经贸学院国际贸易系
王学惠 ?
Chapter 3 Remittance
经贸学院国际贸易系
王学惠 ?
objectives
? Definition
? Parties
? Three types and their comparison
? Utilization in international trade
经贸学院国际贸易系
王学惠 ?
1.1 Definition
Remittance refers to the transfer of
funds from one party to another among
different countries through banks,At the
request of its customer,a bank transfers
a certain sum of money to its overseas
branches or correspondent banks and
instructs them to pay a named person
or corporation domiciled in that country,
经贸学院国际贸易系
王学惠 ?
1.2 Parties involved
lThe remitter,the person who requests
his bank to remit funds to a beneficiary
in a foreign country,The remitter is also
the payer.
经贸学院国际贸易系
王学惠 ?
The remitting bank
? the bank who transferring funds at the
request of a remitter to its
correspondent or its branch in another
country and instructing the latter to pay
a certain sum of money to a beneficiary.
经贸学院国际贸易系
王学惠 ?
The payee
? the person who is addressed to
receive the remittance
经贸学院国际贸易系
王学惠 ?
The paying bank
? the bank entrusted by the remitting
bank to pay a certain sum of money to a
beneficiary named in the remittance
advice.
经贸学院国际贸易系
王学惠 ?
1.3 Types
lT/T (Telegraphic Transfer)
Remittance by cable/telex/SWIFT is
often referred to as cable transfer or
telegraphic transfer,namely T/T,
经贸学院国际贸易系
王学惠 ?
diagrame
经贸学院国际贸易系
王学惠 ?
Procedure
(1) The remitter makes out the necessary
application form and gives his signed
written application to his bank
instructing it to issue a T/T,indicating
the beneficiary’s full name,address and
the name of beneficiary’s banker (if
any).
经贸学院国际贸易系
王学惠 ?
(2)
The remitting bank debits his customer’s
account with the amount to be remitted
together with its commission and
expense (if any).
经贸学院国际贸易系
王学惠 ?
(3)
The remitting bank issues a payment
order to its branch or correspondent
bank in the place where the beneficiary
is domiciled,The payment order
specifies the details of the payment
including amount,name and address of
beneficiary,and name of the remitter.
经贸学院国际贸易系
王学惠 ?
(4)
Upon receipt of the payment order,the
paying bank verifies the authorized
signatures,notifies the beneficiary,and
pays to him the stated amount minus
expenses charged by itself.
经贸学院国际贸易系
王学惠 ?
(5)
The paying bank claims reimbursement
from the remitting bank in accordance
with the latter’s instructions.
经贸学院国际贸易系
王学惠 ?
Specimen从香港汇入港币
经贸学院国际贸易系
王学惠 ?
从世界各地汇入其他货币
经贸学院国际贸易系
王学惠 ?
Outward remittance---remitting bank
Inward remittance----paying bank
经贸学院国际贸易系
王学惠 ?
? M/T (Mail transfer)
经贸学院国际贸易系
王学惠 ?
? D/D (Demand draft)
经贸学院国际贸易系
王学惠 ?
Comparison
Items T/T M/T D/D
Methods of transfer Telex,Cable,SWIFT Airmail Mail or carried by
remitter
Time of transfer Fastest Slow slowest
Security Quite safe Reliable,but may be
lost/delayed in post
may be lost/delayed
in post,Stop-payment
is time consuming
Notification from bank
to beneficiary bank
Yes Yes Yes
Endorsement No No Yes
Negotiable No No Yes,the holder may not
be the original payee
Method of
authentication
Test key or SWIFT
authentication Key
Authorized signature Authorized signature
Charge High,most charge the remitter Low,the whole charge remitter Lowest,the cost of collection charges
beneficiary
经贸学院国际贸易系
王学惠 ?
Utilization in international trade
payment in advance
payment after arrival of goods
经贸学院国际贸易系
王学惠 ?
Banking charges (RMB)
1、汇入 0.1% 100 1000 /
2、汇出 0.05% 50 500 /
3、修改 /退票 /止付 100 / / /
旅行支票 / / /
1、代售 0.1% / / /
2、兑付 0.75% / / /
王学惠 ?
Chapter 3 Remittance
经贸学院国际贸易系
王学惠 ?
objectives
? Definition
? Parties
? Three types and their comparison
? Utilization in international trade
经贸学院国际贸易系
王学惠 ?
1.1 Definition
Remittance refers to the transfer of
funds from one party to another among
different countries through banks,At the
request of its customer,a bank transfers
a certain sum of money to its overseas
branches or correspondent banks and
instructs them to pay a named person
or corporation domiciled in that country,
经贸学院国际贸易系
王学惠 ?
1.2 Parties involved
lThe remitter,the person who requests
his bank to remit funds to a beneficiary
in a foreign country,The remitter is also
the payer.
经贸学院国际贸易系
王学惠 ?
The remitting bank
? the bank who transferring funds at the
request of a remitter to its
correspondent or its branch in another
country and instructing the latter to pay
a certain sum of money to a beneficiary.
经贸学院国际贸易系
王学惠 ?
The payee
? the person who is addressed to
receive the remittance
经贸学院国际贸易系
王学惠 ?
The paying bank
? the bank entrusted by the remitting
bank to pay a certain sum of money to a
beneficiary named in the remittance
advice.
经贸学院国际贸易系
王学惠 ?
1.3 Types
lT/T (Telegraphic Transfer)
Remittance by cable/telex/SWIFT is
often referred to as cable transfer or
telegraphic transfer,namely T/T,
经贸学院国际贸易系
王学惠 ?
diagrame
经贸学院国际贸易系
王学惠 ?
Procedure
(1) The remitter makes out the necessary
application form and gives his signed
written application to his bank
instructing it to issue a T/T,indicating
the beneficiary’s full name,address and
the name of beneficiary’s banker (if
any).
经贸学院国际贸易系
王学惠 ?
(2)
The remitting bank debits his customer’s
account with the amount to be remitted
together with its commission and
expense (if any).
经贸学院国际贸易系
王学惠 ?
(3)
The remitting bank issues a payment
order to its branch or correspondent
bank in the place where the beneficiary
is domiciled,The payment order
specifies the details of the payment
including amount,name and address of
beneficiary,and name of the remitter.
经贸学院国际贸易系
王学惠 ?
(4)
Upon receipt of the payment order,the
paying bank verifies the authorized
signatures,notifies the beneficiary,and
pays to him the stated amount minus
expenses charged by itself.
经贸学院国际贸易系
王学惠 ?
(5)
The paying bank claims reimbursement
from the remitting bank in accordance
with the latter’s instructions.
经贸学院国际贸易系
王学惠 ?
Specimen从香港汇入港币
经贸学院国际贸易系
王学惠 ?
从世界各地汇入其他货币
经贸学院国际贸易系
王学惠 ?
Outward remittance---remitting bank
Inward remittance----paying bank
经贸学院国际贸易系
王学惠 ?
? M/T (Mail transfer)
经贸学院国际贸易系
王学惠 ?
? D/D (Demand draft)
经贸学院国际贸易系
王学惠 ?
Comparison
Items T/T M/T D/D
Methods of transfer Telex,Cable,SWIFT Airmail Mail or carried by
remitter
Time of transfer Fastest Slow slowest
Security Quite safe Reliable,but may be
lost/delayed in post
may be lost/delayed
in post,Stop-payment
is time consuming
Notification from bank
to beneficiary bank
Yes Yes Yes
Endorsement No No Yes
Negotiable No No Yes,the holder may not
be the original payee
Method of
authentication
Test key or SWIFT
authentication Key
Authorized signature Authorized signature
Charge High,most charge the remitter Low,the whole charge remitter Lowest,the cost of collection charges
beneficiary
经贸学院国际贸易系
王学惠 ?
Utilization in international trade
payment in advance
payment after arrival of goods
经贸学院国际贸易系
王学惠 ?
Banking charges (RMB)
1、汇入 0.1% 100 1000 /
2、汇出 0.05% 50 500 /
3、修改 /退票 /止付 100 / / /
旅行支票 / / /
1、代售 0.1% / / /
2、兑付 0.75% / / /
