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Documentary Collection Tips for the Importer/Buyer
- The importer/buyer is generally in a secure position because ownership or responsibility for the goods is not assumed until documents have been paid or a time draft signed.
- The importer/buyer may specify a certificate of inspection as part of the required documentation. Typically the importer/buyer may not sample or inspect the goods before accepting and paying for the documents without authorization from the exporter/seller.
- As a special favor, the collecting bank can allow importers/buyers to inspect the documents before payment. The collecting bank assumes responsibility for the documents until redemption.
- In the above case, the importer/buyer should immediately return the entire set of documents to the collecting bank if the importer/buyer cannot meet the agreed upon payment procedure.
- The importer/buyer assumes no liability for goods if there is a refusal to take possession of the documents.
- Partial payment in exchange for the documents is not allowed unless authorized in the collection order.
- With "documents against acceptance", the importer/buyer may receive the goods and resell them for profit before the time draft matures, thereby using the proceeds of the sale to pay for the goods. The importer/buyer is responsible for payment even if the goods cannot be sold.
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