Assignment Topic: International Collections
Review the following International Collections Case. Submit a detailed response to the two questions at the end of the case.
International Collections Case
You are a manufacturer of auto parts located in Fort Lauderdale, Florida, USA. You have entered into an international sales contract to sell a shipment of parts to a purchaser in São Paulo, Brazil. You have extended credit to the importer using a D/A documentary collection. Review the specifics outlined below:
Terms:
Delivery:
CIF Santos, Brazil (INCOTERMS 2010)
Time of Payment:
Sixty days from the date documents are stamped “Shipped on board”
Draft Amount:
$2,175,000.00
Remitting Bank:
Bank of America – Fort Lauderdale, Florida, USA
Collecting Bank:
Banco do Brasil – São Paulo, Brazil
Case Questions:
Describe the steps and specific documents required for you to get paid for the shipment.
What could you do to get paid sooner than sixty days?
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