About the product

Import overseas payment business refers to the short-term fund financing service in which the importer applies to the Bank for financing in order to fulfill the payment responsibility under the trade contract, and after the conditions required by the Bank are met, the Bank instructs the overseas correspondent bank to make payment, and the importer repays the above-mentioned amount to the Bank on the agreed financing maturity date.

Product features

1. Reduce the financial pressure. Make payment in time through bank financing and guarantee the smooth completion of trade.

2. Reduce the financing cost of the importer when the overseas payment price is lower than the domestic financing price.

3. Earn the exchange rate difference in the context of RMB appreciation.

Application

1. Customers who prefer future payment, while counterparties hope to receive payment at sight.

2. Customers who have a demand for overseas low-cost capital as the domestic capital cost is higher than the overseas capital cost

Rate

No handling fee is charged. The financing interest rate is subject to the domestic and foreign currency trade financing interest rate of the Bank, and the pricing is based on the price of the paying bank.

Handling process

1. The importer, i.e., the financing applicant, applies to the Bank for overseas payment business.

2. The Bank makes an inquiry to the overseas correspondent bank, i.e., the paying bank, and offer it to the financing applicant. The financing applicant accepts the offer of the Bank.

3. After check and verification, the Bank authorize the paying bank to pay the goods.

4. After paying the goods, the paying bank confirms the payment to the Bank and notifies the Bank of the information such as the interest rate and maturity date of the payment.

5. The Bank confirms the payment with the financing applicant and notifies them of the information such as the interest rate, principal and interest, and maturity date.

6. On the maturity date, the financing applicant returns the principal and interest to the Bank.

7. The Bank returns the principal and interest to the paying bank.

Case

Import enterprise A needs to purchase USD 2,000,000 for the foreign trade payment under T/T. Enterprise A asks the Bank for a better plan to optimize the finance. Considering that RMB is in the appreciation channel, and the price of overseas US dollar funds is lower than that of domestic funds, the Bank provides it with one-year overseas payment business under the pledge of full deposit. Through this business, enterprise A gained 3% of one-year fixed deposit income and 2.5% of RMB exchange rate appreciation income. After the deduction of 3.5% of overseas payment cost, enterprise A gained a net income of more than RMB 200,000.