Standard Operation Procedure

for RMB Border Trade Settlement

Prepared by ICBC Yangon Branch

Content

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1. Relationship Management Application (RMA) and accounts opening.........................................3
2. Procedures under different methods of payments.........................................................................4
2.1 Procedures under Telegraphic Transfer (T/T).....................................................................4
2.1.1 For import outward payment....................................................................................4
2.1.2 For export inward payment......................................................................................5
2.2 Procedures under Letter of Credit (L/C).............................................................................5
2.2.1 For import L/C outward payment.............................................................................5
2.2.2 For export L/C inward payment...............................................................................6
2.3 Procedures under Collection (D/P and D/A).......................................................................6
2.3.1 For import Collection outward payment..................................................................6
2.3.2 For export Collection inward payment.....................................................................7
3. Details on ICBC YGN’s RMB clearing services..........................................................................8
4. Enter rules for MT103 and MT202...............................................................................................9
5. Codeword List.............................................................................................................................10
6. ITRS Code...................................................................................................................................11
7. Fees.............................................................................................................................................14
8. Payment Service contact details..................................................................................................15

In order to facilitate the Myanmar-China Border Trade RMB Settlement, Industrial

and Commercial Bank of China Ltd. Yangon Branch (“ICBC YGN”) and

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XXXXXX____ (“XX Bank” or the “Participant”) agreed with each other on this
Standard Operation Procedure. The procedures might be amended according to
regulators’ requirements and internal requirements from time to time. In case of any
amendments, ICBC YGN and XX Bank shall notify each other as soon as possible.
1. Relationship Management Application (RMA) and accounts opening
1.1 In order to facilitate the orderly compliance with the authority requirements from
each of their home countries, ICBC YGN and XX Bank shall establish a RMA
(relationship management application) relationship, grant RMA authorization to each
other in order to support communication and ensure compliance. At the moment,
RMA has been established between ICBC YGN and XXB. No further action needs to
be taken with regards to RMA.
1.2 XXB will require a RMB A/C at ICBC YGN. At the moment, XXB has already
opened RMB A/C at ICBC YGN and no further action is needed.
1.3 For the MMK settlement related to the RMB Border Trade Settlement between
ICBC YGN and XXB, CBN-Net can be used for that purpose.
2. Procedures under different methods of payments

2.1 Procedures under Telegraphic Transfer (T/T)

2.1.1 For import outward payment
(1) Importer customer opens MMK and RMB A/C with XXB Muse Branch.
(2) Importer customer submits remittance application to XXB Muse Branch and
related supporting documents as per XXB compliance requirements.
(3) XXB reviews the above-mentioned documents submitted by customers. If
documents are satisfactory to XXB, XXB will agree to make outward
payment.
(4) If the customer has enough RMB fund in its RMB account, XXB will debit
customer RMB account directly; if the customer has no RMB fund for
payment, then it will buy RMB from XXB and sell MMK to XXB. XXB
Muse Branch will forward the instruction to XXB HO and XXB HO will
forward the instruction to ICBC YGN by MT103 when fund is ready.
(5) If XXB can square its RMB position, then outward payment instruction is
completed after ICBC YGN transfers the fund to the Beneficiary. If XXB
cannot square its position, then it will ask the applicable exchange rate of
ICBC YGN. If the FX rate is acceptable for XXB and customer, XXB will
buy the RMB from ICBC YGN to square position, and then transaction is
completed.
2.1.2 For export inward payment

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 (1) Exporter customer opens MMK and RMB A/C with XXB Muse Branch.
(2) ICBC YGN will receive an inward payment instruction in SWIFT (MT103)
and credit the RMB funds into XXB HO’s RMB account with ICBC YGN
after reviewing the authenticity and completeness of MT103.
(3) XXB HO will notify XXB Muse Branch about the incoming funds; XXB Muse
Branch will notify its exporter customer accordingly.
(4) If the exporter customer hopes to hold RMB in its account, XXB Muse Branch
will credit RMB funds into customer RMB account after reviewing
necessary documents; if customer wants to exchange RMB to MMK, XXB
will buy RMB from customer and sell MMK to customer.
(5) If XXB can square the RMB position by itself, then transaction is completed
after XXB credits RMB funds into customer RMB account. If XXB itself
cannot square the RMB position, then it will ask the applicable exchange
rate of ICBC YGN. If the FX rate is acceptable for XXB and customer,
XXB will sell the RMB to ICBC YGN to square position, and then
transaction is completed.
2.2 Procedures under Letter of Credit (L/C)
2.2.1 For import L/C outward payment
(1) Importer customer opens MMK and RMB A/C with XXB Muse Branch.
(2) XXB Muse Branch opens an import L/C in RMB upon importer’s request. The
L/C will be advised to the designated Advising Bank in China in favor of
the Beneficiary. If XXB does not have RMA with the Advising Bank,
ICBC YGN can act as the first Advising Bank upon XXB’s request.
(3) Documents will be prepared by exporter in China and delivered to XXB Muse
Branch by the Presenting Bank. After checking the documents, if the
documents are in compliance with the laws and specific requirements, XXB
Muse Branch will make payment/acceptance.
(4) Importer customer makes payment instruction to XXB Muse Branch. Then
XXB Muse Branch can release L/C documents to customer.
(5) If the customer has enough RMB fund in its RMB account, XXB will debit
customer RMB account directly; if the customer has no RMB fund for
payment, then it will buy RMB from XXB and sell MMK to XXB. XXB
Muse Branch will forward the instruction to XXB HO and XXB HO will
forward the instruction to ICBC YGN by MT103 when fund is ready.
(6) If XXB can square its RMB position, then outward payment instruction is
completed after ICBC YGN transfers the fund to the Beneficiary. If XXB
cannot square its position, then it will ask the applicable exchange rate of

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 ICBC YGN. If the FX rate is acceptable for XXB and customer, XXB will
buy the RMB from ICBC YGN to square position, and then transaction is
completed.
(7) If there is a discrepancy in the documents, XXB will refuse to pay/accept in
accordance with international practice by sending refusal notice to the
Presenting Bank.
2.2.2 For export L/C inward payment
(1) Exporter customer opens MMK and RMB A/C with XXB Muse Branch.
(2) Importer in China will request its bank to issue a L/C in RMB and send to the
Advising Bank, ie. XXB Muse Branch. XXB Muse Branch will advise the
export L/C to its customer. If the L/C Issuing Bank has no RMA with
XXB, they can choose ICBC YGN as the first Advising Bank.
(3) Exporter presents the documents to XXB Muse Branch and it will check the
documents. If the documents are in compliance with laws and specific
requirements, XXB will deliver the documents to the Issuing Bank by
courier services. If the documents are in not compliance, XXB requests
customers to amend documents. On the covering schedule to Issuing Bank,
XXB shall instruct Issuing Bank to proceed the payment by crediting to its
RMB account with ICBC YGN.
(4) ICBC YGN will receive an inward payment instruction in SWIFT (MT103)
and credit the RMB funds into XXB HO’s RMB account with ICBC YGN.
(5) XXB HO will notify XXB Muse Branch about the incoming funds; XXB Muse
Branch will notify its exporter customer accordingly.
(6) If the exporter customer hopes to hold RMB in its account, XXB Muse Branch
will credit RMB funds into customer RMB account; if customer wants to
exchange RMB to MMK, XXB will buy RMB from customer and sell
MMK to customer.
(7) If XXB can square the RMB position by itself, then transaction is completed. If
XXB itself cannot square the RMB position, then it will ask the applicable
exchange rate of ICBC YGN. If the FX rate is acceptable for XXB and
customer, XXB will sell the RMB to ICBC YGN to square position, and
then transaction is completed.
2.3 Procedures under Collection (D/P and D/A)
2.3.1 For import Collection outward payment
(1) Importer customer opens MMK and RMB A/C with XXB Muse Branch.
(2) Exporter in China will prepare the documents under Collection (D/P or D/A)
and instruct its bank (Collecting Bank) to deliver documents to XXB Muse

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 Branch by courier services. XXB Muse Branch will notify its importer
customer after receipt of documents and necessary internal documents
checking.
(3) Importer customer makes payment instruction/acceptance instruction to XXB
Muse Branch. And then XXB can release documents to customer.
(4) If the customer has enough RMB fund in its RMB account, XXB will debit
customer RMB account directly; if the customer has no RMB fund for
payment, then it will buy RMB from XXB and sell MMK to XXB. XXB
Muse Branch will forward the instruction to XXB HO and XXB HO will
forward the instruction to ICBC YGN by MT103 when fund is ready.
(5) If XXB can square its RMB position, then outward payment instruction is
completed after ICBC YGN transfers the fund to the Beneficiary. If XXB
cannot square its position, then it will ask the applicable exchange rate of
ICBC YGN. If the FX rate is acceptable for XXB and customer, XXB will
buy the RMB from ICBC YGN to square position, and then transaction is
completed.
(6) If customer does not make payment instruction/acceptance instruction, then
XXB will refuse to pay/accept in accordance with international practice by
sending refusal notice to the Collecting Bank.
2.3.2 For export Collection inward payment
(1) Exporter customer opens MMK and RMB A/C with XXB Muse Branch.
(2) Exporter presents the documents to XXB Muse Branch and it will check the
documents if necessary. XXB will deliver the documents to the designated
Collecting Bank in China by courier services. On the covering schedule to
Collecting Bank, XXB shall instruct Collecting Bank to proceed the
payment by crediting to its RMB account with ICBC YGN.
(3) ICBC YGN will receive an inward payment instruction in SWIFT (MT103)
and credit the RMB funds into XXB HO’s RMB account with ICBC YGN
after reviewing the authenticity and completeness of MT103.
(4) XXB HO will notify XXB Muse Branch about the incoming funds; XXB Muse
Branch will notify its exporter customer accordingly.
(5) If the exporter customer hopes to hold RMB in its account, XXB Muse Branch
will credit RMB funds into customer RMB account; if customer wants to
exchange to MMK, XXB will buy RMB from customer and sell MMK to
customer.
(6) If XXB can square the RMB position by itself, then transaction is completed. If
XXB itself cannot square the RMB position, then it will ask the applicable
exchange rate of ICBC YGN. If the FX rate is acceptable for XXB and

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 customer, XXB will sell the RMB to ICBC YGN to square position, and
then transaction is completed.
3. Details on ICBC YGN’s RMB clearing services
3.1 Remittances / RMB Payments
ICBC YGN is able to remit/ make RMB payments from Myanmar to Mainland
China or other offshore markets (outside Mainland of China).
3.2 Processing Payments
XXB shall send authenticated SWIFT messages (such as MT103, MT202) to the
ICBC YGN (BIC: ICBKMMMYXXX) and the payments will be routed to the
Beneficiary Bank or the Intermediary Bank via the most appropriate payment
system.
Upon receipt of the SWIFT payment instructions, the ICBC YGN will process and
send a corresponding MT103 or MT202 to the beneficiary bank or intermediary
bank.
XXB shall provide full and complete payment details of its customer, Beneficiary
Bank and Intermediary Bank and any other information as required. All cross
border payments to Mainland China is subject to the rules and regulations of
PBOC (People’s Bank of China) and any guidelines issued by CBM (Central
Bank of Myanmar).
3.3 Incoming RMB Payment Route
RMB paid and remitted or shall be paid and remitted from Mainland China or
outside of Mainland China to the XXB shall be made to ICBC YGN (BIC:
ICBKMMMYXXX).
3.4. Operating Hours for Payments
XXB will send the payment instructions to ICBC YGN via authenticated SWIFT
messages (such as MT103 or MT202) within the Clearing Hours stated below for
same day payments. Payment instructions received by ICBC YGN after the
stated cut-off times will be processed the next operating day.
The cut-off times is 3:30 PM (Myanmar Time).
3.5. Amendment of Payment Instructions
Any amendments to the payment instructions shall be sent to ICBC YGN via
authenticated swift (MT199/MT299). ICBC YGN shall amend the payment
instructions accordingly if payment has not been processed.
If however, the payment has gone through, ICBC Yangon Branch shall promptly
inform XXB of such event via authenticated SWIFT.

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 3.6. Request for Cancellation and Return of Fund
All requests for cancellation and return of funds shall be promptly conveyed to
ICBC YGN via authenticated SWIFT MT292 or MT199/299.
ICBC YGN will attempt to cancel the payment upon the receipt of such instructions
provided payment has not already been processed. If the payment has been made,
ICBC YGN will request the return of funds from the Beneficiary.
Return of funds is solely dependent on the Beneficiary and it is beyond the control
of ICBC YGN. ICBC YGN does not make any representations or guarantees for
the return of funds in this regard.
Upon receipt of the returned funds, ICBC YGN shall credit the amount to XXB’s
RMB Account. Thereafter, ICBC YGN will advise XXB via MT202 (credit
advice).
4. Enter rules for MT103 and MT202
4.1 MT103

MT103 ITEM Enter Rules

32A Enter date and amount (per swift standard)

Enter Remitter’s account number
50 OPTION K
Enter Remitter’s name and address
52 Optional field
56 OPTION A Optional field, enter SWIFT CODE if necessary
57 OPTION A Enter SWIFT CODE of beneficiary’s bank
Enter beneficiary account number
Name and Address: enter beneficiary’s name and full
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address(including city, province, country and postcode)
Note: If it is ICBC customer’s A/C, it should be 19 digits.
70 Enter Remittance information
“SHA” or “BEN” ( Fee will be deducted from instructed amount)
71
“OUR” (Fee will be deducted from XXB’s account)
Line 1 enter one of the business category codewords: “/GOD/”,
72 “/STR/”, “/CTF/”, “/OCA/”, “/RMT/” or “/CDN/”, to indicate the
payment purpose
Example of MT103
Sender Bank： XXXXMMMYXXX
Receiver Bank： ICBKMMMYXXX
20:XXXXXXXXXXX
23B:CRED
32A:190523CNY1566000,00

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50K:/1204070011238509189
ABC CO. LTD.
6 RAFFLES QUAY
57A:ICBKCNBJSHI (OR) BKCHCNBJ300
59:/1204070016211888012
XYZ CO LTD
XINHUA RD. HANGZHOU , CHINA
70:PAYMENT FOR FOODS
71A:SHA
72:/GOD/
/ACC/ZJPMYKL12010328H

4.2 MT202
MT202 ITEM Enter Rules
32A Enter date and amount (per swift standard)
52 Optional field
56 OPTION A Optional field, enter SWIFT CODE if necessary
57 OPTION A Enter SWIFT CODE
Enter beneficiary account number(Optional)
Enter beneficiary bank SWIFT CODE
OPTION A
Note: (1) OPTION A is preferred
(2) If it is ICBC customer’s A/C, it should be 19 digits.
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Enter beneficiary account number(Optional)
Enter beneficiary bank’s full name and address
OPTION D
Note: If it is ICBC customer’s A/C, it should be 19
digits.
Line 1 enter one of the business category codewords: “/GOD/”,
72 “/STR/”, “/CTF/”, “/OCA/”, “/RMT/” or “/CDN/”,to indicate the
payment purpose

Sender Bank： XXXXMMMYXXX

Receiver Bank： ICBKMMMYXXX

20:XXXXICBKXXXXXX
Example of MT202
21:NONREF
32A:190502CNY12000
57A:ICBKCNBJXXX
58A:/1252346010016528134
ICBKCNBJSHI
72:/STR/
/BNF/XXXXXXWYXXX

5. Codeword List

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Effective from 26th July 2014, participants are advised to use any one of the new 13
codeword below for various business categories for Line 1 of Field 72 of the MT 103
or MT202 SWIFT message when issuing outward payments to Mainland China.
Failure to indicate the new business category according to the new codeword may
result in the payment being returned or delayed.
The codewords and the definition of the business categories are as follows:
No. Codeword Business Category Clarification
Cross-border settlement conducted for trade in goods,
Cross-border goods including general merchandise, goods for processing, goods
1 /GOD/
trade required for repairing, goods procured in ports by carriers,
non-monetary gold import and export, etc.
Partial or full return
/PRGOD/ or Use /PRGOD/ for partial return. Use /RGOD/ for full
2 for cross-border
/RGOD/ return.
goods trade
Cross-border settlement conducted for trade in services,
including services or fees relating to transportation; travel;
communications;construction services; installation projects
Cross-border service
3 /STR/ and their subcontract services; insurance; financial services;
trade
computer and information services; royalties and license
fees; sports and entertainment; government services not
mentioned above and other commercial services, etc.
Partial or full return
/PRSTR/
4 for cross-border Use /PRSTR/ for partial return. Use /RSTR/ for full return.
or /RSTR/
service trade
Capital account transactions, (capital transfers and
Cross-border capital acquisition/disposal of non-productive or non-financial
5 /CTF/
transfer assets), direct investments, securities investments, other
investments, etc.
Partial or full return
/PRCTF/
6 for cross-border Use /PRCTF/ for partial return. Use /RCTF/ for full return.
or /RCTF/
capital transfer
Income (employee compensation, investment yield) and
Other current account current transfers(non-reimbursable assistance,
7 /OCA/
transactions compensation, tax, fine, membership fees to international
organizations, contingency income and expenditure,etc)
Cross-border
8 /RMT/ For cross-border individual remittance.
individual remittance
Partial for full return
/PRRMT/ Use /PRRMT/ for partial return. Use /RRMT/ for full
9 for individual
or /PRMT/ return.
remittance
/FTF/ or Financial Institutions
10 /SFT/ or Cross-border fund Financial institutions cross-border fund transfer
/DFT/ transfer
11 /CDN/ Charity donation Donation to charities
12 /FRTN/ Fund return Full return of the original transaction

Notes: For codeword No.2,4,6,9, partial or full return is applicable to certain category, such as cross-
border goods trade, cross-border service trade, cross-border capital transfer and cross-border
individual remittance. Codeword No.12, is applicable to all categories.

6. ITRS Code

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As per instruction of Central Bank of Myanmar (CBM), Banks have to perform the regulatory
reporting for every inward and outward mt103 and mt202 messages with ITRS codes. All messages
shall contain the relevant ITRS code as below.
MT103: ITRS code for remittance information shall be mentioned at field 77b or 70.
MT202: ITRS code shall be mentioned at field 72.
The transaction without ITRS code may be held or suspended till to provide it for the regulatory
reporting.

ITRS CODE

1. Goods exported and imported

1100 - Exports
1200 - Imports
2. Transport and travel services
Freight services
2110 - Sea transport
2120 - Air transport
2130 - Other transport
Passenger services
2210 - Sea transport
2220 - Air transport
2230 - Other transport
Other transport services
2310 - Sea transport
2320 - Air transport
2330 - Other transport
2340 - Postal and courier services
Travel services
2510 - Business travel
2520 - Personal travel
3. Other services
3100 - Manufacturing services
3200 - Maintenance and repair services
3310 - Construction abroad
3320 - Construction in Myanmar
3410 - Insurance premiums
3420 - Insurance claims
3430 - Financial services fees
3500 - Charges for use of intellectual property (royalties and license fees)
3610 - Telecommunication
3620 - Computer services
3630 - Information service

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3710 - Research and development services
3720 - Professional and management consulting services
3725 - Operating lease(rental of equipment)
3730 - Technical, trade-related, and other business services
3740 - Audiovisual and related services
3750 - Personal, cultural, and recreational services
3800 - Services to government not included elsewhere
4. Income
4100 - Dividends
4300 - Interest
4400 - Taxes
4500 - Subsidies
4600 - Rent
4700 - Compensation of employees
5. Transfers
5200 - Workers' remittances
5300 - Other personal transfers
5400 - Grants for infrastructure and purchase of capital goods
5500 - Development assistance
5600 - Other current transfers
7. Transactions in claims (assets) on nonresidents
7100 - Equity
7200 - Debt between affiliated enterprises
7310 - Long-term debt securities
7320 - Short-term debt securities
7400 - Options, futures, warrants, swaps, etc.
7510 - Loans, long-term
7520 - Loans, short-term
7530 - Trade credits and advances, long-term
7540 - Trade credits and advances, short-term
7600 - Deposits
7800 - Other
8. Transactions in liabilities to nonresidents
8100 - Equity
8200 - Debt between affiliated enterprises
8250 - Payments of local expenses of resident affiliates by their parent companies
8310 - Long-term debt securities
8320 - Short-term debt securities
8400 - Options, futures, warrants, swaps, etc.
8510 - Loans, long-term
8520 - Loans, short-term

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 8530 - Trade credits and advances, long-term
8540 - Trade credits and advances, short-term
8600 - Deposits
8800 - Other
9. Transfer of funds between residents (for MT202 only)
9000 - Transfer of funds between residents' accounts
9100 - Transfer of funds between banks resident in Myanmar
9200 - Transfer of funds of resident banks with banks abroad
9300 - Deposits to and withdrawals from residents' accounts
9400 - Purchase and sale of foreign currency between residents and residents banks accounts

7. Fees

Item Price
Commercial Payments (MT103)
Credits (Inward) CNY 60 per case
Remittance to Bank inside China
CNY 60 per case
Remittance to Bank outside China
Treasury Payments (MT202)
Incoming CNY 60 per case
Outgoing (Book Transfer): CNY 30 per case
Outgoing (SWIFT) CNY 60 per case
Return of remittance/Amendment/Cancellation CNY 120 per case
L/C advising CNY 200 per case
L/C amendment advising CNY 120 per amendment advising

Default charge rules:

Outward Payments
MT103
1. If “BEN” or “SHA” is indicated in field 71A, clearing charge will be deducted from
remitted/instructed amount.
The MT103 to the Beneficiary bank will show field 71A as “SHA”
2. If “OUR” is indicated, the fee will be debited from the Participant’s account on a
transactional basis.
The MT103 to the Beneficiary Bank will show field 71A as “OUR”
MT202
Charge will be debited from Participant’s account on a transactions basis.
Inward Remittances
MT103
1. If “BEN” or “SHA” is indicated in field 71A, clearing charge will be deducted from

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 remitted/instructed amount.
2. If “OUR” is indicated, the fee will be debited from the Participant’s account on a
transactional basis.
MT202
Charge will be debited from Participant’s account on a transactions basis.

8. Payment Service contact details

Contact person Title Contact Number Email Service

Dept.
Mr. Huang Mian 01-9339258-8866 [email protected] Clearing/payments
Head
Ms. Phyo Nanda Tint - 01-9339258-8858 [email protected] Clearing/payments
Ms. Htet Htet Aung - 01-9339258-8827 [email protected] Clearing/payments
Ms. Win Lae Khine - 01-9339258-8854 [email protected] Clearing/payments

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