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TRADE SETTLEMENT

Globally renowned in the trade services industry, BOC U.S.A. is a reliable partner to facilitate your trade business with a unique platform, cross-border expertise and a one-hundred-year reputation for excellence and efficiency.

ACCOUNTS

Bank of China U.S.A. provides comprehensive Letter of Credit services, including examination of documents, mailing and courier of documents, as well as payment services for exporters.

  • L/Cs allow the exporter to lower payment risk with the payment commitment from the issuing bank and/or confirming bank, while also protecting the importer from performance risk of the exporter, given the strict conditions attached to the payment under the L/Cs.
  • Document control is in the hands of the exporters while an irrevocable payment obligation rests on the issuing bank, as long as the clearly stipulated conditions of the L/C are met.
  • This service is primarily designated for the needs of exporters and importers for settlement and collection of payments under L/Cs.

Per the importer’s application, the L/C is a payment undertaken by Bank of China to the exporter. Bank of China will fulfill its payment obligation when the terms stipulated in the L/C have been met.

  • Opening an L/C provides the exporter with a conditional payment commitment on top of the commercial credit, giving the importer better credit and facilitating the trade process.
  • The cargo title documents, shipping date and quality of cargoes mitigate risks and are well controlled under the documents and terms of the L/C.
  • Optimizes the cash flow from operating activities. The importer could utilize the credit limit to issue the L/C and minimize the fund occupation during the operating activities.
  • L/C issuance has the benefit of upgrading the credit of the importer to the credit of the issuing bank, which helps increase the trust of the exporter conducting international trade.

As entrusted by an exporter, BOC U.S.A. collects payments from an importer through a collecting bank, upon presentation of the exporter's documents.

  • The importer can only take delivery of the goods after accepting payment, helping reduce risk exposure for the exporter compared to open account sales.  
  • Compared with remittance, this product provides more certainty of payment in two forms, through Documents Against Payment (D/P) and Documents Against Acceptance (D/A).

Entrusted by a correspondent bank, and according to their instructions, Bank of China U.S.A. collects import payments and delivers relevant commercial documents to the importer.

  • The trading documents are delivered through banks with the payment or an agreement to pay, which helps the importer and exporter build trust with each other and facilitates trade activities.
  • Inward collection has two forms, Documents Against Payment (D/P) and Documents Against Acceptance (D/A).

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