With the establishment of its business branches, China Eximbank has started to offer international settlement service and sales and purchase of foreign exchange for its loan clients. At present, the Bank has set up correspondent relationship with 315 branches of 144 worldwide foreign banks covering 139 overseas cities in 100 countries and regions, which assures a strong international settlement network.

With its fast and convenient settlement instruments and wide correspondent network, the Bank wishes to provide its customers with secured, high-quality and highly proficient financial services.

Services Available
1. Letter of Credit

A letter of credit (L/C) is a conditional payment undertaking by a bank authorizing the bearer to draw a stated amount of money from the issuing bank to a named beneficiary within a specified period of time, against the presentation of documents which comply precisely with the terms of the credit or a warranty by a bank on behalf of the applicant of the L/C, purchasing the draft of the beneficiary under the conditions of specified amount of money, date and documents.

The settlement business of the L/C at China Eximbank is strictly aligned with the Uniform Customs and Practice for Documentary Credits (UCP 500) of the International Chamber of Commerce (ICC).

1.1 Import Letter of Credit

Varieties of Services:
1) Issuance of the L/C
2) Amendment of the L/C
3) Receipt and verification of the documents under the L/C from abroad
4) Making payment, acceptance or dishonor
5) Issuance of Bill of Lading Guarantee

Procedures for Opening an Import Letter of Credit
1) The applicant shall make presentation of the following documents to China Eximbank:
* An application form for opening an Import L/C (China Eximbank Format);
* The original copy of the importing contract, and in the case of the applicant being an import agent, accompanied by the original copy of the agent agreement;
* Domestic sales contract / Exporting sales contract / document of ratification and feasibility study report of the project involved (if required);
* Authorized permit for importing if there is any need for such proof;
* Verification Certificate for Import Payment in Forex;
* Applications for purchasing /paying of foreign exchanges;
* Reference Form for Import Payment; and
* Other documents required by the Bank.

For those first-time clients for opening an import L/C account at China Eximbank, they shall be required to submit the following documents:
* A duplicate copy of the business license;
* An Xeroxed copy of the authorized permit for exporting and importing;
* Certificate of Loan already annually examined by People's Bank of China with verified valid password;
* Statement documents verifying the business administration relationship of the applicant (if there is any)
* Letter of Authorization from the legal representative; and
* Other documents required by the Bank

2) The applicant offers the Bank security for opening L/C in the forms of: a stated amount of earnest money, or certificates of objects of pledge and/or mortgage, or third party guarantee, or credit lines as required by the Bank;

3) The Bank issues a L/C after verifying the conformity and consistency of the contents of the application;

4) The Bank decides, either to dishonor or agree, to make acceptance or payment or reimbursement, depending on the conformity or discrepancy of the documents under the L/C sent by the bank of the exporter (the beneficiary), and inform the presenting bank of its decision within seven working days; and

5) After the Bank examines and verifies the documents, the importer redeems the L/C and fulfils formalities for payment or acceptance under the L/C at the Bank.

Attentions:
1) Amendment of the L/C
The applicant may amend the contents of the opened L/C. In case the amendments go beyond the previously issued and valid L/C, the applicant shall submit effective documentary evidence for the amendments thus applied.

2) Payment/Acceptance Date
Business hours for payment or acceptance service are not later than the seventh banking day following the date of the bank's receipt of the documents. In case of the term L/C having already been accepted, it shall be paid on the maturity date determinable in accordance with the stipulations of the L/C.

3) Dishonor by non-acceptance or non-payment
When there is any of the received documents under the L/C that is warned discrepant by the presenting bank or verified discrepancy by the issuing bank, if the applicant lodges dishonor or fails to respond within the prescribed time-limit, the L/C shall be regarded as refused by the applicant. In this case, China Eximbank will inform the presenting bank of dishonor by non-acceptance or non-payment not later than the seventh banking day following the day of its receipt of the documents.

4) Cancellation of L/C
The Bank shall cancel a L/C if it is three months overdue, whether it is paid or not.

5) Withdrawal of L/C
Within the period of validity, a L/C can be withdrawn based on agreement of all the relevant parties after the advising bank confirms receipt of the original L/C.

1.2 Export Letter of Credit

Varieties of services:
1) Advising L/C;
2) L/C transfer and transmit between different areas;
3) Examination of documents surrendered by the exporter;
4) Presentation of documents and Claiming for payment or reimbursement;
5) Collection, settlement of payment, and crediting account of payment

Procedures for Handling an Export Letter of Credit:
1) Advising
The Bank advises the beneficiary (domestic exporter) of the L/C (including amendment advice) opened by an overseas bank within one banking day after the authenticity of the credit has been determined.

2) Receipt of Documents
The beneficiary presents the full set of documents (including the original L/C, the original amendment advice, relevant correspondences) under the L/C to the Bank, where he shall fill out a formulized Customer Contact Form complete with an authorized signature to be saved as the Bank.

3) Examination of Documents
The Bank examines the full set of documents under the L/C according to the principles that "the documents should be consistent with the terms and the conditions of the L/C, and should be consistent with each other." In case that a document is identified to have discrepancies, the beneficiary shall be approached in time for making appropriate amendments.

4) Collection of Payment
The Bank expects payment / reimbursement from the issuing / reimbursing bank by designated channels and methods (electronically or paper-based correspondence) for payment as per the terms and conditions stated in the L/C. The Bank shall urge the issuing / reimbursing bank to pay if it fails to pay within the normally allowed time limit after the Bank delivers the documents for payment.

5) Settlement
The Bank transfers the received payment to the account provided by the beneficiary, who may inquire about the receipt by providing the serial number of negotiation entered on the verification.

Attentions:
1) Transferable Letter of Credit
The Bank in principle handles only transferable L/Cs that are transferable for only once. The first beneficiary shall present the trust deed authorization and complete in time the formalities of transferring documents after the second beneficiary submits them.

2) Confirmation of L/C
If the issuing bank delivers a L/C that requires confirmation by China Eximbank, the Bank shall assess the credit standing and business performance of the issuing bank and the political and economic factors of the issuing bank's native country before it decides to agree or disagree.

3) Transmission and Notification of L/C
For a L/C or amendment advice offered for the customers that are not the loan clients of the Bank, the Bank shall transmit the documents in accordance with the principle of "transmitting per se". The Bank shall not be held responsible for verification except a check of the authorized signature of the L/C.

4) Revocation of Export L/C
* The Bank may have a L/C revoked at the request of the issuing bank and upon the agreement in written form of the beneficiary and other parties involved.
* The Bank revokes a L/C after the beneficiary requests revocation and presents the trust deed in written form and the full set of documents of the L/C and after seeking agreements from the issuing bank and other interested party or parties.

2. Collection

Collection refers to the settlement that the creditor entrusts a bank to inform and demand the debtor for payment to the creditor's account via the associate bank or the correspondent bank on the basis of presenting the financial documentary for payment and / or commercial invoice to the bank.

According to the types of documents presented by the principal, collection could be divided into clean bill collection and documentary collection. In case of clean bill collection, the principal presents only financial documentary to the bank; and in case of documentary collection, the principal presents to the bank commercial documentary or both commercial and financial documentaries.

When handling collection settlement business, China Eximbank strictly follows the ICC No. 522 Publication of Uniform Rules for Collection (URC 522).

Clean collection is collection on financial instruments without being accompanied by commercial documents, such as invoice, bill of lading, insurance policy and etc.; documentary collection is collection on commercial documents being or without being accompanied by financial instruments.

2.1 Outward Documentary Collection

Outward documentary collection refers to the international settlement that the principal (domestic exporter) entrusts, upon submitting relevant commercial documents, China Eximbank to collect payments for goods from the importer via the importer's bank after the delivery of goods.

Operation Instructions
1) The customer submits to the Bank the written collection with an obligation seal on, and the full set of required documents under collection.
2) In compliance with the rules of ICC 522, the Bank verifies that the documents appear to be complete, correct and consistent with those stipulated in the application. Verification shall be fulfilled within one banking day under normal conditions.
3) The Bank shall choose the collecting bank and the optimal route for reimbursement.
4) The Bank edits its collection order, sends the collection order and relevant documents to urges payment.
5) Upon receipt of payment under collection, the Bank shall credit the account of the principal.

Attentions:
1) New customer who applies for the first time should also present to the Bank the export-import business operation license, the business license, the reference code number of the legal representative and other documents that the Bank may require.
2) Collection falls into the category of business creditworthiness. Whether the payment could be timely made depends on the creditworthiness of the overseas customers;
3) The customer shall clarify the terms of release of documents if the documents should be released to the importer against payment (D/P) or against acceptance (D/A). If not designated, D/P prevails.
4) The customer may nominate an overseas collecting bank (always the importer's account bank). If not nominated by the customer's collecting bank, an overseas collecting bank can be chosen by China Eximbank with an approval in the written form from the customer.
5) When the Bank receives correspondence from the collecting bank of the drawee's dishonor by either non-payment or non-acceptance, the Bank shall inform the customer in time. If the customer does not make any reply within 60 days, the collecting bank may return the documents.
6) If the customer wants to modify the amount of currency, the due date or terms of submitting documents and etc., the customer shall hand in the application in written form with a obligation seal on.

2.2 Clean Collection

Clean collection refers to the settlement that the principal (creditor) entrusts China Eximbank to demand payment to the creditor's account from the debtor via the collecting bank on the basis of banking documents (not accompanied by commercial documents), bonds, deposit receipts, deposit books and other value paper for payment presented by the creditor to the Bank.

Operation Instructions
1) The customer hands in the application and documents for payment of. The Bank verifies that the documents appear complete and correct and consistent with that stipulated in the application.
2) After verification of documents, the Bank chooses the collecting bank and the optimal route for reimbursement, and sends documents and the collection order to the collecting bank within two banking days, and then urges payment to be made in time.
3) On receipt of the payment from the collecting bank, the Bank pays the collected amount to the principal.

Attention
1) Clean collection service under trade arrangement adapts in principle only to drafts, promissory notes and checks with banks or financial institutions as its drawee.
2) The Bank currently does not handle the checks issued by the Treasury Department of the Unites States and the postal drafts circulating only within the territory of the United States.
3) The Bank currently handles collection only by means of "crediting after receipt".

2.3 Inward Collection

Inward collection service refers to then settlement that the overseas correspondent bank (the remitting bank), upon the request of the exporter (the creditor), entrusts China Eximbank to collect payments from a Chinese importer (the debtor) customer, who is a client of the Bank.

On receipt of the documents sent for collection from the overseas remitting bank, the Bank presents documents to its customer and demands payment or acceptance as requested by the overseas remitting bank.

Procedures
1) On receipt of the documents for collection mailed by the overseas remitting bank, the Bank verifies the collection order and checks whether the documents are complete according to the collection order.
2) After verification, the Bank informs the drawee of the collection together with duplicate copies of the main documents, and makes presentation for payment / acceptance usually within three banking days.
3) The drawee shall complete at the Bank relevant formalities of making payment or acceptance after receiving collection notice. When agreeing to pay or accept, the drawee shall submit agreement of payment / acceptance, application for purchasing foreign exchange, import contract, verification certificate for import payment in foreign exchange, and other documents that the Bank may demand.
4) In the case of D/P, the customer may attain the original documents against payment; in the case of D/A, the drawee shall first accept the term draft in accordance with the stipulations in the Negotiable Instrument Law of the People's Republic of China, gets the original commercial, and pays on the maturity date.
5) In the event of non-payment or non-acceptance, the presence of the drawee at the counter of the Bank shall be necessary for formalities of dishonor and for relating reasons. When such event happens, the Bank shall inform the remitting bank in time and retain and keep the documents for further instruction. The Bank shall return the documents on its own initiative if no further instructions is given by the remitting bank after 60 days from the date of mailing the notice. If the remitting bank instructs to return documents or release the documents without payment / acceptance, the Bank will follow the instructions thus given

Attention
1) The Bank accepts in principle only the documents mailed by the overseas remitting bank instead of documents mailed directly by the drawer.
2) The Bank handles inward collection in compliance with the relevant international practice, and strictly follows the instructions stipulated in the collection order from the overseas remitting bank if it falls into the prescribed responsibility range in accordance with the international practice.
3) The Bank releases documents to the customer according to the instructions in the collection order. If the customer has special requirements, the Bank shall first get approval from the remitting bank and then follow its instructions.
4) In terms of documents against payment of usance bill, the documents may not be released until the drawee pays at muturity.
5) If external payment by purchasing remittance is requested, the relevant formalities of purchasing remittance shall be transacted in compliance with the relevant regulations of the State Administration of Foreign Exchange.

3. Remittance

Remittance refers to the transferring of funds from the importer to the exporter via the bank. It is one of the most simple, convenient and common terms of payment in international trade.

Generally, there are three types of remittance: Telegraphic Transfer (T/T), DDraft (D/D) and Mail Transfer (M/T), of which the telegraphic transfer is the mainstay means. Telegraphic transfer, often shortcut to "T/T", refers to the fast, simple and low-cost process in which the importer entrusts a bank to transfer funds to the payee by means of encrypted telex or SWIFT instruction.

3.1 Inward Remittance from Abroad

Inward Remittance from abroad refers to the settlement of funds that the remitter of a foreign country or of Hong Kong, Macao, and Taiwan areas transfers to the Bank via an overseas bank, and the Bank shall credit the designated payee's account according to the instructions of the remitting bank.

Procedures
On receipt of the advice, after verification the Bank shall credit the stated amount to the client account within one banking day. If the payee is not locally residing, the Bank shall transfer the said remittance to the client within two banking days through an optimal remitting route.

Attention
1) M/T is fulfilled after verification of the received mail payment advice, and D/D is fulfilled after verification of the received demand draft.
2) When handling remittance, the observed principle is "to the account of the designated payee only".
3) The Bank respects the privacy rights of its customers, and shall not entertain any inquiries made by any person other than the remitter and / or the payee.

Return of Inward Remittance
1) The Bank shall return the remittance on its own initiative if the said amount remains uncredited for three months due to incomplete information on the name, account number or mailing address of the payee.
2) If return of remittance is proposed by the remitting bank, the Bank will handle it after confirming that the currency has been received and has not been credited yet. If, on the other hand, the currency has been credited, the remitter shall contact directly the payee for its return.
3) If return of remittance is proposed by the payee who refuses to accept the remittance, the Bank shall debit the currency from the vostro account after verification based on the reasons stated by the payee.

3.2 Outward Remittance to Abroad

Outward Remittance Service refers to the settlement of transferring, at the request of the remitter, foreign exchange funds to the designated account overseas. It includes trade and non-trade remittance of foreign exchanges under current account and remittance of foreign exchanges under capital account.

Procedures
1) The customer presents to the Bank the application form for remittance with a seal on.
2) The Bank issues outward remittance according to the application form of remittance after receiving the currency
3) The Bank checks the remitted currency regularly, and urges the overseas bank to credit the currency in time.

Attention
1) First-time customers that require the outward remittance service at the Bank shall present the documents below:
* A duplicate copy of the authorized permit for exporting and importing;
* A duplicate copy of the business license;
* Memorandum account for payment of imports and other documents required by the Bank; and
* Specimen signature to be saved with the Bank
2) For outward remittance in the case of Cash on Delivery, the customer shall present valid commercial documentary, the original customs declaration, verified statement of payment for imports, standby import remittance payment form (if required), and the declaration form of statement of balance of payment.

Return of Outward Remittance
1) In the case of telegraphic transfer and / or mail transfer, the Bank will propose return of remittance to the debiting bank based on both the application in written form and the receipt provided by the remitter. Return of remittance shall not be handled unless the Bank receives the reply of agreeing remittance return and the currency of remittance from the debiting bank.
2) In the case of a draft, the Bank will handle return of remittance on the basis of verification after the remitter submits an application in written form and sends the original draft with endorsement to the bank. After verification, the Bank will handle return of remittance upon stamping "revocation" on the draft.