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pacificwaves
Seeker
Joined: May 23, 2007
Posts: 50
Location: On the 23rd Floor.
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 Posted:
July 14, 2007 - 10:58 AM |
 
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| Post subject: Why Chinese Bank refused to transfer my money? |
Why Chinese Bank refused to transfer my money to supplier before they can see a custom declaration?
It's very confusing sometimes in China banking system. We have set up a foreign company in Shanghai Free Trade Zone (Waigaoqiao) since January and it's always headache when dealing for in advance/deposit payment for our supplier.
After signing contract and got proforma invoices, I wanted to send 20% (more and less) total value for deposit to my Chinese supplier, but the bank in free trade zone (in fact, all chinese bank in china for that matter), refused to transfer my money. They said they need to see the custom declaration first, and in China you can't send payment in installment. Every payment should be 100% total invoice amount, and you have to show custom declaration for that. I wonder if anybody can explain why is like this?? I am very confused.. |
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CoffeeHawk_0
Board Buddha
Joined: July 14, 2005
Posts: 14460
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July 14, 2007 - 11:13 AM |
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welcome to china. i hate banking here. i don't blame the banks for not speaking english or publishing policy in english, i am not arrogant about that sort of thing, but I have gone to banks with my local friends and they could not gets things straightened out. other countries' banks are getting the use of my money now. i would think banks would be trying to get more money coming in, not keeping it out, especially after reading their balance sheets. i like living here, it's just i really, really do not understand banking or the attitudes of banks here. once someones messes with your money, it's very hard to get another chance to have that money. |
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CoffeeHawk_0
Board Buddha
Joined: July 14, 2005
Posts: 14460
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July 14, 2007 - 11:13 AM |
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thanks for letting me rant here |
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leidelaohu
Wonder Wit
Joined: June 11, 2007
Posts: 3794
Status: Offline
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July 14, 2007 - 12:28 PM |
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| CoffeeHawk_0 wrote: |
| thanks for letting me rant here |
No, you're exactly right. If foreigner banks ever actually do get to operate in China, the Chinese ones can all close their doors and kiss their asses goodbye. China inaugurated inter-city banking in 900 A.D. - and they haven't updated it since.
Now tell me why you can't add money to a sim card from another city ? It's all china telecom or china unicom (yuck, I have a cdma phone), right ?
Some things in China are simply nuts. |
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horsemandk
StreetBeater
Joined: Mar 23, 2006
Posts: 2241
Location: Shanghai
Status: Offline
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July 14, 2007 - 03:44 PM |
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The reason why you can't pay using installments is that if you do, you could actually transfer more money out of China than you've actually been invoiced. Usually here payment is TT, Bank Transfer or L/C. |
_________________
Those parts of the system that you can hit with a hammer (not advised) are called hardware; those program instructions that you can only curse at are called software. |
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pacificwaves
Seeker
Joined: May 23, 2007
Posts: 50
Location: On the 23rd Floor.
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July 14, 2007 - 03:49 PM |
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Thanks for your reply. But we normally sign contract on 20% t/t in advance, and 80% Cash Against Document basis. So therefore I think every transfer amount shall be very clear, but for some reason Chinese bank don't allow (?) this universal practice here.  |
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