Returned Bill

Returned Bill in foreign trade usually refers to the act of a bank or collecting bank returning a draft and documents to the exporter or principal. It commonly occurs in collection (D/P, D/A) or letter of credit (L/C) transactions. When the importer refuses to pay/accept, documents are discrepant, or the issuing bank dishonors, the bank returns the full set of documents. Returned Bill differs from 'Dishonor': dishonor is the act of the importer/issuing bank, while returned bill is the bank's action of sending documents back to the exporter. Usage scenarios include: buyer fails to redeem documents under collection, documents are discrepant under L/C and the issuing bank dishonors, or the bank cannot contact the payer. Notes: Returning bills incurs extra costs (postage, handling fees) and goods may incur port demurrage; the exporter should handle promptly, with options such as price reduction, resale, return shipment, or appointing a local agent. Similar to 'return of documents,' but returned bill emphasizes the process of returning the draft/documents.