Service Description

Financing services under the trade item.

Features

Financing services of all aspects are available with the bank:

Import L/C Credit Facility : Credit granted by the bank to the client to cover the guarantee fee of the opening of the L/C, applicable to all kinds of L/Cs with the bank including sight L/C and forward L/C .

Import Bills Advance : A financing means in which the client uses the documents under an L/C as pledge, providing necessary mortgage, pledge or other guarantees at the same time to obtain loan from the bank to effect payment of the L/C, and repays the loan with the sales revenues of the (processed) import goods.

Trust Receipt : A form of inventory financing accommodations in which the importer gets short-term loan from the bank by transferring the receipts of the import goods to the bank. With the receipts, the bank retains the title to the goods, and the client performs just as the trustee of the bank to dispose (process, resell, store, insure, sell) them.

Bills Discount: A financing means in which the bank purchases the undue documents with recourse to finance the export. The exporter presents the documents under a L/C to the bank after delivery of the goods, and the bank, after examination and verification of the documents and the L/C, makes payments, usually at a discount, to the exporter in advance, and then get repaid from the importer against the full set of documents.

Packing Loan : also referred as L/C packing loan, a pre-shipment finance to the exporter against the L/C, mainly used to meet the funds needs of the costs in the production and procurement of the goods and other related expenditures.

Purchase of Collection Bills (Clean Collection) : Short-term financing service that the bank purchases the undue bills of exchange with recourse at discount.

Shipping Guarantee : A letter of Guarantee (L/G) issued by the bank to the importer to guarantee the pick-up of the goods from the shipping company by the importer prior to the arrival of the original documents under the L/C drawn by the bank, which will be returned against the documents later.

Short-term Financing Services under the Export Credit Insurance : Loans granted to finance the export insured by the China Export Credit Insurance (CECI) in which the exporter assigns the insurance claims to the bank, and the bank offers short-term loans to the exporter after the delivery of goods according to the trade contract. The service line covers advance of export bills under L/C , advance of export bills under L/C collection , and bills advance under open account , etc..

It is applicable to economic entities registered in the territory of the PRC and approved to engage in foreign trade business, where the exports take the payment forms of document against payment (D/P), document against acceptance (D/A), payment against open account (OA), etc. and have credit periods within 180 days.

Business Handling

All clients who have registered at and got business license that pass the annual inspection from the administrative departments of industry and commerce, who have been approved to engage in foreign trade business, and who have sound ongoing operations and have settlement relationship with the bank can apply trade financing service with the bank.

The following paragraphs detail the handling procedure:

Import bills advance : Sign the General Letter of Pledge for Import Bills Advance with the bank and provide corresponding mortgage, pledge or third-party guarantee. Additional Letter of Application is required for every actual disbursement of the loan.

Trust Receipt : Sign the trust agreement, which designates the client as the trustee of the bank to safekeep the goods. It shall be applied for and used item by item. The receipts in question shall be under a L/C of the clients who have been accredited comprehensive unsecured credit by the bank.

Export bills advance: Sign the Letter of Pledge for Export Financing, which shall specify the basic rights and obligations of both parties. Additional Letter of Application is required for every actual release of the loan.

Packing Loan : Submit the written Letter of Application and present the Trade Contact of domestic or international trade, backgrounds materials of the trade and other relevant documents. Sign the Loan Contract with the bank after conclusion of the mortgage, pledge or third-party guarantee procedure.

Shipping Guarantee : Submit the Letter of Application for the Shipping Guarantee, the specimen of the shipping guarantee and related documents such as invoices, duplicate copy of the bill of lading (B/L), etc. Offer guarantees or present certificate of the payment of the standby funds of the L/C.

Bills Discount : Fill in the Letter of Application for bills discount.

Short-term Financing Services under the Export Credit Insurance : The third parties, the CECI, the corporation and the bank sign the Agreement on the Authorization of Indemnity Assignment; the corporation and the bank sign the Credit Contract and other related legal documents; the corporation purchases insurance from the CECI after shipment; the corporation applies for the credit by presenting the customs declaration sheet, the invoice evidencing the payment of the insurance premium, and the originals of commercial bills witnessing the trade backgrounds.