2.7 export documentary Service

2.7 export documentary Service
2.7.1 export Letter of Credit
2.7.1.1 business definition of exported letters of credit
After receiving a letter of credit issued by the issuing bank, the bank where the exporter is located provides a series of services for the exporter, including issuing notices, receiving orders, reviewing orders, sending orders, and collecting foreign exchanges.
The content of the exported letter of credit business includes: Review the authenticity of the exported Letter of Credit and the modification of the letter of credit, and notify domestic exporters; transfer and remote transfer; Review the shipping documents and waybills issued by the exporters; handle trade financing such as negotiation, settlement, discount, etc. when the customer asks; query, collection, short payment, interest collection, and reimbursement documents; assess the credit of the importer.

2.7.1.2 advantages of using an exit Letter of Credit
The export letter of credit has the following benefits for exporters:
• Low risk-the bank credit of the issuing bank replaces the commercial credit of the importer and provides the exporters with a conditional payment commitment;
• High initiative-the exporter can obtain the payment commitment from the issuing bank as long as the document quality is ensured, and the document quality is completely under the control of the exporter;
• Cost transfer-the fees for opening a letter of credit and other banks are generally borne by the importer;
2.7.1.3 use of exported letters of credit
Export letters of credit should be selected in the following situations:
• If you do not understand or trust the credit information of the importer, the Bank of the other party must provide additional commitments;
• You need to apply for a package loan from a local bank to finance the exported goods.
2.7.1.4 Business Process for exporting letters of credit:

4. Verify and notify
5. Submit a ticket
10. Account or settlement

. Payment 8. Settlement 1.
Certificate issuance and signing
Single contract

2. Apply for an opening certificate
7. Prompt document

2.7.1.5 precautions for export of letters of credit:
1. It is best to avoid the "soft term" letter of credit when negotiating with the importer about business. At the same time, a safe and convenient settlement route should be established to ensure secure settlement;
2. at the review stage, the exporter must submit the following documents: A. full set of documents stipulated in the letter of credit; B. original letter of credit;
3. If you insist on non-conforming orders, it is difficult to deal with trade financing;
4. The bank will handle the settlement, settlement, and accounting procedures in accordance with the relevant foreign exchange management regulations;
5. to withdraw the certificate, the exporter must submit a letter of authorization in writing and a full set of original letters of credit.
2.7.1.6 advantages of the Bank of China's exit Letter of Credit Business
• Customer First-providing the most efficient services to customers in the shortest time is our consistent commitment;
• Leading professional level-Bank of China is the first bank in China to handle international settlement business. It has a large number of professionals proficient in international settlement business and foreign language talents. The Bank of China has maintained its largest market share in the international settlement business. The level and capability of dealing with letters of credit and business disputes are second to none in the domestic banking industry;
• Comprehensive Services-provides an all-in-one solution for investigation and consultation including the credit of the importer, the credit of the issuing bank, the national risk, the product market trend, the terms of the letter of credit, the quality of the documents, the foreign exchange management, and the financing scheme. service;
• Effective hedging mechanism-Bank of China is the first commercial bank in China to start the settlement and sale of foreign currency in the long term. It has rich experience in helping customers avoid exchange rate risks under the long term letter of credit;
• Smooth liquidation channels-Bank of China has a clearing channel for the world's major currencies, with a unique position: US dollar clearing center-New York branch; Hong Kong dollar clearing center-Bank of China Hong Kong; euro Clearing Center-Frankfurt branch; yen Clearing Center-Tokyo branch;
• Advanced Technology-first joined the SWIFT International Organization in 1993, with an advanced SWIFT system that allows customers to easily and quickly export evidence services;
• Global Network-Bank of China has 12529 domestic branches, 560 Hong Kong, Macao and overseas branches, and has established agency relations with nearly 4000 foreign banks, with outlets all over the world. After 90 years of accumulation, a multi-country and multi-level high-speed communication network has been established.
2.7.2 Export Collection
2.7.2.1 business definition of Export Collection
Export receiving means that a bank is entrusted by the exporter to collect money from the importer through a foreign proxy bank or a joint bank based on the financial and commercial notes submitted by the exporter. There are two forms of export receipt: Payment delivery (D/P) and acceptance delivery (D/.
2.7.2.2 advantages of using Export Collection
Export Collection can bring the following benefits to exporters:
• Compared with the letter of credit method, the operation is simple and easy;
• The bank costs are low, which helps exporters save costs and control costs;
• The importer can extract the goods only after accepting or paying the goods, which is less risky than the credit sales method.
2.7.2.3 Export Collection
Export Collection should be selected in the following cases:
• Understand the credit status of the importer and have sufficient funds for goods preparation and shipping .;
• Select the D/P mode when the exporter is in the seller's market;
• If the exporter is in the buyer's market and the importer requires financing convenience, you can select D/. Compared with credit sales, there is a certain guarantee of payment.
2.7.2.4 Export Collection Business Process

2.7.2.5 precautions for Export Collection:
1. When an exporter applies to a bank for Export Collection, the following information should be submitted: A. Receiving letter of authorization; B. A full set of documentary collection documents;
2. Customers who entrust business for the first time shall also submit the original: A. original business license (copy); B. Business license for import and export business; C. letter of authorization from the legal representative;
3. When the importer refuses to pay or accepts the goods, it is recommended that the exporter promptly authorize the receiving bank to help arrange the goods;
4. In D/A mode, the exporters actually extend the payment time of the importer. It is recommended that the exporters consider interest and other related costs when making the price.
2.7.2.6 advantages of Bank of China's export collection service
• Excellent credit guarantee-The Bank of China has a 90-year history and has been named "China's best bank" eight times by the European currency, an authoritative financial magazine ". Gradually improve the corporate governance mechanism, comprehensive business process integration, comprehensive service connotation and efficiency, rich and personalized financial products, and jointly create the world's Bank of China;
• Leading professional level-Bank of China is the first bank in China to handle international settlement business. It has a large number of professionals proficient in international settlement business and foreign language talents. The Bank of China has maintained its largest market share in the international settlement business. The level and capability of handling the collection business and business disputes are second to none in the domestic banking industry;
• A wide range of financing products-Bank of China provides customers with a variety of trade financing products, such as export bills and discounts, to meet various financing needs of customers;
• Smooth liquidation channels-Bank of China has a clearing channel for the world's major currencies, with a unique position: US dollar clearing center-New York branch; Hong Kong dollar clearing center-Bank of China Hong Kong; euro Clearing Center-Frankfurt branch; yen Clearing Center-Tokyo branch;
• Advanced Technology-Bank of China first joined the SWIFT International Organization in 1993 and has an advanced swift operating system to conveniently, quickly, and standardize export and receiving services for customers;
• Global Network-Bank of China has 12529 domestic branches, 560 Hong Kong, Macao and overseas branches, and has established agency relations with nearly 4000 foreign banks, with outlets all over the world. After 90 years of accumulation, a multi-country and multi-level high-speed communication network has been established.
• Effective hedging mechanism-Bank of China is the first commercial bank in China to start the settlement and sale of foreign currency in the long term. It has rich experience in helping customers avoid exchange rate risks under the long term letter of credit;
2.7.3 export discount
2.7.3.1 business definition of export discount
An export discount refers to a business in which a bank reserves the right to purchase a forward ticket that has been accepted by a bank and has not expired, and provides short-term financing for exporters.

2.7.3.2 advantages of using outlet discount
Discount export can bring the following benefits to exporters:
• Simplified financing procedures-the trade financing business that banks are most willing to provide, with the simplest procedures;
• Accelerated capital turnover-immediate withdrawal of forward claims, accelerated capital turnover, and relief of capital pressure;
• Expand trade opportunities-facilitate the financing of forward payments for importers and expand trade opportunities.
2.7.3.3 export discounts should be selected in the following situations:
• After a forward draft under a forward acceptance letter of credit is accepted by a bank, the export discount should be selected if the exporter needs short-term financing due to temporary capital turnover difficulties;
• After a forward draft under a forward acceptance letter of credit is accepted by a bank, if the exporter encounters a new investment opportunity and the expected return on investment is higher than the discount interest rate, the export discount should be selected.
2.7.3.4 Business Process of export discount

1.

Paste 4. 5. 7. 6.
Prompt for expiration of Current Applied payment discount
Discount net payment document
Discussion
2. submit documents

3. acceptance notice
8. Payment upon expiration
Ticket amount

2.7.3.5 precautions for export discount:
1. At the time of signing the contract, the agreement with the importer should be settled by a forward letter of credit;
2. After the issuing bank accepts a forward draft or sends an acceptance notice, the exporter must submit a discount application to the bank;
3. Banks generally do not apply for discount of bills without trade background or for investment purposes;
2.7.3.6 advantages of the Bank of China's discount export business
• Positive attitude-vigorously develop the development strategies of intermediary businesses, especially various types of trade financing;
• Rich products-both coupon currency discount and RMB discount can be handled directly;
• Ample funds-the most powerful foreign currency bank, with sufficient funds to provide domestic export and export funds under trade;
• Price concessions-provide the best financing solution advice for customers based on the market interest rates of different currencies to help customers minimize financial fees.
2.7.4 export remittance
2.7.4.1 business definition of export remittance
Export settlement means in-transit financing provided by the bank to the exporter upon the issuance of goods and delivery of letters of credit or contractual requirements. The scope of Bank of China's export Collateral includes: Export collateral under a letter of credit and export collateral under a documentary license; foreign currency export collateral and RMB export collateral.
2.7.4.2 advantages of export remittance
Export export escorting has the following benefits for exporters:
• Accelerated capital turnover-the exporters can be paid in advance before the importer pays for the goods, speeding up capital turnover;
• Simplified financing procedures-ease of financing procedures relative to liquidity loans;
• Improved cash flow-increases the cash inflow of exporters in the current period to improve financial conditions and provide financing capabilities;
• Financial cost reduction-you can use the Bank of China to export the currency based on the interest rate levels of different currencies to minimize the financial cost.
2.7.4.3 export remittance Selection
Export settlement should be selected in the following circumstances:
• Limited liquidity and quick capital turnover for business;
• Temporary capital turnover difficulties encountered after delivery and before collection;
• There are new investment opportunities after delivery and before collection, and the expected rate of return must be higher than the interest rate of collateral.
2.7.4.4 export process:

1.
2. 3. 6. 5.
Remittance submission documents and remittance receipt Letter of Credit notice
Application Form for payment due for beneficiary account
Discussion
4. submit documents

7. Payment

2.7.4.5 notes for export settlement:
1. sign a formal export settlement agreement with the bank;
2. submit a formal application for export settlement to the Bank (usually the notifying bank or negotiating bank;
3. The escort applicant under the letter of credit shall be the beneficiary of the letter of credit;
4. A letter of credit to be negotiated by other banks cannot be used for export settlement;
5. Submit export documents that comply with the relevant documents as far as possible when applying for export settlement under a letter of credit;
6. if the exporters want to raise funds through export bills, it is best to avoid the following situations:. transportation documents are non-property documents; B. failed to submit a full set of Property Right documents; C. transfer a letter of credit; D. letter of Credit with soft terms; E. submit documents with material discrepancies.
2.7.4.6 advantages of Bank of China's export escort business
• Reform-focusing on intermediary businesses, especially the development strategies of various types of trade financing;
• Wide range of products-handling of export and export receipt and delivery under a letter of credit, accumulating rich business experience;
• Ample funds-the most powerful Chinese banks with foreign exchange funds, and the increasing strength of RMB funds, with sufficient funds to support customers in this business;
• Price concessions-provide the most favorable financing solution for customers based on the market interest rates of different currencies to help customers minimize financial fees;
• Credit support-commercial banks that first implement a unified credit system in China have designed diversified credit methods for trade financing;
2.7.5 package loan
2.7.5.1 business definition of loan package
A package Loan refers to a special loan provided by the exporting bank to the exporters who have received a qualified Letter of Credit for procurement, production and shipment of goods in order to support the exporters in performing contracts and delivery on schedule. Package loans are short-term financing before shipment, so that exporters can continue to process procurement, materials preparation, and processing for smooth trade with insufficient funds.
2.7.5.2 advantages of using a package loan
Package loans have the following benefits for exporters:
• Expand trade opportunities-helping exporters smoothly carry out business and seize trade opportunities when the exporters are in short supply of funds and fail to obtain the conditions for payment in advance;
• Reduce capital occupation pressure-the exporters do not have to occupy their own funds in the production, procurement and other stocking stages, alleviating the liquidity pressure on the exporters.
2.7.5.3 select a package loan
A package loan should be selected in the following circumstances:
There is a shortage of working capital. Although foreign importers do not accept the conditions for prepaid payment, they agree to open a letter of credit.
2.7.5.4 package loan business process:

4. Letter of Credit notification
5. Package A Loan Application
6. provide loans

3. 1.
Sign the contract and
Credit Agreement
Settlement by certificate

2. Application for issuing certificates

2.7.5.5 considerations for packaging loans
1. When applying for a package loan, the exporter should submit a: A. Written application; B. Foreign Sales Contract and domestic procurement contract; C. Trade Information; D. original letter of credit.
2. A formal loan contract (package loan) must be signed with the bank;
3. The financing bank shall be the bank of notification of the letter of credit, and the financing bank may negotiate and pay.
4. The letter of credit does not include the "soft terms" that cannot be fulfilled by the exporters ";
5. After applying for a package loan, the original letter of credit must be kept in the financing bank;
6. Under normal circumstances, the remittance received under the letter of credit shall be the first source of repayment for the packaged loan;
7. After the exporters ship the goods and obtain the documents under the letter of credit, they should submit a report to the bank in a timely manner.
2.7.5.6 advantages of Bank of China's loan package business
• Reform-focusing on intermediary businesses, especially the development strategies of various types of trade financing;
• Ample funds-the most powerful Chinese banks with foreign exchange funds, and the increasing strength of RMB funds, with sufficient funds to support customers in this business;
• Price concessions-provides financing solutions that are most conducive to customers based on market interest rates, helping customers minimize financial fees;
• Credit support-commercial banks that first implement a unified credit system in China have designed diversified credit methods for trade financing;