Inward Collection Business
1) Product Overview:
Inward collection business refers to the settlement method that CCB makes hint to domestic customer, upon the receipt of the collection bill delivered by the overseas remitting bank, and request the domestic customer to make payment or acceptance and redemption of document.
2) Product Function/Applicable Target:
1. CCB offers customers all collection business including documents against payment at sight (D/P), documents against payment after sight (D/P XXX days), and documents against acceptance (D/A).
2. CCB conducts inward collection business according to the related international convention. Within the scope of provision of international convention, all instructions specified in the engagement letter of overseas remitting bank will be observed rigidly.
3) Product Advantage/Feature:
1. Expense saving. Comparing to import L/C, the manner of collection has lower banking expenses, simple formality, which facilitates the expenses saving of importer and is easy for operation;
2. Avoidance of funds tied up. Under the circumstance of D/A, the importer can take delivery of goods and handle the goods only after acceptance, therefore, there is sufficient time to pay externally after the resell or completion of goods handling and the in-flow of cash, which completely avoid the tying up of funds.