|
Uniform
Rules for Collections, 1978 Revision
(ICC Publication
No.322)
General
Provisions and Definitions
A. These provisions and definitions and the following
articles apply to all collections as defined in (B) below and are binding
upon all parties thereto unless otherwise expressly agreed or unless contrary
to the provisions of a national, state or local law and/or regulation
which cannot be departed from.
B. For the purpose of such provisions, definitions and
articles:
1. (i) "Collection" means the handling by
banks, on instructions received, of documents as defined in (ⅱ) below,
in order to
a) obtain acceptance and/or, as the case may be, payment,
or
b) deliver commercial documents against acceptance (2)
and/or, as the case may be, against payment, or
c) deliver documents on other terms and conditions.
(ⅱ) "Documents" means financial documents and/or
commercial documents :
a) "financial documents" means bills of exchange,
promissory notes, cheques, payment receipts or other similar instruments
used for obtaining the payment of money :
(b) "commercial documents" means invoices,
shipping documents, documents of title or other similar documents, or
any other documents whatsoever, not being financial documents.
(ⅲ) "Clean collection" means collection of
financial documents not accompanied by commercial documents.
(iv) "Documentary collection" means collection
of
a) financial documents accompanied by commercial documents
:
b) commercial documents not accompanied by financial
documents.
2. The "parties thereto" are:
(i) the "principal" who is the customer entrusting
the operation of collection to his bank:
(ⅱ) the "remitting bank" which is the bank
to which the principal has entrusted the operation of collection :
(ⅲ) the "collecting bank" which is any bank,
other than the remitting bank, involved in processing the collection order
:
(iv) the "presenting bank" which is the collecting
bank making presentation to the drawee.
3. The "drawee" is the one to whom presentation
is to be made according to the collection order.
C. All documents sent for collection must be accompanied
by a collection order giving complete and precise instructions.
Banks are only permitted to act upon the instructions
given in such collection order, and in accordance with these Rules.
If any bank cannot, for any reason, comply with the
instructions given in the collection order received by it, it must immediately
advise the party from whom it received the collection order.
Liabilities
and Responsibilities
Article
1
Banks will act in good faith and exercise reasonable
care.
Article
2
Banks must verify that the documents received appear
to be as listed in the collection order and must immediately advise the
party from whom the collection order was received of any documents missing.
Banks have no further obligation to examine the documents.
Article
3
For the purpose of giving effect to the instructions
of the principal, the remitting bank will utilise as the collecting bank:
(i) the collecting bank nominated by the principal,
or, in the absence of such nomination,
(ⅱ) any bank, of its own or another bank's choice, if
the country of payment or acceptance, as the case may be.
The documents and the collection order may be sent to
the collecting bank directly or through another bank as intermediary.
Banks utilising the services of other bands for the
purpose of giving effect to the instructions of the principal do so for
the account of and at the risk of the latter.
The principal shall be bound by and liable to indemnify
the banks against all obligations and responsibilities imposed by foreign
laws or usages.
Article
4
Banks concerned with a collection assume no liability
or responsibility for the consequences arising out of delay and/or loss
in transit of any messages, letters or documents, or for delay, mutilation
or other errors arising in the transmission of cables, telegrams, telex,
or communication by electronic systems, or for errors in translation or
interpretation of technical terms.
Article
5
Banks concerned with a collection assume no liability
or responsibility for consequences arising out of the interruption of
their business by Acts of God, riots, civil commotions, insurrections,
wars, or any other causes beyond their control or by strikes or lockouts.
Article
6
Goods should not be dispatched direct to the address
of a bank or consigned to a bank without prior agreement on the part of
that bank.
In the event of goods being dispatched direct to the
address of a bank or consigned to a bank for delivery to a drawee against
payment or acceptance or upon other terms without prior agreement on the
part of that bank, the bank has no obligation to take delivery of the
goods, which remain at the risk and responsibility of the party dispatching
the goods.
Presentation
Article
7
Documents are to be presented to the drawee in the form
in which they are received, except that remitting and collecting banks
are authorized to affix any necessary stamps, at the expense of the principal
unless otherwise instructed, and to make any necessary endorsements or
place any rubber stamps or other identifying marks or symbols customary
to or required for the collection operation.
Article
8
Collection orders should bear the complete address of
the drawee or of the domicile at which presentation is to be made. If
the address is incomplete or incorrect, the collecting bank may, without
obligation and responsibility on its part, endeavour to ascertain the
proper address.
Article
9
In the case of documents payable at sight the presenting
bank must make presentation for payment without delay.
In the ease of documents payable at a tenor other than
sight the presenting bank must, where acceptance is called for, make presentation
for acceptance without delay, and where payment is called for, make presentation
for payment not later than the appropriate maturity date.
Article
10
In respect of a documentary collection including a bill
of exchange payable at a future date, the collection order should state
whether the commercial documents are to be released to the drawee against
acceptance (D/A) or against payment (D/P).
In the absence of such statement, the commercial documents
will be released only against payment.
Payment
Article
11
In the case of documents payable in the currency of
the country of payment (local currency) , the presenting bank must, unless
otherwise instructed in the collection order, only release the documents
to the drawee against payment in local currency which is immediately available
for disposal in the manner specified in the collection order.
Article
12
In the case of documents payable in a currency other
than that of the country of payment (foreign currency), the presenting
bank must, unless otherwise instructed in the collection order, only release
the documents to the drawee against payment in the relative foreign currency
which can immediately be remitted in accordance with the instructions
given in the collection order.
Article
13
In respect of clean collections partial payments may
be accepted if and to the extent to which and on the conditions on which
partial payments are authorized by the law in force in the place of payment.
The documents will only be released to the drawee when full payment thereof
has been received.
In respect of documentary collections partial payments
will only be accepted if specifically authorized in the collection order.
However, unless otherwise instructed, the presenting bank will only release
the documents to the drawee after full payment has been received.
In all cases partial payments will only be accepted
subject to compliance with the provisions of either Article 11 or Article
12 as appropriate.
Partial payment, if accepted, will be dealt with in
accordance with the provisions of Article 14.
Article
14
Amounts collected (less charges and/or disbursements
and/or expenses where applicable) must be made available without delay
to the bank from which the collection order was received in accordance
with the instructions contained in the collection order.
Acceptance
Article
15
The presenting bank is responsible for seeing that the
form of the acceptance of a bill of exchange appears to be complete and
correct, but is not responsible for genuineness of any signatory or for
the authority of any signatory to sign the acceptance.
Promissory
Notes, Receipts and Other Similar Instruments
Article
16
The presenting bank is not responsible for the genuineness
of any signature or for the authority of any signatory to sign a promissory
note, receipt, or other similar instrument.
Protest
Article
17
The collection order should give specific instructions
regarding pretest (or other legal process in lieu thereof), in the event
of non-acceptance or non-payment.
In the absence of such specific instructions the banks
concerned with the collection have no obligation to have the documents
pretested (or subjected to other legal process in lieu thereof) for non-payment
or non-acceptance.
Any charges and/or expenses incurred by banks in connection
with touch pretest or other legal process will be for the account of the
principal.
Case-of-Need (Principal's Representative) and Protection
of Goods
Article
18
If the principal nominates a representative to act as
case-of-need in the event of non-acceptance and/or non-payment the collection
order should clearly and fully indicate the powers of such case-of-need.
In the absence of such indication banks will not accept
any instructions from the case-of-need.
Article
19
Banks have no obligation to take any action in respect
of the goods to which a documentary collection relates.
Nevertheless in the case that banks take action for
the protection of the goods, whether instructed or not, they assume no
liability or responsibility with regard to the fate and/or condition of
the goods and/or for any acts and/or omissions on the part of any third
parties entrusted with the custody and/or protection of the goods.
However, the collecting bank must immediately advise
the bank from which the collection order was received of any such action
taken.
Any charges and/or expenses incurred by banks in connection
with any action for the protection of the goods will be for the account
of the principal.
Advice of
Fate, etc.
Article
20
Collecting banks are to advise fate in accordance with
the following rules :
(i) Form of advice. All advices or information from
the collecting bank to the bank from which the collection order was received,
must bear appropriate detail including, in all cases, the latter bank's
reference number of the collection order.
(ⅱ) Method of advice. In the absence of specific instructions,
the collecting bank must send all advices to the bank from which the collection
order was received by quickest mail but, if the collecting bank considers
the matter to be urgent, quicker methods such as cable, telegram, telex,
or communication by electronic systems, etc. may be used at the expense
of the principal.
(ⅲ) a) Advice of Payment. The collecting bank must send
without delay advice of payment to the bank from which the collection
order was received, detailing the amount or amounts collected, charges
and/or disbursements and/or expenses deducted, where appropriate, and
method of disposal of the funds.
b) Advice of acceptance. The collecting bank must send
without delay advice of acceptance to the bank from which the collection
order was received.
c) Advice of non-Payment or non-acceptance. The collecting
bank must send without delay advice of non-payment or advice of non-acceptance
to the bank from which the collection order was received.
The presenting bank should endeavour to ascertain the
reasons for such non-payment or non-acceptance and advise accordingly
the bank from which the collection order was received.
On receipt of such advice remitting bank must, within
a reasonable time, give appropriate instructions as to the further handling
of the documents. If such instructions are not received by the presenting
tank within 90 days from its advice of non-payment or non-acceptance,
the documents may be returned to the bank from which the collection order
wart received.
Interest,
Charges and Expenses
Article
21
If the collection order includes an instruction to collect
interest which is not embodied in the accompanying financial document(5),
if any, and the drawee refuses to pay such interest, the presenting bank
may deliver the document(s) against payment or acceptance as the case
may be without collecting such interest, unless the collection order expressly
states that suck interest may not be waived. Where such interest is to
be collected the collection order mast bear an indication of the rate
of interest and the period covered. When payment of interest has been
refused the presenting bank must inform the bank from which the collection
order was received accordingly.
If the documents include a financial document containing
an unconditional and definitive interest clause the interest amount is
deemed to form part of the amount of the documents to be collected. Accordingly,
the interest amount is payable in addition to the principal amount shown
in the financial document and may not be waived unless the collection
order so authorities.
Article
22
If the collection order includes an instruction that
,collection charges and/or expenses are to be for account of the drawee
and the drawee refuses to pay them, the presenting bank nay . deliver
the document(s) against payment or acceptance as the case may be without
collecting charges and/or expenses unless the collection order expressly
states that such charges and/or expenses may not be waived. When payment
of collection charges and/or expenses has been refused the presenting
bank must inform the bank from which the collection order was received
accordingly. Whenever collection charges and/or expenses are so waived
they will be for the account of the principal, and may be deducted from
the proceeds.
Should a collection order specifically prohibit the
waiving of collection charges and/or expenses then neither the remitting
nor collecting nor presenting bank shall be responsible for any costs
or delays resulting from this prohibition.
Article
23
In all cases where in the express terms of a collection
order, or under these Rules, disbursements and/or expenses and/or collection
charges are to be borne by the principal, the collecting bank(s) shall
be entitled promptly to recover outlays in respect of disbursements and
expenses and charges from the bank from which the collection order was
received and the remitting bank shall have the right promptly to recover
from the principal any amount so paid out by it, together with its own
disbursements, expenses and charges, regardless of the fate of the collection.
|
