Documentary Collection

A documentary collection is the collection of an amount from a buyer through a bank against documents.

Modes of documentary collections:

• Documents against payment (D/P) – the collecting bank is permitted to release the documents only against payment in definite currency
• Documents against acceptance (of bills of exchange) (D/A) – the collecting bank is allowed to release documents only against the buyer’s acceptance of the bill of exchange payable in a future date.

Documentary collection is subject to “Uniform Rules for Collections”, (URC), International Chamber of Commerce Publication No 522, 1995 Revision.