“Clean collection” means collection of Financial documents not accompanied by commercial documents.
“Documentary collection” means collection of:
> Financial documents accompanied by commercial documents;
> Commercial documents not accompanied by financial documents.
“Clean Collections” therefore imply the sending of financial documents (“bills of exchange” or “promissory notes“)through the banking system in order to obtain payment from the importer, while commercial documents (invoices, packing list, transport documents, documents of origin, etc.) are sent directly to the importer. This solution implies a high level of trust between commercial counterparties, as the exporter loses physical control of the goods.
Examples of Financial Document and Commercial Document.
“Financial document” means bills of exchange, promissory notes, cheque, or o[ther similar instruments used for obtaining the payment of money.
“Commercial document” means invoices, transport documents, documents of title or other similar documents, or any other documents whatsoever, not being financial documents.