The definition of cross-border e-commerce collection and analysis of its operation

Cross-border e-commerce collection is a key financial operation, and its meaning is clarified according to the “Uniform Rules for Collection” formulated by the International Chamber of Commerce. Collection may be defined as the processing of financial documents and/or commercial documents by a bank that receives a collection instruction in accordance with the instructions received in order to obtain payment or acceptance, and the delivery of the relevant commercial documents against payment or acceptance, or in accordance with the instructions received. Other terms or conditions for surrendering these documents.

In cross-border e-commerce, the financial documents involved include money orders, cashier’s checks, checks, payment receipts, etc., which are all used to obtain payment or payment certificates. Commercial documents include invoices, transport documents, property rights documents or other similar documents, or documents other than financial documents.

Collection is usually performed through a bank, so it is also called bank collection. The basic operation process is as follows: the exporter first ships the goods according to the sales contract, then issues a bill of exchange (or not issues a bill of exchange) depending on the situation, and submits a collection application together with commercial documents to the bank at the place of export. This bank is the collecting bank. Then, the remitting bank entrusts its agent bank or correspondent bank at the place of import, that is, the collecting bank, to collect the payment from the importer.