A documentary Bill for Collection is an order by the seller to his bank to collect a certain sum from the buyer against the transfer of the shipping documents. Payment can be made by cash or by acceptance of a Bill of Exchange. This means the handling by banks of documents in accordance with instructions received in order to obtain payment and/or acceptance, or deliver documents against payment and/or against acceptance, or deliver documents on other terms and conditions. Against Acceptance of Bill of Exchange or Promissory Note or Letter of Undertaking to make Payment This involves the release of the shipping document to the buyer based on the release condition stated on the Collection Order. Release Free Of Paymentimplies that the shipping document be delivered to the buyer without extracting any commitment to make payment. Documents Against Payment implies that the buyer makes payment before documents are released for clearing the imports. Though internationally recognized, this does not apply in Nigeria as the Central Bank of Nigeria guidelines state that the imported items must be cleared from the port before payment can be made to the supplier. The documents required for Bills for Collection Remittance
- One set of documents from the supplier to the issuing bank(Zenith Bank).
- Two sets of documents submitted to overseas bank for payment (the document will later be forwarded to the bank) The documents required for processing of Risk Assessment Report (RAR)
- Processed Form M
- Bill History
- Bill of lading/Airway Bill/ Way Bill
- Original Combined Certificate of Value and Origin (CCVO)
- Manufacturers Certificate/ Certificate of Analysis/Photosanitary Certificate
- Customs clearing document (Exchange Control Document) a.) Single Goods Declaration b.) Used RAR c.) Payment schedule d.) Terminal Delivery Order/Gate Pass e.) Duty receipt
- Authority letter from Customer to buy foreign exchange in line with the company’s signature mandate.