· Documentary Remittances are instructions sent with or without commercial documents for goods from an exporter's bank to an importer's bank. After the exporter sends the goods, the importer's bank issues an instruction requesting immediate payment or acceptance by the importer for payment on a date specified in the instruction.
Target audience
Corporate clients in the Retail, Business and Corporate segments
Description of the main parties involved in the operation
The exporter - Also known as the beneficiary/principal, who asks their bank to issue the documentary remittance.
The sending bank - This is the bank that issues the documentary remittance, based on the instructions received by its client (exporter).
The collecting bank - This is any bank other than the remitting bank, responsible for collecting the cash payment or term withdrawal requested from an importer, in exchange for the commercial documents enabling the importer to take delivery of the goods.
The Presenting Bank - This is the bank that notifies the importer of the arrival of the payment instruction and the commercial documents for the goods. It is usually the importer's bank and can also be the collecting bank.
The importer - The entity to which the acceptance or payment order is issued.
Advantages
Helps reduce the risk of the importer not receiving the goods or services.
Consolidates and enhances the degree of trust in commercial relations between the parties involved.
Allows the importer to gain greater control of the goods/services.
The exporter obtains a guarantee of immediate payment or payment at a future date.
Facilitates access to bank financing.
The importer does not need to make advance payment for the shipment of goods.
Banking process in accordance with the Uniform Rules and Uses for Collections.
