10.1.5 Payment by Bill of Exchange Under Documenta...
Parties to a documentary collection include:
♦The principal（exporter/drawer）委托人（卖方/出票人）
As the exporter,you are the principal and prepare the shipping documents and other commercial documents,draw a bill of exchange,and submit them to the remitting bank(often your bank)with a letter of instruction to the collecting bank.
♦The remitting bank（the principal’s/exporter’s bank）托收行（受托人/卖方的银行）
The remitting bank receives documents from you(principal)and forwards(by remitting)to the importer’s bank(collecting/presenting bank)along with the letter of instruction for collecting payment.
♦The collecting bank（the presenting bank/importer’s bank）代收行（提示行/买方的银行）
This is the bank that presents the documents to the importer and collects payment(effected by a sight bill)or obtains a promise to pay in the future(effected by a time bill)from the importer(drawee of the bill)in exchange for the documents.
♦The payer（drawee/importer）付款人（受票人/买方）
It is the party that makes payment or signs a bill of exchange according to the terms of the letter of instruction in exchange for the documents from the presenting/collecting bank and takes possession of the goods.The payer(drawee)is the one on whom a bill of exchange is drawn and who owes the indicated amount on the bill.
Figure 10-2 shows a graphic representation of payment by a bill of exchange under the arrangement of a documentary collection.
Figure 10-2 Payment by a Bill of Exchange Under Documentary Collection