国际贸易实务(英文版)(第二版)7.International-Payment.ppt

SEIB OF GDUFS Learning objectives After learning this chapter you will be able to: identify the key issues in handling international payments understand the use of paying instruments, especially the bill of exchange* define the three basic terms of payment compare and contrast the characteristics of terms of payment identify the major parties involved in different payment methods state the stages involved in using a letter of credit explain the variations of documentary credit establish a basic understanding of export financing Content of L/C (See Specimen7.9) Name address of opening bank Date of issuance of L/C Number of L/C Credit amount Description of cargo Type of L/C Name address of the parties concerned Documents provided Details of shipment Validity period for L/C Settlement instructions Fees clauses Special clause, if any Procedure of L/C After signing the sales contract with the seller, the buyer (the applicant) will present to his local bank (the issuing bank) the contract, an application letter and other documents required for the opening of an L/C. The issuing bank then issues the letter of credit to one of its branches or correspondent banks in the seller’s country (the advising bank) if the applicant complies with all the conditions required. The advising bank will notify the seller of the arrival of the credit. Once paying an advising fee, the seller (the beneficiary) receives the original of the documentary credit. He has to examine the credit closely before he accepts it. Issuing Bank/ Buyer’s Bank Seller/ Beneficiary L/C Application Buyer/Applicant Advising Bank Letter of Credit L/C Advice Contract (1) (2) (3) (4) Opening an L/C Methods of settlement Settlement by sight payment Settlement by deferred payment Settlement by acceptance Settlement by negotiation Settlement by Sight Payment Docs released Buyer/Applicant Seller/ Beneficiary Issuing Bank/ Buyer ’ s Bank Presenting Bank Docs Docs Goods (5) (10) (7) (6) Payment (9) Pay