WHERE THERE IS NO COLLECTION INSTRUCTION

QUERY FROM V.Tohidi

AS AN L/C SPECIALIST WORKING IN BANK, I HAVE RECEIVED A SET OF DOCUMENTARY COLLECTION WITHOUT COLLECTION ORDER , DIRECTLY FROM THE BENEFICIARY WHICH THE B/L IS TO THE ORDER OF THE BUYER.
WHAT SHOULD I DO WHILE

1- THERE IS NO COLLECTION ORDER
2- B/L IS TO THE ORDER OF THE BUYER AND NOT TO THE ORDER OF OUR BANK

THANKS
V.TOHIDI

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COMMENT

Collection instruction

Hi,

The collecting bank normally receives collections from the remitting bank. Yet, it sometimes occurs in practice that the principal (the exporter) sends his documentary collection directly to the collecting bank/presenting bank.

According to URC 522 Article 4, all documents sent for collection must be accompanied by a collection instruction… and banks are only permitted to act upon the instructions given in such collection instruction and in accordance with URC 522. Therefore, it is uncommon for the collecting bank/presenting bank to receive documentary collections without any letter or collection instruction as to how documents are to be handled or how they are to be delivered. Yet, when this occurs, it is advisable for the collecting/presenting bank to seek clarification from the remitting bank or from the principal in the absence of a remitting bank.

Best regards,
Nguyen Huu Duc …