Paying a Mongolian supplier: dollars, yuan or tugrik, the Cyrillic name and its Latin spelling, legal form, Tsagaan Sar and Naadam, resale of Chinese goods.
Estimate the minimum fee
The final fee and rate are fixed in the payment order
Minimum amount: 10,000 USD or equivalent
This is a minimum, not an offer or a rate lock. The final figure depends on the country, amount and the banks involved and is fixed in the payment order.
Request a quoteRussian companies pay Mongolian suppliers for cashmere and wool, raw hides, meat and offal, and also for services: cargo transport across Mongolian territory, rail transit between Russia and China, geological exploration and construction. A separate type of supplier is trading companies that resell goods from China. For the payment this is lawful if the contract expressly names the seller and the specification shows the origin of the goods.
Seasonality is noticeable. Cashmere is bought after the spring combing of the down, and meat is shipped in the cold season. Raw material suppliers usually ask for an advance to buy it from herders. For carriers and contractors, payment against an invoice per trip or per stage of work closed with a completion certificate is typical.
The national currency is the tugrik (MNT). In foreign trade, Mongolian companies invoice in US dollars. Because of close ties with China, some contracts are in yuan. Tugrik is used mainly to pay for local services. The agent transfers the currency named in the invoice. We select the agent from our pool based on whether it has an open route to the supplier’s bank in Ulaanbaatar in that exact currency. You see the exchange rate and the fee in the payment order, and only then send the roubles.
If you need a guarantee, the roubles wait in a special escrow account at a Russian bank until the money is credited: this is on request, for an additional fee. You do not pay VEDmost separately: the broker’s fee is paid by the agent.
Mongolian is written in Cyrillic, and the company is recorded in Cyrillic in the register. In English documents, everyone transliterates the name in their own way: the same word appears in three or four versions. Only the version held by the beneficiary’s bank is suitable for the payment. Ask the supplier to send the bank details on the bank’s letterhead and copy the name into the contract and the invoice letter for letter. The legal form matters too: the Mongolian abbreviation transliterated as KhKhK means a limited liability company (usually LLC in English documents), and KhK a joint-stock company (usually JSC).
Confirm the account number with the supplier in the form the bank issues it: at some banks it is already an IBAN starting with MN, at others a domestic number. Plus the bank’s SWIFT code.
There are two periods when payments to Mongolia stand still. Tsagaan Sar, the Lunar New Year, in January or February: several days off and a slow week around them. Naadam, the national holiday, from July 11 to 15. If the supplier expects an advance for a shipment in these weeks, send it earlier.
Five steps, the same for every country. Country specifics are described above.
Beneficiary's country, amount, currency, the invoice and the contract or bill, your company's and the beneficiary's details. We review the request before any documents are signed.
We select a network company and a route and prepare the documents. You sign an agency agreement with that company, which sets the execution period, and a payment order: amount, exchange rate and fee. All of this before you transfer your roubles.
You transfer roubles to the network company from your account at a Russian bank. If you need a guarantee, they wait for execution in a special escrow account, for an additional fee.
The agent sends the currency to the beneficiary under this payment order. A sub-agent is engaged only with your consent. The route does not change without a payment order.
We send you the payment confirmation, and a SWIFT confirmation on request. Then the completion certificate, the agent's report and the currency control package. The deal is not closed until the currency has been sent to the beneficiary.
If you need a guarantee, the payment goes through a special escrow account at a Russian bank: the roubles wait there until the agent sends the currency to the beneficiary and are released only upon execution. This scheme carries an additional fee, shown in the quote before the agreement.
The agent executes the payment within 3 business days: the period is written into the agency agreement.
If the beneficiary's bank accepts payment only from a specific payer, the agent engages a sub-agent. Only with your consent. Your agency agreement does not change.
For large volumes, on request, we assign an agent backed by a large exporter's surety; some companies in our network have one. It can be combined with escrow.
Tell us the rate you pay now or send your current agent’s documents. We’ll calculate the all-in cost with the FX markup and charges and look for a lower rate in our network. If there isn’t one, we’ll say so. The comparison is free.
Mongolian exporters usually invoice in US dollars; in trade with China, yuan also occur. Tugrik is used for local services. Payment goes out in the invoice currency.
Yes. In the register the name is recorded in Mongolian Cyrillic, and everyone writes the Latin version in their own way. The payment needs the version held by the beneficiary's bank.
The register writes it in Cyrillic. KhKhK (usually LLC in English documents) means a limited liability company, KhK (usually JSC) a joint-stock company. The form must match in the contract, the invoice and the bank details.
During Tsagaan Sar, the Lunar New Year in January or February, and during Naadam from July 11 to 15. There is no crediting on these days.
The party that signed the contract and issued the invoice. The documents must make clear that it is selling goods from a third country. Attach the specification.
Describe the payment. We'll reply with a proposed route and terms. We name the agent in advance, and the rate and fee go into the payment order before your roubles are debited.