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.
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).
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
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
Please refer to ICB Tariff Guide for fees and charges related to this product
Tanzanian citizens only, aged between 18 to 60 years old
Limited liability companies duly incorporated