Recently, China Everbright Bank (CEB) has launched the product “Bank-Customs Loan” on the basis of “Bank-Customs Link” to further expand corporate banking and meet the needs of enterprises in paying duties. The “Bank-Customs Loan” provides short-term financing and settlement for “Bank-Customs Link” clients in paying their duties and expenses, and has been very well received.

As a member of the “Bank-Customs Link” family, “Bank-Customs Loan” is a combination of “Bank-Customs Link” and “Legal Person Account Overdraft”. For clients of “Bank-Customs Link” with a credit line granted by CEB, if they do not have enough balance on their accounts while paying duties and expenses online, CEB would automatically provides credit to cover the overdraft portion so as to meet their needs for paying duties.

The client of “Bank-Customs Loan” should meet three requirements: firstly, the enterprise is a client of “Bank-Customs Link”; secondly, the enterprise is granted a credit line for legal person account overdraft and sign the agreements on comprehensive credit and legal person account overdraft respectively, which explicitly state that the account for paying duties and expenses shall be the same as the overdraft legal person account; and thirdly, the enterprise activates the legal person account overdraft function of the duties-paying account under “Bank-Customs Link”.

Online payment of duties and expenses is an integral part of the “Golden Customs Project”, a National Key Scientific and Technological Project under China’s Tenth Five-year Plan. This model is and will be vigorously promoted by the Customs. The Bank-Customs products launched by CEB meet the needs for e-payments of duties and expenses. From macro perspectives, they conform to the development trend of import/export trade, the direction of the financial system reform and the trend of transformation of the banking industry in China. From micro perspectives, they help to optimize the business structure, improve the overall return and competitiveness, and satisfy needs of clients. Therefore, the products are of bright prospect and great market potential.

Relevant statistics show that in 2005, the duties and expenses of Customs totaled RMB527.8 billion, among which RMB50 billion was paid online, accounting for 10%, far from the target set by the General Administration of Customs that at least 80% of duties and expenses should be paid online. On the other hand, as Renminbi enters the appreciation cycle, imports will gradually enter a phase of rapid development. Accordingly, duties and expenses, mainly comprised of import tariff, will witness a significant increase. It can be seen that the Bank-Customs product line has a great market with promising prospects.

At the end of this March, the Bank-Customs product line has attracted over 200 clients, with total transaction volume of 5,000 and a collection of RMB620 million duties and expenses. While facilitating clients, CEB has also received significant returns in deposits, loans, international settlements and exchange settlement and sales.

CEB will continue to develop new products in the Bank-Customs line so as to better serve import and export enterprises by providing safe, efficient and practical online services, striving for a win-win situation for CEB, the Customs and enterprises.