WHAT——What is inward collection

•Upon reception of entrustment from the foreign correspondent bank, in accordance with instructions received, the bank collect payment from the importer and deliver the relevant commercial documents to the importer.

•There are two types of inward collection. Under D/P terms, import documents are released to the importer upon payment. Under D/A terms, documents are released to the importer against acceptance.

WHY——Why choose inward collection beneficial to the importer?

•Low Cost—helping the importer to save expense and control cost.

•Convenient and Simple —easy to operate, convenient and feasible as compared with letter of credit.

•Little capital occupied—no prepayment is required at the preparation and shipping stage of the exporter so that no capital is occupied, the importer can obtain the documents and dispose the goods upon payment or acceptance.

•Improve cash flows—under D/A terms, the importer can obtain the commercial documents and dispose the goods upon acceptance of the bill, and the payment can be made after the goods are sold out and cash inflow realized. There is almost no capital occupation, so that liquidity is improved.

WHEN——When to use inward collection?

•The importer want a simple and inexpensive payment method;

•D/P is recommendable when the importer has sufficient work capital;

•D/A is recommendable when the importer, who shares good cooperative relation with the exporter, does not have sufficient work capital, and requires financial facility granted by the exporter.

HOW——How do inward collection work?

•The Operation flow

•Attentions

1.Under D/P terms, the importer should submit the payment certificate, the verification certificate of import payment in foreign exchange.

2.Under D/A terms, the exporter should accept the draft in accordance with relative regulations and pay at maturity.

3.Importers are welcome to apply for BANK OF CHINA’s trade finance such as loan against imports, overseas short-term finance.

ADVANTAGES——Advantages of Bank of China

•Predominant reputation —— BANK OF CHINA has a long history of over 90 years and has been awarded “the Best Bank in China” by “Euromoney” for successively 8 times. With the progressively improved system of corporate governance, overall integration of operation flow, wholly-upgraded service efficiency and rich financial products, BANK OF CHINA has continued to advance toward its goal of becoming a leading universal international bank;

•First-class professional service —— BANK OF CHINA, as the first bank in china to provide international settlement business, has absorbed a pool of talented experts. The bank has maintained the largest share of the domestic market and has always been the best against its Chinese peers in this regard;

•Rich financing products —— Financing products related with import collection provided by Bank of China include loan against imports, overseas short-term finance and shipping guarantee etc.;

•Safe and timely clearing business —— With four major clearing center, that is US dollar clearing center- New York Branch; Hong Kong dollar clearing center- Bank of China (Hong Kong); Euro clearing center -Frankfurt Branch and Japanese yen clearing center-Tokyo Branch, BANK OF CHINA stands as the leader in domestic market for foreign currency clearing businesses;

•Advanced technology level —— BANK OF CHINA became one of the first bank to  participate SWIFT in 1993. Sophisticated SWIFT system provides our clients with robust guaranty of convenient and high-speed collection service.

•Global network —— With 12529 domestic branches, 560institutions scattered in Hong Kong, Macao and oversea areas and nearly 4000 agency banks, BANK OF CHINA, exclusively in domestic market, has established a multi-nation and multi-layer high-speed global payment network established through 90 years accumulation;

•Complete range of currency —— Handles business in complete range of currency, holds absolute leading advantages in the same field in China;

•Effectively evading risks —— Took the lead to handle long-term exchange sales business, help the client to dissolve overall exchange risks.