Sending the export documents of goods, besides receiving export L/C from the sellers through documentary bills of exchange is also possible hence ANSAR Bank declares its readiness to help exporters from Iran for the purpose of development of the non-oil exports and announce its utilizing of F.X. domestic branches in Iran and the correspondents relationship by the International banks.
The uniform rules for collection (URC) of the international Chamber of Commerce (ICC) and internal regulations of the bank can be applied there as well.
Conditions that beneficiary should take into account for the contract and documentary bills of exchange:
- Having a good record of business relations with the buyer/ applicant
- Political, social and legal stability in the country of the buyer/ applicant
- No exchange restrictions on the import of goods in the country of the applicant/ buyer
According to the above mentioned conditions of business, the level of risk will be higher on the seller/ beneficiary side.
1- Clean Collections:
Based on the negotiations between Iranian and foreign parties about the foreign party's debt, the principal (Iranian Party) well issue a clean collection and submit it to one of the F.X. branches of Bank for acceptance and collection at the specified maturity date. Having received charges for post and stamp cancellation services, the bank will forward the bill of exchange to its correspondent bank in the specified foreign country. The foreign party will sign the bill of exchange and confirms it and credits Iranian party's account at the specified maturity data. And in case of nonpayment the bill of exchange can be protested and submitted to the Iranian party to adopt consequent legal actions.
2- Documentary Collections:
The seller/ beneficiary will complete the shipment of goods according to the negotiations made with the foreign party and will attach the shipment documents to other necessary documents for the buyer/ applicant. These documents will be submitted to the F.X. branch of the bank. The bank will send the documents including the drawn bill of exchange for the buyer/applicant and the schedule to one of its correspondent banks in the country of the buyer/ applicant. The applicant should pay the charge of the bank for cancellation of the stamp of the bill of exchange and the express post charges as per tariff.
If the order of the buyer/ applicant certifies "Documents against Cash" to the seller, the correspondent bank will receive the amount of money for the documents after the drawee's acceptance and then credits the bank's account.
If buyer/ applicant orders "shipping documents against drawee's acceptance with/ without the correspondent bank's liability", the correspondent bank will present the documents and credits the bank's account. If the correspondent bank undertakes to receive and credit the value of L/C to the bank's account at the maturity date and if only the liability of the drawee is concerned (in case of the nonpayment of the bill of exchange) the correspondent bank will protest the bill of exchange.
According to the uniform regulations about collections, (URC) the buyer/ applicant is not allowed to issue the shipping bill in the name of the correspondent bank and should receive the confirmation from the correspondent bank through bank's F.X. branches.
- Banks are not responsible for the accuracy of the documents and are only responsible to check the submitted documents or collection orders.
- Crediting the account of the seller is only possible after receiving the related amount from the reimbursing bank
- If the seller/beneficiary asks, bank will review financial records of the foreign correspondent bank and notify the seller beneficiary.
Methods of Receiving Collection
- Payment at sight includes documents against payment (D/P) or cash against documents (C.A.D).
- Differed payment includes documents against the buyer's approval (D/A)
- Having received acceptance notification from the buyer/ applicant and after entering the contract, seller/ beneficiary sends the related goods for shipment and forwards required documents to one of the F.X. branches of ANSAR Bank.
- Having controlled the documents in terms of accuracy in the number of documents and schedules, the bank will inform the correspondent bank and then uses the express postal service to forward the related documents to the correspondent bank.
- Applicant/ buyer's bank will acknowledge the receipt of the documents to Bank ANSAR and sends a copy of the present invoice on the documents plus drawee's acceptance to the buyer/ applicant of goods and asks him to accept and settle the credit value.
- Having received the value of the documents from the correspondent bank, this bank will credit the specified account of the seller/ beneficiary.
- charges on the negotiation of documents
- charges on delivering the documents to the buyer's bank
- cost of the draft stamp
The exporter undertakes to pay all the above charges according to the regular F.X. services tariffs.