農葉大学 Chapter 3 Remittance Figure 1: Payment Risk Lad der Least Exporter: Less secure More secure Most secure Secure More Secure Less Secure Least Secure Secure pen for Documentary Advance Account Collection Credits Payment 径贸学院国际贸易系 置管喜
经贸学院国际贸易系 王学惠 © Chapter 3 Remittance
農葉大学 objectives Definition Parties Three types and their comparison Utilization in international trade 径贸学院国际贸易系 置管喜
经贸学院国际贸易系 王学惠 © objectives • Definition • Parties • Three types and their comparison • Utilization in international trade
農葉大学 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 径贸学院国际贸易系 置管喜
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
農葉大学 1.2 Parties involved OThe remitter: the person who requests his bank to remit funds to a beneficiary in a foreign country. The remitter is also the payer 径贸学院国际贸易系 置管喜
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
農葉大学 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 径贸学院国际贸易系 置管喜
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
農葉大学 The payee the person who is addressed to receive the remittance 径贸学院国际贸易系 置管喜
经贸学院国际贸易系 王学惠 © The payee • the person who is addressed to receive the remittance
農葉大学 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 径贸学院国际贸易系 置管喜
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
農葉大学 1.3 Types O T/T(Telegraphic Transfer) Remittance by cable/teleX/SWIFT is often referred to as cable transfer or telegraphic transfer, namely T/T. 径贸学院国际贸易系 置管喜
经贸学院国际贸易系 王学惠 © 1.3 Types l T/T (Telegraphic Transfer) Remittance by cable/telex/SWIFT is often referred to as cable transfer or telegraphic transfer, namely T/T
農葉大学 Funds Remitter ayee 1. written.2.Debit fUnds applicaton advice 5 Reimbursement claime Remitting Bank+ Paying Bank- 3. Payment order+ 径贸学院国际贸易系 置管喜
经贸学院国际贸易系 王学惠 © diagrame
農葉大学 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 an 径贸学院国际贸易系 置管喜
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)
