This Study aims to contribute to the developments of international trade by presenting a direction for the revision of the Uniform Rules for Collection(URC 522) which has been involved in various problems and questions recently.
A documentary collect...
This Study aims to contribute to the developments of international trade by presenting a direction for the revision of the Uniform Rules for Collection(URC 522) which has been involved in various problems and questions recently.
A documentary collection can be defined as the collection of a sum due from a buyer by a bank against delivery of certain documents.
The problems and questions raised in this study can be summarized as follows :
First, The present URC 522 is quite limited in its definition of what the full responsibilities and liabilities are of each concerned party in the process of collections.
Some of the articles are identify concrete, practical methods and ways of how to adapt.
Second, All documents sents for collection must be accompanied by a collection instruction indicating that the collection is subject to URC 522 and giving complete and precise instruction.
Third, Banks shall have no obligation to handle either a collection or any collection instruction or subsequent related instructions.
Fourth, "Documents"means financial documents and commercial documents.
Fifth, The collection instruction should state the exact period of time within which any action is to be taken by the drawee.
Sixth, The collection bank must send without delay advice of payment to the bank from which the collection was received, detailing the amount or amounts collected, charges and disbursements and expenses deducted, where appropriate, and method of disposal of the funds.