Documentary collection: D/P vs D/A under URC 522, steps and risks
In a documentary collection the exporter's bank sends the shipping documents to a bank in the importer's country, which releases them only against payment (D/P) or acceptance of a bill of exchange (D/A). Unlike a letter of credit, no bank promises to pay: the banks only handle the documents under the ICC Uniform Rules for Collections, URC 522.
Checked against official sources: 2026-10
At a glance
How a documentary collection works
- The exporter ships the goods and hands the documents, such as a bill of exchange, commercial invoice and transport document, to its bank with a collection instruction.
- The remitting bank sends the documents to a collecting bank in the importer's country.
- The presenting bank presents them to the importer: documents payable at sight are presented for payment without delay; for a bill at a later date, acceptance is sought without delay and payment no later than the maturity date.
- The importer pays (D/P) or accepts the bill of exchange (D/A) and receives the documents needed to take delivery and clear the goods.
- The proceeds are sent back through the banks to the exporter.
D/P vs D/A: who carries the risk
With D/P the importer cannot get the documents without paying, but it can still refuse them, and then the goods wait at the destination at the exporter's risk. With D/A the importer receives the documents when it accepts the bill of exchange and pays at maturity, so the exporter has given up control of the goods and holds only the accepted bill. In both cases the banks act in good faith and with reasonable care but do not undertake to pay, which is the main difference from a letter of credit.
URC 522 says that collections should not contain bills of exchange payable at a future date with instructions to deliver documents against payment. If they do, the documents are released only against payment and the collecting bank is not responsible for the delay.
The collection instruction
Every collection must come with a collection instruction stating that it is subject to URC 522. It gives the details of the principal, the drawee and the presenting bank, the amount and currency, the list of documents, the terms of payment or acceptance, the charges and any interest, and the instructions in case of non-payment or non-acceptance. Banks follow only these instructions: they have no obligation to protest unless the instruction says so, and if the drawee refuses the collection charges the documents may still be released unless the instruction says the charges may not be waived.
Goods should not be sent directly to a bank's address or consigned to the order of a bank without that bank's prior agreement.
Step by step
- Agree in the sales contract whether payment is D/P or D/A, and the tenor of any bill of exchange.
- Give your bank a collection instruction that refers to URC 522 and covers the documents, terms, charges, interest and what to do on non-payment.
- Do not combine a bill of exchange payable at a future date with D/P instructions.
- Do not consign the goods to a bank without its prior agreement.
- Decide in advance whether to protest and who will store and insure the goods if the importer does not pay.
- If the drawee refuses, send instructions quickly; after 60 days without instructions the documents may be returned.
Documents you usually need
- Collection instruction
- Bill of exchange (draft)
- Commercial invoice
- Transport document, such as a bill of lading
- Packing list, certificate of origin and insurance document, as agreed
Common problems and how to avoid them
What to do: The goods remain at the destination at your risk; tell the presenting bank quickly about storage, insurance, protest or return of the documents.
What to do: You hold only the accepted bill; the bank protests only if the collection instruction says so, so offer D/A only to buyers you trust.
What to do: Under URC 522 the commercial documents are then released only against payment; state the release terms clearly.
What to do: The documents may still be released unless the instruction says the charges may not be waived; agree who pays bank charges in the contract.
Sources
- Uniform Rules for Collections, 1995 Revision (ICC Publication No. 522) ICC
- ICC Uniform Rules for Collections supplement for electronic presentation (eURC) version 1.0 ICC
- Documentary collections: instructions for use Trade Finance Global
Rules change often. This note is practical guidance based on the sources above, not legal advice. Confirm current requirements with the authority, your importer or a licensed customs broker before you ship.
Trade notes
Common questions
What is the difference between D/P and D/A?
Under D/P the importer receives the documents only after paying; under D/A it receives them by accepting a bill of exchange and pays later, at maturity.
Is a documentary collection the same as a letter of credit?
No. The banks only handle the documents; unlike a letter of credit, no bank undertakes to pay the exporter.
Do banks check the documents in a collection?
Only that they appear to be as listed in the collection instruction; they present them as received without further examination.
What happens if the importer does not pay?
The presenting bank advises the non-payment without delay. If it receives no instructions within 60 days after that advice, the documents may be returned.
Can a documentary collection be electronic?
Yes. The eURC supplements URC 522 for electronic records presented alone or with paper documents; eURC 1.0 came into force on 1 July 2019.
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