Control by the exporter is achieved by presenting a shipping document containing a document of title to the collecting bank; the document of the title must be a bill of lading to blank order. Do not issue any bill of lading to the order of the named collecting bank. The collecting bank undertakes the responsibility not to release the documents to the importer without payment or acceptance (term bill of exchange).

Freight forwarders are expected to explain the system of documentary collections as well! as to be able to prepare all necessary documentation.

Air freight - an air waybill is not negotiable, in order to achieve control, you can consign the MAWB to your agent at the destination with your instructions not to release the shipment unless your agent has a written release order from the collecting bank.

From what you have learned, what do you think about how these documents play in the international trades: Bill of Exchange, Commercial Invoice, Bill of Lading, Insurance and other commercial documents?

What is the difference between the bill of exchange and the banks direct collection form?