Introduction
It refers to the service that Bank of China authorize, entrusted by the remitter, an overseas affiliated bank or a correspondent bank to pay a certain amount of money to the specified remittee in the agreed method of remittance. The service is used for international settlement of fund transfer & remittance. Methods of remittance include telegraphic transfer, mail transfer and demand draft, among which telegraphic transfer and demand draft are frequently used.
Features
1. Low cost. Compared with L/C and collection, remittance is characterized by simple procedures and low cost.
2. Fast processing. Telegraphic transfer is faster and enables exporters to collect payments timely and accelerate capital turnover.
3. Simple operation. Remittance features simple operation and wide scope of application.
Target Customers
1. Importers with sufficient working capital, whose current aim is to control financial expenses other than convenient financing.
2. Exporters accept terms of Cash on Delivery but require a rapid collection under trade settlement business.
3. Importers are willing to pay in advance to exporters based on their good business relationship and complete trust.
4. Outward remittance shall be adopted when it refers to information cost, technology cost and trade incidental cost (including freight charges and premium).
5. Final payment under trade shall be fulfilled by outward remittance.
Required Documents
1. In order to make outward remittance, you shall present documents as following to Bank of China: application form for outward remittance, pay order for foreign exchange account as well as RMB cheque for foreign exchange purchase;
2. Handling outward remittance shall be in accordance with the provisions of the foreign exchange control regulations of China, and present valid certificates required by the regulations, such as approval document to use foreign exchange, declaration form of international balance of payment (if required), verification certificate of import trade payment in foreign exchange (if required).
Application Qualifications
1. The applicant shall be approved and registered in accordance with the law, and hold a business license that has passed the annual inspection or other valid certificates which fully prove its legal operation and scope of business;
2. The applicant shall have a loan card;
3. The applicant shall have an account opening permit and open a settlement account with Bank of China;
4. The applicant shall have the qualification to engage in import and export trade;
5. The applicant shall have a credit line at Bank of China.
Process (solid line for telegraphic transfer and mail transfer, and dotted line for demand draft)
1. The remitter submits the application form for outward remittance as well as pay order for foreign exchange account or RMB cheque for foreign exchange purchase.
2. After verifying such documents, Bank of China sends the remittance instruction via telegraph (under telegraphic transfer) or instruction letter (under mail transfer) to the overseas affiliated bank or correspondent bank, or issue demand draft (under demand draft) to the remitter.
3. Under telegraphic transfer or mail transfer, the overseas affiliated bank or correspondent bank pays the remittance to the remittee following the instruction from Bank of China.
4. Under demand draft, the remitter delivers demand draft to the remittee by himself, and the remittee presents the demand draft to the paying bank noted on the draft, and the paying bank pays the remittance to the remittee.
Our Advantages
1. With advanced clearing network and rich experience, Bank of China leads in rolling out "Global Foreign Exchange Daypass" service and "Han Hui Tong" service handling remittance to Korea in USD, which can provide customers with the most convenient remittance access.
2. Bank of China has opened a multi-currency current account with major clearing banks, enabling various remittance services with convertible currencies.
3. For large-amount remittance, Bank of China offers follow-up service to ensure the fund safety, relying on sophisticated technology and good relationships with correspondent bank.
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