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Documentary Collection Tips for the Exporter/Seller
- Before agreeing to a documentary collection, the exporter/seller should check on the importer/buyer’s creditworthiness and business reputation.
- The exporter/seller should make sure the buyer’s country is politically and financially stable.
- The exporter/seller should find out from the importer/buyer what documents are required for customs clearance in the importer/buyer’s country.
- The exporter/seller should assemble the documents carefully and make sure they are in the required form and endorsed as necessary.
- As a rule, the exporter/seller’s bank will not review the documents before forwarding them to the importer/buyer’s bank. This is the responsibility of the exporter/seller.
- The goods will travel and be stored at the risk of the exporter/seller until payment or acceptance.
- If the importer/buyer refuses acceptance or payment for the documents, the exporter/seller retains ownership. The exporter/seller may have the goods shipped back or try to sell them to another buyer in the region.
- If the importer/buyer takes no action, customs authorities may seize the goods and auction them off or otherwise dispose of them.
- Because goods may be refused, the exporter/seller should only ship goods which are readily marketable to other sources.
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