1、Chapter FourInternational Bank RemittanceMethod of PaymentAdvance paymentSeller Buyer1Payment2Ship goodsOpen accountSeller1Ship goodsBuyer2PaymentBuyer must remit money at agreed time-Telegraphic Transfer (T/T,SWIFT,etc.),fast and expensive- Mail Transfer (M/T), slow and cheap -Demand Draft (D/D), s
2、low and easy to be negotiatedPartiesRemitter = payer =buyer =importerRemitting bank = remitters bank in buying countryBeneficiary = seller = exporter = payeePaying bank = beneficiarys bank in exporting countryFlow chart of Mail Transfer (M/T)Buyer1Apply and buy foreign exchanges & pay commissionRemi
3、tting Bank2M/TRept.3PO + BT instruction by air mailPaying Bank4M/T adv.Seller5Rept.6Pay7Debit or credit AdvicePO= Payment Order with payeesname and address, etc.BT= Bank Transfer, how to tranfermoney from remitting bank to payment bank.With authorized signature中国银行广州分行BANK OF CHINA， GUANGZHOU BRANCH
4、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GUANGZHOUPlease advise and effect the followingpayment less your charges if any. In cover,we have CREDIT youre A/C with us至此TO金额 amount收款人To be paid toNo.of Mail transfer信汇号码大写金额 Amount in Words:汇款人 By order of附言 Message： 中国银行广州分行BANK OF CHINA， GUANGZHOUSample of M/TFlow
5、chart of cable/telex/SWIFT (Telegraphic Transfer, T/T)Buyer1Apply and buy foreign exchanges & pay commission2T/TRept.3PO + BT instruction by T/TPaying BankRemitting Bank4T/T adv.Seller5Rept.6Pay7Debit or credit AdviceCable and Telex need at least morethan 2 days to processIn the SWIFT transfer, if y
6、ou sendmoney in the morning, it wouldenter payees a/c in the afternoonWith test keySample of cable/telex TransferFM： BANK OF ASIA， TIANJINTO： THE HONGKONG AND SHANGHAI BANKING CORP.，HONGKONGDATE： 1ST MARCHTEST 1253 OUR REF.208TT0517 NO ANY CHARGES FOR US PAY USD20000,VALUE 1ST MARCH TO YOUR HAY WAY
7、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 ACCOUNTSample of SWIFT message MT100 CUSTOMER TRANSFERDate 960930sent to CHAS US 33 REMChase Manhattan N.A.
8、 New York, N.Y.:20/transaction reference number TT109900/96:32A/value date, currency code, amount960930 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 / Y10-0127-033254CORPORATIO
9、N INTERNATIONAL DES EAUX ET DE IELECTRICITE DE CHINE:70/details of payment, REMIT FOR CUSTOMER DUTY ETC:71A/details of charges, FOR BENEFICIARY:72/bank to bank information, COVER DEBIT USTransfer on internetAutomatically authenticatedCheaper and safer than other T/TUsing special softwareand standard
10、ized messagePaying Bank, SWIFT memberRemitting Bank, SWIFT memberFlow chart of Bank Demand Draft Transfer (D/D)Buyer1Apply and buy bank draft denominated in foreign currencyRemitting bank42nd copy of D/D as advicePayingbank3Forward D/D Seller5Presentdraft 6pay7Debit/credit advice2Issuedraft1st copy
11、of D/D in a set 5Or endorse andtransfer = sellCollecting bank5presentSame bank in different countriesBankers demand draft is sight draftHow transfer money between banks?(1)Remitting bank opens an a/c at paying bankChinaBank AUSABank BBank As a/cIn the BT instruction of Bank A, “In cover, pleasedebit the sum to our a/c with you”.2Debit AdviceNot until Bank A receives debit advice is it confirmed that the remittance is received by payee.1P/O + B/T instructions
