Documentary collection

A documentary collection is a payment method where the exporter routes shipping documents through banks for release against the buyer’s payment or acceptance, without the banks guaranteeing payment. It is governed by ICC URC 522, the Uniform Rules for Collections, 1995 revision. Every collection carries a collection instruction; the remitting bank forwards documents to the collecting or presenting bank, which releases them documents against payment (D/P) or documents against acceptance (D/A) of a time draft. Banks check that documents match the instruction but do not examine them for compliance, the key contrast with a documentary credit under UCP 600. The exporter keeps control of the goods through the bill of lading until the terms are met.