Collection with acceptance is a settlement method which allows the recipient to entrust the bank to collect payments after delivery from the payer in a different place, conditioned on the payer’s agreement on payment with the bank. The recipients and payers who are eligible to use this method must be the state-owned enterprises, supply & marketing cooperatives, and the collectively owned urban and rural manufacturing enterprises with good operation and management records after having been reviewed and approved by the opening bank.

1. The payment to be made through D/A must be those generated from commodity transactions, and those out from the labor provision based on commodity transactions. This service is not applicable to payment from commission, consignment or credit sales.

2. Prior to the service, both the payer and the recipient should have entered into a sales contract in accordance with Law on Economic Contracts, and should have specified D/A as the agreed method of settlement in their contract.

3. When using D/A service, both the payer and the recipient shall act with the commitment to contract and commercial integrity. If the recipient failed to collect on its sales from the one and same payer more than 3 times, the opening bank of the recipient shall suspend the collection service to this payer; if the payer unreasonably withheld payment more than 3 times, the opening bank of the payer shall suspend its D/A service.

4. The recipient shall have the shipping documents (including the rail way, airway, roadway bills, their respective copies and the postal receipt ) available for using the service; under special circumstances involving the People’s Bank, the D/A can be processed with other documents if the shipping documents are not available.

Collection:

After the shipment is made according to the sales contract, the recipient may appoint the bank for the collection service.

1. The recipient shall submit to the bank the collection vouchers enclosed with the shipping documents or other certificates and transaction documents in accordance with the D/A requirements. If the recipient wishes to take back the shipping documents, the bank shall stamp on the documents with “SHIPPING DOCS CHECKED”.

2. On receiving the collection vouchers and the enclosed documents, the opening bank of the recipient shall check them carefully according to the D/A service scope, conditions and the requirements on the voucher; if necessary the bank may check the contract signed by the recipient. D/A shall not be processed for shipment that failed to comply with the requirements or the contract. The review time shall not go beyond the day that follows.

Acceptance

On receiving the collection voucher and the enclosed documents, the payer’s bank shall timely notify the payer.

1. The acceptance of sales payment is divided into Payment against Documents and Payment on Acceptance of Goods. Both parties shall agree to either of the methods and specify the agreed method in their contract;

① Payment against document: the term of acceptance is 3 days from the following day of the date of notification by the payer’s bank (will be extended for the official holidays). If during the acceptance term the payer didn’t file a refusal against the payment, it shall be deemed as acceptance by the bank. When business starts In the morning of the day following the due day of the acceptance term (extended for official holidays), the bank will automatically pay the sum from the payer’s account to the recipient in a way specified by the recipient.

② Payment on acceptance of goods; the acceptance term is 10 days from the following day of the date of the delivery notice issued by the shipping agency. For the two parties’ agreed acceptance term that has been specified in the contract and has been marked on the collection voucher, the bank will follow this agreement.

2. Whether it is payment against document or payment on acceptance of goods, during the term of acceptance, the payer may agree to accept by notifying the bank to make the payment in advance and the bank shall process money transference without delay; for the additional payment due to price, quantity or amount changes, the payer shall notify the bank in writing in the term of acceptance and the bank will include it when processing the payment.

3. The payer shall not offset other payment or the previous collected payment during acceptance.

4. Overdue payment: If the payer has no sufficient fund for payment at the end of the acceptance date, the part that remained unpaid shall be deemed as overdue payment.

5. Refusal of payment: the payer may refuse to pay if any of the following circumstances occur

1) Payment without sales contract or no D/A for payment is specified in the contract;

2) Payments without prior agreement between the two parities for the unwanted goods delivered in advance or delayed by the recipient.

3) Payments with goods that are not shipped to the address specified in the contract;

4) Payment for commission, consignment or credit sales; for Payment against Document, the listed goods are found not complying with the models, specifications, quantity, prices specified in the contract, or the goods have arrived but they are found not complying with the contract or the packing list after inspection.

5) For Payment on Acceptance of Goods, the goods are found not complying with the contract or the packing list after inspection.

6) The payment has been made or has been miscalculated.