Telegraphic Transfer (T/T) is one of the basic methods of foreign exchange remittance business. It refers to a remittance method in which the remitting bank, upon the request of the remitter, uses cable, telex, or the Society for Worldwide Interbank Financial Telecommunication (SWIFT) to send a telegraphic transfer payment order to the remitting bank, instructing it to pay a certain amount of money to the beneficiary.
About Wire Transfer · Telegraphic transfer is the fastest way to remit money. Banks usually process telegraphic transfers on the same day, without occupying the remittance funds. It also charges telegraph fees when charging the remittance fee, so the fees are relatively high. The telegraph fees in telegraphic transfers are borne by the remitter. Telegraphic transfers are usually used for urgent or large-amount payments, fund transfers, various payment instructions, etc. With the development of information industry and the increasing demand for efficiency, more and more people are using telegraphic transfers. Common telecommunication methods include: SWIFT, TELEX, CABLE, TELEGRAM, etc. · It is divided into pre-T/T (prepayment) and post-T/T (payment after shipment or receipt). It has higher risk than L/C in transactions, but the fees paid to the bank are much lower than those paid for L/C. Telegraphic transfer is a widely used remittance method at present. Its business process in actual work is: the remitter fills in the telegraphic transfer application form and pays the money to the remitting bank. The remitting bank then sends a secured telegram or telex to the remitting bank. The remitting bank gives the payee a telegraphic transfer notice. After receiving the notice, the payee goes to the bank to cash the money. The bank makes the payment. After the payment is completed, the remitting bank issues a debit notice to the remitting bank. At the same time, the remitting bank gives the remitter a telegraphic transfer receipt. Actual business process 1. Receive orders from foreign customers. 2. Prepare a pro forma invoice and send it to the foreign customer, who will sign it. 3. Make a production order and send it to the domestic customer, who will sign it. 4. Ask foreign customers for trademarks, color codes, barcodes, etc., and then pass them on to domestic customers. 5. When producing goods for domestic customers, be sure to keep a close eye on production deadlines. 6. When there are about 10 days left before the shipping date, ask for the standard form of the booking order (ask the freight forwarder of the foreign customer), fill it out accurately, and then send it to the transportation company to arrange the booking. 7. The transportation company sends the official booking form. 8. The inspector goes to the supplier’s factory to inspect the goods (if the customer has its own inspection representative, the supplier is required to ship the goods to the company and then the customer’s inspection representative conducts the inspection). 9. Send the loading list to the towing company (be sure to indicate important information such as the time, location, contact information, etc. of towing the container). 10. Make the customs declaration content, and then ask for the address of the customs broker (ask the towing company). The purpose is to make it more convenient for the foreign trade company to send out the full set of documents. 11. Please indicate the address of the customs broker on the customs declaration, and then pass the customs declaration to the foreign trade company. At the same time, you must also give the manufacturer a loading notice. 12. After the loading work is completed, you need to fill in the important information (container number, seal number, etc.) and then send it back to the customs broker for export declaration. 13. Make a certificate of origin and then pass it to the foreign trade company. 14. Make a shipping notice and then pass it to the customer. 15. Add the VAT invoice application form to the customs declaration and submit it to the accountant in the finance department. 16. Make additional information for the bill of lading and then send it to the transport company. 17. Foreign trade companies send back GSP certificates of origin. 18. Send important documents such as invoices, shipping notices, bills of lading, certificates of origin, packing lists, etc. to customers and ask them to pay on time. 19. Make a copy of the bill of lading and DEBIT NOTE, and then give the copy to the accountant. After the accountant pays all the fees for the DEBIT NOTE, the transportation company can release the original bill of lading. The foreign trade salesperson then sends the original bill of lading to the customer so that the customer can pick up the goods smoothly. Application of Wire Transfer in POCIB In POCIB, wire transfer is mainly used for importer payment when the contract adopts T/T settlement method. The importer should go to the bank to make payment in time according to the payment terms of the contract. Payment by T/T: 1. Pay the deposit: (1) Go to the "Business Fulfillment" page of My Business and select the corresponding business item. (2) Click "Document Center", add "Overseas Remittance Application (Payment of Deposit)" and fill it out carefully. (3) In My City, click on the "Bank" building to enter. (4) Click "Payment" on the pop-up page and select the corresponding contract. (5) Click the "Add Document" button and select the document "Overseas Remittance Application (Payment of Deposit)". (6) Click the “Process” button to complete the payment. If the payment terms in the contract are T/T XX% IN ADVANCE AND XX% WITHIN 30DAYS AFTER SHIPMENT DATE, after the importer confirms the contract, he must first prepay a certain proportion of the payment (pay a deposit) before the exporter can book a space, apply for a certificate, declare export inspection, and purchase insurance (under CIF method). 2. Pay the balance: (1) Go to the "Business Fulfillment" page of My Business and select the corresponding business item. (2) Click "Document Center", add "Overseas Remittance Application (Balance Payment)" and fill it out carefully. (3) In My City, click on the "Bank" building to enter. (4) Click "Payment" on the pop-up page and select the corresponding contract. (5) Click the "Add Document" button and select the document "Overseas Remittance Application (Balance Payment)". (6) Click the “Process” button to complete the payment. If the payment terms in the contract are T/T XX% IN ADVANCE AND XX% WITHIN 30DAYS AFTER SHIPMENT DATE, after the exporter ships the goods, the importer must pay the remaining contract amount (pay the final payment) before the exporter can mail the shipping documents. 3. Full payment: (1) Go to the "Business Fulfillment" page of My Business and select the corresponding business item. (2) Click "Document Center", add the "Overseas Remittance Application Form" and fill it out carefully. (3) In My City, click on the "Bank" building to enter. (4) Click "Payment" on the pop-up page and select the corresponding contract. (5) Click the "Add Document" button and select the document "Overseas Remittance Application Form". (6) Click the “Process” button to complete the payment. If the payment terms in the contract are T/T 100% IN ADVANCE, according to the contract, the importer shall pay the purchase price immediately after both parties confirm the contract. If the payment terms in the contract are T/T 100% WITHIN 30DAYS AFTER SHIPMENT DATE, according to the contract, the importer shall pay the full amount to the exporter after the goods are shipped. |
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