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International Settlement Products
Published:Sun Nov 12 08:00:00 CST 2017 

(I)ForexRemittance Business

1)ProductIntroduction

Foreign exchange remittance business is a kind of foreign exchange remittance,transfer and settlement business that the bank is entrusted by the client to deliverthe money to payee in a certain way through the bank clearing network. For thisbusiness three remittance methods are often used: wire transfer, demand draft (includingclean collection) or letter transfer. At present, wire transfer is used most often,including inward remittance and outward remittance.

2)Purpose

Our bank can provide such international remittance settlement services tothose enterprises in cross-border business process that need to remit or receiveforeign exchange payments, capital, bonuses, commissions and fees of other trade,non-trade, capital items via T/T.

3)ProductFunctions and Advantages

Our bank can provide safe, convenient and swift foreign exchange clearingand settlement service. Our system is advanced and can guarantee safe transfer offunds. The remittance is fast and is always done in a timely manner. With a networkspreading all over the world we provide diversified service channels, which cannot only safely and efficiently remit foreign exchange funds to the payee, but alsoeffectively save the remittance cost and reduce the transit fees for customers.

4)TargetedClients

Any customer who has foreign currency cross-border collection and paying needs(in line with the foreign exchange management policy)

5)WarmTips

While handling business, one should pay attention to market risks like exchangerate fluctuations and closely examine the relevant business data stipulated by theSAFE to avoid policy risks and guard against the sanction risks like blacklisting.

6)SpecialServices

(1)RemittanceExpress

When we receive the remittance from an overseas accounting bank, we settlethe customer's account on the very same day without having to do account checkingthe following day, which means one day earlier for the customer to get the remittance.

(2)Handlingof Emergency Remittance

If you have the emergency demand for instant remittance, our bank can givepriority to you through the special arrangement of the account bank.

(3)Large-sumUSD Service

If you are a large transnational corporation that needs transfer and paymentfor fund position in China or foreign countries, you can choose our Large-sum USDService. Through our specially designed remittance route and method, you can realizethe same-day clearing of receipt and payment in both China and foreign lands.

(4)Cross-StraitRemittance Day Pass

The product 'Cross-Strait Remittance Day Pass' of our bank ensures the same-dayarrival of the USD remittances between customers and Taiwanese enterprises, substantiallyreducing the remittance time and effectively reducing the remittance costs of theintermediary bank.

(5)Full-accountReceipt

If you want to ensure the full-account receipt of your remittances, our Full-accountReceipt is available for you. You can prepay the deduction by the intermediary bankto ensure the receipt of the full amount.

(6)OnlineBatch/ Single Forex Receipt and Payment

Clients can submit single/batch foreign exchange remittance or collectiondemand through our leading online foreign exchange remittance platform, which simplifiesthe formalities for customers and improves the efficiency of processing. At thesame time, it covers the declaration of international balance of payment, savingyou the trouble of going to the counter to submit the application.

(7)SWIFTOrder Processing

To meet the requirements of large multinational corporations, our bank canaccept the SWIFT directive from the overseas headquarters of the client and handleforeign exchange collection and payment for domestic enterprises so as to facilitatethe centralized management and supervision of the corporate funds.


(II)Import L/C

1)ProductIntroduction

The import L/C is issued by our bank to the exporter (beneficiary) based onthe instructionsfrom the importer (issuing applicant). Our bank will pay the price of goods or otherfunds stipulated in the L/C after we receive the qualified documents for the L/Cfrom the exporter.

2)BusinessType

Import L/C mainly includes irrevocable documentary letters of credit, negotiableletters of credit, revolving letters of credit, back-to-back letters of credit andso on.

3)Purpose

Our customers as import traders, when agreeing with the exporter to settlethe trade credit by L/C, customers can choose our import L/C. According to customers’application, we can establish a L/C to the exporter and provide follow-up servicesincluding arrival order, commitment to pay or nonpayment.

4)TargetedClients

Businesses that use letters of credit for fund settlement

5)ProductFunctions and Advantages

(1)Toimprove the negotiation status. The issuance of letters of credit provides the conditionalpayment promises for the exporter in addition to commercial credit, and enhancesthe credit of customers (the importer), which will help customers to strive formore reasonable prices for goods;

(2)Tosecure the deal. The role of the bank in the trade of customers and exporters transformscommercial credit to bank credit, which secures the deal and effectively controlsthe right of ownership, mode of transport, period of shipment and the quality ofthe goods through the documents and terms;

(3)Toreduce the financial pressure. For customers using the letters of credit (the importer),they can have free capital after the issuance of the letters of credit and beforepayment. At the same time, customers can apply for financing in case of the financialconstraints.

6)AccessConditions

The applicant’s credit rating should be or above the BBB level, normal productionand management period be or more than 2 years; with the right to operate importand export business; listed on the “Directory of Foreign Exchange Payment ImportingUnits” promulgated by the local FECB or with “Import Payment of Foreign ExchangeRecord”; customers of service trade should be qualified to pay the foreign exchangeaccording to the provisions of foreign exchange administration.

7)DocumentsNeeded for Business Application

A copy of business license, a copy of the articles of association and otherbasic files, import contracts, the application for L/C. New customers should offerthe official documents for import and export business, business license as wellas open a margin account.

8)WarmTips

1.Inprinciple, the validity of the import L/C can’t exceed 2 years.

2.Inprinciple, the credit period for usance L/C can’t exceed 6 months.

3.Foreigncurrency usance L/C is not currently included in the scope of foreign debt management.


(III)Advice of Letters of Credit and Presentation ofDocuments

1)ProductIntroduction

Advice of a L/C (L/C) means the preliminary verification and the notificationof the received L/C or its amendments to the beneficiary. The presentation of documentsincludes checking the documents according to the terms and conditions stipulatedin L/C and facilitating the payment by sending the documents to the issuing bankor the nominated bank.

2)ProductFunctions and Advantages

(1)Lowerrisk - the client relies on the creditworthiness of the issuing bank and not thatof the importer so the client is assured of receiving payment by the issuing bankunder certain conditions.

(2)Moreproactive - the client is assured of receiving payment by the issuing bank providedthe documents that meet the requirements of L/C are presented. Our Document Centerwill footnote all clauses in the L/C and documents that are unfavorable to the client’sreceipt of payment so as to better serve the client’s interests.

(3)Networkadvantages - with the help of the network of our overseas branches and correspondentbanks, we review L/C so as to prevent fraud fundamentally.

(4)Fundsfinance - our bank also provides convenient trade finance package to satisfy theneeds of the exporter before exporting its goods.

(5)Convenientand fast on-line inquiry service

3)TargetedClients

Exporters in need of

(1)Additionalassurance of the issuing bank for not knowing the credit of the importer

(2)Tradefinance package including trade finance such as outward bill and forfaiting

4)WarmTips

On receiving the L/C (and its amendments), we will verify the preliminaryauthenticity of L/C by checking the seal, test key and the content according tointernational practices and notify the beneficiary of the content as soon as possible.Later, the client is asked to fill the agency form for the presentation of L/C andsend it with the documents required to our bank. We will review the documents inaccordance with the international practices and mail them to the issuing bank tofacilitate the payment.


(IV)Inward Collection

1)ProductInformation

Entrusted by a foreign correspondent bank (remitting bank), and accordingto their instructions, we (collecting bank) will notify the importer of the documentsand to pay (D/P) or accept (D/A) as instructed.

2)Purpose

Our client being the importer makes payments through collection. We suggestthe client ask the foreign exporter to choose our bank as the collecting bank. Assoon as we receive the collection documents mailed by the foreign remitting bank,we will notify the importer to pay D/P or accept D/A as instructed.

3)TargetedClients

Importers who wish to pay through collection

4)ProductFunctions and Advantages

(1)Lowcost - low banking fees; help reduce handling expenses and easy to use so as tocontrol the costs as compared with L/Cs

(2)Improvecash flow –with D/A the importer can immediately obtain and dispose the goods afteracceptance, and make payments later as the inflow of cash are generated by the saleof goods with no occupation of the funds

5)WarmTips

Measures used in following situations

(1)Informthe remitting bank that we do not accept or provide the service for the moment andask them to make amendments

1)Ourbank is made the drawee of the draft

2)Theremitting bank requires us to confirm the collection payment (if the requirementis in line with inward collection confirmation and the drawee has sound credit linein our bank, it will be dealt in the same way of inward collection confirmation)

(2)Wedeal with it but the client should inform clearly the remitting bank that the serviceis not part of our services

1)Theremitting bank commissions us to buy the warehouse insurance

2)Theremitting bank asks us to provide a protest of bill when the drawee refuses to pay


(V)Export Documentary Collection

1)ProductIntroduction

It refers to an international trade settlement that as entrusted by an exporter,the remitting bank collects payments from an importer through a foreign collectingbank upon presentation of the exporter's commercial and financial documents afterthe goods are loaded. The export documentary collection has two ways of payment,i.e. D/P and D/A

2)Purpose

The client being the exporter knows the credit status of the importer andhas sufficient fund for storage and shipping. The client can choose us as the remittingbank and send us all the documents required. After checking the documents, we willmail them to the collecting bank as instructed.

3)TargetedClients

The client should have the qualification to engage in import and export trade.Exporters choose documentary collection as the settlement when signing the internationaltrade contract.

4)ProductFunctions and Advantages

(1)Lowcost - low banking fees, help reduce handling expenses and control the costs, easierto operate when compared with L/Cs

(2)Lowerrisk - the importer can only take delivery of the goods after D/P or D/A, whichhelps reduce the risks for the exporter when compared with sales on account.

5)WarmTips

(1)Creditrisks of the collecting bank and political risks of the country and region it isin

Although documentary collection is concerned with business credit, it is betterto choose a collecting bank with good credit to facilitate the payment. If our clientis not familiar with the foreign banks, we can pick for them a bank with good stabilityand credit and high-quality service.

(2)Risksconcerning importer

Documentary collection is concerned with business credit. The payment dependson the importer so the credit status of the importer is very important.


(VI)Special Services for Documents

1)L/CCustody

We provide L/C custody lest the original L/C should be lost in the transmissionso as to accelerate the work efficiency. We keep the original L/C after receivingit and its amendments and notify the client through fax and other ways. Later, theclient only has to present us other documents required in the L/C.

2)OnlineBanking International Settlement

To faster client’s business process, we provide online banking services,which include issuing, amending and advising of the L/C, issuing a letter of guarantee(L/G), checking the status of inward collection, export L/C and export documentarycollection. The online L/C services are easy to use, support electronic document,and provide timely and trans-regional tracking.

3)TelephoneNotification of L/C

We telephone the client about the latest updates of the issuing and amendingof the L/C. On the day receiving the L/C, we notify the client of relevant businessprocess by phone, text message and email.

4)Door-to-doorCollection of Documents

To improve our international trade service, we provide the service of transmitting,between the bank and companies, the documents of international trade settlementincluding application forms of L/Cs and remittance and other relevant documents.

5)WaybillNotification

For export L/C clients, we notify them of the waybill after the presentationof the documents through text messaging to enable them to track the delivery statustimely.


International Trade Financing Products

I.BuyerUsance L/C (Under the Import L/C)

1)ProductIntroduction

Our bank upon the request of the applicant issues usance L/C. Our bank ora reimbursing bank makes the payment to the beneficiary (or the negotiating bank)at sight or at the predetermined future time stipulated in the L/C. Later, by thematurity date the applicant should make the payments under the L/C, interests andbank charges.

2)Purpose

The product is used to control costs and lift the cost pressure due to deferredpayment. The usance L/C enables our bank or a reimbursing bank to make the paymentto the beneficiary (or the negotiating bank) on time or at a predetermined timestipulated in the L/C. Later when the payment is due, the applicant can make thepayments under the L/C, interests and bank charges.

3)TargetedClients

Those importers that hope to get lower import price through immediate paymentand obtain low-cost bank financing to supplement corporate turnover of capital.

4)ProductFunctions and Advantages

1.Enhancementof bargaining ability - it can help importers in enhancing their bargaining abilitywhen dealing with exporters to get spot price to gain price advantage.

2.Bettercontrol of the operating costs –The purchase price using the buyer's usance L/Cis lower than that by use of the forward L/C, lowering down the expenditure of tariffand taxes (VAT) and cargo costs.

5)Maturity

6 months at maximum (inclusive)

6)DocumentsRequired

1.Copyof business license and seal to be reserved for opening an account (for our newclient only)

2.Applicationfor Usance L/C and application & agreement for irrevocable L/C

3.Importcontract (and export contract under intermediary trade)

4.Importagency agreement (under import agent service)

5.Registrationform for foreign exchange remittance (if necessary)

6.Signinga Letter of Commitment for Establishing Usance L/C with our bank


II.Import Bill Advance (Under the Import L/C)

1)Product Introduction

Import Bill Advance refers to a short-term trade fund dedicated for payingthe import goods payment, released by our bank according to the request of the customer.Our bank, after entitled the ownership of the goods, makes advance payment on behalfof importer with valid certifications and commercial bills under import L/C or inwardcollection.

2)Purpose

The productis used to meet the short-term financing requirements of importers under importL/C or inward collection.

3)Targeted Clients

Importersthat encounter temporary difficulties in capital turnover under import L/C or inwardcollection and that have confirmed payment and yet cannot have the payment periodof the exporter extended.

4)Product Functions and Advantages

1.Sharing the same credit line withL/C. Import Bill Advance under import L/C shares the same credit line with importL/C, which means the clients don’t need to apply for another one.

2.Potentialappreciation. Import bill advance can bring returns in the context of the appreciationof RMB.

5)Financing Ratio and Period

1.Financingratio: The margin shall be released prior to the expiration of the bill of credit,and the total amount of the bills may not exceed the difference between the actualremittance and the margin

2.Financingperiod: maximum of 6 months (rollover included)

6)DocumentsRequired

1.Applicationfor import bill advance

2.Agreementon import bill advance

3.Trustreceipt (Customers with a low risk guarantee are not subject to this restriction.Whether High-quality customers or customers who can effectively guard against riskneed to submit trust receipts can be determined by the first-level (direct) branchof our bank)

4.Writtenpermit of external payment with signature and stamp


III.Prepayment Financing (Under the Import L/C)

1)Product Introduction

Pre-payment financing refers to that when the domestic importer shall paythe full or partial payment in advance under the contract of trade, our bank carriesout the prepayment financing and pay the exporter at the request of the importer,after confirming the legitimacy of the importer’s remittance.

2)Purpose

When the domestic importer is required to pay the full or partial paymentin advance under the contract of trade, our bank pay the exporter on behalf of theimporter, after confirming the legitimacy of the importer’s remittance.

3)Targeted Clients

1.Customersshall be a foreign exchange receipts and payments enterprise registered in SAFE(StateAdministration of Foreign Exchange) with the import and export operation rights.

2.Clientswith a credit grade of A or above and enough credit line from our bank

3.Importerswho adopts payments in advance as its trade settlement method

4)Product Functions and Advantages

1.Increasecapital turnover: Our bank's advance financing can meet the funding needs of importersduring purchase and reduce the pressure of one-time payment.

2.Improvethe client’s bargaining power: prepayment financing enables clients to purchasein large quantities with less capital and make orders at reasonable price in timeto meet market demands, which increases their bargaining power and brings more potentialyields.

5)Financing Ratio and Period

1.Financingratio: for clients with a credit grade of AA- or above, the ratio can be up to 90%of the prepayment required in the import contract; for clients whose credit gradeis below AA-, the ratio shall be no more than 70% of the prepayment required inthe import contract.

2.Financingperiod: maximum of 6 months (rollover included)

6)DocumentsRequired

1.Applicationfor prepayment financing

2.Generalagreement on prepayment financing

3.Applicationfor outward domestic and overseas remittance

4.Importcontract in which the domestic importer is required to make full or partial prepayment(Import and export contracts are both needed under re-exportation.)

5.Agreementon import agent service (if import agent service is involved)

6.Commercialinvoice or pro forma invoice of prepayment

7.Prepaymentguarantee provided by the exporter (if required)

8.Approvaldocuments of import (for goods that need to be inspected by the government)

9.Otherdocuments required by our bank


IV.Import Factoring (Under the Import Trade)

1)Product Introduction

Import factoring is a service to increase your company credibility in frontof your exporter when your company settles the import by credit sale or documentsagainst acceptance. As requested, ICBC accepts the account receivables transferredfrom your exporter to offer payment guarantee and other account management servicefor your company. If the importer fails to make a payment because of financialor credit problem, ourbank will guarantee payment based onthe importer’s credit lines and provide financial servicesincluding collection of accounts receivable, business information survey and protectionagainst bad debts.

2)Types

There are two type of import factoring. When the buyer is notified of AR assignmentand invoice clearly indicates the money is paid to our bank, it’s called “undisclosedimport factoring”; When the buyer is notified of AR assignment unless it fails tomake a timely payment, it’s called “undisclosed import factoring”.

3)TargetedClients

Importers who choose to purchase goods on credit or acceptancebill.

4)AccessConditions

Clients whose credit grade is A or above.

5)Product Functions and Advantages

1.Increasedcredibility: import factoring provides credit guarantee, which improves its credibilityand company image.

2.Simpleaccount management. Our bank offers a range of services such as reconciliation,reminding when due, easy for you to manage your accounts properly;

3.Stablerelationship with your trading partner. Backed by our bank’s credit guarantee, youcan establish a long-term, mutual-beneficial relationship with your trading partner.

6)Financing Ratio

No more than 80% of the invoice value of the claim reimbursement

7)Documents Required

When our bank evaluates the buyer's preliminary credit, approves a creditline, the following documents are needed:

1.Application for import factoring

2.Agreement on import factoring

3.Trade contract (if there is any)

4.Payment documents, including shipping documents and commercial documents (requiredonly when the importer need financing)


V.Import T/T Financing(Under the Import Trade)

1)ProductIntroduction

Import T/T Financing is a kind of T/T financing service offered to importenterprises for the payment with cash on delivery to the seller after confirmingthe legitimacy of the buyer’s remittance and adopting effective guarantee or mortgage.

2)Purpose

If you adopt pay-on-delivery to settle trade payment, Import T/T Financingenables you to make the payment in a timely manner, improve your capital liquidity,and improve your working capital.

3)Targeted Clients

1.Clientswho have import and export operation rights.

2.Clientswho are a foreign exchange receipts and payments enterprise registered in SAFE witha credit grade of A or above and enough credit line

3.Importerswho adopt cash on delivery as its trade settlement method

4.Importerswho are unable to pay or redeem its bills on time and need financing for lack ofcapital liquidity

4)Product Functions and Advantages

1.Improveyour working capital and enable you to pay in time. Through Import T/T Financingof our bank, the customer can make payment to the exporter in a timely manner.

2.Increaseyour credibility and promote your image through timely payment.

5)FinancingRatio and Period

1.Financingratio: no more than 100% of the outward remittance

2.Financingperiod: maximum of 6 months (rollover included)

6)DocumentsRequired

1.Generalagreement on import T / T financing or agreement on import T / T Financing

2.Applicationfor import T / T financing

3.Importcontract

4.Applicationfor overseas / domestic remittance

5.Agreementon import agent service (if import agent service is involved)

6.ApprovalDocuments of Import (for goods that need to be inspected by the government)

7.Commercialinvoice

8.Documentsthat can prove that the goods have been declared

9.IOU(if required)

10.Forthe application for import T/T financing that involves special supervision areas,Bonded supervision places and offshore resales, relevant documents shall be submittedin accordance with the relevant provisions of the SAFE


VI.Avalization (Under the Import Trade)

1)ProductIntroduction

Under the D / A, our bank shall guarantee payment of a bill of exchange drawnon an importer according to the instructions of the overseas remitting bank or theimporter (hereinafter referred to as "the applicant for avalization").If the applicant for avalization fails to pay on due, our bank will be liable forthe payment.

2)Conditions

Overseas remitting bank shall designate our bank as the collecting bank, withsuch statement as "Presenting / Collecting Bank is only allowed to releasethe documents against drawee's acceptance together with collecting bank's undertakingto effect payment on maturity (Avalization) by authenticated swift " on thecollection document. The word “Avalization” is a must.

3)TargetedClients

1.Importersthat adopt Documents against payment (D/A)

2.Exportersthat need financing

3.Clientsthat have got credit line from our bank

4)FinancingPeriod

Our bank usually shoulders the responsibility of collecting and avalizationfor no longer than a year.

5)DocumentsRequired

Applicant for import collection and avalization shall submit the followingdocuments to our bank:

1.Generalagreement on import collecting and avalization

2.Applicationfor import collecting and avalization

3.Trustreceipt

6)WarmTips

Import collecting and avalization service does not apply to re-exportation.


VII.L/C Confirmation (Under the Export Trade)

1)Product Introduction

L/C confirmation refers to that our bank opened an irrevocable documentarycredit with a payment guarantee. Our bank, entrusted by the issuing bank or thebeneficiary, adds payment guarantee to the L/C opened by the issuing bank. As longas the beneficiary (client) submit the clean documents in accordance with the L/Cregulations, our bank will be liable for non-recourse payment.

2)Types

Open confirmation and silent confirmation

Open confirmation is that the case wherever the L/C issuing bank requeststo further confirmation to the advising & confirming bank on the L/C.

Silent confirmation is that the case wherever confirmation is applied forby the beneficiary.

3)Product Functions and Advantages

1.L/CConfirmation will facilitate exporters stop the risks from the issuing bank.

2.L/CConfirmation will facilitate exporters stop the risks from the issue bank, the countryrisk of issue bank and also the exchange management risks.

3.Doubleguarantee. The payment is guaranteed.

4.Paymentassortment guarantee. The exporter will gain the non-recourse payments or paymentsguarantees.

5.Ifthe beneficiary is a large multinational company that meets the requirements ofour bank, our bank can provide silent confirmation service it even if it has notestablished credit relations with our bank.

4)TargetedClients

Exporters that are not so clear about the credit condition of the issuingbank or want to get the final payment as soon as possible.

5)AccessConditions

Our bank provides L/C confirmation service on the following conditions:

1.TheL/C shall be valid.

2.Ourbank is the advising bank of the L/C.

3.Inthe case of silent confirmation, there shall be no articles attached by other banksin the L/C.

4.TheL/C shall be an irrevocable non-transferable one.

5.TheL / C must apply to the Uniform Customs and Practice for Documentary Credits orbe opened through SWIFT (MT700/MT710).

6.TheL/C Shall not contain any articles that may violate the interests of our bank.

7.Thereimbursement procedure is precise and clear.

6)WarmTips

1.Theissuing bank shall establish a formal relationship with our bank and has sufficientcredit lines;

2.Thedocuments shall be reviewed in accordance with international conventions and L/Cregulations to ensure that the documents are clean.


VIII.Packing Loan (Under Export Trade)

1)ProductIntroduction

The packing loan refers to the short-term loan issued by our bank at the requestof the exporter to finance goods’ procurement, production, and transportation priorto the shipment. The expected payment of goods under the L/C received by the exporteris the source of repayment.

2)TargetedClients

1.Companieswith import/export license;

2.Companiesthat have agreed with their customers to use L/C for fund settlement. Companiesthat lack funds for production and transportation of goods;

3.Companiesthat have sufficient credit lines in our bank and can provide guarantees (if necessary);

4.Customerswho have or over A-Level credit rating in our bank (those eligible for a lower standardexcluded).

3)ProductFunctions and Advantages

1.Toseize trade opportunities. It can help exporters to run business smoothly and seizetrade opportunities in the event of shortage of capital and failure to satisfy therequirements of advanced payment.

2.Toreduce the financial pressure. It alleviates pressure of working capital as exporters’own capital will not be occupied during lead time for production, purchase and soon, thereby providing financial support for pre-production and other expenditure.

3.Toearmark the fund for its specified purpose only, that is, the fund is used for good’sprocurement under L/C only.

4)Financing Ratio and Period

1.Stipulationsof financing ratio: for customers with or over AA-Level credit rating, the maximumamount of the principle and interest of financing is not higher than the amountof the issuance of L/C; for other customers, the maximum amount of financing isnot higher than 80% of the amount of the issuance of L/C;

2.Financingperiod: the term of the packing loan stretches from the date of the loan to themonth after the date of invalidation of the L/C. The term is less than one year(including extension).

5)DocumentRequired

1.Companieswho are first-time appliers for packing loan should sign Export Packing Loan GeneralAgreement with our bank;

2.ExportPacking Loan Application;

3.Originalirrevocable L/C and export sales contract. The borrower acting on behalf of theexporter should provide Export Agency Agreement.

4.Forthe export of restricted commodities, documents with official agreement to the exportshould be submitted.


IX.Bill Purchased/ Discount under Export L/C (UnderExport Trade)

1)ProductIntroduction

Bill Purchased under export L/C is a facility granted by our bank to customersin which our bank purchases customers’ export documents/ bills with recourse aftercustomers submit the full set of documents/ bills (including demand notes, and long-datedbills that have not been accepted) to our bank and provide guarantee measures approvedby and in accordance with the requirements of our bank.

Discount under export L/C refers to a facility in which our bank make recoursefinancing on long-dated bills that have been issued/ accepted by the confirmingbank/ guaranteed by payment guarantee under export L/C (excluding the standby L/C).

2)TargetedClients

1.Companieswith import/export license;

2.Companiesthat have agreed with their customers to use L/C for fund settlement;

3.Companiesthat have sufficient credit lines in our bank and can provide guarantees (if necessary);

4.Companieswith a credit rating of A- and above (those eligible for a lower standard excluded).

3)ProductFunctions and Advantages

1.Alleviatefinancial pressure. Export bills of exchange or discounts enable exporters to getpaid prior to the importer’s actual payment, so it can ease the financial pressureon exporters and help exporters expand the scale of their business.

2.Improvecash flow. Export bills of exchange or discounts can increase current cash flow,thereby improving financial condition.

3.Avoidcurrency exchange risks. Financing are provided mainly in the currency of the documentwhich can be used in foreign exchange settlements and thus hedge against currencyexchange risks.

4)FinancingRatio and Period

1.Stipulationsof financing ratio: for export bills of exchange or discounts under export L/C,the maximum amount of financing is not higher than the amount of foreign exchangereceipts of the document;

2.Financingperiod: the period of bills of exchange under sight L/C can’t exceed 2 months; theperiod of bills of exchange and discounts under usance L/C can’t exceed one year.

5)DocumentRequired

1.ExportBill Purchase/ Discount Agreement and Bill Purchase/ Discount under Export L/C Application;

2.OriginalL/C, original amendment (if any) and full set of documents under L/C as the pledge;

3.TheL/C terms should be specific and reasonable, and the method of reimbursement conciseand clear;

4.Negotiation/acceptance is not restricted only to our bank by the L/C;

5.Theissuing bank (the confirming bank) should have sufficient credit lines in the agencybank of our bank, or it should be a branch of our bank.

6.Documentsunder the credit should have no discrepancies (flaws); or the documents have beenconfirmed by the issuing bank (the confirming bank) with written consent despitethe discrepancies (flaws) / adverse soft clauses / restrictions on negotiation oracceptance by other banks; or documents under usance L/C have been validly acceptedor guaranteed by payment guarantee by the issuing bank (the confirming bank) / theaccepting bank.

7.Ifthe credit line of the agency bank is not sufficient or if there are discrepancies(flaws) in the documents, the credit line of the customer can be directly occupiedfor handling export bill purchase and discount business.


X.Bill Purchase/ Discount under Export Collection(Under Export Trade)

1)ProductIntroduction

Bill purchase under export collection means that the exporter is requiredto submit the full set of export documents to our bank after the shipment underdocumentary collection, and our bank, after deducting the interest and related expenses,pay the exporter in advance with recourse, and then claim reimbursement for therecovery of financing funds.

Discounting under export collection means that our bank make discounted financingwith recourse to the customer on the basis that the importer has accepted the usancedraft after the exporter transported the goods under documentary collection.

2)TargetedClients

1.Companieswith import/export license;

2.Companiesthat have agreed with their customers to use export documentary collection for settlement;

3.Companiesthat have sufficient credit lines in our bank and can provide guarantees (if necessary);

4.Companieswith a credit rating of A- and above (those eligible for a lower standard excluded).

3)ProductFunctions and Advantages

1.Alleviatefinancial pressure. Export bills of exchange or discounts enable exporters to getpaid prior to the importer’s actual payment, thereby easing the financial pressureon exporters and help them expand the scale of their business.

2.Improvecash flow. Export bills of exchange or discounts can increase current cash flow,thereby improving financial condition.

3.Avoidcurrency exchange risks. Financing are provided mainly in the currency of the documentwhich can be used in foreign exchange settlements and thus secure profit.

4)FinancingRatio and Period

1.Stipulationsof financing ratio: with regard to bill purchase or discount under export collection,for customers with or over AA-Level credit rating, the maximum amount of financingis not higher than the amount of foreign exchange receipts of the document; forcustomers whose credit rating below AA-Level, the maximum amount of financing isnot higher than 80% of the amount of foreign exchange receipts of the document;

2.Financingperiod: not longer than 6 months.


XI.Forfaiting (Under Export Trade)

1)ProductIntroduction

Forfaiting means that the forfaiter purchases the accepted outstanding accountsreceivables without recourse, including:

1.Forfaitingunder a usance L/C. The forfaiter purchases non-recourse outstanding accounts receivablesaccepted/undertaken by the issuing bank (the confirming bank) or the accepting bank.

2.Forfaitingunder D/A. Under the D/A (documents against acceptance), exporters’drafts are avalised by a collecting bank.

3.Forfaitingunder O/A. Exporters’ drafts are avalised by the importer’s bank.

There are five acceptable types of forfaiting by our bank. Our bank may purchasereceivables, resell receivables to other banks, fund the deal in risk participation,or provide intermediary service only.

2)Purpose

After the presentation under usance L/C and the receipt of a valid acceptanceor documents against acceptance/ exporters’ draft under O/A payments which has beenavalised by the bank / guaranteed by payment guarantee, customers will be providedwith forfaiting business. Our bank can buy out undue receivables without recourseand convert customers’ forward accounts receivable into cash sales revenue.

3)TargetedClients

Exporters who have received the letter of acceptance from the issuing bank(the confirming bank) or the accepting bank or the collecting bank or the importer’sbank. Forfating facility does not require exporters to be rated or given a creditline by our bank.

4)Functionsand Advantages

1.Optimizethe financial statements. Customers can reduce accounts receivable in their balancesheets, so that the financial statements can be optimized.

2.Secureprofits. At the backdrop of RMB appreciation expectation, it can help enterprisesto secure the profits of foreign exchange settlement in advance and avoid lossescaused by exchange rate fluctuations.

3.Simplifyfinancing procedures. Forfaiting doesn’t occupy the customer’s credit line, andin principle it is not subject to the credit line of the customer.

5)FinancingRatio and Period of Forfaiting (Self-purchasing Type)

1.Duedate for payment: The time limit for L/C payment shall not exceed one year, underD/A or O/A no more than one year.

2.Stipulationsof financing ratio: the sum total of the principal plus interest should be no morethan 100% of accounts receivable.

3.Financingperiod: no more than one year.


XII.Export Purchase Order Financing (Under Export Trade)

1)ProductIntroduction

Export purchase order financing means that in the international trade usingnon-credit settlement, our bank provide exporters with short-term financing on thepremise that exporters provide valid trade orders under which expected accountsreceivable are used as the first source of repayment. Exporters can apply to ourbank for financing by unilaterally providing the orders of foreign purchasers, sothat they can obtain the funds for financing prior to the delivery. Export purchaseorder financing enables customers to deliver goods and receive the payment specifiedin the trade order without delay, thereby relieving their financial pressure.

2)TargetedClients

1.Companieswith import/export license;

2.Companiesthat have signed valid trade orders with importers, using non-L/C settlement andhaving financing needs during the production phase and the lead time before shipment;

3.Companiesthat have sufficient credit lines in our bank and can provide guarantees (if necessary);

4.Companieswith a credit rating of A and above (those eligible for a lower standard excluded).

3)ProductFunctions and Advantages

1.Toseize trade opportunities. It can help exporters to run business smoothly and seizetrade opportunities in the event of shortage of capital and failure to satisfy therequirements of advanced payment.

2.Toreduce the financial pressure. It alleviates pressure of working capital as exporters’own capital will not be occupied during lead time for production, purchase and soon, thereby providing financial support for pre-production and other expenditure.

4)FinancingRatio and Period

1.Stipulationsof financing ratio: the amount of the principal and interest of the financing shouldnot exceed 70% of the actual amount of the order; for exporters who meets the termsof unsecured loans of our bank, or purchasers who are among latest Fortune 500 orpurchasers whose Moody’s long-term debt ratings and S&P’s long-term credit ratingsare over A (including Moody’s A1, A2, A3 and S&P’s A+, A, A-), the maximum amountof the principle and interest of the financing can be loosened to 90% of the actualamount of the order; for exporters who can provide a full guarantee with zero riskfactors, the maximum amount of the principal and interest of the financing can beloosened to 100% of the actual amount of the order.

2.Financingperiod: it should be reasonably formulated in accordance with the delivery termstipulated in the order. The maturity date of the financing shall be no later than30 days after the delivery date as stipulated by the seller and the purchaser. Theperiod of the financing shall not exceed 6 months, and extension or refinancingafter the maturity date is not allowed.


XIII.Export Invoice Finance (Under Export Trade)

1)ProductIntroduction

Export Invoice Finance offers trade financing to exporters receiving paymentby remittance in foreign trade, based on the commercial invoices they provide withthe accounts receivable as the first source of repayment. For exporters sellingon credit terms, we will provide short-term financing to them after shipment, basedon the commercial invoices they provide with the accounts receivable as the firstrepayment source.

2)TargetedClients

1.Companieswith import/export license;

2.Companiesthat have agreed with their customers on O/A payments;

3.Companiesthat have sufficient credit lines in our bank and can provide guarantees (if necessary);

4.Companieswith a credit rating of A- and above (those eligible for a lower standard excluded).

3)ProductFunctions and Advantages

1.Easefinancial pressure. Export Invoice Finance enables exporters to get paid prior tothe importer’s actual payment, so it can ease the financial pressure on exportersand help exporters expand the scale of their business.

2.Improvecash flow. Export Invoice Finance can increase current cash inflow, leading to financialimprovement.

3.Avoidcurrency exchange risks. Financing are provided mainly in foreign currencies whichcan be used in foreign exchange settlements and thus secure profit.

4)FinancingRatio & Maturity

1.Ruleson financing ratio: Finance for clients with a credit rating of AA- and above willnot be more than the face value of the invoice; finance for clients with a creditrating under AA- will not be more than 80% of the face value of the invoice.

2.Maturity:not longer than 6 months (even when extended)

5)DocumentsRequired

1.ExportInvoice Finance General Agreement (submitted by first-time appliers);

2.ExportInvoice Finance Application;

3.Originalexport contract;

4.Commercialinvoice;

5.Relevantdocuments proving that the goods have been sent for export declaration;

6.Certificateof indebtedness (if necessary);

7.Foreignexchange business registration form for trade in goods issued by State Administrationof Foreign Exchange (if necessary);

8.Applicantsfor Export Invoice Finance in areas under special customs supervision such as thebonded areas should submit relevant documents in accordance with the provisionsof the State Administration of Foreign Exchange.


XIV.Export Insurance and Settlement (Under Export Trade)

1)ProductIntroduction

Under the trade settlement of credit and acceptance documents, export insuranceand settlement is an integrated financial service provided for the exporter, includingexport trade financing, importer credit information investigation and assessment,sales accounting treatment, accounts receivable management and debt collections.

2)Purpose

For customers who make trade payment with credit or documents against acceptancewith the importer, our bank can provide two factors or single factor according tothe actual situation.

3)BusinessTypes

1.ExportTwo Factors: As an export factoring agent, we cooperate with import factoring agentsto provide customers with comprehensive financial services including credit investigationof importers, guarantee of bad debts, collection of payment, sales ledger managementand trade financing. It includes buy-out export two factors and non-buy-out exporttwo factors. It can be divided into financing export two factors and non-financingexport two factors according to whether our bank provides financing. It can be alsodivided into public export two factors and undisclosed export two factors accordingto whether the importer will be informed of the assignment of proceeds or not.

2.ExportSingle Factor: As both export and import factoring agent, we can provide the comprehensivefinancial services including export trade financing, sales accounting treatment,accounts receivable management and collection for customers.

4)TargetedClients

Customers who make trade payment with credit or documents against acceptancewith the importer and have A-Level (or above) credit rating in our bank.

5)ProductFunctions and Advantages

1.Comprehensivefinancial services. As an export factoring agent, we provide customers (the exporter)with comprehensive financial services including credit investigation of importers,guarantee of bad debts, collection of payment, sales ledger management, trade financing,accounts receivable management and collection.

2.Speedingup capital turnover and avoiding foreign exchange risk. Export factoring can helpcustomers get paid before the importer pay the price of goods which speeds up thecapital turnover. At the same time, the buyer’s credit guarantee provided by thefactoring agency can help customers avoid any foreign exchange risks even if itis exported to high-risk areas.

3.Optimizingthe financial statements. It transforms undue receivables into cash income and reducescustomers’ asset-liability ratio. With the buy-out export two factors, customerscan cancel the tax rebate in advance which can optimize the financial statements.

6)FinancingRatio and Period

1.Stipulationsof financing ratio: for customers with or over AA-Level credit rating, the maximumamount of financing is not higher than the amount of foreign exchange receipts ofthe document; for customers whose credit rating below AA-Level, the maximum amountof financing is not higher than 80% of the amount of foreign exchange receipts ofthe document;

2.Financingperiod: less than 6 months (including extension).


XV.Trading Finance of Export Credit Insurance (UnderExport Trade)

1)ProductIntroduction

The trading finance affiliated to short-term export credit insurance refersto a trade financing service for exporters which have insured short-term exportcredit (insurer must sign cooperative agreement with Head Office). The service isperformed on the condition that our bank is entitled to claims and rights via accountsreceivable transferred from or mortgaged by exporters and correspondent lettersof export credit. Depending on whether to have right of recourse, trade financingservice of short-term export credit insurance consists of two basic types: buyouttype and non-buyout type.

2)TargetedClients:

1.Companiesentitled to I/E operation right,

2.Companiesagreeing with importers to settle accounts by means of O/A, D/P, D/A or L/C

3.Companieswith sufficient credit line and capable of providing guaranty (if required);

4.Companieswith A-class credit rating or above can register non-buyout type; with A+ classor above, buyout type is available.

5.Companieswith short-term export credit insurance covered, valid short-term export creditinsurance policy and buyer's credit line approved by CITIC.

3)Scopeof Applicability

1.Paymentmethods include L/C or D/P, D/A and O/A.

2.Inprinciple, Payment period is no more than half a year. In case of written consentof insurance company, it can be extended to 3 years.

4)ProductFunctions and Advantages

1.Avoidrisks of foreign exchange. It can refrain from risks from importers' credit andfinancial conditions and strengthen the guarantee of export revenues;

2.Controlthe exchange rate risk. It can have early access to financing and control exchangerate risk;

3.Expandbusiness cooperation. It can provide new financing guarantees for customers andexpand the business cooperation between bank and exporting clients.

(5)FinancingRatio and Maturity

1)Ruleson financing ratio: The amount of financing shall not exceed the lesser of the two:the amount declared by the enterprise to the insurance company multiplied by theproportion of the corresponding compensation and the buyer's effective credit limitapproved by the insurance company multiplied by the corresponding proportion ofthe compensation.

2)Requirementsof financing maturity: In principle, no more than 6 months. With written consentof insurance company, financing maturity of export credit insurance can be extendedto no more than 3 years for complete sets of large equipment and materials, exportinggoods and engineering exporting. For general merchandise, the maturity is no morethan 1 year.


Cross-border Guarantee Business

1)ProductIntroduction

Cross-border guarantee business is a service that at the client’s request,the bank (guarantor) make commitments to the guaranteed that bank is responsiblefor debt in case that insurer fails to fulfill debt payments clarified in the contractor fails to perform other obligations in the contract.

2)BusinessTypes

Presently, our bank is able to, if applied, underwrite cross border businesses,inform the customer when receiving overseas guarantees and transfer from the overseasguaranteed businesses.

Our bank can conduct financing guarantee business and non-financing guaranteebusiness. Financing guarantee business mainly includes loan guarantee and financingguarantee; non financing guarantee business mainly includes operation and leaseguarantee, payment guarantee, bid guarantee, performance guarantee and advance paymentrefund guarantee, quality maintenance guarantee, retention payment guarantee andtariff guarantee.

3)TargetedClients

1.Importand export trading clients

According to the basic trading contract and agreement, our bank can provideservices including, but not limited to, performance guarantee, advanced paymentrefund guarantee, quality maintenance guarantee, and retention payment guarantee;services for importing clients include but are not limited to payment guarantee.

2.OverseasEngineering Contracting Clients

According to the tender documents and basic transaction agreement, our bankcan provide services including but not limited to bid guarantee, performance guarantee,progress payment refund guarantee, quality maintenance guarantee and retention paymentguarantee.

3.FinancingClients at Home and Abroad

Based on supporting business expansions of subsidiaries of domestic enterprises,our bank can conduct insurance and loan services through business connectivity withdomestic or overseas institutions within group or conduct direct lending business(Domestic borrowers need to have sufficient cross-border financing risk weightedbalances) through business connectivity with overseas institutions or agents tomeet financing needs of borrowers.

4)GuaranteedAmount and Period

The amount of guarantee is based on basic transaction agreements. The amountof non financing guarantee is no more than RMB1 billion; the amount of financingguarantee contract guarantee no more than USD 70 million. The longest period isno more than 5 years (excluding services assuring full guarantee fund in pledge).

5)DocumentsRequired

1.Originalbusiness license, documents of the legal representative , articles of association,resolution of the board of directors, authorization documents (submitted for thefirst business processing);

2.Applicationof guaranty which is filled in correctly and sealed and signed by the legal representativeor his authorized representative";

3.Financialstatements for the latest three accounting years and financial statements of guaranteedperiods (if required);

4.Basictransaction background information including the project contract, import and exporttrading contract, bid documents and loan agreements;

5.Financingor non-financing letter of indemnity and standby L/C opened by our bank;

6.Warrantydocuments authorized by our bank

7.Domesticenterprises conducting foreign investment businesses should provide documents approvedor filed by NDRC, SASAC, MOC and business vouchers of ODI registration

8.Otherdocuments required by our bank.