Lives and Livelihoods

Before accepting responsibility for a collection, then, the exporter’s will require definite instructions covering the initial steps to be ____ should any of these contingencies arise, particularly as to whether relative bill should be protested to preserve the right to legal_____ , on the basics of the bill alone, at a later date.  It should be __ also that in many countries it is common practice for importers to ____ to take up documents before the arrival of the carrying vessel.

It is generally advisable for the exporter to instruct his bank to the documents to be held without further action by their correspondence abroad, if necessary, pending arrival of the vessel. In documentary transactions the role of the banks is limited to the provision of a realized service, through their won systems and those of their correspondents. They do not appear as principals in the transaction and they___ no liability short of outright negligence, although they do endeavour protect their customer’s interests and his merchandise at all stage of the transaction.

The financing of documentary bill transactions may be done in several ____ . Where the bank is required to forward the bill on collection and _____ the exporter’s account only after final payment, the exporter____the financing himself. He may, of course – provided his out standing with his bank is satisfactory – arrange for his bank to negotiate” the bill before forwarding it abroad. The bank, by this means, ____ the entire period until final payment is received from abroad. Interest factor may be charged to the customer on final settlement at the time of negotiation. Or, if the contract of sale permits, the interest may be added to the bill for collection from the drawee, but bill must then bear a clause indicating that it is drawn payable interest at a certain rate (per cent).