Definition:

A documentary collection in which documents are sent directly to the importer’s bank by the exporter. The documents are accompanied by a form with collecting instructions provided by Citibank^® (cover letter). A copy of the form is sent to Citibank^® for tracking and collections processes the same as in traditional collections.

Advantages:

	Time is saved since documents do not have to be sent to one bank which in turn sends it to the importer’s bank.
	Collections possess the same power as if they had been remitted directly by Citibank® since the cover letter appears to have been sent by Citibank® with its own reference number.
	The tracking and collection are exactly that of traditional collections.

Please note that:

The exporter assumes responsibility for the use of Citibank®’s numbered forms, since these will be received by the banks as coming directly from Citibank®.

Costs:

	Usually a percentage on the total amount of the collection with a minimum expressed in US$.
	Others costs: Protest, special handling of unpaid transactions, etc. Please consult your Trade Specialist.

Go back to International Trade