Export Bill Purchase

Overview
The Export Bill Purchase is a kind of short-term financing where customers sell the full set of export documents to
ABC which will in turn pay customers the face value minus the interest as well as any charges incurred during the
date of purchase to the predicted date of receiving payment. The Export Bills Purchase can be L/C, export
collection D/P, and export collection D/A.
Functions
1. Customers can get money before the importer makes payment, gaining faster turnover of funds.
2. Export Bill Purchase helps increasing cash inflows of the current period, and improving customers' financial
standing and financing capability.
3. Customers are able to choose the currency of financing based on the respective interest rates, minimizing
financial cost.
4. Customers are able to sell foreign exchange earlier to mitigate the risk of foreign exchange rate.
Procedures
1. The Export Bill Purchase under L/C
The customer completes the Application for Export Bill Purchase and submits the original L/C issued by a foreign
bank, the full set of export documents, export contract executed with the foreign importer, permit/license for
export (if required) and other documents required by ABC.
ABC reviews the application and signs the Contract for Export Bill Purchasebefore releasing the proceeds.
ABC sends the documents to the importer for collection of payment.
The payment in foreign exchange received from the importer will be directly used to repay the credits under the
Export Bill Purchase.
2. Bill purchase under collection
The customer completes the Application for Export Bill Purchase and submits the full set of export documents,
export contract executed with the foreign importer, permit/license for export (if required) and other documents
required by ABC.
ABC reviews the application and signs the Contract for Export Bill Purchase before releasing the proceeds.
ABC makes documentary collection from the remitting bank.
The payment in foreign exchange received from the importer will be directly used to repay the credits under the
Export Bill Purchase.
Tips
1. The customer shall be the beneficiary of the L/C or the payee of the collection bill.
2. The goods for export shall be well received goods without sharp price fluctuation.
3. If ABC has granted package loans to the customer, such loans should be first repaid before application.

Import Bill Collection is a mode of payment for international trade where the
seller forwards financial and/or commercial documents to the buyer, against which
the payment is made.
Import Bill for Collection services can be availed as follows: For Documents Against
Acceptance (DA), ICICI Bank releases the import documents to the buyer on
acceptance of the bills of exchange/draft.

For Documents against Payment (DP), ICICI Bank release the import documents to
the buyer once he has paid.
ICICI Banks Import Bill for Collection

Facilitates the processing of documents and payments to your suppliers on

your behalf
Saves time and takes delivery of your goods quickly and efficiently
Enables buyers (You) to focus on building their business

Step 1 - The seller and buyer enter into a contract and agree that payment be made on the basis of a documentary collection

Step 2 - The seller ships the goods and tenders the documents to its bank (remitting bank) together with a corresponding collection order

Step 3 - The remitting bank sends the documents along with its collection instructions to ICICI Bank (collecting bank)

Step 4 - ICICI Bank notifies the buyer of arrival of documents, for his payment/acceptance

Step 5 - The buyer pays the amount due or accepts the draft and in turn receives the documents

Step 6 - ICICI Bank remits the amount to the remitting bank

Step 7 - The remitting bank credits the amount to the sellers account

How Import Bills work

After the goods are shipped your exporter presents shipping documents,
together with their instructions, to their bank. The exporter's bank then forwards
them to your bank for payment

Your bank acts on behalf of the exporter's bank to collect payment from you, or a
promise that you will pay at a later date if you have agreed this with your
exporter
A promise to pay usually involves you accepting a Bill of Exchange. Under the
agreement, your bank will not release the shipping documents until payment or
acceptance has been made.