Aasan Tajarat Abrisham would like to inform all applicants for Yuan and Dollar remittances to China that, thanks to its export resources, the company is able to transfer Yuan to personal accounts for commercial purposes and purchases, as well as to cover transportation costs, by receiving the equivalent in Iranian rials. Additionally, the company can transfer Dollar remittances to company accounts, accounts of sellers, manufacturers, or shipping companies in China with the lowest fees and the fastest processing time possible.

Types of Payment Methods

Payment methods for goods to the seller in commercial transactions can be divided into two groups based on risk levels and the potential dangers facing the parties involved:

a) Methods where the seller’s risk is high, but the buyer’s risk is low.

b) Methods where the buyer’s risk is high, but the seller’s risk is low.

a) Methods with high seller risk:

In the methods of group (1), the seller typically sends the goods and then receives payment from the buyer. The following points can be mentioned in this group:

1. Trading based on an open account

In this method, the seller, upon the buyer’s request (whether verbal or written), procures and packages the ordered goods. The seller then completes the export procedures in their own country and hands the goods over to the shipping company to be sent to the buyer’s designated customs office. Subsequently, the shipping documents are directly sent to the buyer’s address, enabling the clearance of the imported goods from the relevant customs.

2. Simple Barat Method

In this method, the seller arranges the transportation of the goods for the buyer and directly sends the shipping documents to the buyer. Based on these shipping documents, the seller then draws a simple bill of exchange on the buyer and sends it through their own bank to the buyer’s bank for collection. The buyer will then proceed with the payment according to the terms of the sight or term draft.

3. Letter of Receipt

In this method, the shipping documents are sent along with the bill of exchange to the buyer’s bank. This method can provide more security for the seller compared to the previous two methods, as the documents are sent through the bank, and they are only delivered to the buyer in exchange for payment or acceptance of the bill of exchange.

b) Methods where the buyer’s risk is high.

1. Remittance Method

This method is the most preferred for sellers because they receive payment for the goods before sending the goods to the buyer. In contrast, the buyer’s risk is very high, as they have paid for the transaction and are awaiting the arrival of the goods.

In this method, the buyer may face issues such as the seller failing to send the goods on time, requesting a price increase for the goods, sending goods of lower quality, or even failing to send all or part of the goods.

2. Remittance method by obtaining a bank guarantee

In this method, the buyer requests a bank guarantee from the seller in exchange for payment for the goods. The seller, after completing the necessary procedures, requests the issuance of the guarantee in favor of the buyer from a bank. Once the guarantee is issued and communicated to the buyer, the buyer transfers the full payment for the transaction to the seller.

3. Letter of Credit

In this method, the seller receives payment for the goods only after presenting the shipping documents to a bank in their own country (in accordance with the conditions specified in the letter of credit). This eliminates the risk of non-payment by the buyer.

Related Factors in Letters of Credit

  1. Applicant for Credit: The importer or buyer who submits the request for the opening of the letter of credit and determines the terms of the credit and the required documents.

  2. Issuing Bank: The bank that, based on the applicant’s request, prepares the letter of credit and issues it in favor of the beneficiary.

  3. Advising Bank: The bank that, at the request and with the authorization of the issuing bank, notifies the beneficiary of the issued letter of credit or amendments.

  4. Negotiating Bank: The bank that handles the documents presented in exchange for the credit it has been advised of.

  5. Confirming Bank: Any bank that confirms the letter of credit. According to the UCP (Uniform Customs and Practice for Documentary Credits) rules, it refers to a bank that, upon request or authorization from the issuing bank, adds its confirmation to the letter of credit.

  6. Covering Bank: The agent or intermediary designated by the issuing bank to cover the payment of the documents transacted by the negotiating bank.

  7. Designated Bank: The bank selected by the issuing bank to formalize the credit and make the payment to the beneficiary.

  8. Beneficiary of the Credit: The exporter or seller in whose favor the letter of credit is opened. The issuing bank is irrevocably committed to paying the beneficiary.

Within three business days

This company guarantees that all requested transfers for our valued customers will be processed and completed within a maximum of 3 business days.

Lowest Fees

This company guarantees that all requested transfers for our valued customers will be processed with the lowest possible fees.

Reasonable rates

This company guarantees that all requested transfers for our valued customers will be processed at the most competitive exchange rate of the day.

What is a Yuan remittance?

A remittance is money that is transferred to another party. Generally, any payment for an invoice or bill can be called a remittance. However, the term is more commonly used today to describe the amount sent by someone working abroad to their family back home. The term “remittance” is derived from the word remit, which means to send or return.

A Yuan remittance refers specifically to the transfer of money in Chinese Yuan (CNY), which is the official currency of China. This kind of remittance is typically sent by individuals working overseas to family members or businesses in China.

With Asan Tajarat Abrisham, easily transfer your Yuan and Dollar remittances.