Vocabulary notes

delivery CIF (cost-insurance-freight) – доставка CIF

delivery FOB (free-on-board) – доставка FOB

bank charges – оплата банковских услуг

to enable – позволять

to alter – изменять

forwarding agent – экспедитор

immediate amendment – срочная поправка

relative – имеющий отношение

to evidence – засвидетельствовать

Bill of Lading – коносамент

Air Waybill – авиатранспортная накладная

Consignment – отправка груза

invoice – счёт-фактура

freight – фрахт, груз

insurance – страховка

consulate – консульство

prior to – до, прежде

Text V. Documentary Collection

If it is not possible for you to obtain a Documentary Letter of Credit from the overseas buyer, you can adopt the alternative method of sending the documents on a collection basis. Here, the shipping documents, including the Bills of Lading and other transport documents, are handed to your bank, which then sends them to a suitable bank in the buyer's country. Your buyer will then be notified of the arrival of these documents and the terms on which they will be released to him.

Depending on the terms of the sale you agreed originally, the Bill of Exchange may be drawn on the overseas buyer 'at sight'. This means that the documents will only be released to the buyer against payment of the bill. When documents of title are being set out, this 'documents against payment' procedure usually ensures that control over the goods is maintained by you until payment is made. However, there is always the risk that you will incur demurrage (or storage) charges and additional insurance costs should the bill not be paid promptly and the goods remain uncollected.

When your buyer's integrity is proved to be satisfactory you can then consider offering extended credit terms. In this case a 'Term Bill' may be drawn, calling for payment 30, 60, 90 or even 180 days after sight (or, in some cases, after date of shipment). Documents of title (ie proof of ownership) will be released following the buyer's acceptance of the bill. He is then able to take possession of the goods which then pass out of your control.

It should be noted that where the goods are dispatched by airfreight or parcel post direct to the buyer, control of the goods is lost immediately on dispatch.

Banks in the UK and in the majority of other countries, handle collections under the terms of the ICC 'Uniform Rules for Collections'. You can obtain a copy of these rules from The International Chamber of Commerce.

One popular misconception with regard to Documentary Collections is that the overseas bank can enforce payment, or that they have earmarked funds to meet maturing Bills of Exchange. This is not so and the local bank can only follow instructions given by the remitting bank. One of these instructions may be to 'protest' the bill is unpaid at maturity, in which case the overseas bank will be required to instruct a Notary Public to make an official protest. He will call on the buyer and note the reason for non-payment on a 'Deed of Protest' and this, together with the dishonoured bill, form the basis for taking the matter to litigation. This is as far as the overseas bank can go, however, if the bill still remains unpaid, they will either arrange to return the goods to you or release them to your local agent, perhaps for sale to a different buyer.