When searching for a definition of documentary credit, the Uniform Customs and Practice for Documentary Credits (UCP 600) is the best place to start.
Since documentary collection is not a risk mitigation tool, it is appropriate to use this form of payment with caution to advise operators to follow a scientific approach in the management of this payment instrument.
TFG heard from Trade & Export Finance Specialist, Domenico Del Sorbo on practical aspects of payment instructions in international trade.