1. L/C advice
L/C advice is a service offering whereby the local advising bank of the L/C beneficiary, after receiving the L/C from the issuing bank, notifies the beneficiary after reviewing and authenticating the document.
BOCOM has established correspondent bank relations with 1,706 banks from 103 countries throughout the world, with an extensive capacity to receive and notify L/C-issued by banks from all over the world.
Reminders for customers:
Upon receiving the original L/C, the beneficiary (exporter) is required to double-check it carefully and contact the importer directly if any discrepancies from the contract are identified.
If the L/C contains any risk clause (soft clause), the customer should notify the importer for amending the document to ensure safe collection of the payment.
2. Export negotiation
Export negotiation is a service offering by which the exporter’s corresponding bank receives and authenticates the full set of export documents submitted by the exporter, before paying for the bills and documents.
The exporter submits to BOCOM the full set of documents stipulated in the L/C, including draft, commercial invoice, transportation document, insurance document, packing list, certificate of origin, inspection certificate, and certificate of the shipping company.
If any discrepancies are identified in the documents, the exporter should provide BOCOM with a guarantee in written form and immediately contact the exporter to reach a consensus, in order to ensure safety and timeliness of payment transmission.
3. Export collection
Export collection is a service offering whereby the exporter’s bank is instructed by the exporter to notify the branch of the exporter’s local bank, accounting bank and agency bank for payment collection from the importer.
Export collection services will motivate foreign importers further to deal with China exporters, and this, in turn, will strengthen China exporters’ competitive edge in the international market, leading eventually to an expansion of China’s export volume.
Exporters are required to prepare their export-import contracts together with the relevant documents.
Fill out “Application for Export Collection without L/C” and appoint the bank to collect payments on their behalf.
If the documents have been mailed and that the exporter demands modifications to the contract’s content pertaining to the mode of collection and payable amount, a cover letter bearing an imprint of the exporter’s official chop must be provided, authorizing BOCOM to notify its overseas agency collection bank to modify the handling process accordingly.
4. Special Dunning Service
Special dunning service is a value-added service provided by BOCOM to customers, on the basis of the bank’s traditional settlement services and in collaboration with correspondent banks equipped with a strong professional expertise in trade settlement, to relieve customer’s dunning burden and enhance the efficiency of payment collection.
(1) USD export express dunning
This product is appropriate for L/C and documentary collection in USD, with a service coverage spanning countries around the world, except those where American trade sanctions are imposed.
BOCOM’s partnering banks will send a telex or SWIFT to the paying bank for regular dunning attempts and inquiries. Customers can enquire about the dunning progress and the related feedback received through BOCOM.
(2) Export documentary dunning in India
This product applies to export documentary collection in India. Customers can apply for this product when they apply the documentary collection service with our bank. While mailing the export documents to the designated collecting bank, BOCOM will immediately notify the partnering bank, who will provide services such as dunning and fund transfer.
This product provides a convenient and highly efficient means of payment collection from export businesses operating in the Indian region, thereby avoiding payment delays due to problems in communication or liaison.