Import and Export Documentary Remittances

Advantages

The Import and Export Documentary Remittances are a means of payment/receipt that you can use instead of the Documentary Credit, Payment Order or Foreign Cheque in transactions where the parties involved already achieved a certain degree of mutual trust. It is also less expensive.

It enables the Importer to:

• Minimise the risk of non-compliance with the contractual obligations established with the Exporter;
• Defer payment.

It enables the Exporter to:

• Receive the funds in a safer and more controlled manner before the importer takes possession of the goods (remittances against payment);
• Get an executive deed (remittances against acceptance);
• Anticipate the funds via discount or advance.

Costs

Consult the Pricing in force, available for consultation at any Millennium bcp Branch near you or at www.millenniumbcp.mo here.

Features

The Documentary Remittance is a banking service to collect commercial documents (usually conferring the ownership of the merchandise) and /or financial documents drawn abroad executed in strict accordance with the instructions received, so as to:

• Get the payment and/or acceptance.
• Deliver documents against payment and/or acceptance.
• Deliver documents in accordance with other terms and conditions.

The Bank provides a service since it acts a mere intermediary, that is, according to the instructions received (instructions). The Bank's responsibility is limited to the non-compliance with the instructions received or their incorrect interpretation.
The Documentary Remittances are ruled by the Uniform Customs and Practice for Collections of the International Chamber of Commerce.

Types of Remittances and Documents

In view of the documents that are part of the documentary remittances, these may be:

• Simple Collections - involving only financial documents (bills of exchange, promissory notes, cheques, Pagarés and "Receipts");
• Documentary collections - involving commercial documents (Invoices; Transport Documents; Property Deeds) with or without financial documents.

Import Documentary Remittances

Millennium bcp receives from the Foreign Bank, for collection, the documents necessary to withdraw the goods imported by one of its clients (importer). The delivery of such documents to the importer client will be made in accordance with the instructions received from the Assignor Bank that may assume the following form:

• against payment;
• against acceptance of a bill;
• acceptance and aval of a bill or partial payment and acceptance of the remainder;
• against a written commitment to pay on a determined future date.

Export Documentary Remittances

Millennium bcp, pursuant to a request made by its Client (exporter), sends to the Foreign Bank the documents for collection which will be delivered to the importer in accordance with the instructions given by the Assignor (Exporting Client) that may assume the following form:

• against payment;
• cagainst acceptance of a bill;
• acceptance and aval of a bill or partial payment and acceptance of the remainder; 
• against a written commitment to pay on a determined future date.

There are also Export Documentary Remittances that may be formed only by one Bill to be accepted by the Importer and paid afterwards by the Bank of the Drawee (foreign Bank). Others are foreign cheques or pagarés to be paid by the Foreign Bank.

The Export Documentary Remittances may also imply the advance of funds:

• Commercial Discounts - Commercial Credit.
• Advances - Financial Credit.

Ways to Collect

Cash Against Documents - the Bank in charge of the collection (Bank of the Drawee) should only deliver the documents to the Importer against the payment of the amount therein mentioned.

Documents Against Acceptance - the bank in charge of the collection (Bank of the Drawee) delivers the documents to the Importer against the acceptance of the bill that goes with them, implying a deferred payment.

OThe documents can also be delivered against a simple written commitment for payment on a future agreed date.

Besides the two previous ones, there is also a number of other collection methods, such as: Documents Against Acceptance and Payment, Documents Against Acceptance and Banking Aval, Documents Against Payment Written Commitment, Free Payment, etc.

Intervening Parties

Assignor (Exporter, Drawer, Seller - who entrusts the collection operation to a bank, for example the exporter of the goods.

Remitting Bank (Bank of the Assignor) - It is the Bank to whom the Assignor has entrusted the collection operation. It is the Bank of the Exporter, the one that sends the documents to the Bank of the Importer.

Collecting Bank (Bank of the Drawee) - It is the bank in charge of the collection, that presents it to the drawee. It is the bank responsible for complying with the collection instructions before the importer.

Drawee (Importer or Buyer) - It is the one to whom the collection must be presented to, in accordance with the collection instructions.  It is the one who buys the goods or services from the seller being responsible for paying them.