Foreign Exchange Demand Draft (D/D)

The Foreign Exchange Demand Draft (D/D) is a settlement mode where ABC, as instructed by the remitter, pays foreign exchange to the designated payee using a foreign exchange draft.

Foreign exchange D/D may be inward or outward.

Outward D/D is a remittance mode where ABC draws a foreign exchange draft (hereinafter "draft") on its correspondent bank to the order of the payee, which is sent by the remitter to the payee or held by the remitter, and presented to the beneficiary's bank (or paying bank) for payment.

Inward D/D is a service where the customer presents the draft he/she receives to ABC and, after the draft is verified, ABC pays the draft amount to the designated beneficiary.

Benefits

We can issue a draft in favor of you and help avoid inconvenience of carrying a large sum of cash.

Procedures

1. Outward remittance

(1) The remitter fills out the Domestic Remittance Application Form or the Foreign Remittance Application Form and delivers it to ABC.

(2) The remitter pays ABC an amount equal to the money to be remitted plus service fees. The outward remittance may be made from the spot exchange account or by purchase of foreign exchange from ABC.

(3) ABC accepts your application and issues to you a draft signed by the authorized person.

2. Inward remittance

(1) The customer presents to us a draft drawn on ABC. We can then complete crediting or foreign exchange settlement within the date of presentment pursuant to foreign exchange policies of the State.

(2) After receiving the notice of crediting that we issue, the customer fills out the Foreign Income Declaration Form, affixes its corporate financial seal on the form, and delivers it to ABC to go through foreign income declaration and export proceeds sale formalities.

Application Channels

Banking Department of the head office of ABC; branches approved by banking regulators; and the head office of ABC to operate international settlement business.

FAQs

1. Can payment be made against the draft before remittance is received?

No.

2. What are the differences between D/D and clean collection?

Clean collection generally requires 7 to 20 working days to receive payments; moreover, time deposit with the bank is required for a certain period of time. With D/D, payments are received immediately.

3. Is D/D remittance received in cash or spot exchange?

Spot exchange.

4. Is D/D transferable by endorsement?

Presently D/D is not transferable by endorsement. Payment is made only to the named payee.

5. What is the outward remittance receipt for?

If the payee does not receive money within the usual period of time, you may inquire about or modify remittance information with the bank using the receipt, or retain it as a reference for the next remittance.

6. What foreign exchange rules govern outward remittance?

Outward remittance must comply with relevant foreign exchange rules and policies of the State. Valid documentary evidence as required by foreign exchange policies of the State must be submitted, such as the foreign currency payment documents under trade or non-trade accounts, the written approval for foreign currency payment under non-trade accounts, the declaration form of international receipts and payments, import verification sheet (if necessary) and the foreign payment declaration form under non-trade (including capital) accounts (if necessary).

7. Should I open a foreign exchange account for inward remittance?

If you have an account with ABC, we will directly credit the remitted amount into your account; if you have no account with ABC, we will transfer foreign exchange for you through reasonable methods.

Tips

1. Payment on inward remittance may be delayed or impossible due to unclear instructions given by the remitter. We recommend you contact the remitter, in advance, to ensure accuracy of remittance information.

2. Properly retain the draft to prevent its loss.