I. Introduction ICBC offers remittance collection service when your company pledges the unsettled USD received from export as security deposit (in full amount) or fixed deposit in ICBC. "Remittance Collection" is a trade finance product comprised of forward FX settlement, foreign currency pledge in full amount and export credit. The service helps your company reduce financial cost and makes profitable financial investment.
II. Features and Advantages Under ICBC "Remittance Collection in Trade Finance", you can earn the margin profit between spot rate and forward rate when exchanging USD for RMB, and interest on USD fixed deposit. If the forward FX sales price is good, you can achieve high efficiency in the use of fund at low financial cost.
III. Target Clients When your company prepares to settle the FX received from overseas on the payment of your exported goods by L/C, export collection or inward remittance, or your company wishes to settle the FX using high exchange rate.
IV. Operation Guide To apply, submit the following: 1. Export commercial invoice under which the foreign currency is received from overseas for the payment of goods stated in the invoice; 2. Sign with ICBC the Master Agreement on ICBC Forward FX Settlement and Sales and RMB/FX Swap and Authorization Letter of RMB/FX Exchange (if necessary). In each application, submit Authorization Letter of Forward FX Settlement and Sales; 3. Export Trade Credit Agreement.
V. FAQ Your company must enter a forward contract on the FX to lock down the risk in exchange rate. The amount settled on the maturity day must cover the principal and interest of ICBC loan. The delivery period of your forward settlement must cover the expiry date of ICBC loan. Pledge can only be released upon expiry of the ICBC loan.
VI. Statement Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final power of interpretation. Refer to the announcements and regulations of local branches for further details.