国际结算名词解释

International trade is the exchange of goods and services produced in one country for those produced in another country.Trade terms are also called"price terms"or “delivery terms”. Incoterms are sets of uniform rules codifying the interpretation of trade terms defining the rights and obligations of the buyer and seller in international transactions.Open account an arrangement between the buyer and seller whereby the goods are manufactured and delivered before payment is required. It provides for payme nt at some stated specific future date and without the buyer issuing any negotiable instrument evidencing his legal commitment.Advance payment the buyer places the fund at the disposal of the seller prior to shipment of the goods or provision of services. It is expensive and contains a degree of risk.Sales contract is a written agreement that clearly states the right and responsibilities of both parties to a transaction.Correspondent relationship The so-called correspondent bank may be defined as “a bank having direct connection or friendly service relations with another bank. International payments and settlements are financial activities conducted among different countries in which payments are effected or funds are transferred from one country to another in order to settle accounts, debts, claims, etc.,emerged in the course of political, economic or cultural contacts among them.Visible trade the main weight of international money transfer is importing/exporting of commodities and goods between the buyers and the sellers. Nostro account is the foreign currency account (due from account) of a major bank with the foreign banks abroad to facilitate international payments and settlements. Vostro account is an account (due to account) held by a bank on behalf of a correspondent bank. it covers foreign exchange market transactions,govermenta supported export credits,syndicated loans,international bond issues ,etc.A negotiable instrument is a chose in action, the full and legal title to which is transferable by delivery of the instrument (possibly with the transferor’s endorsement) with the result that complete ownership of the instrument and all the property it represents passes freely from equities to the transferee, providing the latter takes the instrument in good faith and for value.Bill of exchange it is an unconditional order in writing,addressed by one person (the drawer) to another(the drawee),signed by the person giving it,requiring the person to whom it is addressed to pay on demand ,or at a fixed or determinable future time,a sum certain in money,to or to the order of a specified person,or to bearer.Direct bill:It is a bill on which the place of acceptance is the same one as the place of payment.Indirect bill:It is a bill on which the place of acceptance is not the same one as the place of payment.Inland bill/domestic bill:It is a bill drawn and payable in the same country.Foreign bill:It is a bill drawn and payable in another country.A crossing is in effect an instruction to the paying bank from the drawer or holder to pay the fund to a bank only. Hence, such checks will not be paid over the counter ofthe paying bank and must be presented for payment by a collecting bank.A check is an unconditional order in writing addressed by the customer(drawer) to a bank(drawee) signed by that customer authorizing the bank to pay on demand a specified sum of money to or to the order of a named person or to bearer.A documentary bill is a bill with shipping documents attached thereto. International remittance happpens when a client asks his bank to send a sum of money to a beneficiary abroad by one of the transfer methods at his option. The beneficiary can be paid at the designated bank,which is either the reimitting bank's overseas branch or its correspondent.The remittance means that the debtor (importer) authorizes a bank to pay the payments of goods to the creditor (exporter),the direction of the funds flowing is the same as that of the payment instruments transmitted.Reverse remittance is also referred to as to draw a Draft(Bill) or Reverse Exchange or Negotiation by Draft.It means that the direction of the funds flowing is different to that of payment instruments transmitted.The case of need is the representative appointed by the principal to act as case of need in the event of non-acceptance and / or non-payment, whose power should be clearly and fully stated in the collection.Collection is an arrangement whereby the goods are shipped and a relevant bill of exchange is drawn by the seller on the buyer,and/or shipping documents are forwarded to the seller's bank which clear instructions for collection through one of its correspondent bank located in the domicile of the buyer.Direct collection is an arrangement whereby the seller obtains his bank’s pre-numbered direct collection letter, thus enabling him to send his documents directly to his bank’s correspondent bank for collection. This kind of collection accelerates the paperwork process.Clean collections are collections on financial instruments without being accompanied by commercial documents, such as invoice, bill of lading, insurance policy, etc. Documentary collections may be described as collections on financial instruments being accompanied by commercial documents or collections on commercial documents without being accompanied by financial instruments, that is, commercial documents without a bill of exchange.Outward collection or payable overseas is a collection business in which a bank acting as a remitting bank sends collection items to a collecting bank to get payments from the drawees.Inward collection or payable domestic is a collection business in which a bank acting as a collecting bank presents the collection items received from a remitting bank to the drawees,collects payments from them and remits the proceeds to the remitting bank.Bill purchased Financing by banks for exporters under documentary collection methods takes the form of collection bill purchased. Collection bill purchased means that the remitting bank purchases the documentary bill drawn by the exporter on the importer.Import bill advance means the collecting bank uses the documents especially thetitle document as a pledge to effect payment to the exporter for the importer before the importer actually pays. It usually involves great risks for banks ,and is generally used under D/P term.The documentary letter of credit is an undertaking issued by a bank for the account of the buyer(the applicant) or for its own account, or to pay the beneficiary the value of the draft and / or documents provided that the terms and conditions of the documentary credit are complied with.Confirmed credit A credit that carries the commitment to pay by both the issuing bank and the advising bank.It is advising to the beneficiary with another bank’s confirmation added thereto.It constitutes a definite undertaking of the confirming bank,in addition to that of the issuing bank, provided that the stipulated documents are presented to the conditions of the documentary credit are complied with ,to pay ,to accept draft(s)or to negotiateSilent confirmation represents an agreement between a bank and the beneficiary for that bank to “add its confirmation”to the documentary credit despite not being so authorized by the issuing bank.In this case the beneficiary and the advising bank make an independent agreement that adds the bank’s confirmation to the credit for a fee.、Sight credit A letter of credit calling for payment upon the presentation of the documents either with or without a sight draft.Usance credit If a letter of credit specifies that drafts are to be drawn at any length of time, such as 60 days, 90 days or 180 days, after sight, it is called a time or usance credit. Under such a credit, the issuing bank engages that the drafts drawn in conformity with the terms of the credit will be duly accepted on presentation and duly honored at maturity.Revolving credit One by which, under the terms and conditions thereof, the amount is renewed or reinstated without specific amendments to the documentary credit being required.Export bill purchase means the negotiating bank, on the demand of the exporter, provides the in-transit financing to him using the documents presented as a collateral after shipping the contracted goods.The bank can be seen as purchasing the complying documents provided by the beneficiary and hence financing the exporter to get the necessary funds. EXport bill purchase is the most widely used short-term export financing method.Factoring is a form of trade financing that allows sellers to sell their products to overseas buyers essentially on an open account basis.Forfeiting is the term generally used to denote the purchase of obligation falling due at some future date,arising deliveries of goods services----mostly export transaction ---without recourse to any previous holder of the obligation.A bank guarantee is used as an instrument for securing performance or payment especially in international business.a bank guarantee is a written promise issued by a bank at the request of its customer,undertaking to make payment to the beneficiary within the limits of a stated sum of money in the event of default by the principal.A direct guarantee occurs when the client authorizes the bank to issue a guarantee directly to the beneficiary, as the following figure shows.An indirect guarantee is a guarantee where a second bank is involved. This bank will be requested by the initiating bank to issue a guarantee in return for the risk of a loss which could result from the beneficiary submitting a claim under the foreign bank’s guarantee. The initiating bank must formally pledge to pay the amount claimed by the beneficiary under the guarantee upon demand by the guarantee bank.A performance guarantee (bond)is an undertaking given by a bank (the principal) to a buyer or an employer (the beneficiary), where by the guarantor undertakes to make payment to the beneficiary within the limit of a stated sum of money in the event of default by the supplier or the contractor in due performance of the terms of a contract between the principal and the beneficiary.Bid bond is an undertaking given by a bank at the request of a tender in favor of a party inviting tenders abroad, whereby the guarantor undertakes to make payment to the beneficiary within the limit of a stated sum of money in the event of default by the principal in the obligations resulting from the submission of tender.The standby credit is a documentary credit or similar arrangement, however named or described, which represents an obligation to the beneficiary on the part of the issuing bank to: (1) repay money borrowed by the applicant, or advanced to or for the account of the applicant；(2) make payment on account of any indebtedness undertaken by the applicant; (3) make payment on account of any default by the applicant in the performance of an obligation.A payment system is the means whereby cash value is transferred between a payer’s bank account and a payee’s account. It includes:1) policies and procedures, including rules for crediting and debiting balance;2) a medium for storing and transmitting payment information;3) financial intermediaries for organizing information flow, carrying out value transfer instructions, and generally administering payment activities.Difference between a promissory note and a bill of exchange(1) A promissory note is a promise to pay, whereas a bill of exchange is an order to pay;(2) There are only two parties to a promissory note, namely the maker and the payee(or the holder in the case of a bearer note),whereas there are three parties to a bill of exchange, namely the drawer, the drawee and the payee.(3) The maker is primarily liable on a promissory note, whereas the drawer is primarily liable, if it is a sight bill, and the acceptor becomes primarily liable, if it is a time bill.(4) When issued, a promissory note has an original note only, whereas a bill of exchange may be either a sole bill or a bill in a set, i.e. a bill drawn with second of exchange and third of exchange in addition to the original one.Risk Protection and Financing Under Collection Methods1 Risks for exporter (1) Non-acceptance of merchandise(2) Non-payment of trade acceptance (3)Possession of goods(4) Exchange restrictionsmeasures against risks ①The exporter should always make sure that the overseas importer is of good reputation and of good financial standing;②The exporter should take into account the economic and political conditions in the importing country;③The exporter should also pay attention to the foreign exchange regulations in the importing country;④The exporter should take precautions, such as by hedging operations or by immediate settlement of the accounts denominated in a foreign currency.2 Risks of importer(1) Payment may have to be made prior to the arrival of the goods. No opportunity is then available to inspect the goods before making payment;(2) By accepting a bill of exchange under the documents against acceptance collection, the importer will have another legal liability on the bill of exchange besides his liability on the sales contract;(3) In some countries, if a bill of exchange is protested, this can ruin the reputation of a trader and may be considered an act of bankruptcy.Comparison back-to-back documentary credit with transferred credit(1)Commons: Both of the transferable credit and back-to-back credit are generated for the reason of a middleman involved in the international trasaction.And some items can be modified : the unit price and the amount of credit can be reduced;the expire date, the period for presentation, or the latest shipment date or given period for shipment can be curtailed; the percentage of insurance cover may be increased; the name of applicant can be replaced by the middleman.(2)Differences: Firstly, in back-to-back credit operation, the original credit and the back-to-back credit are two wholly independent credits with wholly independent issuing bank undertakings, while the transferred credit derives not only its existence from the original transferable credit, but also its utilization.Secondly, under a transferable credit, the transferring bank is authorized and designated by the issuing bank, while for a back-to-back credit, the middleman can freely choose the issuing bank of the new credit.Thirdly, the transferable credit can only be transferred once, while in case of more than one middleman involved in transaction, back-to-back credits can be issued in turn to satisfy the needs of transferring among several different middlemen.。