Collection documents -URC 522

ATIFM · Post by **ATIFM** » Wed Aug 24, 2011 1:00 am

Dear All,
The principal requests to send collection documents directly to the drawee (Without involvement of presenting/collecting bank) with all the necessary remitting instructions on the collection instructions.
Kindly opine if we are allowed to do so under URC 522 and if the remitting bank is covered under the protections of URC522.
Thanks,

DanielD · Post by **DanielD** » Thu Aug 25, 2011 1:00 am

We've done that sometimes. You can make a presentation directly to the drawee under the 522 (see art.4 b iv). If you send the original documents with the instructions to the drawee, you deliver the documents "in trust" and you are at risk.
Daniel

EricLONGEPIERRE · Post by **EricLONGEPIERRE** » Wed Aug 31, 2011 1:00 am

This is a matter related to the risk/credit department of the bank and not to the L/C dept.
We do this quite frequently for drawees approved by risk/credit dept or transactions done under export risk insurance