(ICC Uniform Rules for Collections ，ICCPublication No. 522 )

ICC Uniform Rules for Collections

ICC Publication No. 522

1995 Revision in force as of January 1，1996

CONTENT

A. General Provisions and Definitions

Application of URC 522

Definition of Collection

Parties to a Collection

B. Form and Structure of Collections

C.Form of Presentation

Presentation

Sight/Acceptance

Release of Commercial Documents

Documents Against Acception (D/A) vsDocuments Against Payment (D/P)

Creation of Documents

D.Liabilities and Responsibilities

Good Faith and Reasonable Care

Documents vs.Goods/Services/Performances

Disclaimer for Acts of an InstructedParty

Disclaimer on Documents Received

Disclaimer on Effectiveness of Documents

Disclaimer on Delays，Loss in Transit andTranslation

Force Majeure

E. Payment

Payment Without Delay

Payment in Local Currency

Payment in Foreign Currency

Partial Payment

F.Interest，Charges and Expenses

Interest

Charges and Expenses

G. Other Provisions

Acceptance

Promissory Notes and other Instructions

Protest

Case-of-Need

Advices

A. General Provisions and Definitions

Article 1

Application of URC 522

a. The Uniform Rules for Collections，1995 Revision， ICC Publication No.522，shall apply to all collections as definedin Article 2 where such rules areincorporated into the text of the “collectioninstruction” referred to inArticle 4 and are binding on all parties theretounless otherwise expresslyagreed or contrary to the provisions of anational，state or local law and/orregulation which cannot be departed from.

b. Banks shall have no obligation tohandle either a collection or anycollection instruction or subsequent relatedinstructions.

c. If a bank elects， for any reason， notto handle a collection or any relatedinstructions received by it， it must advisethe party from whom it received thecollection or the instructions bytelecommunication or， if that is not possible，by other expeditious means，without delay.

Article 2

Definition of Collection

For the purposes of these Articles:

a.“Collection”means the handling bybanks of documents as defined in sub-Article2 (b)， in accordance received， inorder to:

I. obtain payment and/or acceptance， or

II. deliver documents against paymentand/or against acceptance，or

III. deliver documents on other termsand conditions.

b.“Documents”means financial documentsand/or commercial documents:

I. “Financial documents”means bills ofexchange，promissory notes， cheques， orother similar instruments used forobtaining the payment of money;

II. “Commercial documents” meansinvoice，transport documents，documents of titleor other similar documents，or anyother documents whatsoever， not beingfinancial documents.

c.”Clean collection” means collection offinancial documents not accompanied bycommercial documents.

d.”Documentary collection”meanscollection of:

I. financial documents accompanied bycommercial documents;

II.Commercial documents not accompaniedby financial documents.

Article 3

a. For the purposes of these Articlesthe “parties thereto” are:

I. the “principal” who is the partyentrusting the handling of a collection to abank;

II. the “remitting bank” which is thebank to which the principal has entrustedthe handling of a collection;

III. “collecting bank” which is anybank，other than the remitting bank， involvedin processing the collection;

IV. the “presenting bank” which is thecollecting bank making presentation tothe drawee.

b. The “drawee” is the one to whompresentation is to be made in accordance withthe collection instruction.

B．Form and Structure of Collections

Article 4

Collection Instruction

A i. All documents sent for collectionmust be accompanied by a collectioninstruction indicating that the collection issubject to URC522 and givingcomplete and precise instructions. Banks are onlypermitted to act upon theinstructions given in such collection instruction，andin accordance with theseRules.

ii. Banks will not examine documents inorder to obtain instructions.

iii. Unless otherwise authorized in thecollection instruction， banks willdisregard any instructions from any party/bankother than the party/bank fromwhom they received the collections.

B A collection instruction shouldcontain the following items of information，asappropriate.

i. Details of the bank from which thecollection was received including fullname，postal and SWIFTaddresses，telex，telephone，facsimile numbers and referece.

ii. Details of the principal includingfull name， postal address，and ifapplicable telex，telephone and facsimilenumbers.

iii. Details of the drawee includingfull name，postal address，or the domicile atwhich presentation is to be made andif applicable telex， telephone andfacsimile numbers.

iv. Details of the presenting bank，ifany，including full name，postal address，andif applicable telex， telephone andfacsimile numbers.

v. Amount(s) and currency(ies) to becollected.

vi. List of documents enclosed and thenumerial count of each document.

vii. a) Terms and conditions upon whichpayment and/or acceptance is to beobtained.

b) Terms of delivery of documentsagainst:

1) payment and/or acceptance

2)other terms and conditions

It is the responsibility of the partypreparing the collection instruction toensure that the terms for the delivery ofdocuments are clearly andunambiguously stated， otherwise banks will not beresponsible for anyconsequences arising therefrom.

viii. Charges to be collected，indicating whether they may be waived or not.

ix. Interest to be collected， ifapplicable， indicating whether it may be waivedor not， including:

a) rate of interest

b) interest period

c) basis of calculation (for example 360or 365 days in year) as applicable.

x. Method of payment and form of paymentadvice.

xi. Instrucitons in case of non-payment，non-acceptance and/or non-compliancewith other instructions.

i. Collection instructions should bearthe complete address of the drawee or ofthe domicile at which the presentationis to be made. If the address isincomplete or incorrect， the collecting bankmay， without any liability andresponsibility on its part， endeavour to ascertainthe proper address.

ii. The collecting bank will not beliable or responsible for any ensuing delayas a result of anincomplete.incorrect address being provided.

B. Form of Presentation

Article 5

Presentation

a. For the purposes of these Articles，presentation is the procedure whereby thepresenting bank makes the documentsavailable to the drawee as instructed.

b. The collection instruction shouldstate the exact period of time within whichany action is to be taken by thedrawee.

Expressions such as “first”，“prompt”，”immediate”， and the like should not beused in connection withpresentation or with reference to any period of timewithin which documents haveto be taken up or for any other action that is to betaken by the drawee. If suchterms are used banks will disregard them.

c. Documents are to be presented to thedrawee in the form in which they arereceived， except that banks are authorizedto affix any necessary stamps， at theexpense of the party from whom theyreceived the collection unless otherwiseinstructed， and to make any necessaryendorsements or place any rubber stamps orother identifying marks or symbolscustomary to or required for the collectionoperation.

d. For the purpose of giving effect tothe instructions of the principal， theremitting bank will utilize the banknominated by the principal as thecollecting bank. In the absence of suchnomination， the remitting bank willutilize any bank of its own， or anotherbank’s choice in the country of paymentor acceptance or in the country whereother terms and conditions have to becomplied with.

e. The documents and collectioninstruction may be sent directly by theremitting bank to the collecting bank orthrough another bank as intermediary.

f. If the remitting bank does notnominate a specific presenting bank， thecollecting bank may utilize a presentingbank of its choice.

Article 6

Sight/Acceptance

In the case of documents payable atsight the presenting bank must makepresentation for payment without delay.

In the case of documents payable at atenor other than sight the presenting bankmust， where acceptance is called for，make presentation for acceptance withoutdelay， and where payment is called for，make presentation for payment not laterthan the appropriate maturity date.

Article 7

Release of Commercial Documents

Documents Against Acceptance (D/A) vs.Documents Against Payment (D/P)

a.Collection should not contain bills ofexchange payable at a future date withinstruction that commercial documents areto be delivered against payment.

b. If a collection contains a bill ofexchange payable at a future date， thecollection instruction should statewhether the commercial documents are to bereleased to the drawee againstacceptance (D/A) or against payment (D/P).

In the absence of such statementcommercial documents will be released onlyagainst payment and the collectingbank will not be responsible for anyconsequences arising out of any delay in thedelivery of documents.

c. If a collection contains a bill ofexchange payable at a future date and thecollection instruction indicates thatcommercial documents are to be releasedagainst payment， documents will bereleased only against such payment and thecollecting bank will not beresponsible for any consequences arising out of anydelay in the delivery ofdocuments.

Article 8

Creation of Documents

Where the remitting bank instructs thateither the collecting bank or the draweeis to create documents (bills ofexchange promissory notes， trustreceipts，letters of undertaking or otherdocuments) that were not included inthe collection， the form and wording of suchdocuments shall be provided by theremitting bank， otherwise the collecting bankshall not be liable or responsiblefor the form and wording of any such documentprovided by the collecting bankand/or the drawee.

C. Liabilities and Responsibilities

Good faith and Reasonable Care

Banks will act in good faith andexercise reasonable care.

Article 10

Documents vs.Goods/Services/Performances

a.Goods should not be dispatcheddirectly to the address of a bank or consignedto or to the order of a bankwithout prior agreement on the part of that bank.

Nvertheless， in the event that goods aredispatched directly to the address of abank or consigned to or to the order of abank for release to a drawee againstpayment or acceptance or upon other termsand conditions without prior agreementon the part of that bank， such bank shallhave no obligation to take delivery ofthe goods， which remain at the risk andresponsibility of the party dispatchingthe goods.

b. Banks have no obligation to take anyaction in respect of the goods to whicha documentary collection relates，including storage and insurance of the goodseven when specific instructions aregiven to do so. Banks will only take suchaction if， when， and to the extent thatthey agree to do so in each case，notwithstanding the provisions of sub-article 1(c)， this rule applies even inthe absence of any specific advice to this effectby the collecting bank.

c. Nevertheless， in the case that bankstake action for the protection of thegoods， whether instructed or not， theyassume no liability or responsibilitywith regard to the fate and/or condition ofthe goods and/or for any acts and/oromissions on the part of any third partiesentrusted with the custody and/orprotection of the goods. However， thecollecting bank must advise without delaythe bank from which the collectioninstruction was received of any such actiontaken.

d. Any charges and/or expensed incurredby banks in connection with any actiontaken to protect the goods will be for theaccount of the party from whom theyreceived the collection.

e. i. Notwithstanding the provisions ofsub-article 10 (a)， where the goods areconsigned to or the order of thecollecting bank and the drawee has honoured thecollection by payment， acceptanceor other terms and conditions， and thecollecting bank arranges for theauthorized the collecting bank to do so.

ii.Where a collecting bank on theinstructions of the remitting bank or in termsof sub-article 10 (e) i， arrangesfor the release of the goods， the remittingbank shall indemnify such collectingbank for all damages and expenses incured.

Article 11

Disclaimer For Acts of an InstructedParty

a. Banks utilizing the services ofanother bank or other banks for the purposesof giving effect to the instructionsof the principal， do so for the account andat the risk of such principal.

b. Banks assume no liability orresponsibility should the instructions theytransmit not be carried out， even ifthey have themselves taken the initiativein the choice of such other bank(s).

c. A party instructing another party toperform services shall be bound by andliable to indemnify the instructed partyagainst all obligations andresponsibilities imposed by foreign laws and usages.

Article 12

Disclaimer on Documents Received

a.Bank must determine that the documentsreceived appear to be as listed in thecollection

instruction and must advise bytelecom-munication or， if that is not possible，by other expeditious means，without delay， the party from whom the collectioninstruction was received of anydocuments missing， or found t be other thanlisted.

Banks have no further obligation in thisrespect.

b. If the documents do not appear to belisted， the remitting bank shall beprecluded from disputing the type and numberof documents received by thecollecting bank.

c. Subject to sub-article 5 (c) andsub-article 12 (a) and 12 (b) above， bankswill present documents as receivedwithout further examination.

Article 13

Disclaimer on Effectiveness of Documents

Banks assume no liability orresponsibility ofr the form，sufficiency，accuracy，genuineness，falsification orlegal effect of any document(s) or superimposed thereon; nor do they assume anyliability， condition，packing，delivery， value of existence of the goodsrepresented by any document (s)，orfor the good faith or acts and/oromission，solvency，performance or standing ofthe consignors， the carriers，theforwarders，the consignees or the insurers ofthe goods， or any other personwhomsoever.

Article 14

Disclaimer on Delays，Loss in Transit andTranslation

a.Banks assume no liability orresponsibility for the consequences arising outof delay and/or loss in transitof any message (s)， letter(s) or document(s)， orfor delay，mutilation or othererror(s) arising in transmission of anytelecommunication or for error(s) intranslation and/or interpretation oftechnical terms.

b. Banks will not be liable orresponsible for any delays resulting from theneed to obtain clarification of anyinstructions received.

Article 15

Force Majeure

Banks assume no liability orresponsibility for consequence arising out of theinterruption of their businessby Acts of God， riots，civilcommotios，insurrections， wars， or any other causesbeyond their control or bystrikes or lockouts.

D. Payment

Article 16

Payment Without Delay

a.Amounts collected (less charges and/ordisbursements and/or expenses whereapplicable) must be made available withoutdelay to the party from whom thecollection instruction was received inaccordance with the terms and conditionsof the collection instruction.

b. Notwithstanding the provisions ofsub-article 1 (c) and unless otherwiseagreed， the collecting bank will effectpayment of the amounts collected infavour of the remitting bank only.

Article 17

Payment in Local Currency

In the case of documents payable in thecurrency of the country of payment(local currency)， the presenting bank must，unless otherwise instructed in thecollection instruction， release the documentsto the drawee against payment inlocal currency only if such currency isimmediately available for disposal inthe manner specified in the collectioninstruction.

Article 18

Payment in Foreign Currency

In the case of documents payable in acurrency other than of the country ofpayment (foreign currency)， the presentingbank must， unless otherwiseinstructed in the collection instruction，release thedocuments to the draweeagainst payment in the designed foreign currency only ifsuch foreign currencycan immediately remitted in accordance with theinstructions given in thecollection instruction.

Article 19

Partial Payments

a.In respect of clean collections，partial payments may be accepted if and tothe extent to which and on theconditions on which partial payments areauthorized by the law in force in theplace of payment. The financialdocument(s) will be released to the drawee onlywhen full payment thereof hasbeen received.

b. In respect of documentary collection，partial payments will only be acceptedif specifically authorized in thecollection instruction. However，unlessotherwise instructed， the presenting bankwill release the documents to thedrawee only after full payment has beenreceived， and the presenting bank willnot be responsible for any consequencearising out of any delay in the deliveryof documents.

c.In all cases partial payments will beaccepted only subject to compliance withthe provisions of either Article 17 orArticle 18 as appropriate. Partialpayment， if accepted， will be dealt with inaccordance with the provisions ofArticle 16.

E. Interest， Charges and Expenses

Article 20

Interest

a.If the collection instructionspecifies that interest is to be collected andthe drawee refuses to pay suchinterest， the presenting bank may deliver thedocument (s) against payment ofacceptance or on other terms and conditions asthe case may be， withoutcollecting such interest， unless sub-article 20 (c)applies.

b. Where such interest is to becollected， the collection instruction mustspecify the rate of interest，interestperiod and basis of calculation.

c.Where the collection instructionexpressly states that interest may not bewaived and the drawee refuses to paysuch interest the presenting abnk will notdeliver document and will not beresponsible for any consequences arising out ofany delay in the delivery ofdocument(s). When payment of interest has beenrefused， the presenting bank mustinform by telecommunication or， if that is notpossible， by other expeditiousmeans without delay the bank from which thecollection instruction was received.

Article 21

Charges and Expenses

a.If the collection instructionspecifies that collection charges and/orexpenses are to be ofr account of thedrawee and the drawee refuses to pay them，the presenting bank may deliver thedocument(s) against payment or acceptance oron other terms and conditions as thecase may be， without collecting chargesand/or expenses，unless sub-article 21 (b)applies.

Whenever collection charges and/orexpenses are so waived they will be for theaccount of the party from whom thecollection was received and may be deductedfrom the proceeds.

b.Where the collection instructionexpressly states that charges and/or expensesmay not be waived and the draweerefuses to pay such charges and/or expenses，the presenting bank will not deliverdocuments and will not be responsible forany consequence arising out of anydelay in the delivery of the document(s).When payment of collection chargesand/or expenses has been refused thepresenting bank must inform bytelecommunication or， if that is not possible， byother expeditious means withoutdelay the bank from which the collectioninstruction was received.

c.In all cases where in the expressterms of a collection instruction or underthese Rules， disbursements and/orexpenses and/or collection charges are to beborne by the principal， thecollecting bank(s) shall be entitled to recoverpromptly outlays in respect ofdisbursements，expenses and charges from the bankform which the collectioninstruction ws received， and the remitting bank shallbe entitled to recoverpromptly from the principal any amount so paid out byit，together with its owndisbursements，expenses and charges，regardless of thefate of the collection.

d.Banks reserve the right to demandpayment of charges and/or expenses inadvance from the party from whom thecollection instruction was received， tocover costs in attempting to carry outany instructions， and pending receipt ofsuch payment also reserve the right notto carry out such instructions.

F. Other Provisions

Article 22

Acceptance

The presenting bank is responsible forseeing that the form of the acceptance ofa bill of exchange appears to becomplete and correct， but is not responsiblefor the genuineness of any signatureor for the authority of any signatory tosign the acceptance.

Article 23

Promissory Notes and Other Instructions

The presenting bank is not responsiblefo the genuineness of any signature orfor the authority of any signature to signa promissory note， receipt，or otherinstruments.

Article 24

Protest

The collection instruction should givespecific instructions regarding protest(or other legal process in lieu thereof)，in the event of non-payment ornon-acceptance.

In the absence of such specificinstructions， the banks concerned with thecollection have no obligation to havethe document(s) protested (or subjected toother legal process in lieu thereof)for non-payment or non-acceptance.

Any charges and/or expenses incurred bybanks in connection with such protest，or other legal process，will be for theaccount of the party from whom thecollection instruction was received.

Article 25

Case-of-Need

If the principal nominates arepresentative to act as case-of-need in the eventof non-payment and/ornon-acceptance the collection instruction should clearlyand fully indicate thepowers of such case-of-need. In the absence of suchindication banks will notaccept any instructions from the case-of-need.

Article 26

Advices

Collecting banks are to advise fate inaccordance with the following rules:

a.Form of Advise

All advices of information from thecollecting bank to the bank from which thecollection instruction was received，must bear appropriate details including， inall cases，the latter bank’s referenceas stated in the collection instruction.

b.Method of Advice

It shall be the responsibility of theremitting bank to instruct the collectingbank regarding the method by which theadvices detailed in (c) i， (c) ii and (c)iii are to be given. In the absence ofsuch instructions， the collecting bankwill send the relative advices by themethod of its choice at the expense of thebank from which the collectioninstruction was received.

c. i. Advice of Payment

The collecting bank must send withoutdelay advice of payment to the bank fromwhich the collection instruction wasreceived， detailing the amount or amountscollected，charges and/or disbursementsand/or expenses deducted， whereappropriate， and method of disposal of the funds.

ii.Advice of Acceptance

The collecting bank must send withoutdelay advice of acceptance to the bankfrom which the collection instruction wasreceived.

iii.Advice of Non-payment and/orNon-acceptance

The presenting bank should endeavour toascertain the reasons for non-paymentand/or non-acceptance and adviseaccordingly， without delay，the bank from whichit received the collectioninstruction.

The presenting bank must send withoutdelay advice of non-payment and/or adviceof non-acceptance to the bank formwhich it received the collection instruction.

On receipt of such advice the remittingbank must give appropriate instructionsas to the further handling of thedocuments. If such instructions are notreceived by the presenting bank within 60days after its advice of non-paymentand/or non-acceptance， the documents may bereturned to the bank from which thecollection instruction was received withoutany further responsibility on thepart of the presenting bank.