Export Collection

Export Collection is a service that Bank of China provide to Customer as  exporter under which Bank acts as an agent to collect payments from buyer on exporter behalf. The Bank’s obligation here is to handle trade documents. The Bank will pay  exporter  the proceeds of the bills when payment is received from buyer.

Export collection may be on a sight basis, that is D/P (Documents against Payment) or usance basis, which is D/A (Documents against Acceptance).

1. Low cost. Low banking fees, help reduce financial expenses and control the costs;
2. Easy to use. Simple procedures,  streamlined process flow compared with L/Cs;
3. Lower risk. As the Bank acts as an intermediary in handling the title documents of title,
   therefore, the exporter’s ownership of the goods will be protected until the buyer pays or accepts the bill of exchange. Compared with open account, the exporter bears less risk.
4. Financing Leverage. As exporter, customer may request for export discounting (D/A discounting) or financing (D/P Financing) under the export collection bills on with recourse basis, if customers  have such facility that establish with the Bank

In the sellers' market, the exporters are advised to choose D/P and in the buyers' market where the importers are asking for financial ease, the exporters may choose D/A.

1. The exporter submits relevant documents to Bank of China for collection after delivery of goods;
2. Bank of China mails the documents for collection to the collecting bank;
3. The importer makes the due payment to Bank of China via the collecting bank and Bank of China pays it to the exporter.