Definition:

The exporter asks Citibank^® to remit the title documents and the collecting instructions to the importer’s bank. Citibank^® makes any necessary tracer as representative of its customer and at maturity, collects and pays the funds to the exporter. There is no obligation, for the bank, to pay to the exporter until funds are received.

Advantages:

	The exporter is sure that documents will not be given to the importer unless he pays or commits to pay.
	In term collections, the exporter has a legally executable document (draft or promissory note).
	In sight collections, the exporter retains the ownership of the merchandise until it is paid.
	Citibank® provides its structure and efficiency in handling commercial and financial documents and acts as representative of the exporter for dealing with remittance of documents and their collection.
	When there is a reliable credit and performance history between importer and exporter, this may be a relatively secure, less expensive alternative.

Please note that:

Even when Citibank® can make a claim for delayed payments (and you will be informed of all tracers done and their results), it will not perform any legal action unless "protest" is requested in the remittance letter. This legal action will only be initiated at exporter’s request and on his behalf.

Costs:

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

Go back to International Trade