Quoting from [import ant]:


I understand the US Dollar transfers ALWAYS go through US banks and thererfore always will be short on the receivers (Sellers) side.


Are these transfer fees usually considered the receiver's problem if not specified? Or does the receiver expect his bank to receive 100% of the value and he only pays his direct banking fees??

The supplier will expect 100% payment unless as you say it is specified.  It is the cost of doing business.  In some cases where L/C is used and depending on the proforma terms of the supplier if an in country intermediary must be used the supplier will pay this fee as well.

Best regards,

Ranger

Replying to [import ant]:

Suppose a importer AB (in Belgium ) tranfers money say USD 1000 to a supplier XY in India

AB transfers Euro to his Bank and instruct his Bank to remit by SWIFT to
XY's Bank in India

XY's bank will have a Dollar account in USA., so AB's Bank will tranfer the USD 1000 equivalent to American Bank and the nostro account of XY's Bank in USA dollar account will be credited

XY's Bank will take the money from their account and credit XY's current account in India,in IRS equivalent to USD 1000

So in this case the AB's Bank will get the SWIFT charges for remitting the funds to Dollar account to USA bank

There will not be any other charges., sometimes XY's bank will cahrge some inward remittance fee

Replying to [curdrice]:

Thx for your explanation...When transferring $ to India NO money was taken off on the way..(XY's Banks US contact transfer complete value to "nostra account") and XY's Indian bank charged small fee of $6. (I was charge $30 by Israeli bank..and that is usual).

But transfers to China have not worked that way..and about $35 gets lost on the way.

The concept of "nostra account" is familiar to me only with my Indian supplier.

Replying to [import ant]: may be

I pay ususally $40-$750.00 per incomming wire to the US. That are so called "security and transit fees" due to my wire account (comes with pre-verification and a ton of other services). I arrange with my customer that they pay their bank fees and I pay mine. If the bank requires the receiver to pay any fees to them, I offer that they can take it off the money to be transferred.

But this is up to the banks. Some charge more, some nothing for incomming wires. But all charge for outgoing ones. (At least in the US)

Replying to [import ant]: as an exporter from USA many times TT comes anywhere from US$10-40 short. I have called and done my homework on this. Basically if your bank does not have a banking relationship with mine, then you must use an intermediary bank (you can choose which bank if you know). However, if not then your bank with decide. This intermediary bank takes a fess. Varies. To be sure when sending money you should contact your bank and check if your bank has a relationship with the other one. If not then you should call the other bank and ask what bank in the USA they have a relationship with. Then call this bank and ask them what their fee is.. Then ask your bank to use this bank as the intermediary and add their charge on the TT. Otherwise your money will arrive SHORT and it will be up to the recieved to accept it or not. Personally, I have my finance department right it off but there is NOT TRACE or proof this happens.

If you call your bank make sure to insist to speak with someone who knows. It took me weeks and many calls to understand this process.

To answer the question, I feel that this is the sender problem. My bank charges its incoming and if I do not recieve what you owe me, this is not my problem. Do your homework and all will go smooth or chance it and pay short. Maybe one day you will have the supplier say NO and hold your shipment.

Replying to [Mascot India]:yes... maybe...

Thanks to all for the interesting replies...
It seems that US$ transfers to India arrive in total (100% of T/T) to the receiving bank due to the system of NOSTRA ACCOUNT.

US$ transfers to Chinese accounts are another matter..I wonder if the Chinese receiving bank specifieis a specific US Bank..might that lower the amount lost on the way?

Replying to [Ranger]:I am fed up with being ripped off by manufacturers in China, by the way they quote their prices.

If they say that the cost is "X" Dollars in $US then that is what they get the Bank Draft or L/C for.

I am only intereseted in what my price is, not whether they have to pay an intermediary or any other costs.

I pay the freight using my FEDEX Account, (that is not cheap either)so they dont have to worry about that part of the transaction, and adding their mark up there as well.

What they tell me the price is, that is what I pay: NO MORE OR LESS.

Replying to [Amazonianfish]:the sender is responsible for intermediary bank fees. not the receiver.