What Is The Export Bill?

　 　 Outward documentary bill Summary

Export documentary bill means that when an enterprise (a letter of credit beneficiary) negotiates a bill of credit under a letter of credit to a bank, the bank (the negotiating bank), based on the application of the enterprise, carries out the examination and verification of the documents matching the complete set of documents submitted by the enterprise as a pledge. After the audit is correct, it pays the money to the enterprise on the basis of the face amount, then sends the bill to the issuing bank, and receives a short-term export financing business from the enterprise to collect interest and bank charges and reserve the right of recourse.

　　 Objects and conditions for outward documentary bill

I, object:

If an enterprise has the right to import and export business and has an independent legal person qualification, and the letter of credit is used as an export settlement method, it can apply to the bank for export bill against export documents under the letter of credit.

　　 II, condition:

If an enterprise wants to apply for a documentary export bill, it must satisfy the following requirements:

1, an enterprise should open renminbi or foreign currency current account in the application bank, handle the import and export settlement business, and calculate all receipts and payments under the bill financing business.

2, the company has good credit standing, strong performance ability, good record of foreign exchange collection, and has certain experience in foreign trade.

3, export commodities should mainly export foreign exchange products for enterprises, adapt to market demand, promote domestic and foreign sales network, and obtain the necessary quotas and approvals.

4, the enterprise should have a sound financial accounting system, submit the financial statements to the bank on time, and accept the real time audit of the bank's production, operation and financial status of your bank. The export bill is applied to the reasonable capital turnover needs.

5, the issuing bank and reimbursing bank are stable in their political situation and economic situation, no shortage of foreign exchange, no strict foreign exchange control, no financial crisis situation, and the issuing bank has reliable credit and a sound business style.

6. The terms and conditions of the L / C are clear and complete and conform to international practice. No potential risk factors are recognized by the bank. The transfer of the letter of credit bank in principle does not apply for export bills.

7, the documents must be strictly complying with the terms and conditions of the letter of credit, so that the documents must be identical and uniform. The outward documentary bill under a long-term L / C must be made after receipt of the issuing bank's acceptance.

Currency, interest rate and time limit for outward documentary bills

The currency of the export bill is the original currency of the document. The interest rate is determined according to the international financial market, the cost of the application bank and the credit risk of the issuing bank.

The proportion of the amount of the bill is approved by the bank according to the actual situation. The maximum amount is 100% of the amount of the document. After deducting the bank charges and interest, the net will be included in the business account. If the actual receipt date exceeds the time limit for the bill, the bank will supplement the interest on the negotiation.

The time limit for spot export negotiation is determined according to the area and route of export collection, and the time limit for forward letter of credit is third working days from the date of acceptance of the issuing bank to the expiry date of payment. If the time limit for the negotiation is exceeded, the bank has the right to recourse the amount of the bill, interest and bank charges after the bank has not resumed the negotiation payment after negotiation with the issuing bank.

　 Application for outward documentary bill

I, if an enterprise intends to apply for a bank's export documentary bill, it shall submit the following information to the International Settlement Department of the branches of the bank or the trade section of the International Business Department of the head office, including:

1. Photocopy of business license of enterprise legal person after annual inspection by industry and Commerce Bureau.

2, the borrower has the power to sign the authorisation and signature samples.

3, the company's recent financial statements;

4, other documents required by banks.

II, the enterprise shall fill in two copies of the application for export purchase and the pledge of export bills, and sign the company's official seal and the authorized signatory, together with the export documents and the original letter of credit, and submit them to the bank for examination.

III, if the bank receives the application for export purchase and export documents submitted by the enterprise, if it meets the requirements, it will make an export bill after the audit is correct.

　 The role of export bills

After paying the bill, the client will apply for short-term financing to the bank on the basis of the letter of credit, which is in conformity with the requirements of the letter of credit and the receipt of foreign exchange. The customer can get the advance from the bank ahead of the foreign exchange collection and speed up the capital turnover.

　 Export bill characteristics

1, the negotiation / discount is a short-term advance. The period of negotiation is generally not more than 180 days, and the discount is not more than 360 days.

2. After the interest rate is deducted, the remaining amount will be paid to the customer. The interest is calculated according to the amount of financing, the annual interest rate of financing, the number of days of negotiation, and the amount of 360.

3. The negotiation / discounting Department reserves the right of advance for the recourse. No matter what the reason is, if the foreign exchange can not be collected from abroad, the customer should raise funds in advance to refund the advance.

　　 handle Export documentary business Requirement

1. The applicant for export documentary bill should be the beneficiary of the documentary credit and the credit is good. When the bank provides the export bill for financing, the customer will sign the general letter of credit for the export bill, and ask the customer to submit the application by writing. The bank will handle the export documentary bill on the basis of the documents submitted by the bank. Export bills collect foreign currency interest at specified rates.

2, the export bill is the bank's right to recourse to exporters, but the bank can not exercise recourse if it is a confirming bank, paying bank or accepting bank.

3, the bank only deals with the discount of the bank acceptance bill under documentary credit. The applicant should submit a discount application to the bank for discount business, and acknowledge that the bank reserves the right of recourse for the discount advance.

4. The period of discount notes is no more than 360 days. The number of days of discounting will be counted on the day of bank discount day until the maturity date. The discount rate will be implemented according to the regulations and the foreign currency discount will be collected, and the discount will be deducted from the fare. {page_break}

　 Outward documentary bills condition

1. The documents submitted are in conformity with the requirements of the letter of credit.

2, the collection of documents under L / C is guaranteed.

3, the relevant procedures have been completed.

4. For one of the following situations, the bank will refuse to accept the application for Documentary Bill:

(1) l / C limits other banks' negotiation.

(2) forward L / C for more than 180 days.

(3) transport documents are non property documents.

(4) failure to submit a full set of property documents.

(5) a letter of credit with soft clauses.

(6) the transferor's letter of credit is not liable for independent payment.

(7) there are substantial discrepancies between documents or single rooms.

(8) the remittance route is circuitous, affecting safety and timely remittance.

(9) the issuing bank or the issuing bank is located in countries or regions where tensions are unstable or wars occur.

(10) foreign exchange shortage in the foreign exchange receiving area, strict control or financial crisis.

(11) other banks consider it inappropriate to provide documentary evidence.

　 Discount terms

1, banks only deal with the discount of bank acceptance documents under documentary credits.

2, the bills of exchange accepted by banks and credit poor banks in countries with unstable political situation, strict foreign exchange control and difficulties in foreign exchange payment are not discounted.

3, no forward trading bills with no trade background and investment purpose will be discounted.

　　 Discounting procedures

1, the client should first sign the general pledge of export financing with the bank to clarify the basic rights and obligations of the two parties.

2, customers should provide relevant information on registration, operation and financial situation to banks as the basis for bank financing audit.

3, each specific financing, customers should also provide the bank with "export financing application form".

4. After the approval of the application for financing, the bank will enter the accounts according to the customer instructions.

5, after the export proceeds, the foreign exchange will be used to return bank advances.

6, the export receipts are not bad, customers should still raise funds to repay.

Negotiation is a banking service in international trade. It is divided into exporters and importers. This service is divided into export and import bills.

　 Outward documentary bill

After the exporter issues the goods and delivers the L / C or the contract requirements, the bank shall request the exporter to provide the passway finance as collateral on the basis of the export documents; the range of the Bank of China's export bill includes: the export bill under the L / C and the export receipt by documentary receipts; the foreign currency export bill and the renminbi export bill.

　 Import bill

When a bank receives documents under a letter of credit or an import collection, it is required by the importer to provide short-term financing for it; it is a step or option in the letter of credit.