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 So 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 - So Paulo, Brazil

Case Questions:

1. Describe the steps and specific documents required for you to get paid for the shipment.
2. What could you do to get paid sooner than sixty days?