Outward remittance

Product descriptions

It’s the business in which the Bank accepts the remitter’s entrustment and entrusts an oversea correspondent bank to pay a certain amount of money to the designated beneficiary in the agreed method of remittance. Methods of remittance include wire transfer, mail transfer, and demand draft. Currently, wire transfer and demand draft are commonly used.

Product features

1. Low cost. Compared with the L/C and collection, remittance procedures are simple and cheap.

2. The spend of wire transfer is relatively fast, which is conducive to the timely collection of payments by the exporter and this can speed up capital turnover.

3. Easy to operate. The operation is simple and easy, and the scope of application is relatively wide.

Applicable customers

1. The importer have sufficient working capital, and his main goal is to control financial expenses rather than to obtain financing convenience.

2. Under the terms of trade settlement, the exporter accepts the term of cash on delivery, but has higher requirements for the speed of payment.

3. The importer has a good cooperative relationship with the exporter and fully trusts him, and is willing to accept payment in advance.

4. For the information fee, technical fee, trade-related fee (including freight and insurance premiuns) etc.,outward remittance should be adopted.

5. The final payment under the trade item should generally adopt outward remittance.

Submittals

1. To handle all kinds of outward remittance, you need to provide the bank with application for outward remittance;

2. The handling of outward remittance shall comply with the relevant national regulations on foreign exchange control. Furthermore, relevant valid certificates required by the regulations on foreign exchange control shall be submitted, such as the the relevant approval documents, contracts, invoices, receipts, statements of balance of payments, verification form of remittance outward by import of trade (if needed), application for purchase of foreign exchange (if foreign exchange is required), etc..

Application requirements

1. The applicant has been approved and registered in accordance with the law, and has an annually verified legal person business license or other valid documents which can prove its business legitimacy and business scope;

2. The applicant has a loan card;

3. The applicant has a licence for opening accounts, and opens a settlement account in our bank;

4. The applicant has import and export business qualifications;

Handling process

1. The remitter shall submit to our bank the application for outward remittance and other relevant documents required by the foreign exchange management regulations.

2. After checking, the Bank shall send remittance instruction telegram (under wire transfer) or instruction letter (under mail transfer) to the correspondent bank, or issue a draft (under demand draft) and deliver it to the remitter.

3. Under the wire transfer or mail transfer, the correspondent bank shall follow our instructions to remit money to the beneficiary.

4. Under the demand draft, the remitter shall deliver the draft to the beneficiary himself, and the beneficiary shall present the draft to the paying bank indicated on the draft, the paying bank shall settle the remittance to the beneficiary.