There are three ways of export: collection and settlement, export bill and regular settlement.
1. Receipt and Settlement of foreign Exchange Receipt and settlement of foreign exchange is also known as “collect before payment”, which means that the negotiating bank, after receiving the export documents from the exporting company, will send the documents to the foreign paying bank for payment after examination. Upon receipt of the notice that the payment is transferred to the negotiating bank’s account, the documents will be converted into the current value and transferred to the exporting company.
2. Regular settlement of foreign exchange Regular settlement of foreign exchange means that the negotiating bank determines a fixed settlement period (ranging from 7 days to 14 days) in advance according to the time required for the claim from the bank, and voluntarily converts the amount of the bill into RMB, and transfers it to the export enterprise after the maturity.
3, export trade export trade is also called the “foot the bill for the settlement of exchange” or “negotiation”, refers to the negotiating bank under the terms of the l/c to buy beneficiary’s drafts and documents (export), from the negotiation of the solstice is expected to deduct the interest on the date of receiving the draft of the par value, and the balance converted into RMB, according to the quotation of negotiations assigned to the export companies.
