{"id":5771,"date":"2021-02-08T20:23:00","date_gmt":"2021-02-08T12:23:00","guid":{"rendered":"https:\/\/mysourcify.com\/?p=5771"},"modified":"2021-02-08T20:23:00","modified_gmt":"2021-02-08T12:23:00","slug":"is-that-safe-pay-chinese-supplier-t-t-payment","status":"publish","type":"post","link":"https:\/\/mysourcify.com\/fr\/is-that-safe-pay-chinese-supplier-t-t-payment\/","title":{"rendered":"Is that safe to pay Chinese Supplier by T\/T payment"},"content":{"rendered":"

1. What is the T\/T payment?<\/h2>\n\n\n\n
\"Telegraphic-Transfer\"
Telegraphic-Transfer<\/figcaption><\/figure>\n\n\n\n

T\/T  payment<\/strong> (Telegraphic Transfer), also known as wire transfer or swift transfer, is a standard payment method in trade. T\/T wire transfer refers to the outbound bank, upon the request of the remitter, to send a telegram, telex or SWIFT<\/strong> to a branch or correspondent bank in another country (that is, the inbound bank) to instruct a certain amount to be paid to the recipient.<\/p>\n\n\n\n

The T\/T payment is used in international trade and settled in foreign exchange currency. The buyer remits the money to the seller’s bank account by foreign exchange. T\/T is a type of remittance, is commercial credit. After the goods are ready, the seller will send the invoice B\/L and packing list directly to the buyer without going through the bank.<\/p>\n\n\n\n

2. The types of T\/T payment<\/h2>\n\n\n\n

There are three types of T\/T payment in international trade terms. Some are safe for the seller; some are safe for the buyer; it depends on how you negotiate with the seller.<\/p>\n\n\n\n

T\/T in advance(before shipment)<\/h4>\n\n\n\n

In the international trade business, before the shipper delivers the goods, Those who pay 100% of the purchase price are called TT in advance. This\u00a0payment method<\/a>\u00a0is the safest trade method in international trade for the seller. The seller does not need to bear any risk; as long as the money is received, it will be shipped, and if the money is not received, it will not be shipped.<\/p>\n\n\n\n

\"TT
TT in advance<\/figcaption><\/figure>\n\n\n\n

T\/T payment with deposit<\/h4>\n\n\n\n

The second type is TT with deposit payment. The\u00a0TT payment<\/strong>\u00a0with deposit is defined as pay deposit before the goods are delivered. The buyer pays the deposit, usually 30% or 50% of the total amount. Then the buyer pays the balance against the B\/L copy. Generally speaking, the payment with deposit is basically popular. The buyer first gives a 30% deposit, and the other 70% remaining balance paid against the copy of B\/L. Of course, some have a 40% deposit and 60% on the B\/L.<\/p>\n\n\n\n

T\/T after shipment<\/h4>\n\n\n\n

The TT after shipment is defined as after the goods are delivered, the buyer pays the balance. The TT after Shipment is based on the copy of the B\/L to pay the balance. As the seller and buyer have done business for years, they may go with this option, ship the goods before payment. Pay the bill to close the invoice a few weeks later, even months, very similar to OA(open account payment terms).<\/p>\n\n\n\n

3. The process of T\/T payment<\/h2>\n\n\n\n

TT payment is used for remittances between companies and used to transfer money between companies and individuals, such as retirement wages, medical expenses, various labor fees, author’s remuneration, Etc. Also be applied to make related payments made by individuals to companies in other places, such as mail-order goods, books and periodicals, and university tuition.<\/p>\n\n\n\n

The common T\/T payment method process is as follows<\/h4>\n\n\n\n
\"T-T-payment-process\"
T-T-payment-process<\/figcaption><\/figure>\n\n\n\n
  1. The remitter fills out the wire transfer application form<\/strong> and pays to the remittance bank; <\/li>
  2. The remittance bank issues a wire transfer receipt<\/strong> to the remitter;<\/li>
  3. Remittance bank post transmission, telegram or SWIFT<\/strong> to the inbound bank;<\/li>
  4. The remittance bank will send the wire transfer notice<\/strong> to the payee after checking the secret deferment; \u3000\u3000 <\/li>
  5. The payee stamps the receipt<\/strong> of the payment and delivers it to the remittance bank;<\/li>
  6. The inbound bank debits the outbound bank account and settles the remittance to the beneficiary<\/strong>;<\/li>
  7. The inbound bank will send the debit notice<\/strong> to the outbound bank. <\/li><\/ol>\n\n\n\n

    In this way the T\/T payment process is complete, and normally it take a few working days or even in one week the money showing up in Bene\u2019s account.<\/p>\n\n\n\n

    The T\/T payment process during international trade<\/h4>\n\n\n\n
    1. The buyer communicates with the seller and places an order send\u00a0PO(Proforma order)<\/strong>\u00a0to seller. Then the seller\u00a0\u00a0issues the\u00a0PI (Proforma Invoice )<\/strong>\u00a0to the buyer, agree on products, quantity, price, payment terms etc, .<\/li>
    2. The buyer sign the PI and send a copy to seller then remit money according to the seller\u2019s PI, normally\u00a030% of total amount<\/strong>.<\/li>
    3. The seller start\u00a0produce products<\/strong><\/a>\u00a0or preparing goods depends on what kind of products the buyer chooses.<\/li>
    4. Before shipment buyer may transfer the\u00a0balance<\/strong>\u00a0to seller according the PI.<\/li>
    5. The seller\u00a0arranges delivery<\/strong>\u00a0and provides transportation documents such as invoices and packing lists .<\/li>
    6. The broker agent is responsible for\u00a0transporting and receiving<\/strong>\u00a0the goods and notifying the buyer, letting the buyer decide and inform in writing whether the goods enter the bonded warehouse.<\/li>
    7. The buyer pays import taxes to the broker agent. broker agent help handle\u00a0customs clearance procedures<\/strong><\/a>, ship goods to buyer and provide import tax forms.\u00a0<\/li><\/ol>\n\n\n\n

      3.\u00a0How to make T\/T payment<\/h2>\n\n\n\n

      Generally, the current payment process<\/strong> is to prepay 30%. The seller will give the buyer their company’s U.S. dollar account. The buyer will remit money according to the account number. Normally, the bank will deduct a handling fee ranging from $5 to $75. After the remittance, the buyer will receive the payment within a few working days or even in one working day.<\/p>\n\n\n\n

      And the 70% down payment<\/strong> needs to balance before or after shipping. After the goods are shipped, the seller must firmly have the original bill of lading or the bill of lading to be stamped with the electricity release seal in hand. They will send the cargo documents and the COPY bill of lading to the buyer and let them remit the balance. After they receive the down payment, the bill can be issued to the buyer.<\/p>\n\n\n\n

      In this way, the T\/T process is complete.\u00a0Here\u2019s the quick guide on how to make a T\/T payment(oversea) online, based on\u00a0OCBC bank<\/a>.<\/p>\n\n\n\n

      \"online-T-T-payment\"
      online-T-T-payment<\/figcaption><\/figure>\n\n\n\n
      1. The first step:<\/h5>\n\n\n\n