Import payment is considered a useful method to help businesses trade smoothly in the international market. SeABank, with many years of experience in providing international payment services, has been accompanying many businesses on their journey to conquer the international market. Let's learn about this service at SeABank in today's article of sme.seabank.com.vn.
What is import revenue?
Import revenue is an international payment method in which the Export by bank collection from import organization.
The popular forms of income tax today are as follows:
- D/P (Documentary against Payment): The collecting bank delivers the set of documents to the Importer when the Importer pays.
- D/A (Documentary against Acceptance) collection: The collecting bank only delivers the Importer's set of documents when the Importer commits to pay when due.
Thanks to import revenue is a popular international payment method today
What are the characteristics of import income?
Thanks to import revenue, there are main characteristics that businesses need to know as follows:
- Evidence: Thanks to the document-based import collection instead of the contract, focusing on the documents proving delivery and payment, it helps to ensure transparency and clarity in the transaction process.
- Intermediary role of Bank: The bank only acts as an intermediary, ensuring safety and efficiency for both the exporter and the importer during the collection transaction process.
- Implementation after delivery: Collection is only activated when the seller has fulfilled his delivery obligation, setting the stage for the payment process and reducing risk for both parties.
In addition, you can also refer to the subjects participating in payment thanks to import revenue as follows:
- Principal: The person who authorizes the bank to make payment for collection, usually the exporter or beneficiary.
- Remitting bank: Is the bank authorized by the exporter to make payment for collection.
- Presenting bank: Is a bank in the importer's country, which transfers collection documents to the importer according to specific instructions.
- Collecting bank: Any bank involved in the collection payment process but not the bank that transmits the documents, usually understood as the presenting bank.
- Drawee: The person who must pay money upon request to present the collection documents, usually the importer..
Businesses need to understand the characteristics of import taxes before choosing.
Benefits of import revenue
Cash on delivery is a payment method that many businesses are choosing. This method has many advantages and benefits as follows:
- Reduce risk and cost: Import collection not only reduces the risk compared to international money transfers but also brings cost savings compared to letter of credit. This creates a safe and efficient trading environment.
- Financial support through import financing: Businesses can benefit from financial support through import finance programs when using collections. This helps businesses have the necessary resources to promote and expand international business operations.
- Opportunity to check documents at the bank: The opportunity for the importer to inspect the documents at the presenting bank before payment or acceptance is an important advantage. This facilitates transparency and certainty in the transaction process, reducing the risks associated with inaccuracies or incorrect documentation.
Thanks to the import revenue, it brings many benefits to the participating parties.
Documents and procedures for import collection at SeABank
The documents and procedures for import collection at SeABank are carried out according to the following steps:
Step 1: Bank sends "Import collection document notice"
After receiving the collection documents from the collecting bank, SeABank will proactively send the "Import Collection Document Notice" to the customer (Importer). This is an important step to notify the start of the payment process.
Step 2: Prepare payment documents
Customers need to prepare the following documents to make payment for Import Collection at SeABank:
- Import collection document notice with Customer feedback.
- Bill of exchange (if any).
- Carrier's notice of arrival (if applicable).
- Other documents depending on collection instructions.
Step 3: Pay or sign the bill of exchange
Customers make payment for collection (for immediate collection) or sign payment acceptance (for deferred collection), and pay related fees to SeABank.
Step 4: Transfer payment
SeABank makes payment transfers to the collecting bank. This process ensures flexibility and reliability in implementing import collection transactions.
The process of implementing import collection at SeABank is very simple.
Conclude
Hopefully with this article, you will understand more about what import collection is and the issues related to this content. If your business is in need of using import collection services, please contact SeABank for the best advice and support.
With outstanding advantages such as safety, convenience and low cost, SeABank's import collection service is the ideal choice for Vietnamese enterprises in import and export activities.
To learn more about SeABank's import collection services, please visit the website: https://sme.seabank.com.vn/ or contact Hotline 1900.555.587 (Customer Service) or 1900.599.952 (Business Service).
