doing so ?,Documents against time promissory note made by b

3、uyer,Exporter,Remitting bank,Collecting bank,Importer,6Collecting bank keeps promissory note for seller and at maturity, presents it for payment.,The risk is that buyer would not pay after taking the goods.,Presenting bank,USA exporter,USA Remitting bank,Hong Kong Collecting bank,Tianjin importer,Ti

4、anjin Presenting bank,In case of need,Exporter,Remitting Bank,Collecting Bank,Importer,Case of need might be sellers close friend or agency in importing country, who would arrange shipping back the goods or selling the goods to other buyer in importing country.,Types of collection(1): Documentary Co

5、llection,Seller/ principal,Carrier,Remitting Bank,Collecting Bank,Buyer/ drawee,Documents are released to importer against his payment or acceptance/,Sometimes,importer pays against commercial documents, e.g. commercial invoice without financial draft to avoid stamp duty.,Type of collection(2): Clea

6、n Collection,Exporter,Remitting Bank,Collecting Bank,Importer,1,2,3,Post receipt is sent to buyers country together with sample by post office.,Post office,4,5,Importer takes the advice to post office and get sample against it.,Payment must be made through bank,Dividend warrant and time promissory n

7、ote can also be used in clean collection,Types of collection(3): Direct Collection,Seller/ principal,Carrier,Remitting Bank,Collecting Bank,Buyer/ drawee,Exporter/ principal,Remitting Bank principal,Collecting Bank,Collection order = Collection Instruction,1,2 They are the same in contents, for remi

8、tting bank carry out order given by exporter (principal).,Exporter,Remitting bank,Collecting bank,Importer,Banks endeavor to collect for principals, but not responsible for unfavorable results.,Outward collection and inward collection,Risks for exporter under documentary collection,Exporter,Remittin

9、g bank,Collecting bank,importer,1. Refuse to pay or accept time draft on some small inadvertent infraction of the sales contract.,2. Demand deep cut down of price, or refuse to accept the goods.,3. A heavy storage charge, fire insurance, demurrage and great expenses and time delay if court action is taken.,Exporter,Remitting bank,Collecting bank,Importer,Risks for exporter under term payment,Carrier,1,2 At the maturity of draft, i