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Chapter 2 International Bank Remittance In this chapter, we will learn: 1. Methods, parties and procedures of remittance 2. Advantages and disadvantages of remittance. 3. Practice of remittance. function of remittance in international trade. 167。 Definition International remittance happens when a client (payer) asks his bank to send a sum of money to a beneficiary abroad by one of the transfer methods at his option. 167。 parties concerned and methods 1. Parties involved in international bank remittance include the following: (1) The remitter The remitter is also the payer. (2) Remitting bank, outward remittance (3) Paying bank, inward remittance (4) The payee 2. Methods: (1) Remittance by air mailM/T Payment order, mail advice or credit advice/ please debit advice are transmitted by airmail. (2) Remittance by cable/telex/SWIFTT/T Instructions are transmitted by cable, through SWIFT/CHIPS … (3) Remittance by banker’s demand D/D A banker’s draft is a negotiable instrument drawn by a bank on its overseas branch or its correspondent abroad ordering the latter to pay on demand the stated amount to the holder of the draft. It is often used when the client wants to transfer the funds to his beneficiary himself. 1. The procedure for bank remittance by mail or by cable usually prises the following: (1)Written application (2)Debit advice (3)Payment order (4)Payment (5)Reimbursement claim 167。 Procedures 資金 ① ② ④ ⑤ ⑥ 信 信 收 付 匯 信 申 匯 據(jù) 款 請 匯 書 通 回