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Who makes out a collection order?
When banks handle documents in order to obtain acceptance and/or payment, following the instructions given to them, this is called “collection”. The exporter (or drawer) presents to his bank (called remitting bank) an application form with the documents attached. This bank makes out a collection order and passes it over to its correspondent bank in the country of the importer (or drawee). The correspondent bank or some other bank (called collecting) may present the documents to the importer or pass them over to another collecting bank (called presenting). This presenting bank presents the documents to the importer (or drawee). Collecting banks do not take responsibility for acceptance or payment.
Who makes out a collection order?
When banks handle documents in order to obtain acceptance and/or payment, following the instructions given to them, this is called “collection”. The exporter (or drawer) presents to his bank (called remitting bank) an application form with the documents attached. This bank makes out a collection order and passes it over to its correspondent bank in the country of the importer (or drawee). The correspondent bank or some other bank (called collecting) may present the documents to the importer or pass them over to another collecting bank (called presenting). This presenting bank presents the documents to the importer (or drawee). Collecting banks do not take responsibility for acceptance or payment.
• Collecting bank does.
• Remitting bank does.
• The correspondent bank does.
• The exporter does.