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Exporter (Seller) |
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The exporter ships his or her goods and prepares his or her export documents. |
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Exporter’s Bank |
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The exporter completes an export collection form from his or her bank (see Useful Forms page) and sends the export documents to the bank. No Bill of Exchange is necessary. However, many exporters prepare a Bill of Exchange due at sight to ensure that they can obtain legal proof that the demand was made to the importer. |
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Importer's Bank |
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The exporter’s bank sends the export documents to the importer’s bank with an instruction to release the documents to the importer only against full payment of the invoice amount. |
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Importer |
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The importer’s bank approaches the importer and asks for authority to pay the exporter’s bank the full invoice value. |
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Importer's Bank |
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Upon receipt of the importer’s authority to pay and provided the importer has the funds, the importer’s bank will release the documents to the importer. |
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Importer's Bank |
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The importer’s bank remits the invoice value to the exporter’s bank. |
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Exporter’s Bank |
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The exporter’s bank pays the exporter the proceeds less any charges deducted. |
