Documentary Collections

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Documentary Collections

International/Domestic Services: Import/Local Purchase and Export/Local Sale Collection

Documentary Collection is a payment mechanism by which an exporter uses the services of bank to obtain payment from an importer. It provides a compromise between open account terms and payment in advance. Banks do not guarantee payment but only provide service to collect funds as instructed. ICB can assist in handling your Inward Bills for Collection (IBC) or help you out with your Outward Bills for Collection (OBC), providing you cost-effective way in managing your collections.

General Features

  • An Outward Bill for Collection (OBC) is a trade service provided by the Bank (called the Remitting Bank) to send out customer’s sales/export shipping documents and collection instruction to the collecting bank in the buyer/importer’s country for presentation to the buyer (drawee) for payment.

  • An Inward Bill for Collection (IBC) is a trade service provided by the Bank, as a Collecting/Presenting Bank to handle and inform customer (buyer/drawee) incoming shipping documents from their supplier (drawer).

  • There are two types of Collections:

     

    – D/P (Documents against Payment)
    – D/A (Documents against Acceptance).

Features & Benefits – For Buyer / Importer

  • Simple and cheaper payment method in handling your Inward Bill for Collection (IBC)


  • Allows you to take the goods and make payment at maturity for usance bills


  • Promptly receive information on receipt of shipping documents


  • Get intermediary services to facilitate trade settlement on terms agreed between you and your supplier


  • Payment is made only upon release/after acceptance of documents with greater flexibility


  • Simpler and cheaper method in handling imports compared to Letters of Credit


  • Does not require credit facilities to trade


  • Allows you to be certain the necessary commercial and financial documents are in order, and inspect the same documents before making payment or accepting the bill. You may refuse payment or acceptance if documents are not in order

Features & Benefits – For Seller / Exporter

  • The Outward Bills for Collection (OBC) product is simple and cost-effective in managing your collection


  • Control of goods retained until the Buyer makes payment/gives acceptance


  • An accepted bill of exchange is legally binding to the drawee (Buyer) – a form of security to Seller


  • Allows more payment security compared to open account trading but do not require the security of Letter of Credit


    • Promptly receive information on status of collection bills that are yet to be paid or accepted


  • Retains control of the goods until the buyer makes payment or accepts the usance drafts


  • Minimizes the need for administrative work and is cheaper compared to trading on Letter of Credit terms

Fees & Charges

  • Please refer to ICB Tariff Guide for fees and charges related to this product

Eligibility

  • Tanzanian citizens only, aged between 18 to 60 years old

  • Sole Proprietorship

  • Partnership

  • Limited liability companies duly incorporated

To know more, click on the form to fill your contact details and our customer service executive will contact you or drop by at our nearest ICB branch.