Bank of China RMB Business Q&A
Overview of RMB Products and Services and Questions and Answers for Business Customers
Overview of Products and Services
RMB Deposit for Business Customers
The Bank of China, New York Branch, Chinatown Branch and Los Angeles Branch (the “Bank”) offer RMB demand deposit accounts (not including RMB checks), RMB time deposit accounts and RMB savings accounts to its business customers.
RMB Loan for Business Customers
The Bank offers floating interest rate and fixed interest rate loans to its business customers. The interest rates may be settled monthly or quarterly, with the specific interest settlement method to be determined by the lenders and borrowers.
RMB remittance for International Trade Business
Since March 2012, the Bank has permitted all of its business customers to settle in RMB for their international trade in goods and services. Business customers may also send RMB by wire transfer, provided the amount should be consistent with the sales contract or invoice provided.
Currency Exchange for Business Customers
The Bank provides RMB spot exchange for business customers that have an international trade background. The customer may inquire about the exchange rate either by phone or by visiting one of the Bank's branch offices. If the exchange rate and amounts can be confirmed on the trading day, the settlement date will be two business days after trading day.
RMB Trade Finance
The Bank offers many international settlement products and trade finance services with RMB as the currency unit. These products and services include Letters of Credit, Standby Letters of Credit, Inward Collection, Outward Collection, Import Factoring, Export Factoring, Forfeiting and Supply Chain Financing.
Questions and Answers
I. RMB Deposit for Business Customers
What are the required documents for opening a business account?
Business customers must first open a USD account with the Bank.
The documents required to open an RMB account with the Bank are the same documents required to open a USD account with the Bank. In this regard, a customer must complete and provide the Bank with the following documents: (i) Account Application Form, (ii) Internal Revenue Service (“IRS”) Form W-9, (iii) Corporate Resolution Form, (iv) Signature Cards and (v) Fax Agreement (optional).
Further, a customers must provide the Bank with the following additional documents: (i) a copy of its Certificate of Incorporation or Articles of Incorporation (as the case may be), (ii) a copy of the filing receipt of these incorporation documents with the appropriate Secretary of State, (iii) Employer Identification Number (EIN) or notification letter issued by the IRS, (iv) Financial Statement/Tax Return, and (v) two valid forms of identification for each authorized signer on the account. All original documents must be presented to the Bank, and copies of documents will be kept on file.
For any customer seeking RMB spot exchange services from the Bank, the customer must also provide related documents demonstrating the customer's trading background and transaction amount. In order to convert USD into RMB, the Bank requires that the exchange amount to be consistent with the transaction amount on the customer's sales contract or related trade documents.
If a customer is sending its application to the Bank by mail, then all of the above required documents must also be notarized.
What kind of RMB accounts do you offer to business customers?
The Bank offers RMB saving account, RMB demand deposit account, and RMB time deposit accounts to business customers.
What is the minimum balance requirement for these accounts?
The minimum balances for RMB business accounts are required as follows:
(i) RMB Statement Saving Account requires a minimum balance of RMB equivalent of USD $5,000; (ii) RMB Demand Deposit Account requires a minimum balance of RMB equivalent of USD $3,000; and (iii) RMB Time Deposit Account requires a minimum balance of RMB equivalent of USD $1,000.
II. RMB remittance for International Business
Where are the RMB Settlement Pilot Areas? If two companies are involved in international business that requires an RMB settlement, but one of the companies is not located in an RMB Settlement Pilot Area, can they still remit RMB through the Bank of China, New York Branch?
Yes, Pilot Areas (including Pilot enterprises) no longer in existence. Effective March 2012, all business customers may settle in RMB for their international trade in goods and services.
What are the rules for RMB settlement business issued by the People's Bank of China and U.S. regulators?
The U.S. regulators do not have any rules for RMB settlement business. For the related regulations about RMB settlement, please visit the website of the People's Bank of China for updated information. (www.pbc.gov.cn)
How can a business customer send RMB? What is the fee?
A business customer of the Bank can send RMB by wire transfer. The amount should be consistent with the sales contract or invoice provided to the Bank. The fee charged for each remittance transaction is USD $20.
III. Currency Exchange for Business Customers
Non-deliverable forward (“NDF”) foreign exchange
Can a business customer use NDF to hedge the potential RMB exchange rate risk related to its import/export trade business?
Can the margin be held in a time deposit account?
Yes, your margin deposit can be held in either a time deposit account or saving account at the Bank.
In addition to opening a USD settlement account, does a business customer need to open Margin Account at the same time to conduct NDF transactions? Should the margin deposit be in RMB or in USD?
Yes, a business customer must have a Margin Account in order to conduct NDF transactions. The margin deposit may be either in RMB or in USD.
What are the required documents that a business must provide before conducting NDF transactions with the Bank?
A business customer must provide the Bank with valid trade documents, such as a sales contract. In addition, the business customer must have completed and provided the Bank with other certain documents before the first transaction can be entered.
RMB spot exchange
Is a business customer required to have international trading background in order to undertake spot transactions?
Can the Bank provide same day settlement?
Although the exchange rate and amounts can be confirmed on the trading day, the settlement date is T+2 (two business days after trading day).
How can a business customer inquire about the exchange rate?
A business customer may inquiry by phone or by visiting any of the Bank's branches.
How does the Bank send trading confirmation information to a business customer?
As directed by the business customer, the Bank can send confirmation information by mail, e-mail or fax.
What documents are required for spot transactions?
Generally, spot transactions are conducted by the Bank's Banking Department. If a business customer has frequent transaction needs with large amounts, the customer may choose to conduct spot transaction directly with the Bank's FX & Funds Department. The customer must provide the Bank with valid sales documents, sign related agreements, and information verifying the customer's international trading background.
What kind of trade finance services does the Bank offer?
The Bank offers Letters of Credit, Supply Chain Financing, Export Bill Purchase, Forfeiting, Export Two-factor Factoring, Import Bill Purchase, Outward Remittance Financing, Shipping Guarantee, Packing Loan, Export Discounting, Import Factoring and Invoice Discounting, and other related services.
Who is the typical trade finance customer of the Bank? What documents are required to obtain this service from the Bank?
The typical customer of trade financing services from the Bank includes all Chinese-funded enterprises in U.S as well as local businesses in the U.S. However, the Bank's trade financing and settlement services are not limited transactions between businesses located in China and the U.S. The Bank also provides trade financing and settlement between businesses located in the U. S. and other countries.
For detailed procedures of these services, please visit the Bank's website. In order to obtain this service from the Bank, a customer will need to provide their trade documents and open an account at the Bank. Under some circumstances, certificate is needed as well such as export license.
Does a business customer need to have a line of credit at the Bank in order to obtain these services?
A business customer may need a line of credit in order to obtain some of the Bank's services (for example, Letters of Credit and Packing Loan). However, a business customer does not need a line of credit in order to obtain certain other services from the Bank (for example, Export Factoring and Export Bill Purchase). Please consult a representative of the Bank to discuss your specific requirements.
Bank of China, New York Branch
Bank of China, Los Angeles Branch
Bank of China, Chinatown Branch
RMB Personal Account Questions and Answers
I. RMB Deposit
1. Is there a minimum deposit requirement to open a RMB deposit account at the Bank of China，New York Branch and Chinatown Branch (the “Bank”)?
In order to open an RMB account, the customer must first open a USD account. The minimum deposit for the USD account and the RMB account are the same. The minimum deposit to open RMB Savings account is the RMB equivalent of USD $500. The minimum deposit to open RMB time deposit account is the RMB equivalent of USD $1,000. The Bank also offers RMB Certificates of Deposit with 3-month, 6-month, 9-month and 1-year terms.
2. What documents are required to open an account?
A customer must complete the Bank's Account Application Form and an Internal Revenue Service (“IRS”) Form W-9. In addition, a customer is required to provide the Bank with their Social Security Number and two valid identification documents. At least one of the identification documents must be a government issued photo identification (e.g. Passport, Driver's License). The other identification document must be a major credit card, employee identification card or health insurance card.
All international students must also complete IRS Form W-8 and provide a valid passport with I-20 Visa and I-94, or the admission letter from their school.
3. Can I issue checks from my RMB account?
No. We do not offer RMB checks.
4. How can I fund my RMB account?
A customer can fund their RMB account by incoming RMB remittance or buying RMB from the Bank or RMB cash deposit.
5. Can I withdraw and deposit RMB cash from and to my RMB account?
Yes. You can withdraw and deposit RMB cash directly from and to your RMB account at this time. Please see Section V below for detailed information.
6. Is my RMB deposit Federal Deposit Insurance Corporation (FDIC) insured?
Yes. Like other currencies, RMB accounts at the Bank insured by the FDIC insurance up to $250,000.
7. What is your customer service hotline telephone number and website address?
The Bank's customer service hotline is (212) 935-3101, extension 3124. The Bank's website address is www.bocusa.com
II. RMB Exchange
1. Can I buy and sell RMB from/to the Bank?
Yes, you can exchange USD for RMB or exchange RMB for USD at the Bank.
2. Is there a limit for how much I can exchange?
Yes. The Bank reserves the right to impose a limit on RMB exchange.
3. Where can I get a quote of the RMB exchange rate?
A customer can obtain an RMB exchange rate quote by calling the Bank's customer service hotline- At (212) 935-3101, extension 3124.
III. RMB Remittance
1. How can I wire transfer RMB to accounts in China (including Hong Kong and Macau)?
Customers can wire transfer RMB to accounts in China, including Hong Kong and Macau through the Bank's RMB remittance or RMB pre-settlement remittance service. RMB remittance regulations are established by the People's Bank of China and, as such, is subject to the latest regulation changes established by the People's Bank of China. Currently, RMB cash is not acceptable in any remittance transactions at the Bank.
2. What is the difference between RMB remittance and RMB pre-settlement remittance service?
RMB remittance is for a customer that wants to transfer RMB between their own RMB account at our branches and in China. The remitter and the payee have to be the same person, and according to applicable Chinese guidelines, the daily limit cannot exceed RMB 80,000.
RMB pre-settlement remittance service allows a customer to convert USD into RMB at the Branch first and then wire transfer RMB to accounts in China. By using this service, a customer can remit RMB to any payee's accounts other than their own account. There is an aggregate annual limit of $50,000 on this service. Further, the customer must provide the Bank with the payee's identification number in China. The limitation is based on the calendar year (January 1 through December 31)
3. Am I required to open a RMB account at the Bank in order to use the RMB remittance service?
Yes. The remitter must have a RMB account at the Bank.
4. Can I, or my relatives in China, wire RMB into my RMB account at the Bank?
Yes, you or your relatives can deposit funds into your RMB account at Bank, as long as the domestic branches in China have approved your (or your relatives') remittance application. You (or your relatives) should consult your domestic branch in China for the requirements of sending RMB to foreign countries.
IV. RMB Cash Exchange
1. What are the maximum and minimum RMB cash exchange amounts?
There is no minimum amount for the cash exchange service. However, the Bank does not accept RMB coins and RMB banknotes valued less 1 Yuan.
For account customers of the Bank, the daily limit is USD $4,000 worth of RMB, and the annual limit is USD $20,000 worth of RMB.
For non-account customers of the Bank, the daily limit is USD $2,000 worth of RMB, and the annual limit is USD $10,000 worth of RMB.
2. Am I required to open an account to use the service? What kind of identification documents do I need to provide?
The Bank offers RMB cash exchange service to both account customers and non-account customers. Customers who have accounts at the Bank can directly credit/debit their accounts. Non-account customers need to provide the Bank with their social security number and a government issued photo identification.
3. Which branches of your Bank offer RMB cash exchange service?
Currently, the Chinatown Branch and New York Branch offer RMB cash exchange service.
4. Are the cash exchange rates offered by Chinatown Branch and the New York Branch identical to the rates in China?
No. Exchange rates depend on many different factors, (for example, market supply and demand, shipping cost, insurance cost, administration cost, etc.). Therefore, the exchange rates offered by Chinatown Branch and the New York Branch might not be the same as the exchange rates offered in China.
V. RMB Cash Deposit and Withdrawal Service.
1. Is there any transaction limit imposed on RMB cash deposits and withdrawals?
Yes, there is a daily limit of 20,000 Yuan on each deposit and withdrawal. The Bank accepts all denominations, except for RMB coins and RMB banknotes valued at less than 1 Yuan.
2. Is there any fee involved in RMB cash deposit and withdrawal transactions?
There is no fee for RMB cash deposit transactions. However, there are fees for RMB cash withdrawal transactions. There is no fee for withdrawing an amount up to 3,000 Yuan. For withdrawals above 3,000 Yuan, a fee will be charged for the cost of providing the service. For details, please refer to the fee schedule.
3. Do I need to open accounts to receive this service?
Yes. A customer must open a USD account and a RMB savings account in order to conduct RMB cash deposit and withdrawal transactions. RMB Certificate of Deposit accounts do not support such transactions.
4. What if Bank of China confiscated my RMB counterfeit currency?
The Bank is required to confiscate any RMB counterfeit currency. If such currency is confiscated, you may appeal the examination result to the People's Bank of China. In the case of an appeal, the Bank will transfer the counterfeit currency in question to the People's Bank of China for further examination and ultimate determination of the genuineness of the currency. You may leave your contact information for notification of the further examination results by the People's Bank of China. You may also request a receipt for the confiscated currency.
5. When closing account, what should I do with my balance that has remainder amount valued less than 1 Yuan?
Besides being able to withdraw the daily maximum of 20,000 Yuan at closing, you must convert all of your remaining balance to USD and transfer them to your USD account. You may then withdraw your entire remaining balance from your USD account.
Bank of China, New York Branch
Bank of China, Chinatown Branch
答：公司必须先开立美元账户，方可开立人民币账户。所开立人民币存款账户需资料与美元账户类似，公司需填写公司开户申请表格、W9表格。并提供公司董事会决议、公司预留印鉴卡及传真汇款协议书（选择性）。客户还需提供公司在美国的注册执照及申请收据、公司章程、美国国税局（IRS）签发的联邦税号（EIN）通知函, 财务报表 / 年度退税表 及有权签字人的两个有效身份证件。以上提供材料均需为原件，我行会将原件复印后备案。另外，公司客户开立人民币存款账户还需提供相关贸易背景证明文件及涉及贸易相关的交易金额证明。公司提出的美元兑换人民币交易需求必须提供相关有效贸易文件，兑换金额也必须与贸易文件上金额相符。如果所有申请表格通过邮寄方式发送，则全部材料需要经过公证后方可生效。
2012 年 3月
答：按照规定，个人首次开立人民币帐户需填写帐户申请表格、W9 表格。并提供社会安全卡号、两个有效个人身份证件（其中一个需为有照片的身份证明，如护照、美国驾照等，另一个身份证明可为信用卡、工作证、医疗保险卡等）。持留学生身份的客户除填写帐户申请表外，还需填写外籍人员W8免税表格，并提供有效护照、I-94、以及I-20 或学校录取通知书。
答：人民币业务客户服务热线为(212)935-3101 转 3124 ，网址为WWW.BOCUSA.COM。
答：客户可以通过拨打我行的服务热线(212)935-3101 转 3124询问当日报价。
答：除了不接受硬币和一元以下的纸币外，基本上不设最低金额。已在我行开立帐户的客户每日兑换限额为$4,000 等值的人民币，每年限额$20,000 等值的人民币。未在我行开立帐户的客户每日兑换限额为$2,000 美元等值的人民币，每年限额$10,000 美元等值的人民币。
2012 年3 月