Uncategorized CLEAN COLLECTIONS By Mr Old Man Posted on June 3, 2011 2 min read 8 0 3,476 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUERY FROM DTH Hi Mr. Old Man!I have a question and I need your help. Why shouldn't Viet Nam use clean collection?I look forward to hearing from u?———————- ANSWER Hi, In clean collection transactions, the seller has effected the shipment and sent the commercial documents including invoice, transport documents and other documents directly to the buyer, and subsequently he sends his claim for payment in the form of , for example, a bill of exchange drawn on the buyer (i.e., drawee) to his bank for collection of payment. It is because of the absence of such commercial documents that these collections are called “clean collection”. In clean collection transactions, the seller may be exposed the risk of non-payment by the buyer whereas he has lost his control of the goods and may not be able to retrieve the goods that have been shipped to the buyer’s country. Clean collections should be done when the seller has an incredible relationship with the buyer. So, don’t hold the knife by the blade or you’ll cut yourself. Best regards,Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?