In Documentary Collections, banks provide intermediary services to facilitate trade settlement on terms agreed between you and your exporter (seller) or importer (buyer). The exporter initiates the collection by submitting commercial documents and collection instructions to his bank (the remitting bank) after shipping the goods to the importer.
These documents commonly include invoices, shipping documents (such as bills of lading) accompanied with a bill of exchange that the exporter draws on the importer.
The remitting bank in turn forwards them to the importer's bank (the collecting bank) with instructions on delivery of documents, collection and remittance of payment. Based on these instructions, the collecting bank liaises with the importer for payment of the bill (or its acceptance, if applicable) and for the release ofdocuments. With these documents, the importer proceeds to take charge of the goods.
Next Steps :
Benefits
Easier to prepare, with less specifications, rules and deadlines for document preparation and presentation
Increased flexibility
Lower bank charges
Faster processing
Import Collection
These are mainly bills with the related shipping documents sent by overseas banks or our branches to OCBC Bank to collect payment on their behalf. It also includes some clean items, mainly cheques, sent to us. Acting as a collecting bank, OCBC Bank will advise the buyer promptly upon receipt of the documents. Proceeds collected from the buyer are then remitted to the remitting bank.
Under import collection, documents can be made available to the buyer on:
Documents against Payment (D/P) basis, whereby the presenting bank will only release the documents to the buyer upon payment.
Documents Against Acceptance (D/A) basis, whereby the presenting bank will release the documents to the buyer upon his acceptance of the seller's bills of exchange for deferred payment. For D/A bills, the bank will present the bills of exchange to the buy
Why OCBC Bank ?
Service Commitment : Same day notification to customers of in-coming documents either via telephone or fax.
Extended Cut-Off Time : Our improved cut-off times of 5pm allows customers greater flexibility.
Fees and Charges
Documentary Collection Commission : 1/8%, min. $75
Presentation Fee
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First Presentation : No Charge
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Subsequent Presentations : $25
Documents Released Free of Payment : $75
Protest Fee : $100 plus expenses
Holding Fee (for unaccepted/unpaid bill) : $30 per month
