KLBANK Suspended The Exchange Of Euro, You Must Pay In RMB!
With the resumption of US Sanctions against Iran, many Kunlun Bank (KLBANK) agents sent a message saying in early August: “Kunlun Bank suspended the Euro settlement since August 1st.”
For Example
Recently, there is a friend who has an Iranian order of more than 40,000 Euros. Both the PI of RMB and Euro have been made to the Client, and he informed the Client to pay in RMB. The Client has no objection!
© Image | Baidu
Then the Client applied for the Foreign Exchange Quota and arranged the payment. As a result, the amount approved for this order was Euro, and the Client did not inform the Exporter to pay the Euro, the Exporter pay the amount directly after receiving!
However
When the Exporter submitted all the materials to KLBANK, the bank staff said, the Euro can not be settled now!
The options are
1
Return the money,
ask the Client to send RMB again.
However, Iranian Client have already used up the foreign exchange quota applied for this order, new orders need to be applied, and the procedures in the process are very troublesome.
2
Exchange Settlement in Original Currency, KLBANK tansfers the Euro to other Banks that have accounts with the company name.
But KLBANK was placed on the U.S. Sanctions list in 2012, and no bank now dares to take its money. And it is illegal to transfer Foreign Currency like this in China!
Unfortunately
If the Declaration is in Euro and the Receipt is in RMB, the tax cannot be applied for tax refund.
This is really a shame!
© Image | Baidu
Therefore, we remind here to all Iranian Client and freight forwarders, it must use the RMB to settle through the KLBANK or KLBANK agents, no Euro! Please pay close attention to our wechat to learn more about logistics!