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If you are an importer and you agree with your supplier to pay for goods by means of a remittance, you are agreeing to the sending of financial and/or commercial documents for payment collection management .

This way, the exporter will submit the documentation to their bank, which will send it along with a letter of instructions. This letter, together with the documents, will be received by Cajamar Caja Rural which must follow the instructions given by the assigning bank.

A remittance does not guarantee payment to the supplier.

There are two types of remittance: simple and documentary.

A simple remittance encompasses a financial document: cheque, bond, promissory note, etc.

A documentary remittance may or may not include a financial document, but will definitely encompass commercial documents: invoice, shipping document, packing list, etc.

The different parties who intervene in a remittance are:

  • Drawer: this is the exporter, who presents documents for collection.
  • Drawee: this is the importer, who will make the payment.
  • Assigning bank : this is the drawer’s bank, which will send documents for collection management in accordance with their customer’s instructions.
  • Receiving bank: this is the drawee’s bank, which receives the documents and presents them to the importer for payment.

In Foreign Trade, you must have a clear understanding of the conditions of sale/purchase before initiating collection or shipping the goods.

If you are planning to use an import remittance as the means of payment, you must agree on the following with your supplier:

  • Amount and currency
  • Payment due date: method of payment.
  • Collection of documents upon payment or acceptance.
  • Banking charges: who is responsible for paying the charges of the assigning banks and the receiving bank.
  • Instructions regarding contestation in the event of non-payment.

All this information will be shown on the letter of instructions issued by the bank that sends the remittance, and Cajamar, Caja Rural is required to follow through on these instructions.

Outline of a simple remittance:

  1. The exporter sends the goods directly to the importer, along with the commercial documents of the operation.
  2. The exporter provides the financial document (bond, cheque…) to their bank to be sent for collection management.
  3. The assigning bank sends the financial document together with its letter of instructions to the receiving bank.
  4. The receiving bank presents the financial document to the importer who, on the agreed payment due date, will decide whether to honour the payment or not.
  5. On the payment due date, payment is made to the supplier, if the importer has decided to proceed.
  6. The receiving bank debits the relevant amount from the importer’s account and sends the funds to the assigning bank.
  7. The assigning bank credits this amount to the exporter’s account.
Fases remesa exportación simple

Outline of a documentary remittance:

  1. The exporter sends the goods directly to the importer.
  2. They present the commercial documents together with collection instructions to their bank.
  3. The assigning bank sends the documentation together with the instructions to the receiving bank.
  4. The receiving bank contacts the importer to notify them that the remittance has been received.
  5. If payment is on demand, before the importer can collect the documents, they must make the payment. If payment is differed, the importer will accept the remittance and collect the documents.
  6. The importer collects the goods from the port, airport, or at their own premises if transport is by truck or lorry.
  7. The receiving bank sends the funds on the agreed date, provided the drawee authorises payment, since acceptance does not imply payment.
  8. Fases remesa exportación documentaria