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What is export collection document?

Export collection is a frequently used payment method in international trade. If you choose to send shipments by sea and the payment term is CAD (cash against documents), export collection can be a way to secure your payment after shipment of the goods or at least to remain in control of your goods.

What is a collection document?

COLLECTION DOCUMENT Definition & Legal Meaning Bill of lading or air waybill or invoice, insurance certificate. It is exchanged for buyer's or importer's payment or acceptance of a commitment of payment. Known also as collection paper.

On which conditions does the collecting bank release documents?

The collecting bank releases the documents to the importer on receipt of payment or acceptance of the draft.

Which document is normally required in a documentary collection?

Understanding Documentary Collection Shipping documents are required for the buyer to clear the goods through customs and take delivery. 1 They include a commercial invoice, certificate of origin, insurance certificate, and packing list.

What are the types of documentary collection?

There are two types of Documentary collections: Documents against Payment Collection (D/P): The importer receives the delivery documents only against payment. Documents against Acceptance Collection (D/A):

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