I. Remittance
It is a way of settlement in which remitter entrusts bank to transfer the funds to receiver, including the following three forms:

1. Telegraphic Transfer or T/T, a remittance method in which to instruct the remitted bank to pay the remittance to the remittee through telegraphic or SWIFT manners based on the application by remitter.

Its features are: fast, secure, convenient and high cost, generally applied to the remittance with large sum or urgent remittance.

2. Mail Transfer or M/T, a remittance method in which the remitting bank, based on the application by the remitter, sends the mail transfer trust deed to the receiving bank through post office or express companies, and authorizes the receiving bank to pay the remittance to the receiver.

Its features are: low cost but slowly delivery of remittance.

3. Banker's Demand Draft, or D/D, is a remittance method in which upon the application of remitter, the remitting bank issues the demand draft taking its overseas branch bank or collecting bank as the paying bank, and gives it to the remitter for sending by his own or going abroad in person and withdrawing the remittance upon the draft. Banker's demand draft is very flexible and simple but there are risks of losses or damages of the draft, applicable for mail order or payment for all kinds of expenses.

II. Collection Settlement
It means that principal (creditor) submits financial bills or/and commercial bills to bank (remitting bank) for requiring the collecting bank to collect funds from the payer (debtor) through connected or agency bank (collecting bank).

Collection belongs to commercial credit. Remitting bank and collecting bank will bear no liabilities for whether to receive the funds or not.

1. Categorized by payment gathering bills:
Clean collection is a sort of collection settlement method in which principal only issues the bills with no shipping documents and consigns bank to collect the funds. Clean collection in trading is usually used for collection of the balance of payment for goods, fill-up of payments, commission, sample expenses or other trading subordinate expenses.

Documentary collection is a sort of collection settlement method in which principal issues the draft with freighting documents and consigns bank to collect the funds.

2. Categorized by document delivery methods
Documents Against Payment, D/P, means that principal requires the remitting bank and collecting bank to pass the documents to the payer after paying the collection funds. Delivery against payment is all payment at demand.

Documents Against Acceptance, D/A, means that after payer examines and accepts the documents, and accepts the bank's draft, the remitting and collecting bank keeps the draft after examining the acceptance procedure, the documents are handed to the payer. Whether the accepted draft shall be returned to the remitting bank or not will be determined according to the trust deed.

D/P XX Days After Sight, means after examining documents, payer shall determine the expiry date and the promise for payment to the collecting bank, and the documents will be passed to payer only after it expires and payment is made.

3. According to different clients we serve, it can be divided into export collection service and import collection service.

III. Letter of Credit
L/C is a sort of guarantee document issued by the issuing bank to the beneficiary applied by applicant to make sure that the issuing bank will perform the payment liabilities in accordance with the defined documents.

1.Varieties of Letter of Credit:
(1) As for whether the draft under the Letter of Credit is enclosed with shipping documents or not, it can be divided:
Documentary letter of credit is a sort of letter of credit for payment by right of documentary draft or commercial bill which represents real rights. Most of Letters of Credit used in international settlement are documentary letter of credit.

Clean letter of credit is a sort of draft payment without documents.

(2) By different payment time, it can be divided:
Sight letter of credit, means that upon receiving the bills that conform to the terms and conditions of the letter of credit, the issuing bank or payment bank immediately performs the payment obligations.

Forward letter of credit, means that after receiving the bills which conform to the terms and conditions of the letter of credit, the issuing bank or paying bank will not make the payment immediately until the term as defined in the letter of credit expires, including acceptance L/C and deferred payment L/C, acceptance L/C is a type of letter of credit that is paid by a time draft authorizing payment by the issuing bank (banker's acceptance). The deferred payment of letter of credit means that under the letter of credit, the payment is made after the defined goods being laded or paid several days after receiving the bills. Generally, the deterred payment of letter of credit does not need draft.

Anticipatory letter of credit is that which allows exporter to withdraw all or part of the loan prior to loading and delivery. It is also called "Red Provision letter of credit".

(3) As for whether the beneficiary can assign the rights under the letter of credit or not, it can be divided:
Transferable letter of credit is, as requested by beneficiary, the whole or part of the letter of credit can be transferred to the second beneficiary. After the transfer of the letter of credit, the second beneficiary transacts the delivery of Goods, but the original beneficiary still bears the responsibility as the seller under the trading contract.

Non-transferable letter of credit, means the beneficiary cannot transfer the right under the letter of credit to others, unless specifically indicated with the word of "Transferable".

(4) Varieties of other special letters of credit
Back to back letter of credit means that middleman requires importer to issue a letter of credit which makes him as the beneficiary and takes the letter of credit as guarantee to ask bank to issue the letter of credit for the actual supplier of the goods. It's usually used in the entrepot trade settlement.

Revolving letter of credit is the letter of credit which can be reused by resuming to the original amount after all or part of the credit is used out. It's usually used for the settlement of long-term contract under which goods are splitted to deliver for several times.

Counter letter of credit means that both parties of the transaction issue letters of credit mutually, the beneficiary of the first letter of credit is just the applicant for issuing of the second letter of credit, while the issuing applicant of the first letter of credit is just the beneficiary of the second letter of credit. It's usually used for settlement of barter trade.

2. Standard charges for Letter of Credit service
(1) The standard rate for issuing the import letter of credit in ICBC is 0.15% with the minimum of 300 Yuan and validity term of 90 days; In case of validity term more than 90 days, 0.05% will be additionally charged every more 90 days; as for the added term less than 90 days, it will be calculated as 90 days; no additional fee is charged in case the security is fully collected.

(2) The acceptance rate of ICBC to import letter of credit is: As for the payment term less than 90 days, it will be charged by 0.1% in a lump sum with the minimum of 200 Yuan for each; as for the payment term more than 90 days, another 0.03% will be charged for each month and 200 Yuan is charged in case the security is fully collected.

(3) The pre-advising charges for ICBC's export letter of credit is 100 Yuan for each; the advising or forwarding rate is: 200 Yuan for advising of L/C if paid by beneficiary, 0.1% of the amount and 200 Yuan at least, 1000 Yuan at most if paid by applicant. Charges on L/C negotiated against document in ICBC could be free. SWIFT telegraph fee will also be charged as actually cost. The forwarding rate of L/C is 300 Yuan for each (Refer to the Fee Schedule of local branch). SWIFT telegraph fee will also be charged as actually cost. Charge rate on confirmed letter of credit (including advising fee) is 0.15% and 300Yuan at least. It will be charged quarterly and period less than a quarter, it will also be charged as a quarter.

(4) The export-handling fee of ICBC is 0.125% and 300 Yuan at least for each. For letters with handling amount less than or equal to USD 5,000, additional fee of 100 Yuan for each will also be charged.

(5) The charge for transfer of letter of credit in ICBC is 0.1% (Refer to the Fee Schedule of local branch) and 200 Yuan at least for each.

(6) The charge for cancellation of export letter of credit within the validity term in ICBC is 100 Yuan for each. SWIFT telegraph fee will also be charged as actually cost.

IV. Non-trading Settlement Business
ICBC provides services of traveler check, foreign currency bill collection, agent issuing of credit card in foreign currency, foreign currency exchange, etc.

ICBC conducts the exchange and payment service for the following credit card in foreign currency: American Express Card, Visa Card, Master Card, JCB card and Diners Club Card.