国际结算实务英语5-文档资料22页

What is a letter of credit
Characteristics of a letter of credit
-- A written undertaking on the part of the issuing bank -- Independent of the sales contract -- Exclusively dealing with documents
Application and Amendment of L/C
Paying/accepting bank Designated by issuing bank to effect payment or acceptance in most cases to be the advising bank; Once it has made paymБайду номын сангаасnt to the beneficiary, it will lose the right of recourse to the beneficiary; Entitled to obtain reimbursement from the issuing bank
Bank to bank Instructions
Number of pages、
The signature of the issuing bank
Parties to a L/C
Applicant/buyer -- Liable for payment to the issuing bank provided no
subject to the uniform customs and practice for documentary credits
Contents of a L/C
Type of the Credit --Irrevocable Revocable
Credit Number --It will tie up all the relevant documents
exporter’s bank 4、Exporter’s bank pass L/C to the beneficiary 5、Accept L/C or applicant to have it amended, prepared other docs
and present to the right bank 6、Check documents 7、Forward docs to reimbursing bank or issuing bank 8、Make reimbursement 9、Issuing bank notify the importer 10、Docs are released to the import against his payment
3)opens a L/C
2)application and
cash deposits
8)examine
documents
and ask
the buyer
to redeem
Issuing bank
Procedures of a L/C
1、Sales contract between importer and exporter 2、Importer makes the application form 3、Issuing bank exam the creditworthiness, pass L/C to the
Uniform Customs and Practices for Documentary Credit
-- UCP600 is the governing rule concerning documentary credit -- any issued L/C should indicate clearly that the said L/C is
Description of goods -- It should be made in a general term
Stipulate Documents -- Commercial invoice、Transport documents、 Insurance Documents，Certificate of origin Certificate of inspection、Packing list
discrepancy between documents and the credit; -- right to examine the documents and refuse payment; -- any requirement of the applicant should be satisfied by certain
Claim-ing bank
Confirming bank Undertake the same obligations assumed by the issuing bank; Responsible for a credit independently and pay without recourse
Available with ____bank by___ -- which bank will effect the payment -- how the payment will be effected
Partial Shipment -- allowed or not allowed
Transshipment -- allowed or not allowed
Question 3 : Procedures under D/P at sight ? Question 4 :
Why we need the method of L/C ?
Inter-look of the four methods of payment in I.S
-- Payment in advance -- Open account -- Collection -- Letter of credit
Contents of a L/C
Insurance --Depending on the price term
Port of shipment and Port of Discharge -- The last date for shipment after the phrase: no later than/last on
responsibility for payment
Parties to a L/C
Beneficiary/seller
-- The right to examine a credit upon receipt of it according to the sales contract;
-- whether be paid or not solely depends on the fulfillment of terms and conditions of the credit.
Procedures of a L/C
Seller/ beneficiary
1)contract
9)pick up
5)
Shipping goods
company
Buyer/ applicant
6)payment
4)advise L/c
5)examine and prepare documents
Advising bank designated bank
Negotiating bank In a negotiation credit, purchases the drafts and documents; When dishonored by the issuing bank, it has the right of recourse to the beneficiary; Obtain the reimbursement from the issuing bank
Contents of a L/C
Presentation Period -- After the date of shipment but within the validity of the credit, the stipulated time can be 14 or 21
Instructions to the Advising Bank -- Without adding your confirmation, with adding your confirmation, adding your confirmation if requested by the beneficiary
Chapter 5
Payment Methods - Letter of Credit
专业PPT/商演示设计制作
Review
Question 1 : What’s the meaning of collection Question 2 :
Types of collection (D/P&D/A)?
Contents of a L/C
Amount of the credit and Its currency --If the amount is preceded by about, approximately or circa, the credit will allow 10% tolerance --Be indicated in the ISO Currency Code
documents and clearly indicated when making credit application Issuing application form