Import Collection (DA/ DP)

Bank of China (Thai) Public Company Limited (BOCT) is entrusted by a foreign correspondent bank or an affiliated bank to collect import payments and deliver the relevant commercial documents to the importer, in accordance with their instructions. There are two kinds of payment term under Import Collection.

1. Documents against Payment (D/P): BOCT will release the documents to the buyer after receiving full payment from the buyer.

2. Documents against Acceptance (D/A): BOCT will release the documents after the buyer accepting the bill of exchange (draft), which guarantees payment to the bank at a future maturity date.

1. Low banking fees can help enterprises reduce financial expenses and control the costs.
2. Import Collection process is simple and easy to use compared with L/C.
3. Reduce funds occupation as no advance payment is required when the exporter prepares and ships the goods.

For D/A only:

       4. Improves cash flow, the importers can immediately obtain the goods documents and dispose of the goods after acceptance and make payments later when cash inflow is generated by the sales of goods.                                                 

       5. Almost no funds are occupied, greatly improving the company's financial position and solvency. Is only applicable for DA, you may separate D/P with D/A due to different features.

Please refer to standard rates released by BOCT via: https://www.bankofchina.co.th/en-th/service/information/service-rates-and-tariffs/service-charges-for-import.html

1. Importers who want to pay exporters with lower costs and simpler procedures compared with L/C.
2. Importers with sufficient working capital can use D/P.
3. Importers with insufficient working capital can choose D/A if they want exporters to grant a financing facility for forward payment, provided they have a good business relationship with the exporters.

1. Inward collection advice (D/A, D/P)
2. Application for import loan (if any)
3. Bill of exchange (if any)

1. The foreign exporter initiates the collection process by submitting the relevant documents to its bank after preparing and shipping the goods.
2. The exporter's bank then sends the collection documents to BOCT.
3. BOCT notifies the importer to either pay (D/P) or accept (D/A) the collection as instructed on the covering schedule.
4. Once the importer has made the payment or accepted the collection via BOCT, the documents are released to the importer.
5. When the acceptance under D/A is due, the importer is required to pay the exporter through BOCT.