Topic Three International Bank Remittance

About international exchange

Remittance:结算工具（票据、电报、电传）与资金流动方向相同 Reverse remittace

When will the method of remittance be applied? only when both parties have deep knowledge of and trust on each other

Buyer must remit money at agreed time Method of Payment Advance payment Seller Buyer 1Payment 2Ship goods Open account 1Ship goods 2Payment Buyer must remit money at agreed time

In conclusion, it is commercial credit that both parties rely on instead of bank credit. Banks handle it only on the instructions of remitters.

★ Buyer remit through bank by following means: -Telegraphic Transfer (T/T,SWIFT,etc.), fast and expensive - Mail Transfer (M/T), slow and cheap -Demand Draft (D/D), slow and easy to be negotiated

Parties in the international bank remittance Remitter = payer =buyer =importer Remitting bank = remitter’s bank in buying country Beneficiary = seller = exporter = payee Paying bank = beneficiary’s bank in exporting country

Buyer Seller Paying Bank Flow chart of cable/telex/SWIFT (Telegraphic Transfer, T/T) Buyer Seller Cable and Telex need at least more than 2 days to process In the SWIFT transfer, if you send money in the morning, it would enter payee’s a/c in the afternoon 2T/T Rept. 1Apply and buy foreign exchanges & pay commission 4T/T adv. 6Pay 5Rept. With test key instruction by T/T Paying Bank Remitting Bank 7Debit or credit Advice

电报或电传的主要内容包括：收款人姓名、地址或开户行名称、地址；货币名称和金额；汇款人的名称和地址；附言；头寸拨付的方法；汇出行的密押（密押是汇出行与汇入行之间预先约定在电汇凭证上加押的密码，以证实电报确为汇出行所发）；发电日期及汇款编号。

Sample of cable/telex Transfer FM：BANK OF ASIA，TIANJIN TO：THE HONGKONG AND SHANGHAI BANKING CORP.， HONGKONG DATE： 1ST MARCH TEST 1253 OUR REF.208TT0517 NO ANY CHARGES FOR US PAY USD20000,VALUE 1ST MARCH TO YOUR HAY WAY BUILDING BRANCH 58 ST. STANLEY HONGKONG FOR A/C NO.004-110-106028-001 FAVOUR PRECISION PHOTO EQUIPMENT LTD. HONGKONG MESSAGE CONTRACT NO.P10158 ORDER PHOTO GRAPH CO. TIANJIN COVER DEBIT OUR HO ACCOUNT

图解电文USD20,000.00 a/c 北京亚洲总行 天津亚洲分行 ac 天津器材公司 a/c 电文 香港汇丰银行 大厦分行 香港设备公司

SWIFT Society for worldwide Interbank Financial Telecommunication 环球同业银行金融电讯协会 安全；快；费用低 用户：会员、普通用户（一些非银行金融机构）

SWIFT Code是由该协会提出并被ISO通过的银行识别代码，其原名是BIC(Bank Identifier Code)，但是BIC这个名字意思太泛，担心有人理解成别的银行识别代码系统，故渐渐大家约定俗成地把BIC叫作SWIFT Code

BIC由电脑可以自动判读的八位或是十一位英文字母或阿拉伯数字组成 .

中国银行北京分行为例，其银行识别代码为BKCHCNBJ300 .

SWIFT报文共有十类,第1类：客户汇款与支票（Customer Payments & Checks）第2类：金融机构间头寸调拨（Financial Institution Transfers）等等，最常见的有MT103客户汇款等。

1.项目表示方式 SWIFT由项目(FIELD)组成，如“59: Beneficiary - Name & Address”（受益人），就是一个项目，59是项目的代号，可以是两位数字表示，也可以两位数字加上字母来表示，如“51D: Applicant Bank - Name & Address”（申请人）。

2.日期表示方式 SWIFT电文的日期表示为：YYMMDD（年月日） 如： 2014年5月12日，表示为：140512

3.数字表示方式 在SWIFT电文中，数字不使用分格号，小数点用逗号“，”来表示 如：5，152，286.36 表示为：5152286，36；

4.货币表示方式 人民币元：CNY；日元：JPY；英镑：GBP；欧元：EUR；美元：USD

Sample of SWIFT message MT103 CUSTOMER TRANSFER Date 960930 sent to CHAS US 33 REM Chase Manhattan N.A. New York, N.Y. :20/transaction reference number TT109900/96 :32A/value date, currency code, amount 960930 USD 200,000.00 :50/ordering customer CHINA INTERNATIONAL WATER AND ELECTRONI CORP BEIJING :57/account with bank, BANQUE NATIONALE DE TUNISIE TUNIS :59/beneficiary customer / Y10-0127-033254 CORPORATION INTERNATIONAL DES EAUX ET DE I’ELECTRICITE DE CHINE :70/details of payment, REMIT FOR CUSTOMER DUTY ETC :71A/details of charges, FOR BENEFICIARY :72/bank to bank information, COVER DEBIT US Transfer on internet Automatically authenticated Cheaper and safer than other T/T Using special software and standardized message Paying Bank, SWIFT member Remitting Bank, SWIFT member

About value date 是账户行借记汇款行账户并按指示向收款人付款的日期 ,一般情况下，起息日与结算日(Settlement date)、交割日(Delivery date)相同。

CHIPS Clearing House Inter-bank Payment System 缩写为CHIPS 中文译名: “纽约清算所银行间支付系统”

FM：ICBC TIANJIN TO:CHEMICAL BANK N.Y. DATE: 14TH JUNE TEST________ OUR REF.97TT-0125 PAY USD650,000. VALUE TODAY TO SANWA BANK LTE.NEW YORK BY CHIPS ABA 982 FOR CREDIT OF THEIR INT’L H.O. TOKYO A/C UID 024153 MSG OUR LC 15237 THEIR BP 70054376 ORDER TIANJIN ADVANCED MACHINARY EQUIPMENT CORP. TIANJIN COVER DEBIT OUR HO USD A/C WITH YOU.

ABA NUMBER-美国银行公会号码，参加清算时的代号 UID NUMBER-通用认证号码，收款人代号

图解电文USD650,000.00 a/c a/c a/c 纽约化学银行 北京工商银行总行 纽约清算所chips系统 电文 a/c 天津工商银行分行 纽约三和银行 a/c a/c 天津发展机械公司 东京三和国际总部

Flow chart of Mail Transfer (M/T) Buyer Seller PO= Payment Order with payee’s name and address, etc. BT= Bank Transfer, how to tranfer money from remitting bank to payment bank. 2M/T Rept. 1Apply and buy foreign exchanges & pay commission 4M/T adv. 5Rept. 6Pay With authorized signature 3instruction by air mail Paying Bank Remitting Bank 7Debit or credit Advice

BANK OF CHINA， GUANGZHOU BRANCH Sample of M/T 中国银行广州分行 BANK OF CHINA， GUANGZHOU BRANCH 下列付款，请即照解，如有费用请内扣 我已贷记你行帐户。 日期 GUANGZHOU Please advise and effect the following payment less your charges if any. In cover,we have CREDIT you’re A/C with us 至此 TO 金额 amount 收款人 To be paid to No.of Mail transfer 信汇号码 大写金额 Amount in Words: 汇款人 By order of 附言 Message： BANK OF CHINA， GUANGZHOU

Buyer Seller Flow chart of Bank Demand Draft Transfer (D/D) Remitting 3Forward D/D 5Or endorse and transfer = sell 1st copy of D/D in a set 2Issue draft 1Apply and buy bank draft denominated in foreign currency 5Present draft 6pay Collecting bank 5present Banker’s demand draft is sight draft 42nd copy of D/D as advice Paying bank Remitting bank 7Debit/credit advice Same bank in different countries

Banker’s draft can be crossed when endorsed BANK OF CHINA This draft is valid for one Year from the date of issue NO.20039729 AMOUNT USD 1,0000 TO: BANK OF CHINA, NEW YORK 410 MADISON AVENUE NEW YORK NY 10017 U.S.A. PAY TO the order of ABC Company, Los Angeles THE SUM OF US DOLLARS ONE THOUSAND ONLY PAY AGAINST THIS DRAFT TO THE DEBIT OF OUR ACCOUNT BANK OF CHINA, TIANJIN LINSEN, ZHANG Banker’s draft can be crossed when endorsed

How transfer money between banks?(1) Remitting bank opens an a/c at paying bank China Bank A USA Bank B Bank A’s ＄a/c In the BT instruction of Bank A, “In cover, please debit the sum to our a/c with you”. 2Debit Advice Not until Bank A receives debit advice is it confirmed that the remittance is received by payee. 1instructions

How to transfer money between banks?(2) Paying bank opens a/c at remitting bank. China Bank A Bank B’s RMB a/c In Bank A’s BT instructions, “In cover, we have credited the sum to you’re a/c with us. USA Bank B 1 instructions and credit advice Bank B would not pay until it receives the Credit Advice.

How to transfer money between banks(3) Bank A 1In Bank A’s instruction “In cover, please claim on Bank C”. Bank B Debit Bank A’s a/c 4Debit Adv. 2instruction to Bank C , “please debit our a/c for Bank B”. Bank C’s a/c 3Debit advice Debit Bank C’s a/c Bank C with Bank A’s a/c Sometimes, bank A open a/c in Bank C while Bank C open account in bank B like the above.

Sometimes, both banks open accounts in Bank C How to transfer money between banks？(4) Sometimes, both banks open accounts in Bank C 1In PO instruction, “In cover, we have authorized Bank C to debit our a/c and credit the same to your account with them”. Bank B Bank A 5Credit advice 2BT instruction authorizing to debit，bank A’s a/c and credit the sum to bank B’s a/c 4Debit advice Bank C Bank A”a/c Bank B’s a/c 3Debit Bank A’s a/c and Credit Bank B’s a/c

For example, China imports goods from Italy. Payment is made in USD. Bank A Italy Bank B 1In instruction, “In cover, we have authorized Bank C to debit our a/c and credit your account with them”. 2 instruction authorizing to debit，bank A’s a/c and credit the sum to bank B’s a/c 4Debit advice 5Credit advice USA Bank C Bank A’s ＄a/c Bank B’s ＄ a/c 3Debit Bank A’s ＄a/c and Credit Bank B’s ＄ac/

How to transfer money between banks？(5) Bank A opens a/c at Bank C. Bank B opens a/c at Bank D. Bank C opens a/c at Bank D Bank A Bank C Bank A’s a/c Bank B Bank D Bank B’s a/c Bank C’s a/c 1 instruction, “In cover, we have instructed Bank D to pay the proceeds to your a/c with with Bank C. 2 instruction, authorizing Bank D to debit B’s a/c and credit it to Bank C’s a/c through which to transfer it to Bank A 5Credit adv. 3Debit Adv. 4Credit adv.

Cancellation of the remittance In M/T and T/T, remittance can be cancelled before it is paid to beneficiary. In D/D, when banker’s draft is sent out overseas, the remittance can not be cancelled, because it involves remitting bank’s credit standing (If it is transferred, the holder does not know the dispute between remitter and original payee while the name of remitting bank is on the draft). If banker’s draft is lost, the remitting bank may issue a duplicate of draft against a letter of indemnity赔偿保证书 from the remitter, if the paying bank confirms that the original one has not yet been paid.

电汇、信汇、票汇三种方式比较 JS3 Cost? Speed? Safety?

应用 PAYMENT IN ADVANCE？ PAYMENT AFTER ARRIVAL OF GOODS？ （一）售定 （又称 先出后结） （一）售定 （又称 先出后结） 对港澳出口的鲜活产品，先发货，后付款，按实际收到货物，汇付货款结算。 对出口商不利

二）寄售 寄售方式委托人负担风险很大，仅用于推销新品种、滞销货物或展销商品。

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