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NAFA Announces: RMB Denominated Auction Payments

 

 

As an accommodation to its Chinese customers, NAFA will allow them to pay for their purchases in Renminbi (RMB).

This is expected to benefit smaller buyers more than the major operators who are able to arrange large transfers of funds from their banks. On or about July 2, NAFA will declare an RMB/U.S. dollar exchange rate that it will guarantee will be valid for all purchases paid in RMB before prompt day. The company plans to publish a comprehensive instruction sheet on its website which will be available during the auction with all relevant bank transfer details.

 

Here are the details:

 

NAFA will require a commitment from you if you intend to pay for your June/July auction purchases in RMB.

  • If you intend to pay for your auction purchases or deposit requirements by Prompt Day, NAFA will ask you to designate the invoices that you intend to pay in RMB and sign a commitment to pay this amount on or before Prompt Day.
  • On or about July 2nd, NAFA will declare an RMB/US dollar exchange rate that it will guarantee will be valid for all purchases paid in RMB before Prompt Day. This will be the fixed rate that all payments received by NAFA on or before Prompt Day will be exchanged at as payment against your US dollar denominated auction purchases.
  • You may ONLY take advantage of this fixed exchange rate up and until Prompt Day. After Prompt Day, you may still pay for your auction purchases in RMB but these payment receipts will be exchanged by NAFA at the prevailing RMB/US dollar exchange rate which may work in your favour or not. Please note that you will be responsible for paying any balance still owing on your account after the RMB funds have been exchanged by NAFA before your goods will be released from our warehouse for shipment.

How to make payment to NAFA:

  • NAFA will publish a comprehensive instruction sheet that will be available on our website and at the Buyer Services counter during the auction with all relevant bank transfer details.
  • Please be aware that payment normally takes 2-3 bank days to reach our account.

What are the advantages of making the payment in RMB?

  • For our Chinese customers, it is convenient to make payments in RMB, because there is noneed to purchase foreign currencies in advance.
  • Chinese customers have no exchange risk when making payment with their own currency.
  • There will not be any exchange risk in tariff and VAT calculation, so it simplifies accounting calculation in terms of cost and tax. It is a resource and time saving for our Chinese customers.

When is the right moment to convert the invoice into RMB?

  • If you foresee that RMB is depreciating against US dollar by Prompt Day, you should choose to convert the invoice to RMB at the established auction rate as soon as the auction is completed.
  • If you foresee that RMB is appreciating against US dollar by Prompt Day, you should choose to convert the invoice to RMB at the moment you are ready to pay.

 

International Fur Auctions
by RB Media Group
Posted: June 21, 2015