Settlement Business

(1) Remittance

1. Inward remittance

Inward remittance refers to the settlement method in which the payer’s bank issues a payment instruction to our branch as the receiving bank, and our branch pays the fund to the payee according to the instruction. Inward remittance has two types: overseas and local Clearing House Automated Transfer System (CHATS).

2. Outward remittance

Outward remittance refers to the settlement method in which our branch, at the request of the customer, issues a payment instruction to the receiving bank according to the content and instruction of the remittance application form submitted by the customer, in order to pay the fund to the payee. Outward remittance has two types: overseas and local CHATS.

(2) Bills collection

1. Export Collection

Export Collection refers to the settlement method in which our branch is engaged by the exporter to send the documents of creditor's rights such as exporting documents and documentary bills submitted by the exporter, to the importer's agent bank, and instructs the agent bank to collect payment from the importer.

2. Import Collection

Import Collection means that our branch is engaged by the collecting bank of the exporter to present (deliver) the documents to the importer and collect the payment from the importer according to the instructions of the collecting bank.

(3) Letter of Credit

Letter of Credit is a conditional undertaking of payment on the certain amount of fund which a bank issues to the exporter (beneficiary) within a specified period of time and the submission of the specified documents under the requirements and instructions of the importer (applicant).

(4) Cashier’s Order

Cashier’s Order is a Hong Kong settlement instrument issued by a bank based on the application submitted by a customer. The drawee of the cashier’s order can settle this instrument through other local banks. Our branch provides the Cashier’s Order in HKD, USD and CNY to fit the needs of customers.