Documentary Bills for Collection-i

Documentary Bills for Collection-i is basically one of the widely accepted methods of trade settlement to facilitate sellers/exporters in obtaining payment for their sales/exports. Documentary Bills for Collection-i is normally referred to handling of documents by the Bank in accordance with instruction received, in order to:

  1. Obtain payment and/or acceptance; or
  2. Deliver documents against payment and/or against acceptance; or
  3. Deliver documents on other terms and conditions

Inward Bills for Collection-i (IBC-i)

The IBC-i- is based on the contract of Wakalah, stipulating an agency relationship where we are appointed to act as an agent on behalf of the exporter’s bank. Documents are channeled by the exporter through his/her banker to us for presentation of the documents to you. In exchange for the documents, you are expected to either pay at sight or accept to pay on a future date. We are acting as the collection agent of the Remitting Bank (exporter’s bank).


Outward Bills for Collection-i (OBC-i)

The OBC-i service is based on the contract of Wakalah. It is an agency relationship where we act as your agent to send transport documents together with commercial/financial documents through our established agent banks worldwide for payments from the importer/buyer.


Benefits & Features

Benefits of using our IBC-i service:

  • You and your suppliers have the comfort of knowing that the documents are handled professionally
  • With branches nationwide, you will find we are always nearby to facilitate the collection of the documents
  • The processes are designed to allow you to obtain your documents quickly while making prompt payment to your suppliers, thus enhancing your business relationships with the suppliers
  • TWCF-i/AB-i (Purchase) facility can be arranged to enable you to obtain the goods without having to worry about the gap in your cash flow

Benefits of using our OBC-i service:

  • The strategic correspondent banking arrangement between Bank Islam and the leading bank institutions enables your transactions to be effectively and efficiently handled
  • Proper channeling and control of title documents to protect you as exporter
  • Our sales/export financing facility can be arranged to enable you to obtain the proceeds as and when the needs arise to close the cash flow gap

Cut-off time

Application received by 1:00pm* will be processed on the same day.


* Subject to all terms and conditions complied with


Fees & Charges
For IBC-i

Subject

Charges

Rate / Amount

1.   As per collection Commission

0.1% flat on the bill amount with:

Min : RM50.00

Max : RM100.00 (Foreign currency)

Max : RM500.00 (Local currency)

2.   For free of payment transaction: Commission 0.1% flat on the bill amount:
Local Collection (local currency) Commission

Min : RM50.00

Max : RM500.00

Foreign Collection (foreign currency) Commission

Min : RM50.00

Max : RM100.00

Charges in lieu of foreign exchange

0.2% flat on the bill amount with:

Min : RM50.00

Max : RM750.00

SWIFT

Malaysia (Local) : RM25.00

Outside (Foreign) : RM50.00

Local Collection Postage Actual direct cost incurred
Courier Actual direct cost incurred
Foreign Collection Courier Actual direct cost incurred
3.   Bill dishonored after arrival of goods Holding Charges RM50.00/USD20.00 per month or part thereof if bill remains unpaid for more than 60 days after due date/first presentation.
Representation Commission RM10.00 will be levied for each representation plus actual direct cost incurred
Protest Charges RM200.00 plus legal expenses
Other Charges RM5.00 on each bill dishonored after arrival of goods or for each representation after the due date.
4.   Redirecting documents Commission RM50.00 flat
5.   Others
Fax Out of pocket expenses Actual direct cost Incurred
Photocopy Out of pocket expenses Actual direct cost Incurred
Other direct cost Out of pocket expenses Actual direct cost Incurred

For OBC-i

Subject

Charges

Rate / Amount

1.   As per collection Commission

Local :

0.1% flat on the bill amount:

Foreign:

0.1% flat on the bill amount:

Local Currency:

Min : RM50.00

Max : RM500.00

Foreign Currency:

Min : RM50.00

Max : RM100.00

Charges in lieu of foreign exchange

0.2% flat

Min : RM50.00

Max : RM750.00

2.   For free of payment transaction: 0.1% flat on the bill amount:
Local Collection (local currency)

Min : RM50.00

Max : RM500.00

Foreign Collection (foreign currency)

Min : RM50.00

Max : RM100.00

SWIFT

Malaysia (Local) : RM25.00

Outside (Foreign) : RM50.00

Local Collection Postage Actual direct cost incurred
Courier Actual direct cost incurred
Foreign Collection Courier Actual direct cost incurred
3.   Bill dishonored after arrival of goods Holding Charges

Local/Foreign :

RM50.00/USD20.00 per month or part thereof if bill remains unpaid for more than 60 days after due date / first presentation.

Representation Commission

Local/Foreign :

RM10.00 will be levied for each representation plus actual cost.

Protest Charges

Local/Foreign :

RM200.00 plus legal expenses

Other Charges

Local/Foreign :

RM5.00 on each bill dishonored after arrival of goods or for each representation after the due date.

4.   Sending advise of dishonored advice to remitting bank Commission

Local/Foreign :

RM10.00 plus (actual direct cost incurred)

5.   Redirecting documents Commission

Local/Foreign :

RM50.00 flat

6.   Checking documents Checking fee

Min : RM50.00 (local)

Min : RM50.00 (foreign)

Min : RM100.00 (for LC received from Arab and Indian Continents)

Presentation with discrepancy/ies

Local/Foreign :

RM30.00 per set of documents

5.   Others
Fax Out of pocket expenses Actual direct cost Incurred
Photocopy Out of pocket expenses Actual direct cost Incurred
Other direct cost Out of pocket expenses Actual direct cost Incurred

Forms

Click here to download the Application Form for OBC-i (BB 31-1)