Remitter refers to the party that initiates a remittance instruction and transfers funds to the payee in international trade settlement, usually the importer, buyer, or their entrusted bank. Its main use scenarios include remittance methods such as telegraphic transfer (T/T), mail transfer (M/T), and demand draft (D/D). In a telegraphic transfer, the remitter must fill out a remittance application, provide the payee's name, address, account number, and SWIFT code, and pay the principal and handling fees. Precautions: the remitter must ensure that the payee information is accurate, otherwise the funds may be delayed or returned; attention should also be paid to exchange rate fluctuations and compliance reviews (such as anti-money laundering). In contrast to the payee, the remitter is the party from which funds flow out; unlike the remitting bank, the remitter is the actual paying customer, while the bank is the institution executing the instruction. In foreign trade contracts, the remitter's responsibilities, fee bearing, and remittance time should be clearly specified to reduce transaction risks.
📝 Examples
1. According to the contract, the buyer, as the remitter, shall remit 30% of the advance payment by telegraphic transfer to the seller's designated Bank of China account. (Note: the importer fulfills the advance payment obligation as the remitter.) 2. The remitter must state on the remittance application that 'the funds are used to pay for goods under invoice No. INV2024001' so that the payee can verify and write off the payment in a timely manner. (Note: the remitter fills in the purpose of remittance to ensure transaction traceability.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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