19--payment instruction

Introduction
• In international trade, how and when an exporter receives payment for the goods he sends abroad are problems that concern him the most. •However, these problems are magnified many times in • Payment in domestic trade is a international trade. fairly simple matter. It can be made either in advance or within a reasonably short period after delivery.
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The Parties to a Bill of Exchange
Drawer: The person who writes the order and gives directions to the person to make a specific payment of money. He is usually the exporter or his banker in import and export trade; usually, he is also a creditor of the drawee.
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Introduction
• Who is liable for this loss? Must the seller wait perhaps six months for his money or shall the buyer pay several months before he even sees his goods? • What’s more, in a case of nonpayment, the seller will be involved in expensive legal action and possibly total loss. Because of these problems, different methods of payment have been adopted in international trade.
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all the terms and conditions agreed upon
Description of commodity
Quantity Package Price Payment
Body
Transport
Insurance
Inspection
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Introduction
• Generally, in every contractbe E.g.: the payment should for the saleby irrevocable made of goods abroad, the clause dealing with the payment ofconfirmed L/Cprice consists of the purchase reaching here four elements: July 30th. not later than • time • mode • place • currency
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2. Content of draft
• The forms of draft might be different, but the contents are basically the same as listed below. • An unconditional order in writing • Date and place of issue • Time of payment • Name of payee • Currency and amount
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The Parties to a Bill of Exchange
He is usually the importer or the Drawee: The person to whom appointed bank under a letter of the order is addressed and who credit in import and export trade. is to pay the money. In addition, when a time bill has been accepted by the drawee, he becomes an acceptor who is the same person as the drawee. The drawer and the acceptor must be different persons.
Claims & dispute
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• 支 付 • 条 • 款
• • • •
Terms of payment remittance collection L/C
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Import & Export Practices
Import & Export Practices
The Parties to a Bill of Exchange
The payee: The person who is to receive the money, he may be, and often is, the same person as the drawer and he is usually the exporter himself or his appointed banker in business or he may be the bearer of the bill.
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Means of Payment in International Trade
• In practice, sellers of goods, in general, almost never insist on their rights to demand cash for payment, but readily take certain bills, such as bill of exchange (draft), promissory note and cheque (check) for substitutes, among which draft are widely used.
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• 1 Instruments of Payment • Currency • Bills ---Draft ---Promissory Note ---Cheque • 2 Modes of Payment Remittance Collection L/C • 3 Payment Clause in S/C
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Import & Export Practices
Means of Payment in International Trade
• In international trade, the most frequently used means of payment include currencies and bills. • The former is used for account, settlement and payment; • the latter for settlement and payment.
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2. Content of draft
• Credit reference (L/C number or invoice number) • Name of drawee/payer • Drawer’s name and signature • Name of document, such as “bill of exchange” ”draft”
Ⅰ Bill of exchange
• 1. Definition of Bill of Exchange • also called draft, is defined as “an unconditional order in writing, addressed by one person to another, signed by the person 汇票是一个人向另一个人签发的，要求见票 giving it, requiring the person to 时或在将来的固定时间，或可以确定时间， whom it is addressed to pay on 对某人或其指定的人或持票人支付一定金额 demand, or at a fixed or 的无条件的书面支付命令。 determinable future time, a sum certain in money, to, or to the order of a specified person, or to bearer”.
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Instrument of Payment