BILL OF EXCHANGE

An unconditional order in writing addressed by one person to another, signed by the person giving it , and requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum of money to or to the order of a specified person or bearer. Also referred to as a draft.

COLLECTING BANK

Any bank, other than the Remitting Bank, involved in obtaining payment or acceptance from the Importer (drawee).

COMMERCIAL DOCUMENTS

Documents exchanged between the buyer and the seller such as commercial invoices or transport documents that give details about the goods and/or services contracted.

DOCUMENTARY COLLECTION

Method of payment used in international trade whereby the contracting parties (Exporter & Importer) utilize banking channels to exchange documents for payment or acceptance.

DRAFT

An unconditional order in writing addressed by one person to another, signed by the person giving it , requiring the person to whom it is addressed to pay, on demand or at a fixed or determinable future time a certain sum of money to or to the order of a specified person or bearer. Also referred to as a Bill of Exchange.

DRAWEE

The party, also known as the buyer or Importer, who is presented with documents (financial or commercial) for the purpose of either payment or acceptance, in accordance with the Collection instructions.

DRAWER

The party, also known as the seller or Exporter, who authorizes a bank (the Remitting Bank) to handle documents on its behalf.

EXPORTER

The party, also known as the seller or drawer, who has contracted to sell the goods.

FINANCIAL DOCUMENTS

Documents such as bills of exchange, promissory notes or other similar documents used to obtain payment.

IMPORTER

The party, known as the buyer or drawee, who has contracted to buy. Also known as buyer or drawee.

PRESENTING BANK

The Collecting Bank making presentation to the Importer (drawee), usually the Importer's bank.

REMITTING BANK

The bank that the Exporter authorizes to carry out the Collection on its behalf.

UNIFORM RULES FOR COLLECTIONS (ICC PUBLICATION 522)

A set of rules and definitions on the practice of Collections published by the International Chamber of Commerce that require banks to act in accordance with established procedures