chapter 3 Remittance.pptVIP

Chapter three Remittance 3.1 Outline of Remittance 3.2 Procedure for Remittance 3.3 Application of Remittance 3.1 Outline of Remittance 3.1.1 Definition of Remittance 3.1.2 Parties to a Remittance 3.1.3 Types of Remittance International exchange International exchange refers to operational activities related with the currency conversion and transfer of funds between countries in order to settle the claims and debts by payment instruments through banks. In broad sense--the international settlement In narrow sense--international bank remittance Types: A bank, at request of its customer, transfer a certain sum of money to its overseas branch or correspondent bank, instructing it to pay a named person domiciled in that country. Based on commercial credit 汇款人（remitter/importer）: Remittance application Submit the same amount of funds and commission For our country, submit documents required by SAFE 收款人或受益人（payee/exporter） 3.1.2 Parties to a Remittance 汇出行(remitting bank)： payment order/P.O. （支付授权书)should be made out as instructed in the application and indicate the reimbursement of remittance cover ; outward remittance 汇入行或解付行（paying bank）： paying in strict compliance with the P.O. and authenticate the relevant signature or test key ; usually paying after its receipt of the funds from the remitting bank; clean payment; inward remittance Based on the manner by which the payment instruction is transmitted M/T Remittance by means of sending/posting a payment instruction T/T Remittance by cable / telex / SWIFT D/D the remitting bank, at the request of the remitter, draws a bill of exchange on the paying bank, ordering the latter to pay on demand a certain sum of money to the beneficiary (the payee of the draft). 3.2 Procedure for Remittance 3.2.1 Procedure for Remittance Procedure for M/T Procedure for T/T Procedure for D/D 3.2.2 Comparison of the M/T, T/T and D/D The contents of T/T FM:汇出行 TO:汇入行