Import Collection

Import Collection is a service that Bank provide to Customer as importer customers under which Bank acts as a collecting agent of the remitting bank (exporter’s bank) to handle trade document and  collect payments to importer.

Upon receipt of documents from the remitting bank, in accordance with instructions received, the bank (collecting bank) collects payment/acceptance from the importer (the drawee) and releases the relevant commercial documents to the importer. There are two types of import collection: D/P (Documents against Payment) and D/A (Documents against Acceptance). Under D/P terms, import documents are released to the importer against payment. Under D/A terms, documents are released to the importer against acceptance.

1. Low cost - low banking fees, help reduce financial expenses and control the costs;
2. Easy to use - simple procedures and streamlined process flow  compared to L/Cs;
3. Reduce funds occupation - no advance payment required when the exporter prepares and ships the goods, the documents can be obtained immediately and the goods  are released upon payment or acceptance by buyer;
4. Improve cash flow - with D/A, the importer can immediately obtain the document and release the goods after acceptance, and can make payments later as the inflow of cash are generated by the sale of goods which improve  the company’s financial position and solvency.

1. Importers who wish to pay to exporters with lower cost and simpler procedures than L/Cs;
2. Importers with sufficient liquidity may use D/P
3. Importers with insufficient liquidity who need exporters to grant financing facility of forward payment may choose D/A provided that they have a good business relationship with exporters.

1. After Bank of China receives collection document from Exporter's bank ,Bank of China will notify the importer to pay (D/P) or accept (D/A) as instructed;
2. After the importer has made payment or acceptance, Bank of China shall release the documents to the importer;
3. When the acceptance under D/A is due, the importer shall pay to the exporter via Bank of China