1. Topic Three
International Bank Remittance

2. About international exchange

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

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

5. 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

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

7. ★ 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

8. 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

9. 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

10. 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。

11. 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 FAVOUR
PRECISION PHOTO EQUIPMENT LTD. HONGKONG
MESSAGE CONTRACT NO.P10158 ORDER PHOTO
GRAPH CO. TIANJIN COVER DEBIT OUR HO ACCOUNT

12. 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

13. 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）

14. 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

15. 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 .

16. 中国银行北京分行为例，其银行识别代码为BKCHCNBJ300 .

17. 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。

18. 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）。

19. 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

20. 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， 表示为： ，36；

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

22. Sample of SWIFT message
MT CUSTOMER TRANSFER
Date
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
USD ,000.00
:50/ordering customer
CHINA INTERNATIONAL WATER AND ELECTRONI CORP BEIJING
:57/account with bank, BANQUE NATIONALE DE TUNISIE TUNIS
:59/beneficiary customer / Y
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

23. 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。

24. 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”

25. FM：ICBC TIANJIN
TO:CHEMICAL BANK N.Y.
DATE: 14TH JUNE
TEST________ OUR REF.97TT 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 MSG OUR LC THEIR BP ORDER TIANJIN ADVANCED MACHINARY EQUIPMENT CORP. TIANJIN COVER DEBIT OUR HO USD A/C WITH YOU.

26. 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

27. 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

28. 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

29. 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

30. 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

31. Banker’s draft can be crossed when endorsed
BANK OF CHINA
This draft is valid for one
Year from the date of issue NO
AMOUNT USD 1,0000
TO: BANK OF CHINA, NEW YORK
410 MADISON AVENUE
NEW YORK NY 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

32. 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

33. 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.

34. 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.

35. 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

36. 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/

37. 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.

38. 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.

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

40. 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

41. 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。

42. End of the lecture
Thanks for attending