I. Export Negotiations
- Qualified Applicants: companies handling export businesses, domestic corporations, organizations and individuals approved by the governing authority to handle the export of specific items.
- Credit Application: according to Bank of Taiwan Regulation for the Administration of Export Negotiations Credit, the applicant should fill in the Application for Export Negotiations Credit, and submit credit investigation materials for approval. Once approved, the applicant will be issued export negotiations credit, which can be used after signing the agreement.
- Documents Required: the Application for Export Negotiations, the original copy of the export letter of credit, all the revisions and the related bills.
- Service Fee: charged according to the Foreign Exchange Service Charge Standard of Bank of Taiwan. The service fee is 0.1% of the amount of export negotiations, but the minimum amount is NT$500.00. The service fee is doubled for re-negotiations.
- Place of Application: sales department of the head office, and branches offering foreign exchange services.
II. Export Collections
- Qualified Applicants: companies handling export businesses, domestic corporations, organizations and individuals approved by the governing authority to handle the export of specific items.
- Documents Required: the Application for Export Collections, and relative export shipment documents.
- Service Fee: charged according to the Foreign Exchange Service Charge Standard of Bank of Taiwan. The service fee is 0.05% of the amount of export collections, but the minimum amount is NT$500.00.
- Place of Application: sales department of the head office, and branches offering foreign exchange services.
III. Export Forward L/C Forfaiting Services
In addition to export negotiations services, the Bank also coordinates with other financial institutions to offer export forward L/C forfeiting services.
1. Qualified Applicants: customers of the Bank of Taiwan.
2. Conditions for Application:
(1) The exporter faces the credit risk of the L/C issuing bank or country risk of the
importer due to unstable political conditions or short of foreign exchanges.
(2) Insufficient export negotiations credit.
(3) The exporter needs advance payment of the exported goods to facilitate the
working capital requirement.
3. Application Procedure
(1) The exporter should submit a copy of the export forward L/C to the Bank, and
fill in the Application and Agreement of Forfeiting. The Bank will look for the forfaiter for the exporter.
(2) When the forfeiter is found, the Bank will notify the exporter of the forfaiter’s conditions.
(3) If the exporter accepts the forfaiter’s conditions, it should stamp on the L/C Factoring Agreement, and provide the relative export shipment documents to the Bank after the goods are exported.
(4) After acceptance by the issuing bank, the Bank will pay the exporter on a non-recourse basis.
4. Benefits to the Exporter:
(1) Do not take the export credits.
(2) Improve liquidity of capital and reduce debt to the bank.
(3) Avoid credit risk of the issuing bank, country risk of the importer, and interest rate risk before the maturity of the L/C.
IV. Pre-sale of Forward Foreign Exchange Services
1. Qualified Applicants: Customers (including corporations and individuals) of Bank of Taiwan with no unfavorable records of deposits, loans or foreign exchange transactions with the Bank during the past year, and have income in foreign currencies.
2. Documents Required:
n Application and Agreement on Pre-sale of Forward Foreign Exchange
n Documents
n Copy of the seal
3. Service Fees:
n Guarantee fee: 3% of the contract amount;
n Service fee: 1‰ of the contract amount, at least NT$400.00.
4. Place of Application: sales department of the head office, and branches offering foreign exchange services.
V. Export Letter of Credit and Notification of Amendment Services
1. Qualified Applicants: domestic exporters.
2. Method of Receiving Notice: by mail or at the counter.
3. Service Fee: charged according to the Foreign Exchange Service Charge Standard of Bank of Taiwan. The service fee for each L/C is NT$800.00, for each notification is NT$400.00. The service fee for customers of export negotiations will be refunded.
4. Place of Application: sales department of the head office, and branches offering foreign exchange services.
VI. Export Letter of Credit Transfer Services
1. Qualified Applicants: domestic exporters.
2. Conditions for Application: The applicant should have transferable letter of credit notified by Bank of Taiwan and Bank of Taiwan is assigned as the transfer bank.
3. Documents Required:
(1) Application for Letter of Credit Transfer;
(2) Transferable L/C that assigns Bank of Taiwan as the transfer bank.
4. Service Fee: charged according to the Foreign Exchange Service Charge Standard of Bank of Taiwan. The service fee for each transfer is NT$400.00, plus postal and cable fee of NT$400.00. For overseas transfer, the service fee is NT$800.00 each, plus postal and cable fee of NT$800.00. For amendments, the service fee is half of the original amount.
5. Place of Application: sales department of the head office, and branches offering foreign exchange services.
VII. Export Letter of Credit Confirmation Services
1. Qualified Applicants: domestic exporters.
2. Conditions for Application: The exporter should have the letter of credit notified by Bank of Taiwan and Bank of Taiwan is assigned as the confirmation bank. In addition, the letter of credit should conform to the Bank of Taiwan Principles on Confirmation Services of Letter of Credit Issued by Foreign Banks.
3. Documents Required:
(1) Application for Letter of Credit Confirmation;
(2) Letter of credit that assigns Bank of Taiwan as the confirmation bank.
4. Service Fee: charged according to Foreign Exchange Service Charge Standard of Bank of Taiwan. A period of three months is regarded as one term, with annual service fee rate of 1%-3%. The minimum service fee is US$100.00. The service fee rate remains the same for the extended term. For amendments, the minimum service fee is US$100.00 for each case.
5. Place of Application: sales department of the head office, and branches offering foreign exchange services.