Greeting

Group 2 :
Huỳnh Thị Quỳnh Trâm
Nguyễn Quỳnh Như
Cao Kim Toàn
Nguyễn Ngọc Duy
( group leader )
 Contents

3.STRENGTHS AND
1. DEFINITION DRAWBACKS
AND FEATURES
2.PROCEDURE
0 DEFINITION
AND
FEATURES
 It is a method in which an importer
requires his/her bank to transfer a certain
DEFERRED amount of money to another person (The
REMITTANCE beneficiary) in a certain location by means of
transfer chosen by him/her AFTER the
importer received the goods or services.

• Importer : Import goods and service , sending

remittance order to its bank
• Beneficiary : exporter or someone who is
assigned by the exporter

• Remitting bank : execute the paying order of the

PARTIES INVOLED
remitter
• Intermediary Bank / Correspondent bank of the
remitting bank : receive money for the beneficiary
 THE

2.1 PROCEDURE
OF DEFERED
REMITTANCE
Your

Logo
The remittance
order includes

(2) Name and (3) Name and (4) Account

(1) Value day address of address of number of
ordering ordering remitter’s bank,
beneficiary. and beneficiary’s
customer.
bank.

(5) Amount (6) Details of (7) Relevant

payment.
(8) Sign and stamp
in words documents.
and in
figures
(5)

(2)

(6)

(3)

(4)
 2.2
PROCEDURE
and FORM OF
REMITTANCE
After the benificary or the exporter have done it obligation. Usually
there are a few rules as follows:

Pay after how many days from the date the exporter
Case 1
delivers

Case 2 Pay after how many days after the importer receives the
goods

Pay after how many days from the date the importer
Case 3
receives the full set of documents
EXAMPLE: An exporter delivers goods to the importer via sea
The number of shipping days starting from the time the ship arrives to the
arrival is 25 days.
The number of shipping day for the documents is 10 days.

Case 1 Case 2 Case 3

Pay after 30 days from Pay after 30 days after Pay after 10 days from
the date the exporter the importer receives the date the importer
delivers. the goods receives the full set of
documents

The importer will pay The importer will pay The importer will pay
after 30 days from the after 30 days from the after 10 days of the
date the exporter date of receipt of the arrival of the full set of
delivers the goods. goods documents.
Form of remittance
Mail Transfer Remittence
The transfer time is longer than
T/T but the come at a lower
cost. Easily be affected by forex
flucuation
Telegraphic Transfer Remittance
The transfer time is very fast, the
money transferer must pay the fee
procedure plus telegraph cost... Money
transfer banks can transfer money
throught Telex system or money
transfer via network – SWIFT
 SHA (SHAred):
the fee is share for both Transaction fee
parties. The fee incurred in the
exporter’s country is paid by
the exporter. The fee incurred
in the importer’s country is
paid by the importer.
BEN (BENeficiary): The fee is
paid by exporter.

OUR (“Remitter pays all fees” or

“Sender bears all transaction fees): the
fee is pay by the importer or remitter
STRENGTHS AND
DRAWBACKS
0
 STRENGTHS
Problem DRAWBACKS
 Easy business process and simple  Payment depends on goodwill off
payment the importer
 Very fast  Bank just an intermediary , ,its
 Low charge function isn’t fully utilized
  Both parties have trusted each other ,have

CASE TO done business with each other for a long time

or transaction between the parent company

APPLY and its subsidiaries

 Payment with a relatively small amount of
money :
1.Fees related to import or export, insurance
transportation costs, shipping charges, sample
paymen,..
2.Non-service area such as transferring
capital, profit abroad; overseas remittance; transferring
tuition, living expenses for students studying abroad.