1.Advantage . Advantage of D/D: Demand draft is a negotiable instrument,
which can be transferred so that it is more convenient in use for payment. Advantage of M/T It involved bank-to-bank instruction with banks responsible for making payments, so it is rather reliable. Advantage of T/T THE FASTEST WAY
(2) Remitting bank, outward remittance (3) Paying bank, inward remittance (4) The payee
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2. Methods:
(1) Remittance by air mail----M/T
Payment order, mail advice or credit advice/ please debit advice are transmitted by airmail.
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§2.3 Procedures
1. The procedure for bank remittance by mail or by cable usually comprises the following:
(1)Written application (2)Debit advice (3)Payment order (4)Payment (5)Reimbursement claim
Chapter 2 International Bank Remittance
In this chapter, we will learn: 1. Methods, parties and procedures of remittance 2. Advantages and disadvantages of remittance. 3. Practice of remittance. 4.The function of remittance in international trade.
1
§2.1 Definition
International remittance happens when a client (payer) asks his bank to send a sum of money to a beneficiary abroad by one of the transfer methods at his option.
Remitter
①
②
电
汇
电
申
请
汇
书
回
交
款
执
付
费
资金
Beneficiary BVENEFICIA R④Y ⑤ ⑥
电收付 汇据款 通
知
书
Remitting Bank
③ 加押电传/电报 ⑦ 付讫借记通知书
Paying Bank
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2. The process of a demand draft is as follows: (1) D/D application (2) Bank sight draft. (3) The remitter forwards the draft to the payee. (4) The payee presents the draft to the drawee
2
§ 2.2 parods
1. Parties involved in international bank remittance include the following:
(1) The remitter The remitter is also the payer.
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Remitter
①
②
信
汇
信
申
请
汇
书
回
交
款
执
付
费
Remitting Bank
Mail transfer, M/T
资金
Beneficiary BVENEFICIA ④ RY ⑤ ⑥
信 收付 汇 据款 通
知
书
③ 邮寄信汇委托书 ⑦ 付讫借记通知书
Paying Bank
7
Telegraphic transfer, T/T
(2) Remittance by cable/telex/SWIFT---T/T
Instructions are transmitted by cable, through SWIFT/CHIPS …
(3) Remittance by banker’s demand draft.----
D/D
4
A banker’s draft is a negotiable instrument drawn by a bank on its overseas branch or its correspondent abroad ordering the latter to pay on demand the stated amount to the holder of the draft. It is often used when the client wants to transfer the funds to his beneficiary himself.
bank for payment. (5) The drawee bank verifies the signatures, pays
the draft, and claims back the amount that is paid according to its agency arrangement with the remitting bank.
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Banker’s Demand Draft, D/D
Remitter
①
②
票
银
汇
行
申
即
请
期
书
汇
票
交
款
付
费
Remitting Bank
资金
③ 银行即期汇票
④ 汇款通知书（票根） ⑦ 付讫借记通知书
Beneficiary
⑤
⑥
银
付
行
即
款
期
汇
票
Paying Bank
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§2.4 Advantage and Disadvantage