WHAT——What is outward remittance?

•Outward remittance means the remitting bank, entrusted by the remitter, remit funds to his sister-banks or his correspondent banks by the certain instrument and instruct them to pay the certain amount to the nominated payee.

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•The instruments of remittance includes telegraphic transfer（TT）, mail transfer(MT), and draft transfer(DD), among which telegraphic transfer and draft transfer are used most commonly.

WHY——Why the outward remittance is beneficial to the remitter?

•Compared with the letter of credit and collection, the remittance has the characteristics of simple formality and low charge;

•Telegraphic transfer is the most quickly. As the remitter can make the payment in time, he may establish excellent reputation and win the trust of the remittee;

•The expense of draft transfer is relatively lower. The remitter who care for cost rather than the speed of payment can use this instrument;

•By adopting the outward remittance operation under the item of paying upon delivery of goods, the importer can avoid trade risks such as no goods received after payment, goods shortage, and non-standardized goods quality, etc.

WHEN——When to choose outward remittance?

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•The circulating funds is abundant, and at present, the main aim is to control the financial expense rather than to obtain the financing convenience.

•Under the trade settlement item, the exporter accepts the term of paying upon delivery of goods, but they have high requirement on the speed of payment;

•The importer has good cooperative relation with the remittee, and is willing to accept the condition of the prepayment.

•It is recommendable to select outward remittance for payment of materials expenses, the technical expenses, and the trade incidental expenses (including the freight and insurance) etc.;

•It is applicable to use outward remittance for payment of the residue under the trade item.

HOW——How to handle the outward remittance operation?

•The Operation flow（telegraphic transfer and mail transfer are expressed in bold line, and draft transfer in dotted line）

•Attentions

1.When handling outward remittances, it should be presented to the bank the following materials: a. application for outward remittance; b. Drawing note of foreign exchange account/RMB check for purchasing foreign exchange;

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2.When handling the outward remittance, it must comply with the state regulations on foreign exchange management. Following valid documents required by foreign exchange regulations should be submitted: the relevant approval files for purchasing foreign exchange ,the report form of BOP (if needed), and Verification Certificate of Import Payment (if needed).

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 service ——Bank of China has always focused on the customer’s demand and adhered to the service tenet of “paying upon receiving, paying to the owed”. The bank tries all the way to provide customers with first-class and efficient service.

•Innovative products ——Bank of China, one of the leading banks to bring forth “One day Global Remittance”, makes unremitting efforts to improve and develop its products, creates comprehensive and convenient service to the customers.

•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;

•Effectively risk-evading system —— The first bank in china to offer Renminbi forward purchases and sales for foreign exchange, BANK OF CHINA accumulated rich experiences in helping the clients to dissolve overall exchange risks.

Source: https://t-tees.com
Category: WHO