Documentary collections

Course of the documentary collection

1. The buyer and the seller agree to use documentary collection as a payment instrument.
2. The seller ships the goods to the buyer and submits goods accompanying documents to his bank instructing to forward respective documents for payment to the buyer’s bank.
3. The seller’s bank forwards the documents to the buyer’s bank.
4. The buyer’s bank advices the buyer about receipt of documents.
5. In order to get the documents from the bank, buyer has to pay value of documents to the bank. Buyer’s bank releases the documents to the buyer and forwards value of documents to the seller’s bank who credits the value of documents to the seller’s account.

• Frequently asked questions

  What is documentary collection?

  Payment instrument, where the Seller (Exporter) instructs his bank to forward goods accompanying documents to the Buyer's (Importer‘s) bank with instructions to hand those documents over to the Buyer (Importer), indicating conditions on which documents have to be released to the Buyer (Importer).

  What are documentary collection payment options?

  • D/P „documents against payment“ or CAD – „cash against documents“ - before taking up the documents, Buyer has to pay value of documents to the Seller through the bank presenting mentioned documents.
  • D/A „documents against acceptance“ – before taking up the documents, Buyer has to accept Bill of Exchange, usually presented by the Seller together with the documents, stating an amount and a date of payment. Accepted Bill of Exchange is being held at the presenting bank until payment.
  • Mix of above stated payment options is available as well, i.e. part of documents value is paid upon acceptance of a Bill of Exchange and the rest is paid on agreed deferred payment date.

  What kind of information Seller and the Buyer needs in order to use documentary collection as a payment instrument?

  Buyer‘s (Importer‘s) bank name and address is needed in order for the Seller‘s (Exporter‘s) bank to forward goods accompaniing documents and document‘s hand over instructions.

  Documentary collections to be sent to the following „Swedbank“, AB address:

  „Swedbank“, AB
  Trade Finance Services Lithuania
  Konstitucijos ave.20A, LT-03502 Vilnius, Lithuania

  What are documentary collections related costs? Which deal party is liable for those costs?

  Usually documentary collections related costs are being split between the Seller and the Buyer so, that each party covers their bank related costs. In case of agreement all documentary collections related costs may be covered by one the the deal parties.
  Link to „Swedbank“, AB documentary collections related fees and comissions.

• Documentary Collections fees

  Notice: fees and commissions can be deducted in euro or equivalent in another currency using an official exchange rate

  Import collection
  Payment under a certain document or a bill of exchange	0.15% (min EUR 36.20, max EUR 217.22)
  Advice of the amendment of collection instruction	EUR 23.17
  Advice of the collection	EUR 23.17
  Return of unpaid documents or release of documents "free of payment"	0.15% (min EUR 36.20, max EUR 217.22)
  Documents handling fee (in case of non-payment or non-acceptance within 15 days after the Bank's advice to a client about the received collection)	EUR 28.96
  Custody of accepted bills of exchange until the payment	EUR 34.75
  Protest of the bill of exchange	EUR 72.41 (notary fees and commissions are charged separately)
  Query or data preparation at the client's request	EUR 17.38
  Preparation and dispatch of documents by courier post within Lithuania	EUR 14.48
  Preparation and dispatch of documents by courier post to foreign countries	EUR 55.03
  Documents handling fee (in case of non-payment within 15 days from the date of payment)	EUR 28.96
  Export collection
  Collection of documents and bills of exchange	0.15% (min. EUR 36.20, max EUR 217.22)
  Amendment of the collection instruction	EUR 23.17
  Custody of accepted bills of exchange until the payment	EUR 34.75
  Query or data preparation at the client's request	EUR 17.38
  Preparation and dispatch of documents by courier post within Lithuania	EUR 14.48
  Preparation and dispatch of documents by courier post to foreign countries	EUR 55.03