Everything you have always wanted to know about documentary collection

Abstract

Collection is an instrument of foreign payment transactions intended for legal entities and entrepreneurs. Globally observed, after the bank remittances, collection is the most frequently used payment instrument based on foreign trade transactions. Utilization of this instrument is regulated by the Uniform Rules of the International Chamber of Commerce - ICC for collection - hereinafter the Text Uniform Rules, the first version of which was published in 1956, to be followed by some revisions. The advantages of collection are reflected in the fact that this instrument enables a simple and relatively fast collection proceedings, which is not accompanied by significant costs. The risk of providing a service based on collection transactions for the bank is exclusively reputational, since it arises in the event of a lack of response or untimely response of the bank to the instructions of the principal.