HSBC BANK

Import Trade Service

HSBC Trade Services is well positioned to help your business fulfill its import needs. It offers a full spectrum of import services and our experienced staff are available to ensure your business is handled without delay. 1. Import Documentary Letter of Credit With Import Letters of Credit from HSBC, you can help secure your orders, improve your cash flow and minimize risk by ensuring your suppliers meet a set of agreed upon trade terms. Scope of Service: The Bank provides L/C issuance services as requested by importers to ensure that exporters will receive their payment after all required documents as specify in the L/C that corresponding with the rules and regulations of the International Chamber of Commerce (ICC) have been provided. Efficiently manage your cash flow with Bangkok Bank's universally accepted Letter of Credit. To ensure that your payments will be proceeded with promptly and efficiently, apply for a Letter of Credit at one of our Business Centers. Purpose: 1. To commit importer to pay for the goods ordered when the exporter presents the documents in full compliance with the term and conditions specified in L/C. 2. To provide more convenient and faster way of L/C issuance by the online channel through 3. To have greater opportunity to request for Trust Receipt (T/R) under Letter of Credit. Benefits:

1.Provide confidence to both importer and overseas supplier since L/C is an undertaking by the bank to make payment. 2.Provide comfort to the importer that payment with only be made upon presentation of documents are complied will terms and condition of stated L/C. The benefits of DCs issued by HSBC for both you and your suppliers: 1. Financial strength DCs issued by HSBC have the backing of one of the world's largest financial services organisations. This means that any DCs we issue in your name will be universally acceptable, both by your vendors and their banks. 2. Global network Our global presence across Europe, the Asia-Pacific region, the Americas, the Middle East and Africa means that wherever you trade, an HSBC representative is available to assist with your transactions. By routing your DCs through our overseas branches, we can help reduce your processing times and ensure that the DC is advised to your supplier without delay. This is particularly important if you need your goods in a hurry or if your vendor needs some time to prepare the export documents. 3. Expert assistance Get advice on any aspect of DC issuance, 24 hours a day, 7 days a week, from our awardwinning trade teams. We can also arrange training for your staff at your own offices. Access to HSBC's vast global expertise and resources. Easy electronic applications: simply send your approved DC applications via our global electronic banking service, enabling your to reduce courier fees and avoid delays. DC financing: a usance DC issued through HSBC offers convenience. It only has to be paid after a fixed time period, either after shipment or after receipt of the relevant documents. 4. Vendor support Beneficiaries of HSBC DCs are entitled to the same high level of professional support and advice as any of our customers. Our overseas trade offices can explain complex DC terms to your suppliers and assist them in preparing export documents and identifying discrepancies. We are even prepared to consider providing export finance to your supplier after completion of some simple documentation.

5. Special DC options Get advice and access to a range of specialised instruments such as standby DCs, transferable DCs, back-to-back DCs, revolving DCs and red clause credits from our team of specialists. Procedures: 1. Contact the bank for requesting credit approval (approval for opening L/C) 2. Complete the application form to confirm issuing L/C (The form can be downloaded from the internet or make the transaction through together with submit all required documents to the Bank for credit analysis) 3. After granting the credit, bank will opens L/C at the request of the importer 4. A copy of L/C will be sent to importers. Documents Needed: 1. An application for documentary credit 2. Sales contract, Purchases Order, Performa Invoice, Order Confirmation, Packing List, Certificate of Origin, Beneficiarys Certificate (if necessary) Fee: Letter of credit (L/C) opening commission Where charges are for account of applicant L/C at sight/usance - 0.25% per quarter or minimum THB1,200.Revolving L/C - 0.25% per quarter (applies to reinstatement unit maturity) Standby L/C - 2.50% per annum or minimum THB1,200. Local L/C - 0.20% per month or minimum THB1,200. L/C SWIFT charges - THB1,000.- plus an addition of THB500.- for cable Over 4 pages. Where charges are for account of beneficiary L/C opening commission - Same as above L/C opening commission, minimum USD100.-

 Other charges - SWIFT and courier charges Letter of credit amendment commission Increase of L/C amount/extension of L/C validity - Same as above L/C opening commission, minimum THB1,200. Other amendment - THB500. LC amendment SWIFT charges - THB600. 2. Import Bills / Collections Import collections are generally a cost-effective and common method of trading internationally. They may be simpler for the importer than Letters of Credit as there are fewer formalities involved. Under an import collection, documents relating to the shipped goods are sent from the supplier's bank to the importer's bank and only released to the importer on certain conditions. This also allows the importer to review the shipping documents prior to making payment. Scope of Service International trade is convenient and economical with HSBCs Inward Bills for Collection service. We will receive and check your documents to verify their authenticity and completeness before sending them on to you, offering you added convenience when making payments to your customers abroad. Documents against Payment (D/P) Importers receive documents from the Bank to receive goods after they have already made full payments.

Documents against Acceptance (D/A) Importers receive documents from the Bank to receive goods after they have accepted the terms of payment as per details specified in the bills of exchange stipulating a specific payment period. Purpose:

1. Immediate fund 2. Improve company cash flow pending payment from buyer 3. Financing for full amount of the bill. Benefits: 1.Simple and cost effective, An import collection is generally faster, simpler and more cost effective than issuing Letters of Credit. 2. Flexibility, Under an import collection, you have the flexibility to easily change contract terms on shipping, delivery and insurance right up until goods are shipped. 3. Additional payment control, In contrast to paying your supplier in advance of receiving goods, an import collection allows you to inspect commercial documents before making payment or agreeing to pay at a fixed future date. 4. Improved cash flow, Import collections can improve your cash flow by giving you the flexibility to negotiate credit terms with your seller. Moreover, you do not need to place a deposit or use bank facilities, which are required under an import Letter of Credit. Procedures: 1. The bank obtains Bill for Collection of imported goods from advising bank and then checks the instructions for collection, payment conditions and related documents. 2. The bank contacts and informs importer of Bill for Collection. 3. Importer makes payment in case of D/P or acceptance of D/A. 4. The bank presents the original Bill for Collection and receipt to importer. 5.The bank makes payment to seller through advising bank in case D/P and advise the maturity date in case D/A 6. The bank collects payment from importer upon the due date of D/A and then makes payment to seller. Documents Needed: 1. Bill of Exchange (D/P or D/A)

2. All documents represent the shipment and the title of the goods (e.g. bill of lading and etc.) Fee : 0.25% up to THB1,000,000.- plus 0.125% thereafter or minimum THB1,200. Condition: For your convenience, please notify the sellers to put in writing the Banks name and address in import bills for collection as per details below 3. Import financing HSBC can help you maximise the cash flow of your import business through a range of specialised import financing solutions.

3.1 Import Loans Import loans are secured by a trust receipt, enabling you to finance collections and DCs Goods are assigned to the bank. When you're importing goods, our tailored import finance can help you improve cash flow, negotiate better terms with suppliers and pay them more promptly. Improve cash flow - grow your business We understand that managing cash flow can be a real challenge when your business involves importing goods. An Import Loan from HSBC can help you bridge the gap between making payment to your suppliers and receiving payment from your buyers - your trade cycle.

Negotiate better terms and pay your suppliers more promptly, enhancing your relationships with them Use with your Documentary Credits, Documentary Collections and stand-alone Open Account transactions

Our Trade Finance specialists can arrange funding based on your trade cycle, so you can concentrate on growing your business

Can be arranged in all major currencies.

How Import Loans work

HSBC provides you with short-term, trade related working capital on a pre or post shipment basis for your international purchases Finance is provided against the invoice and transport document HSBC pays your suppliers directly Loans are provided on a stand-alone basis for open-account transactions, or coupled with Documentary Credits or Bills for Collection where you have a post-shipment funding gap

Loan repayment terms are tailored to your trade cycle You will require a Trade facility with HSBC before you can draw down funds on an Import Loan.

3.2 Shipping guarantees Take control of your goods from shipping companies without the bill of lading with universally accepted shipping guarantees issued by HSBC. If your goods arrive before your documents are presented, HSBC can issue a shipping guarantee to the shipping company, undertaking to forward the title documents, eg bills of lading, once received. You then have immediate access to your goods and avoid expensive storage fees and demurrage charges. The benefits with shipping guarantees issued by HSBC:

Enables the immediate possession of goods before payment Avoids unnecessary delays to the day-to-day running of your business Eliminates expensive demurrage/storage charges Allows the deferment of payment until your supplier's documents have been presented Shipping guarantees issued by HSBC are widely accepted by all shipping companies A shipping guarantee can be issued as soon as you make the application

Procedures:

1. Importer have to submits the request for making a Shipping Guarantee to HSBC with a copy of invoice, a copy of Marine Bill of Lading and a Shipping Guarantee of the sea freight company. 2. Importer pays for goods in full or submits a Trust Receipt form to use the credit line. 3. The bank verifies the correctness of the documents to be sent. 4. The bank co-signs the Shipping Guarantee with the importer as a security to the sea freight company. The importer submits Shipping Guarantee to the sea freight company for release goods at the port. 5. When the documents arrive later, the importer must request the original B/L from HSBC to exchange with the Shipping Guarantee from the sea freight company, then returned to the bank for terminate the undertaking guarantee to the sea freight company. Documents Needed: 1. Letter of Undertaking for Issuing a Letter of Guarantee and/or Endorsing Delivery Order 2. Copy of Invoice 3. Copy of Marine Bill of Lading 4. Trust Receipt 5. Shipping Guarantee of sea Freight Company Fee: Issuing fee; for transaction under L/C THB 500.- per month, for transaction under bill collection THB 750.- per month Unredeemed guarantee; THB 500.- per month for the 2nd month and thereafter

HSBC Export Trade Services 1.Export Documentary Letter of Credit Export Documentary Letter of Credit LC (also known as Documentary Credit DC) is an undertaking by a bank (issuing bank), on behalf of your customer (applicant), to make payment for goods or services provided by you (beneficiary) within a prescribed time limit and against stipulated documents such as proof of shipment. This type of trade services minimizes the risk of non-payment when exporting. It is negotiable terms for delivering goods and payments. When you advise your DC through HSBC, we will email you the text of the credit for easy reference and hold the DC in safe custody for you. Our trade specialists will ensure that your documents are as discrepancy free as possible, to minimize any disruption or delays to the receipt of your payment. Procedures: 1. The process of issuing documentary credits starts with your customer - the importer requesting the issuing of a letter of credit with their local bank (known as the "issuing bank"). 2. You must follow all the instructions in this letter of credit and must supply documentary evidence to HSBC (which will be specified in the letter of credit) known as the "advising bank". 3. As the exporter, you will receive a copy of the letter of credit from the importer.

4. Once you have dispatched the goods and attended to all of the requirements as stated in the letter of credit, you can approach HSBC and submit all of the documentary evidence (such as the shipping documents, phyto-sanitary documents, inspection certificates, etc.) of what you have done, and as is set out in the letter of credit. 5. If your documentary evidence exactly meets the requirements as specified in the letter of credit, HSBC will pay you as per the payment instructions (which may be immediately, or after a certain period of time or on a specific date). **It is important, however, that the documentary evidence that you supply to HSBC meets the requirements as stipulated in the letter of credit, exactly - even a spelling mistake or a missing comma can result in their refusal to pay. Documents Needed:

Financial Documents Bill of Exchange, Co-accepted Draft Commercial Documents Invoice, Packing List Shipping Documents Transport Document, Insurance Certificate, Commercial, Official or Legal Documents

Official Documents License, Embassy legalization, Origin Certificate, Inspection Certificate, Phytosanitary Certificate

Transport Documents Bill of lading (ocean or multi-modal or Charter party), Airway bill, Lorry/truck receipt, railway receipt, CMC Other than Mate Receipt, Forwarder Cargo Receipt, etc.

Insurance Documents Insurance policy, or Certificate but not a cover note

Fee: THB800.2.Export Bills / Collections A simple and cost effective way to reduce payment risk by your buyer while giving you the ability to maintain control over commercial documents.

Export documentary collections, or bills for collection, involve the banks of both the buyer (drawee) and the seller (drawer) acting as collectors of funds. After shipping your goods, you pass the documents to us together with your instructions for payment (collection order). We (remitting bank) will then instruct the buyer's bank (collecting/presenting bank) to effect payment according to your instructions. There are two types of export documentary collection:

Documents against Payment (D/P) terms - documents will only be released against buyer's payment of the bill amount Documents against Acceptance (D/A) terms - documents will be released against buyer's promise to pay at a later date (ie acceptance of the term bill)

Protecting your interests Your interests are protected in that the goods, through control over the title documents, are only handed over to the buyer against payment or a promise to pay. However, export documentary collection procedures still entail risks for you (the seller) because payment is not made until after the goods are shipped. You will assume risk while the goods are in transit or in storage until payment or acceptance takes place. You should also note that, unlike documentary credit where banks provide payment guarantee, banks involved in export documentary collections do not guarantee payment. Hence you should always ensure buyer's creditworthiness and reputation before agreeing to an export documentary collection, especially D/A terms. Procedure for Export B/C 1. HSBC receives a set of documents from the seller, then check the documents. 2. Send the documents for collection to the buyer via their bank and monitors the payment. 3. Once the payment has been made or the bill of exchange has been accepted, the seller can either instruct us to transfer the money into their account or purchase the bill of exchange (if the exporter has a credit line for the purchase of bills with HSBC.)

4. Monitor the status of bills and trace payment with the collecting/presenting bank in case of non-payment or non-acceptance. HSBC can help put you in a position to better negotiate terms and prices. The benefits of export collections

Documents and payment collections are handled on your behalf More convenient and cost-effective than issuing LCs Can help reduce disputes, along with interest and expense issues Access to HSBC's international network makes it easier to find outstanding payments

Fee THB800.- per item and THB500.- for each subsequence invoices or B/L