Shivansh Goel

A bank draft is an important part of the international sales process for transferring control of the exported goods from the seller in exchange for funds from the buyer. It is often called a documentary collection, because the seller attaches documents to a draft and a cover letter. Usually the seller’s bank will send the bank draft and related documents via the freight forwarder to the buyer’s bank or a bank with which it has a relationship in the buyer’s country. When the buyer authorizes payment for the goods, the buyer’s bank will release the documents to the buyer and transfer the funds to the seller’s bank.

The bank draft may or may not include a transmittal letter, which includes details of the draft transaction including the types of additional documents that are included and payment instructions.

Hi, Elina. The import-export process deals with a lot of documentation, especially when you need to import from a non-EU country in the EU. The whole set of documents can be divided into four:1. Documents required by importers and for customs clearing in the target market2. Documents required to export the goods from South Africa3. Documents required for payment4. Documents required to transport the goods, i.e. the transport documents. The first set of documents is very important. In my experience, we import and export different types of reptiles from all over the world, including South Africa, I can tell you that the list of documents we need to import our little animals in the Netherlands is the following: • Bill of Entry • Bill of Lading/Airway bill • Packing List • Certificate of Origin • Commercial Invoice • Import License. I hope this is helpful.