How to pay Chinese suppliers from the Philippines
A Philippine importer pays a Chinese supplier by sending US dollars by SWIFT from its company's dollar account, or with dollars bought from its bank, to the supplier's company account in China or Hong Kong. The Bangko Sentral ng Pilipinas (BSP) allows banks to sell dollars for imports under letters of credit, collections, open account, direct remittance and advance payment, with documents required above set thresholds. This guide covers those rules, the routes, published bank charges, Bureau of Customs documents and the risks of paying through agents.
- Under the BSP Manual of Regulations on Foreign Exchange Transactions, banks may sell foreign exchange for imports under letters of credit, D/P, D/A, open account, direct remittance and advance payment.
- A corporate buyer can purchase up to USD 1,000,000 a day for imports from a bank with the Application to Purchase Foreign Exchange alone; above that, the bank also asks for supporting documents.
- Banks may service a direct remittance for an import within 29 calendar days after the bill of lading date, while D/A and open account imports must be payable at least 30 days after shipment.
- Bank of China Manila was named clearing bank for renminbi business in the Philippines by the BSP and the People's Bank of China, as reported in September 2019.
- The Bureau of Customs asks for a bill of lading, a commercial invoice or other verifiable payment document, a packing list and a notarized Supplemental Declaration on Valuation for an import entry.
- BSP Circular No. 1108 states that virtual assets are not issued or guaranteed by any jurisdiction and do not have legal tender status.
How to pay a Chinese supplier from the Philippines: the short answer
A Philippine business pays a Chinese supplier in three stages. It agrees the price and payment terms, it pays by bank transfer from an account in the company's own name to the supplier's company account, and it clears the goods with the Bureau of Customs using documents that match the payment. The payment is usually a SWIFT transfer in US dollars. SWIFT is the international messaging network banks use for cross-border payments, and each bank has an 8 or 11 character SWIFT code.
The usual sequence for an order is:
- Agree the price, the payment terms and the Incoterm with the supplier, and get a proforma invoice. An Incoterm is a standard trade term, such as FOB or CIF, that sets who pays freight and insurance. A proforma invoice is the supplier's priced quotation for the order.
- Decide whether to pay from dollars the company already holds or to buy dollars from your bank. If you buy, complete the BSP Application to Purchase Foreign Exchange.
- Pay the deposit by SWIFT, quoting the proforma invoice number in the payment reference.
- Pay the balance against a copy of the bill of lading, or through a letter of credit or a documentary collection.
- Lodge the import entry with the Bureau of Customs with the bill of lading, invoice, packing list and any permits the goods need.
This guide covers the Philippine side of each step. For the supplier's side, such as how Chinese factories invoice and why many use a Hong Kong account, see our guide on how to pay suppliers in China.
BSP rules on paying for imports
The BSP is the central bank of the Philippines. Its foreign exchange rules sit in the Manual of Regulations on Foreign Exchange Transactions. The import rules are in Part Two, Chapter II, Sections 6 to 14 of the version filed with the World Trade Organization. Banks that deal in foreign exchange are called authorized agent banks (AABs), and the Manual lets them and their foreign exchange subsidiaries sell dollars to residents to pay for imports.
Buying dollars for an import
Under Section 6, a bank can sell up to USD 1,000,000 a day to a corporate client for imports against the Application to Purchase Foreign Exchange alone. For individuals the figure is USD 500,000. Above those amounts, the bank also asks for the documents listed in the Manual's appendices, such as the invoice and shipping documents. The dollars bought must be sent directly to the supplier abroad on the day of purchase, or credited to the importer's foreign currency deposit unit (FCDU) account for the bank to remit. An FCDU account is a dollar account at a Philippine bank.
The payment modes
Section 8 lists the modes under which banks may sell foreign exchange for imports. Each has its own conditions.
| Mode | What the Manual says | Section |
|---|---|---|
| Letter of credit (L/C) | One L/C per import transaction, opened on or before the date of shipment; amendments need no prior BSP approval | 9 |
| Documents against payment (D/P) | The bank releases the original shipping documents when the importer pays, and remits the payment through a correspondent bank abroad | 10 |
| Documents against acceptance (D/A) and open account (O/A) | Must be payable at least 30 days after the bill of lading or air waybill date; reporting rules in Appendix 6 | 11 |
| Direct remittance (DR) | Banks may service it within 29 calendar days after the shipment date, against complete original shipping documents | 12 |
| Advance payment | Banks may sell foreign exchange without prior BSP approval, subject to Appendix 7, and report the payment to the BSP | 13 |
| Self-funded and consignment imports | Allowed without prior BSP approval | 14 |
Source: BSP Manual of Regulations on Foreign Exchange Transactions, Part Two, Chapter II, Sections 6 to 14, version filed with the WTO. As published on 29 October 2026. The BSP has amended the Manual since; confirm current thresholds and documents with your bank.
A self-funded import is one paid with the importer's own foreign exchange rather than dollars bought from a Philippine bank. A correspondent bank is a bank that holds accounts for other banks and settles payments in its currency.
The timing rules matter for the balance payment. A balance paid against shipping documents within 29 days of shipment is a direct remittance. A balance due later than that is normally on D/A or open account terms, which the Manual sets at 30 days or more after shipment and which carry reporting rules. Agree the payment term with the supplier knowing which mode it falls under.
Bureau of Customs: the import entry
The Bureau of Customs (BOC) clears goods on an import entry, lodged on a Single Administrative Document (SAD), the standard customs declaration form. The US International Trade Administration's country guide, last published on 30 June 2026, lists the documents the BOC asks for.
| Document | What it shows |
|---|---|
| Endorsed bill of lading or air waybill | The goods were shipped and who may collect them |
| Commercial invoice, letter of credit or other verifiable payment document | The price paid, which customs uses to value the goods |
| Packing list | What is in each package |
| Notarized Supplemental Declaration on Valuation (SDV) | The importer's declaration of the facts behind the customs value |
| Permits and clearances, where the goods need them | Regulated goods need pre-import clearances, typically obtained through TradeNet |
| Proof of origin under a free trade agreement | Needed to claim a preferential duty rate |
Source: US International Trade Administration, Philippines Country Commercial Guide, Import Requirements and Documentation, as published on 29 October 2026.
For an L/C transaction, the guide lists the L/C, the proforma invoice and a SAD for advance customs import duty. For a non-L/C transaction, such as D/A, D/P or open account, it lists the proforma invoice. Goods are classed as freely importable, regulated, restricted or prohibited, and regulated goods can be imported only after the clearances or licenses they need are secured.
The link to the payment is direct. Customs values the goods on the price paid, and the commercial invoice or payment document is part of the entry. A payment that does not match the invoice, or that was made by someone other than your company, is harder to show as the price you paid.
How the money reaches a Chinese supplier
Most Chinese suppliers invoice in US dollars, and many invoice through a Hong Kong trading company with a Hong Kong bank account. Whichever route you use, the beneficiary should be the company named on the proforma invoice and the contract.
| Supplier asks for | How you pay from the Philippines | What to check |
|---|---|---|
| USD to a Hong Kong company account | SWIFT transfer in USD from your FCDU account, or with dollars bought from your bank | The Hong Kong company is the seller on the invoice and contract |
| USD to a mainland China account | SWIFT transfer in USD | The supplier's bank checks the contract and invoice before it credits the funds |
| Chinese yuan (CNY) to a mainland account | Ask your bank whether it sends renminbi and at what rate | Compare the yuan quote with the dollar route |
| Letter of credit | Your bank issues the credit; the supplier is paid against documents | Documents must match the credit exactly |
| Documentary collection (D/P or D/A) | Banks release the shipping documents to you against payment or acceptance | D/A falls under the BSP's reporting rules |
Routes as described in this guide; BSP modes from the Manual of Regulations on Foreign Exchange Transactions; supplier-side checks from PNC Bank's summary of China's goods trade foreign exchange rules. As published on 29 October 2026.
Paying in renminbi
As reported by The Philippine Star in September 2019, the BSP and the People's Bank of China named Bank of China Manila as the clearing bank for renminbi business in the Philippines. A clearing bank settles renminbi payments for local banks. Whether your own bank can send renminbi to a supplier, and at what rate, varies by bank. Paying in renminbi saves the supplier a conversion, not you, so compare the total cost of both routes.
What the supplier's bank checks
China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, a Chinese company must be on SAFE's list of companies with goods trade foreign exchange business, and banks cannot handle foreign exchange for companies that are not on it. The supplier's bank checks each receipt for a genuine trade background, using documents such as the contract, invoice and customs declaration. The same summary states that the remitter and the beneficiary must be the parties to the contract. A payment from a company that is not on the contract can be held while the supplier's bank asks questions.
Deposit, balance and payment terms
Many factories ask for a deposit when the order is confirmed and the balance before the goods ship, against a copy of the bill of lading. A bill of lading is the document the shipping line issues when it receives the goods. Each payment falls under one of the BSP modes.
| Payment | BSP mode | What it means for you |
|---|---|---|
| Deposit before production | Advance payment | No prior BSP approval; the bank reports it and may ask for documents |
| Balance against bill of lading copy, within 29 days of shipment | Direct remittance | The bank asks for the shipping documents |
| Balance due 30 days or more after shipment | Open account or D/A | Reporting rules in Appendix 6 of the Manual apply |
| Whole order under a letter of credit | L/C | One L/C per import, opened on or before shipment |
| Paid from dollars already held | Self-funded | No purchase of foreign exchange from a bank |
Source: BSP Manual of Regulations on Foreign Exchange Transactions, Sections 8 to 14, version filed with the WTO. As published on 29 October 2026.
A letter of credit (L/C) is a bank's written promise to pay the seller when it presents documents that comply with the credit's terms. It protects you against paying for goods that were never shipped, but it does not check quality. A documentary collection sends the shipping documents through the banks, and you receive them only after you pay (D/P) or accept a bill of exchange (D/A). A new supplier may ask for an L/C on the first order and accept deposit and balance on later orders. Book a pre-shipment inspection before you release the balance on a large order.
What it costs: published bank charges
Each Philippine bank publishes its own charges. The table shows one bank's published charge for an outward dollar transfer, as an example, and the costs that sit outside it.
| Item | Published charge or what to ask |
|---|---|
| Outward foreign telegraphic transfer in USD: commission | US$15 flat, regardless of amount and destination |
| Cable charge | None |
| Processing fee | None |
| Exchange rate if you buy dollars with pesos | Ask for the bank's selling rate before you confirm |
| Correspondent bank charges | Deducted in transit on SHA terms; ask your bank what applies on OUR terms |
| Supplier's bank charge | Set by the supplier's bank |
Source: PSBank, Remittance, outward foreign telegraphic transfer, as published on 29 October 2026. PSBank states that fees may be modified at any time; other banks set their own charges.
A telegraphic transfer is a bank's term for an outgoing wire sent over SWIFT. On a US$40,000 order paid as a deposit and a balance, a flat commission of US$15 on each payment comes to US$30. The larger costs are usually the exchange rate, if you buy dollars with pesos, and deductions by intermediary banks on the way to China.
Charge codes
Every SWIFT payment carries a charge code. OUR means you pay all transfer fees and the supplier receives the full invoice amount. SHA shares the fees, so intermediary banks can deduct theirs from the amount. BEN puts all fees on the supplier. A payment that arrives short delays shipment while the supplier queries the gap, so agree in the contract who bears bank charges and send on OUR terms if the supplier must receive the full amount. Check the supplier bank's code with our SWIFT code lookup before the first payment.
Documents that tie the payment to customs
Your bank, the Bureau of Customs and the supplier's bank each match the same facts: the supplier's name, the invoice number, the goods and the value. Keep them identical across every document.
| Stage | Document | Issued by |
|---|---|---|
| Before ordering | Proforma invoice and contract naming the supplier's company and its bank account | Supplier and buyer |
| Buying dollars | Application to Purchase Foreign Exchange; invoice and shipping documents above the threshold | Importer, through its bank |
| Each payment | Payment instruction quoting the invoice number; SWIFT confirmation | Importer and bank |
| After shipment | Bill of lading or air waybill, commercial invoice, packing list | Carrier and supplier |
| Clearance | Import entry on the SAD, Supplemental Declaration on Valuation, permits where required | Importer or its customs broker |
Sources: BSP Manual of Regulations on Foreign Exchange Transactions, Section 6; US International Trade Administration, Philippines Import Requirements and Documentation. Typical sequence; requirements vary by bank and product. As published on 29 October 2026.
If the final invoice value differs from the proforma, ask the supplier for a corrected commercial invoice before the goods arrive, so the entry, the SDV and your payments agree. If the supplier changes its bank details, confirm the change by telephone on a number you already hold before you pay.
Agents, personal accounts and stablecoins: what goes wrong
Some importers pay a consolidator or agent who collects pesos in Manila and pays the factory from an account in China, or pay into a personal account a factory employee provides. The facts below are what an importer should weigh before using these routes.
- The customs entry still needs a payment document. The Bureau of Customs asks for a commercial invoice, letter of credit or other verifiable payment document. A payment made by an agent does not show what your company paid the supplier.
- The supplier's bank may query it. China's rules expect the payer and the beneficiary to be the parties to the contract. A transfer from an agent's account is a payment from a third party.
- There is no trace. A SWIFT transfer from your own account carries a reference and can be traced through the banks. Cash handed to an agent cannot.
- Stablecoins have no legal tender status. BSP Circular No. 1108, approved in January 2021, states that virtual assets are not issued or guaranteed by any jurisdiction and do not have legal tender status, and requires virtual asset service providers to hold a BSP Certificate of Authority. A USDT payment to a supplier is not a bank payment against your import documents.
On the Chinese side, a supplier's bank expects a genuine trade payment from the buyer on the contract. A payment through your own company account meets that expectation and gives you a record for customs, tax and audit.
Where Helm fits, and a checklist
Helm is a financial technology company, not a bank. Accounts are held with regulated partner institutions. Helm works with companies registered in the Philippines, and a Helm account gives your company USD account details in its own name, with a US routing and account number that receives ACH, Fedwire and SWIFT payments.
- Pay suppliers in USD. Send international payments by SWIFT from your company's own account to the supplier's USD account in China or Hong Kong, with the rate, fee and expected arrival shown before you send.
- Hold dollars for the balance. Dollars collected from buyers abroad can stay in USD until the balance falls due, so the payment is not converted on the day.
- Finance the balance. Trade finance, such as supplier finance and working capital, is arranged case by case.
A payment from dollars your company already holds is not a purchase of foreign exchange from a Philippine bank; the Manual treats self-funded imports as allowed without prior BSP approval. Confirm with your bank and customs broker how they record such a payment against your import. Each account has a named account manager, and review questions are answered in writing within one business day. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.
Checklist
- Get a proforma invoice and agree the payment term, knowing which BSP mode it falls under.
- Check that the beneficiary is the supplier's company and matches the invoice and contract.
- Pay the balance within 29 days of shipment for a direct remittance, or agree open account terms of 30 days or more.
- Send each payment by SWIFT with charges set to OUR, quoting the invoice number.
- Use a letter of credit or an inspection for a large first order.
- Lodge the import entry with documents that match the payments, including the SDV.
- Keep the SWIFT confirmations with the invoice, bill of lading and entry for each order.
For how other importers organize supplier payments, see the importers page.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
How do I pay a Chinese supplier from the Philippines?
Send US dollars by SWIFT from your company's dollar account, or with dollars bought from your bank, to the supplier's company account in China or Hong Kong, quoting the invoice number. Pay the balance against a copy of the bill of lading, or use a letter of credit or documentary collection.
Do I need BSP approval to pay a Chinese supplier?
Not for ordinary import payments. The BSP Manual lets banks sell foreign exchange for imports under letters of credit, D/P, D/A, open account, direct remittance and advance payment, and allows advance payments without prior BSP approval, subject to the Manual's conditions and reporting.
How much foreign exchange can a company buy for imports in the Philippines?
Under Section 6 of the BSP Manual, a bank can sell up to USD 1,000,000 a day to a corporate client for imports against the Application to Purchase Foreign Exchange alone. Above that, the bank also asks for supporting documents such as the invoice and shipping documents.
Can I pay a Chinese supplier in advance from the Philippines?
Yes. Section 13 of the BSP Manual allows banks to sell foreign exchange for advance payments without prior BSP approval, subject to the conditions in Appendix 7, and the bank reports the payment to the BSP. Limit the advance to what you can afford to lose with a new supplier.
What is a direct remittance for imports?
It is a payment for goods already shipped, made directly to the supplier against the original shipping documents. Banks may service it within 29 calendar days after the bill of lading or air waybill date under Section 12 of the BSP Manual.
Can I pay a Chinese supplier in yuan from the Philippines?
It depends on your bank. The BSP and the People's Bank of China named Bank of China Manila as the renminbi clearing bank for the Philippines, as reported in 2019, but each bank decides whether it sends yuan and at what rate. Compare the yuan quote with the dollar route.
What do Philippine banks charge to send USD to China?
Each bank publishes its own charges. PSBank's published charge for an outward foreign telegraphic transfer in USD is a US$15 flat commission regardless of amount and destination, with no cable or processing fee. Intermediary bank deductions and the exchange rate are extra.
What documents does the Bureau of Customs need for goods from China?
The BOC asks for the bill of lading or air waybill, a commercial invoice or other verifiable payment document, a packing list and a notarized Supplemental Declaration on Valuation, plus permits for regulated goods. Proof of origin is needed to claim a free trade agreement rate.
Is it safe to pay a Chinese supplier through an agent in the Philippines?
An agent's payment does not come from the party on the contract, so the supplier's bank may query it, and it does not show what your company paid for customs valuation. A SWIFT transfer from your own account to the supplier's company account avoids both problems.
Can I pay a Chinese supplier with USDT from the Philippines?
BSP Circular No. 1108 states that virtual assets have no legal tender status and requires service providers to hold a BSP Certificate of Authority. A USDT transfer is not a bank payment against your import documents, so take advice before using one for an import.
References
- Bangko Sentral ng Pilipinas: Manual of Regulations on Foreign Exchange Transactions (version filed with the WTO)
- Bangko Sentral ng Pilipinas: Circular No. 1108, Guidelines for Virtual Asset Service Providers (2021)
- US International Trade Administration: Philippines Import Requirements and Documentation
- The Philippine Star: Bank of China tapped for RMB clearing (19 September 2019)
- PSBank: Remittance services and charges
- PNC Bank: Navigating China's regulations on foreign exchange for goods trade
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.