Remittance & Collection 汇款托收Settlement classified :Remittance顺汇: The buyer takes the initiative in remitting money to the seller through a bankReverse Remittance 逆汇Collection, Letter of CreditRemittanceRemittance means the cross-border direct transfer of funds by banks. The remitting bank pays a predetermined amount on the request of remitter (importer) through the foreign correspondent bank or agent bank (paying bank) topayee/beneficiary (exporter) .Three basic ways for a bank to transfer funds for its client from the home country to abroad.telegraphic transfer TT mail transfer MT demand draft DDT/T is to transfer funds by cable / telex / SWIFT sent by a remitting bank, at the request of the remitter. It instructs the paying bank to pay a certain sum of money to the beneficiary.Workflow of T/T M/T(4)Remittance by cable / telex / SWIFT ---Telegraphic Transfer (T/T)Differences between M/T and T/T in the following steps : P48Step 1: Agree M/T as method of payment;Step 2: Choose M/T on application; andStep 4: The remitting bank sends payment order to the paying bank via airmailRemittance by banker’s demand draft (D/D)The remitting bank at the request of the client draws a banker’s draft on its overs eas branch or its correspondent bank abroad ordering the latter to pay on demand the stated amount to the holder of the draft.It is often used when the client wants to transfer the funds to the beneficiary by himself.Please identify the drawer, drawee and payee of the draft under D/DReimbursement of remittance 汇款偿付P49The settlement between remitting bank and paying bankCredit your A/C with us 主动贷记（汇入行在汇出行有账户）Debit our A/C with you 授权借记Authorize Bank X to debit our A/C and credit your A/C with them 共同账户行Instruct Bank X to pay the proceeds to your account with Bank YComparison of T/T,M/T,D/DT/T: fastest, most expensive, most reliable form of money transfer because it depends on the inter-bank transfer system M/T: slow, not very expensive, less reliable because the mailed M/T or payment order could be delayed.D/D: slowest, least expensive, less reliable because the customer should bear the risk of theft, destruction or loss of the draft in transit3. 2. Collection（URC522）Collection means the method for handling financial and commercial documents by banks in accordance with instruction from principal in order to:●obtain payment and/or acceptance;●deliver documents against payment and/or against acceptanceCollection is a type of reverse remittance settlement on commercial credit basis.Four main parties to a collection transaction 权利义务P53the principal (seller / exporter / drawer)the remitting bank (principal’s / seller’s / exporter’s bank)the collecting bankthe drawee (buyer / importer)Other parties : the presenting bank the representative in case of needLegal positions of Banks URC522Duties of remitting banksVerify the documentsMay choose collecting bankAct in good faith and exercise reasonable careDuties of collecting banksHandles the collection according to collection instructionVerify the documentsAdvise the importer on the arrival of documentsRelease documents only after full payment is received (D/P), or acceptance is obtained (D/A)When the collection is dishonored, act according to collection instructionTimely transfer of the funds collectedTypes of Collection(1) Clean CollectionClean collection means collection of financial documents not accompanied by commercial documents.In most cases the financial document used is a draft. Clean collection is generally used for commissions, sample fees, and other charges.(2) Documentary CollectionDocumentary collection means collection of commercial documents which may or may not be accompanied by financial documents.The necessary commercial documents are the documents of title to the goods, such as the bill of lading.Workflow of documentary collection P57Depending on the tenor of payment of the draft, the principal instructs the collecting bank to release the title documents to the importer against payment of a sight draft (D/P) or acceptance of a time draft (D/A) .D／P 付款交单条件In D/P terms the collecting bank releases the title document to the importer only upon a full and immediate cash payment of the sight draft. (D/P AT SIGHT, D/P AT XX DAYS AFTER SIGHT)D／A 付款交单条件In D/A terms the collecting bank can release the title document to the importer as soon as he accepts the term bill promising to pay at a later date as stipulated on the draft (usually 30, 60 or 90 days).If you were an exporter, which term would you prefer, D/P or D/A? What if you were an importer? P57 DP is safer for the exporter.DA offers less security to the exporter. The risk with a D/A collection is that the documents and therefore the goods are released on acceptance with no guarantee that the payment will be forthcoming at maturity.Usance D/P远期付款交单The collecting bank holds the accepted draft and waits to maturity date to present it to importer for payment. This is a hybrid of D/P and D/A. An exporter stipulates that title documents are to be released only on payment of an accepted draft. It is safer to exporter than D/A.Letter of Instruction for outward collectionAll documents sent for collection must be accompanied by collection instructions. Since banks act only as an agent, they effect what the drawer instructs.Collection Order3.3 Practices of Remittance and Collection汇款：(1) Payment in advance (cash in advance)预付P59--进口商负担重The importer may pay the exporter at some agreed stage prior to dispatch /delivery of goods by using means of remittance through banks.●Cash with order●Payment at least XX days before shipment●Payment within XX days after shipment, shipping documents released upon 100% payment received by the seller 风险: 付了钱货物不符减少风险：争取机会付款前对货物检查，采用FOB(2) Open Account (O/A) 到付---出口商负担重Open account business is also called payment after arrival of goods, under which the exporter delivers goods to the buyer who remits in due course or at agreed intervals the agreed price through banks.风险: 钱货两空减少风险Methods to reduce the risks：与银行保函相结合办理出口信用保险保理包买票据+采用CIF CIP+预付定金+要求担保+注意抬头做法，及时转卖或运回货物其他用途：Remittance is used for payment of small percentage of contract value, and commonly used to pay commissions, advertisements and miscellaneous expenses.汇款优缺点：买卖双方只是商业信用银行起中介作用资金负担不公平---- 速度快费用低灵活方便托收：对出口商: D/P即期付款交单风险最小D/A风险最大The advantages of collectionThe exporter can avoid the risk of losing goods without receiving payment in D/P, or can obtain an assurance in D/ A The settlement expense is relatively low comparing to L/C (only a little more than remittance).The importer gets partial financing in D/P and complete financing in D/A.The exporter’s risks in collection1. Non-payment or non-acceptance of draftThe importer cannot obtain the goods without payment (D/P) or acceptance (D/A)But the physical goods are at the overseas port, in danger of being damaged or stolen, and possibly incurring additional chargesTo overcome this problem, a store and insure clause should be incorporated on the collection order. The exporter can also insert a representative in case of need.2. Nonpayment of trade acceptance 拒付With prior agreement, the collection order may request the importer’s bank guarantee payment (acceptance pour aval) 3. Risks associated with usance D/PCareful calculation of due date for paymentFlexible payment date enabling payment before due date or partial payment出口方收款人的风险：1进口方付款人破产、倒闭或失去偿付能力；2出口方收款人提供的货物的数量、质量等与合同规定不符，进口方付款人拒绝履行付款义务；3进口地货物价格下跌产生不利于货物情形，进口方拒付或承兑，甚至承兑到期付款后仍拒付进口方付款人的风险：1承兑后，凭单据提取的货物与合同不符；2.在远期付款交单下，承兑了汇票后，到期不能从代收行取得单据，但自己却已经承担了到期付款的责任。
国际结算重点知识单选：EXW 卖⽅责任最⼩DDP 卖⽅责任最⼤连线：sales contract=purchase order Transport document=bill of lading Beneficiary =drawer判断：F不可撤销信⽤证不可撤销或修改F 现⾦⽀票只可以在柜台上提取现⾦1. Settlement on commercial credit usually includes payment in advance, open account, remittance and collection2. While the EXW(Ex Works) term represents the minimum obligation for the seller, DDP represents the maximize obligation.3. Advance payment is most advantageous to the seller.4. Open account is least advantageous to the seller.5. Settlement on bank credit include Letter of credit and bank guarantee.6. Trade terms are also called price terms and delivery terms7. A drawer is the person who draws a bill of exchange or a check upon the drawee for the payment of a certain amount of money.8. A drawee is the person upon whom a bill of exchange or a check is drawn. He is also known as the addressee ofa draft.9. Check ⽀票is a bill of exchange drawn on a bank payable on demand. (以银⾏为付款⼈的即期汇票)1. A promissory note is a promise to pay, whereas a bill of exchange is an order to pay.2.There are only two essential parties to a promissory note, namely the maker and the payee( or the holder in thecase of a bearer note), whereas there are three parties to a bill of exchange, namely the drawer, the drawee and the payee.3.The maker is primarily liable on a promissory note, whereas the drawer is primarily liable, if it is a sight bill,and the acceptor becomes primarily liable, if it is a time bill.4.When issued, a promissory note has an original note only, whereas a bill of exchange may be either a sole billor a bill in a set.“down payment” 订⾦Open Account 赊销Letter of Credit 信⽤证Bank Guarantee 银⾏保函Correspondent Bank 代理⾏Holder for value 对价持票⼈Collection Bill Purchase托收出⼝加汇Trust Receipt信托收据commercial documents商业单据commercial invoice 商业发票proforma invoice 形式发票sample invoice 样本发票consular 领事发票customs invoice 海关发票legalized or visaed invoice 签证发票Shipping documents 运输单据marine/ocean bill of lading 海运提单rail-way bill 铁路单据air waybill 公路单据post parcel receipt 邮包收据Insurance documents 保险单据insurance policy 保险单insurance certificate 保险凭证Miscellaneous documents 其他单据certificate of origin 原产地证export/import license 出/进⼝许可证packing list 装箱单Advising bank通知⾏revocable credit可撤销& irrevocable credit不可撤销confirmed credit保兑& unconfirmed credit不保兑.non-negotiable ocean waybill 不可议付/不可转账海运单combined/multi-modal transport document 多式联运单据Documents against payment (D/P) 付款交单（对出⼝商seller较安全）Documents against acceptance (D/A) 承兑交单Parties to Documentary Credit : 1. Applicant=importer=the buyer.2. Issuing/opening bank=the buyer’s bank3.Advising bank通知⾏4. Beneficiary=exporter=the seller.Trade terms=price terms=delivery terms价格术语、交货条件in Advance=advance payment预付款time bill=usance bill 远期汇票holder in due course正当持票⼈=bona fide holder善意持票⼈remittance by airmail=mail transfer、M/T信汇remittance by Cable/Telex/SWIFT=cable transfer =telegraphic transfer、T/T电汇（速度最快，最安全，⾦额⼤，时间紧急）D/D(demand draft 票汇): Remittance by Banker’s demand draft, 最灵活Open Check/uncrossed check 现⾦⽀票/⾮划线⽀票（可领取现⾦）crossed check ⾮现⾦⽀票/转账⽀票（只能转账）collection托收：documentary collection 跟单托收clean collection 光票托收Control Documents 控制⽂件：1. Lists of specimen of authorized signatures 有权签字样本; 2. Telegraphic test keys 电汇密押; 3. Terms and Conditions 费率表; 4. SWIFT authentic key 全球银⾏⾦融电讯协会.Inter-bank Accounts 银⾏往来账户: 1. Nostro account 往账（我们的银⾏出国开设账户）; 2. V ostro account 来账（国外的银⾏来我国开设账户）三种主要信⽤⼯具：bills of exchange（汇票）, promissory notes（本票）and checks（⽀票）Parties to Negotiable instrument 流通票据的当事⼈:drawer出票⼈; drawee受票⼈; payee收款⼈; acceptor承兑⼈; endorser背书⼈;endorsee被背书⼈; acceptor for honor参加承兑⼈; guarantor保证⼈/担保⼈; holder持票⼈; holder for value付对价持票⼈; holder in due course正当持票⼈/bona fide holder善意持票⼈1. Issuance 出票;2. Endorsement 背书: 1). Blank endorsement 空⽩背书; 2). Special endorsement 记名背书3). Restrictive endorsement 限制性背书; 4) conditional endorsement 有条件背书3. Presentment 提⽰4. Acceptance 承兑5. dishonor 退票(none payment/refuse payment)6. discounting 贴现~ bank(贴现⾏)Tenor 期限sight bill 即期汇票time bill=usance bill 远期汇票Principal（Seller/Exporter/Drawer : 委托⼈，即委托银⾏收取款项的⼈。
