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What are the Terms & Conditions and Purpose of Payment Codes for international payments sent in the Chinese Renminbi (CNY) currency?

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Terms & Conditions

The terms below apply to business and corporate customers for international payments sent in the Chinese Renminbi (CNY) currency.

  1. One of the purpose codes required by the [The Royal Bank of Scotland plc./National Westminster Bank Plc.] (the “Bank”) must be provided with the instruction by the Customer. The payment must be for that purpose only.
  2. It is recommended that the payment information contain an invoice or purchase order number for the transaction.
  3. Payments can only be made to companies and not individuals.
  4. All information must be in English.
  5. The Customer should retain documentary evidence of the underlying invoice for 6 years and it is a requirement to provide documentation if requested by the Bank.
  6. If any of this information is not provided (mandatory or recommended) the payment may be delayed or returned and the Bank accepts no liability resulting from that.

A mandatory change implemented by the Central Bank of China means that all payments sent in the Chinese Renminbi (CNY) currency must include a Purpose of Payment code.

A valid purpose code must be included in the 'Information for the beneficiary' field for all payments made in Chinese Renminbi (CNY) currency. The table below highlights the codes along with their definitions:

Purpose Code

(Standard or Urgent International Payment)

Definition 

CGODDR

Cross Border Goods Trade.

Cross-border settlement based on trade for goods, including general merchandise, goods for processing, goods for repairing, goods bought in transportation ports, import and export of non-currency gold, etc. 

CSTRDR

Cross Border Service Trade.

Cross-border settlement based on trade in services, including services relating to transportation; travel; communication service; constructions and installation services and their subcontract services; insurance; financial services; computer and information services; patent and license fees; sports and entertainment services; government services and the other commercial services not mentioned above.

CCTFDR

Cross-Border Capital Transfer (including capital transfer other than Bond).

Cross-border fund transfer under capital account, including capital account transactions (capital transfers; acquisition/disposal of non-productive, non-financial assets), direct investment, securities investment and other investments.

CCDNDR

 Charity donation

COCADR

Other Current Account Transactions.

Including income (investment profits) and current transfers (donation not related to real estate or without conditions; payments to foreign countries including compensation, tax, amercement, membership fees).

 

How to supply Purpose Code

Bankline International Payment Entry Screen

Enter the purpose code on the first line of the of ‘Information for the beneficiary’ field with no other details present. The remaining lines are free for you to use as normal.

An example of how to enter this information appears below:

 Purpose code CNY update

Importing Payments

The correct purpose code must be entered in field T037 (Information for the Beneficiary line one). No other detail should be provided in this field.

Any further information for the beneficiary can be entered in fields T038 to T040.

 

 

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