《2016级经贸英语 lesson 4 Remittance》.ppt

Lesson Four Remittance Remittance Reverse remittance Remittance 2. Definitions of remittance 3. Parties related to a remittance (1)Remitter (2)Payee or beneficiary (3)Remitting bank (4)Paying bank 4. Types and procedures (1).Remittance by airmail (M/T) or mail transfer (2). Remittance by cable/telex/SWIFT (T/T) or telegraphic transfer. (3).Remittance by banker’s demand draft (D/D). Remittance 6. Characteristics and Application of remittance a. Payment in advance/cash in advance: 1).CWO and PCWO; 2). Cash payment before shipment b. O/A--Open account/sell on credit c. Consignment * * Remittance Remittance Introduction Types Applications 1 Introduction According to the direction of the movement of the instruments in relation that of the funds flow, payments can be classified into two types :remittance and reverse remittance . Remittance Remittance indicates the funds flow in the same direction as the credit Instruments transmitted therefrom. Remittance Reverse remittance indicates that the funds flow in an opposite direction of the credit instruments transmitted therefrom. Remittance ② banker’s D/D Remitter Beneficiary Remitting Bank Paying Bank ④ banker’s D/D ① application ③ D/D advice ⑦ debit advice ⑤ banker’s D/D D/D flow diagram ⑥ payment Remittance ② debit advice Remitter Beneficiary Remitting Bank Paying Bank ① application ③ payment order/ mail advice/ debit advice (by mail or telegraphically) ⑤ reimbursement claim ④ payment M/T or T/T flow diagram payment Remittance Outward and Inward Remittance When the home bank is acting as the remitting bank the remittance handled by him is called an outward remittance . When the home bank is acting as the paying bank ,the remittance handled by him is called an inward remittance . Remittance 5. Comparison of the M/T,T/T and D/D Cost , Speed and Reliability D/D: the