Name

Clean Collection

Introduction

Clean collection means the collection business of financial documents without any commercial documents as entrusted by the customer of Bank of China Brussels Branch.

Functions

The product satisfies the needs of international trade settlement.

Features

1. Low cost. The banking fee is relatively low for the clean collection service.

2. Safe and secure. Collecting money using the international banking network is a safer collection method compared with the method of mailing the draft directly to the drawee.

3. Fast service. The collection time can be greatly reduced if an "immediate credit" agreement is made between the remitting bank and the paying/collecting bank.

Charges

The charges are subject to the charging principle and rate stipulated in the relevant rules of Bank of China Brussels Branch.

Target Customers

Trade and non – trade customers who use clean collection for settlement. The consideration is mainly based on the following factors:

1. Applicable to small payments under the trading or non-trading items;

2. Applicable to foreign currency notes (including worn notes) non-exchangeable in China.

3. Applicable to collection service for valued documents including foreign exchange cheques, promissory notes, foreign bonds, and deposit receipts.

4. Applicable to transactions under which it is impossible or inconvenient to provide the documents. Such transactions include mailing samples, high tech products (software) trading, seasonal goods trading, and intangible trading such as services and technical transfer.

Application Qualifications

1. The applicants shall hold the business license legally approved, registered and annually checked as well as other valid certificates sufficient to prove the legitimacy and scope of operation;

2. The qualification of import and export operation is required for import and export trade settlement.

Procedure

1. The payee presents the collection documents to Bank of China Brussels Branch;

2. Bank of China Brussels Branch mails the collection documents to the foreign collecting bank to collect payments;

3. The foreign collecting bank presents the documents to the payer, and the payer pays the face amount;

4. The foreign collecting bank pays the collection to Bank of China Brussels Branch and Bank of China Brussels Branch pays it to the payee.

Tips

1. Clean collection is used for collection of documents and valued documents under trading and non-trading items;

2. The currency denominated for the collection documents should generally be exchangeable currency;

3. Documents marked with limitation of circulation areas are difficult to be collected;

4. Endorsed and transferred document might be faked or altered, customers should take precautions to prevent such fraud;

5. Fraud usually happens to the strange documents with a huge amount of money or issued by an issuing bank whose credibility is questionable;

6. The large-amount documents used for investment, loans and mortgage bear more risks of fraud.