The information provided here is part of Guide on howtoexport and import
Difference between export bill collection and export bill discounting.
After reading below article, you can also read Negotiation procedures and formalities of export bills
In simple terms, export bill collection means sending of export bills to overseas buyer through his bank to collect payment under export bills. Where in export bill discounting, the exporter get amount from his authorized bank while submitting export documents.
Once after completion of necessary export procedures and formalities the exporter prepares necessary documents to send to his overseas buyer to take delivery of cargo. This documents includes Commercial invoice, Packing list, certificate of origin, Bill of lading or Airway bill, bill of exchange, quality certificate, and other documents specifically mentioned by the buyer at the time of placing purchase order.
Once after preparing such export documents, the exporter submits them with his authorized bank to send to his overseas buyer. If the exporter has a facility with his bank to discount export bills, he requests bank to discount the said export bills. Bank after verifying and confirming on such export documents, credits amount of invoice under the said shipment to his account. Once after receiving amount from overseas buyer , the bank adjust the said amount against the discounted amount after charging necessary bank interest till the date of export proceeds.
If exporter need to send the export bill for collection, he advise his bank to send the documents for collection of payment from overseas buyer. Once after paying export invoice amount by overseas buyer to exporter’s bank through overseas buyer’s bank, the exporter’s bank credits the said amount received with exporter’s account. You can alsos read Negotiation procedures and formalities of export bills Difference between bill discounting and bill negotiation
The above information is a part of Online export import training guide
Other posts about Import Export online tutorial
You can track your shipment here: Click here for air cargo tracking Click here for sea cargo tracking