国际结算 英文版5.1-5.5 Letters of credit(1)

letter of credit翻译
信用证（letter of credit）是指由买方的银行以买方的名义，向卖
方的银行发出的一种有关国际贸易的支付方式。

它的原则是：买方的银行
承诺支付给卖方指定金额的钱，只要卖方能够提供指定的货品或服务证明，并满足其他条款。

信用证的出现有助于加强买卖双方的信任，确保交易的
安全性。

信用证是保证国际贸易支付的重要手段。

买卖双方中，买方希望确认
购买的货物是否满足约定标准，也希望卖方能够按时到货；而卖方希望保
证货款的安全，也希望能够与买方建立更长久的合作关系。

信用证能够双
方都满足其所需。

一般地，一个信用证包含了四方的信息，即卖方和买方，以及卖方和
买方的银行。

在贸易过程中，卖方向买方发货的时候，卖方的银行必须先
获得买方银行的确认，买方的银行才会向卖方支付货款。

卖方银行开出的
信用证是对卖方的一种担保，如果买方的银行没有严格按照信用证的条款
支付，卖方的银行有权要求买方支付损失。

所以，信用证是保障国际贸易
交易安全及双方利益的重要保证措施。

3. 4.
5. 6. 7.
Correspondent banking relationship

Correspondent bank 代理行 the basis for cooperation of commercial banks all over the world to fulfill international settlement “a bank having direct connection or friendly service relations with another bank.” Selecting a correspondent bank: reputation and creditworthiness; size and financial status; location; services offered by it; polices and strength of it
forms of circulation
过户转让（assignment）非流通

特点：书面形式 转让通知原债务人或登记过户 受让人权利受前手缺陷的影响 当事人：转让人、受让人、原始债务人

交付转让(transfer) 准流通或半流通
特点：交付背书转让 不通知原债务人 受让人的权利受前手权利缺陷的影响 当事人：转让人，受让人
to maximize revenues; credit risks associated with financing extended to buyers or sellers
Factors in the payment decision
To exporters: protection against non-payment risks by the importers, such as: commercial risks, financial risks; political risks; risks in control of title to the goods,etc. convenience; cost; commercial competitiveness

1、correspondent bank 代理银行2、clean collection 光票托收3、commitment fee 承诺费4、letter of credit 信用证5、letter of guarantee 担保书、保函6、single factoring （保理）7、Financial documents 金融单据8、reimbursement of remittance cover 汇款的偿付9、Accommodating draft 融通汇票10、expiry date 到期日11、Certificate of origin 原产地证书12、bill of lading 海运提单13、Promissory note 本票14、insurance policy 保险单15、Commercial check 商业汇票16、Credit is available for acceptance of your drafts at 90 days sight drawn on us本信用证可以凭你方对我方开立的90天期汇票承兑17、Beneficiary's drafts is negotiable at sight by the negotiating bank .受益人的汇票可由议付行见票即付18、Usance draft to be negotiated at sight basis远期汇票将即期议付19、Although drafts are drawn at 90 days sight ,they will receive payment at sight upon presentation of document in full compliance with l/c terms90天期远期汇票如单证相符可以即期付款20、Drawings against this credit are authorized only up to 97% of this face amount of the invoice submitted该信用证汇票金额应为所提交发票面值的97%。

思考：
• 如果你作为进口方发现出口方存在信用 证欺诈，你应该如何应对？
信用证原则之五
ห้องสมุดไป่ตู้
欺诈例外的例外原则
• 例子
《最高人民法院关于审理信用证纠纷案件若干问 题的规定》2006
• 第十条 人民法院认定存在信用证欺诈的，应 当裁定中止支付或者判决终止支付信用证项下 款项，但有下列情形之一的除外： • • （一）开证行的指定人、授权人已按照开 证行的指令善意地进行了付款；
letter of credit
-basic principles of credit
• 独立原则 • 抽象原则
• 独立抽象原则 • 单证相符原则 • 欺诈例外原则 • 欺诈例外的例外原则
信用证原则之一 Independence Principle of Letter of Credit
独立原则
信用证原则之三
单证相符原则
• • • • 单证严格相符原则 单、证一致 单、单一致 单、同一致 • 银行审单角度
• 企业制单角度
• 企业收单角度
“相符”原则的变化
严格的镜像原则
Mirror image
There is no room for documents which are Almost the same, or which will do just as well
（二）开证行或者其指定人、授权人已对 信用证项下票据善意地作出了承兑； • （三）保兑行善意地履行了付款义务； • （四）议付行善意地进行了议付。
善意
• • •
•
什么是“善意”？ 银行自己未参与欺诈 银行不知道欺诈的存在 银行尽到了合理谨慎，比如欺诈在单据 表面并不明显 除开证行之外，付款、承兑或议付的银 行必须是被指定银行，非被指定银行的 行为不被认为是善意的。

Ask to guarantee payment to exporter
Pay against documents not goods.
Documents
Banker
Banker does not care about goods, for bankers do not know about goods.
Exporter
Benefits of credit
Deliver goods
Carrier
Deliver goods
Importer
Long distance, hard to get to know each other
Guarantee payment against documents stipulated in LC
the reimbursing bank shall not examine the documents
Exporter Beneficiary
The flow chart of L/C)
1 Contract Term of payment: L/C 2Buyer applies L/C according to Contract
both buyers and sellers ❖ Abide by UCP600
Parties to a L/C
❖ 开证申请人（Applicant/buyer）
➢ Liable for payment to the issuing bank provided no discrepancy between documents and the credit;
通知行（Advising bank）
Accurately transmit the terms of credit and check the apparent authenticity of the credit

KEY OF INTERNATIONAL SETTLEMENTChapter 11.Put the following phrases into English2.Put the following sentences into English(1)国际结算涉及有形贸易和无形贸易，外国投资，从其他国家借贷资金，等等。

The international settlement involves tangible trades, intangible trades, foreign investments, funds borrowed from or lent to other countries and so on.(2)许多银行注重发展国际结算和贸易融资的业务。

Many banks have focused on their business of international settlement and trade finance.(3)大多数国际间的支付来自于世界贸易。

Most of the international payments originate from transactions in the world trade.(4)一般来说，国际结算的方式分为三类：汇款、托收和信用证。

Usually the international settlement is divided into three broad categories: remittance, collection and letter of credit.3. True or False1)International payments and settlements are financial activities conducted inthe domestic country. (F)2)Fund transfers are processed and settled through certain clearing systems.(T)3)Using the SWIFT network, banks can communicate with both customers andcolleagues in a structured, secure, and timely manner.(T)4)SWIFT can achieve same day transfer.(T)4.Multiple Choice1)SWIFT is __B__A.in the united statesB. a kind of communications belonging to TT system for interbank’s fundtransferC.an institution of the United NationsD. a governmental organization2)SWIFT is an organization based in __A___A.BrusselsB.New YorkC.LondonD.Hong Kong3) A facility in fund arrangement for buyers or sellers is referred to __A___A.trade financeB.sale contractC.letter of creditD.bill of exchange4)Fund transfers are processed and settled through __C___A.banksB.SWIFTC.clearing systemD.telecommunication systems5)__C__is the reason why international trade first began.A.Uneven distribution of resourcesB.Patterns of demandC.Economic benefitsparative advantages5. Answer the following questions1)Where are the medium of exchange originated from?Tracing back the history of international settlement, the medium of exchange originated from coins to notes.2)What will inevitably lead to under the international political, economic andcultural exchanges?The international political, economic and cultural exchange inevitably leads to credits and debts owed by one country to another.3)Why do banks focus on the development of the businesses of internationalsettlement?Banks focus more and more on the development of the businesses because it isa major resource of profits.4)What will banks do to meet the higher and higher demand of the internationalmarket?Banks need to develop innovative products and deliver the best services possible in whatever way they can.Chapter 21.Put the following phrases into English2.Put the following sentences into English(1)用于国际结算的货币是可兑换的货币。

国际结算中英版国际结算1.1 The Concept of International Trade国际贸易的观念International trade is the exchange of goods and services produced in one country for those produced in another country. In most cases countries do not trade the actual the goods and services. Rather they use the income or money from the sale of their products to buy the products of another country.1.2 Introduction to International Payments and SettlementsInternational 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 clear relations of debts.国际⽀付与结算是指为清偿国际间的债权债务关系或跨国转移资⾦⽽发⽣在不同国家之间的货币收付活动。

1.2 categories(分类)(1)、According to the cause of international settlementInternational trade settlement(国际贸易结算)International trade settlement is created on the basis of sales of commodities.国际贸易结算是指有形贸易活动（即由商品的进出⼝）引起的货币收付活动.（主要形式）International non-trade settlement (国际⾮贸易结算)invisible trade⽆形交易financial transaction⾦融业务payment between governments政府间的款项others 其他业务(2)、According to whether cash is usedCash settlement(现⾦结算)International payments is effected by shipping precious metals taking the form of coins, bars or bullions to or from the trading countries.Non-cash settlement(⾮现⾦结算)International payment is settled by way of transferring funds through the accounts opened in these banks.Four major clearing systems in the world(四⼤清算系统)2.1 SWIFT(Society for Worldwide Interbank Financial Telecommunication)SWIFT is a service organization established to meet a number of specialized service needs relating to interbank financial communications through a dedicated data processing and telecommunication system.Membership 会员制Low expenses 低费⽤Security 安全性Standardised 标准化2.2 CHIPS(The Clearing House Interbank Payment System).纽约清算所同业⽀付系统2.3 CHAPS（Clearing House Automated Payment System）伦敦银⾏同业⾃动⽀付系统2.4 TATGET（Trans-European Automated Real-Time Gross-Settlement Express Transfer）泛欧实时全额⾃动清算系统3.1 Correspondent Bank代理银⾏Correspondent banking is an arrangement under which one bank (correspondent) holds deposits owned by other banks (respondents) and provides payment and other services to those respondent banks. Such arrangements may also be known as agency relationships in somedomestic contexts.是接受其他国家或地区的银⾏委托，代办国际结算业务或提供其他服务，并建⽴相互代理业务关系的银⾏。

票据基本知识
汇票及案例
本票及案例
支票及案例
3． 国 际 结 算 方 式
汇款及案例
托收及案例
信用证及案例
银行保函、备用信用证及案例
4． 国 际 结 算 单 据
单据的基本知识
单据制作及范例
单据的审核及案例
5． 国 际 非 贸 易 结 算 资
Chapter 1. Introduction to International Settlement
Settlement and Examination • Chapter 7. Other Methods of Settlement System • Chapter 8. International Non-Trade Finances
1． 国 际 结 算 概 述 2． 国 际 结 算 票 据
Packing clause:mode of packing, and its material
Price clause:unit price, pricing currency , price terms used
Deliver terms:time of delivery, port of loading and destination, transshipment, partial shipment ,mode of transportation Insurance claercentage of insurance Payment clause:payment method and its content
package clause price clause delivery terms insurance clause payment clause Commodity inspection clause

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
Contents of a L/C
Amount of the he amount is preceded by about, approximately or circa, the credit will allow 10% tolerance --Be indicated in the ISO Currency Code
Place and Date of Issue --Place（where the issuing bank is located） --Date（when the L/C is issued）
Date and Place of Expiry --A definite date，not a period
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
subject to the uniform customs and practice for documentary credits

Letter of credit
（3）Banks deal with documents and not with goods, services and/or other performances to which the documents may relate.
10
Letter of credit
14
Letter of credit
（2）Issuing/opening bank开证行：which issues a credit at the request of an applicant The issuing bank must: a. issues/amends the credit in accordance with the instructions of the applicant b. exams the documents with cautiousness if a presentation is complying within five banking days following the day of presentation c. assume primary liability
7
Letter of credit
However, according to UCP600, an issuing bank should discourage any attempt by the applicant to include, as an integral part of the credit, copies of the underlying contract, proforma invoice and the like.
8
Letter of credit

国际结算英⽂版课后练习答案Chapter One1. Fill in the blanks to complete each sentence.(1) local legal system, political, exchange risks(2) open account, advance payment, remittance and collection(3) letter of credit, bank guarantee(4) price terms, delivery terms(5) least/minimum, most/maximum(6) advance payment(7) open account(8) clean collection, documentary collection2. 略3. Translate the following terms into English.(1) settlement on bank credit(2) the potential for currency fluctuation(3) to clear the goods for export(4) to pay the insurance premium(5) to carry out export formalities(6) the major participants in international trade(7) the commodity inspection clause(8) to fulfill the obligation to deliver the goods(9)t he goods have passed over the ship’s rail(10)I nternational contract is concluded in a completely different context than domestic ones 4．Decide whether the following statements are true or false.(1) F (2) F (3) T (4) T (5) T(6) T (7) F (8) T (9) T (10) F5. Choose the best answer to each of the following statements(1)-(5) BCCBD (6)-(10) DACCC(11)-(15) BDDCD (16)-(20) DCACDChapter Two1. Fill in the blanks to complete each sentence.(1) barter(2) medium of exchange(3) expensive, risky(4) our(5) Vostro(6) vostro(7) nostro(8) specimen of authorized signatures, telegraphic test keys, terms and conditions, Swift authentic keys2. Define the following terms(1) Correspondent relationship 〖A bank having direct connection or friendly service relations with another bank.〗(2) International settlements〖International 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 contracts among them. 〗(3) Visible trade〖The exchange of goods and commodities between the buyer and the seller across borders.〗(4) Financial transaction〖International financial transaction covers foreign exchange market transactions, government supported export credits, syndicated loans, international bond issues, etc.〗(5). Vostro account〖Vostro account is an account held by a bank on behalf of a correspondent bank.〗3. Translate the following terms into English.(1) commercial credit(2) control documents(3) account relationship(4) cash settlement(5) financial intermediary(6) credit advice(7) agency arrangement(8) credit balance(9)reimbursement method(10) test key/code4．Decide whether the following statements are true or false.(1) T (2) F (3) F (4) T (5) F5. Choose the best answer to each of the following statements(1)-(5) BCDAD (6)-(10) BBDABChapter Three1. Define the following Terms:(1) Negotiable instrument〖“A negotiable instrument is a chose in action, the full and legal title to which is transferable by delivery of the instrument (po ssibly with the transferor’s endorsement) with the result that complete ownership of the instrument and all the property it represents passes free from equities to the transferee, providing the latter takes the instrument in good faith and for value.” 〗(2) Bill of exchange〖A bill of exchange is an unconditional order in writing, addressed by one person to another, 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. 〗(3) Check〖A check is an unconditional order in writing addressed by the customer to a bank 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. 〗(4) Documentary bill〖It is a bill with shipping documents attached thereto. 〗(5) Crossing〖A crossing is in effect an instruction to the paying bank from the drawer or holder to pay the fund to a bank only. 〗2. Translate the following terms into English.(1) ⼀般划线⽀票〖generally crossed check〗(2) 特殊划线⽀票〖specially crossed check〗(3) 过期⽀票〖a check that is out of date〗(4) 未到期⽀票〖post dated check〗(5) ⼤⼩写⾦额〖amount in words〗(6) ⽩背书〖blank endorsement〗(7) 特别背书〖special endorsement〗(8) 限制性背书〖restrictive endorsement〗(9) 跟单汇票〖documentary bill〗(10) 即期汇票〖sight draft〗(11) 远期汇票〖usance/term bill〗(12) 承兑汇票〖acceptance bill〗(13) 可确定的未来某⼀天〖determinable future date〗(14) 光票〖clean bill〗(15) 流通票据〖negotiable instrument〗(16) 贴现⾏〖discounting house 〗(17) 商⼈银⾏〖merchant bank〗(18) ⽆条件的付款承诺〖unconditional promise of payment〗(19) 负连带责任〖jointly and severally responsible〗(20) 出票后90天付款〖payable 90 days after date〗3. Decide whether the following statements are true or false.(1) T (2) F (3) T (4) T (5) T(6) F (7) T (8) T (9) T (10) T(11) F (12) T (13) T (14) F (15) T(16) T (17) T (18) F (19) F (20) F4. Choose the best answer to each of the following statements(1)-(5) CACBC (6)-(10) BACBB(11)-(15) BDCCC (16)-(20) BBAAC5-7 略Chapter Four1. Fill in the blanks to complete each sentence.(1) beneficiary(2) payment order / mail advice / debit advice(3) the remittance amount is large / the transfer of funds is subject to a time limit / test key(4) sell it to his own bank for crediting his account(5) debits / credits(6) demand draft(7) act of dishonor(8) swiftness / reliability / safety / inexpensiveness(9) debiting remitting bank’s nostro account(10) delivery of the goods2. Define the following Terms.(1) International remittance means a client (payer) asks his bank to send a sum of money to a beneficiary abroad by one of the transfer methods at his option while the beneficiary can be paid at the designated bank which is either the re mitting bank’s overseas branch or its correspondent with a nostro account.(2) Remitting bank is the bank transferring funds at the request of a remitter to its correspondent or its branch in another country and instructing the latter to pay a certain amount of money to a beneficiary.(3) A mail transfer is to transfer funds by means of a payment order or a mail advice, or sometimes a debit advice issued by a remitting bank, at the request of the remitter.(4) Demand draft transfer is a remittance method using a bank demand draft. It is a negotiable instrument drawn by one bank on its overseas branch or its correspondent abroad ordering the latter to pay on demand the stated amount to the holder of the draft.(5) Cancellation of the reimbursement under mail transfer or telegraphic transfer is usually done before its payment is made at the request of the remitter or the payee who refuses to receive the payment.3. Translate the following terms into English.(1) 汇款通知单remittance advice (2) 汇出汇款outward remittance(3) 国际汇款单international money order (4) 往来账户current account(5) ⾃动⽀付系统automated payment system (6) 作为偿付in cover(7) 赔偿保证书letter of indemnity (8) 信汇通知书 mail advice(9) 汇票的不可流通副本non-negotiable copy of draft (10) ⾸期付款down payment4. Choose the best answer to each of the following statements(1)-(5) BCABD (6)-(10) BBBAAChapter Five1. Fill in the blanks to complete each sentence.(1) presenting bank(2) title documents / pays the draft / accepts the obligation to do so(3) legal / the exchange control authorities(4) the payment is made(5) open account / advance payment(6) Inward collection(7). the remitting bank(8) trust receipt(9) D/P at sight(10) documents, draft, and collection order2. Define the following terms(1) 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 with clear instructions for collection through one of its correspondent banks located in the domicile of the buyer.(2) 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.(3) Documentary collection is a collection of financial instruments being accompanied by commercial documents or collection of commercial documents without being accompanied by financial instruments, that is, commercial documents without a bill of exchange. Alternatively, the documentary collection is a payment mechanism that allows the exporters to retain ownership of the goods until they receive payment or are reasonably certain that they will receive it.(4) Outward collection is a banking business in which a bank acting as the remitting bank sends the draft drawn against an export with or without shipping documents attached, to an appropriate overseas bank, namely, the collecting bank to get the payment or acceptance from the importer.(5) Collection bill purchased is a kind of financing by banks for exporters under documentary collection methods. It means that the remitting bank purchases the documentary bill drawn by the exporter on the importer. It involves great risk for the remitting bank due to lack of a guarantee.3. Translate the following terms into English.(1) 承兑交单acceptance against documents (2) 商业承兑汇票 trade acceptance(3) 需要时的代理⼈case of need (4) 出⼝押汇export bill purchased(5) 物权单据 title document (6) 以寄售⽅式on consignment(7) 直接托收direct collection (8) 货运单据shipping documents(9) 付款交单documents against payment (10) 远期汇票time/ tenor/term/ usance draft4. Choose the best answer to each of the following statements(1)-(5) ABCAB (6)-(10) ACAADChapter Six1. Define the following terms:(1) Letter of credit 〖The Documentary Credit or letter of credit is an undertaking issued by a bank for the account of the buyer (the applicant) or for its own account, 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. 〗(2) Confirmed letter of credit 〖A credit that carries the commitment to pay by both the issuing bank and the advising bank. 〗(3) Revolving credit 〖A credit by which, under the terms and conditions thereof, the amount is renewed or reinstated without specific amendments to the documentary credit being required. 〗(4) Confirming bank 〖A bank, usually the advising bank, which adds its undertaking to those of the issuing bank and assumes liability under the credit.〗(5) Applicant of the credit〖The applicant is always an importer or a buyer, who fills out and signs an application form, requesting the bank to issue a credit in favor of an exporter or a seller abroad.〗2. Translate the following terms or sentences into English.(1) 未授权保兑〖silent confirmation 〗(2) 有效地点为开证⾏所在地的柜台〖to expire at the counters of the issuing bank 〗(3) 凭代表物权的单据付款〖to pay against documents representing the goods〗(4) 信⽤证以银⾏信⽤代替了商业信⽤。

境外汇款常用英语银行汇款.Telegraphic Transfer (T/T)：电汇，即由买方通过银行向卖方的银行账户付款。

.Letter of Credit (L/C)：信用证，即由买方向卖方的银行开出的保证付款的文件。

.Bill of Exchange：汇票，即由卖方开出，要求买方在规定的期限内支付货款的票据。

.Bank Draft：银行汇票，即由银行出具的一个付款人向受益人的书面要求付款的文件。

.Remittance：汇款，一般指跨境汇款，包括电汇、汇票等。

线上支付.PayPal：一种在线支付方式，用户可以通过该平台向其他用户或商家付款。

.Alipay：中国的一种在线支付方式，既支持个人账户付款，也支持商家店铺收款。

.WeChat Pay：中国的一种线上支付方式，主要用于微信生态圈内的交易，支持个人和商家收款。

.Apple Pay：一种由苹果公司提供的移动支付服务，用户可以使用Apple设备完成线上或线下支付。

.Google Wallet：谷歌提供的一种在线支付方式，支持在谷歌商店中购物时使用，并可用于向其他用户转账等。

现金支付.Cash：现金，即纸币或硬币等形式的实体货币。

.Banknote：纸币，由国家或地区发行的具有法定货币地位的纸制品。

.Coin：硬币，一种小型、通常是圆形的实体货币，由铜、锌、镍和钢等材料制成。

.Counterfeit Money：假币，指伪造的与真币相似的货币。

信用卡支付.Credit Card：信用卡，一种信用工具，持卡人可以在确定的额度内消费，然后在规定的周期内还款。

.Debit Card：借记卡，与信用卡类似，但是其使用的是持卡人的存款而不是信用额度进行消费。

.Charge Card：充值卡，一种预付费方式的信用卡，持卡人需要提前充值才能使用。

.Prepaid Card：预付卡，一种先交付款项再使用的卡片，通常用于购买特定商品或服务。

第三方支付.Escrow Service：第三方担保服务，卖家将商品交给第三方机构保管，待买家确认收货后，第三方机构再将货款支付给卖家。

LetterofCredit（LC）的分类
Letter of Credit(L/C)的分类
Letter of Credit 即L/C, 为国际贸易中最常见的付款方式,它的分类很多,下面作了列举,供参考.
1.revocable L/C/irrevocable L/C可撤销信用证/不可撤销信用证
2.confirmed L/C/unconfirmed L/C 保兑信用证/不保兑信用证
3.sight L/C/usance L/C 即期信用证/远期信用证
4.transferable L/C(or)assignable L/C(or)transmissible L/C /untransferable L/C 可转让信用证/不可转让信用证
5.divisible L/C/indivisible L/C 可分割信用证/不可分割信用证
6.revolving L/C 循环信用证
7.L/C with T/T reimbursement clause 带电汇条款信用证
8.without recourse L/C/with recourse L/C 无追索权信用证/有追索权信用证
9.documentary L/C/clean L/C 跟单信用证/光票信用证
10.deferred payment L/C/anticipatory L/C延付信用证/预支信用证
11.back to back L/C reciprocal L/C对背信用证/对开信用证
12.traveller's L/C(or: circular L/C)旅行信用证。

attention of remittance
Practice 2. TT process operation
4
Collection
To understand the definition of collection,be familiar with the international practice,parties and application of collection
International settlement(bilinguacoluisrsme) standard
First, summary of course
It is the core course of international economic and trade major, based on the operating skills’ cultivation about methods of international settlement, combining theory with reality, emphasising on positional operation, paying attention to the cultivation of comprehensive ability about finding, analyzing and solving problems, etc.
1.Definition of standby letter of credit
2.Characteristics of standby letter of credit
3.Differences between standby letter of credit and documentary letter of credit

Documentary Letter of Credit（L/C）---bank credit.--Ucp600Documentary Credit means an undertaking issued by a bank (“issuing bank”) at the request and on the instructions of a customer (the "applicant") to pay a determinable sum to the exporter (the “beneficiary”), provided the documents presented by the beneficiary are in compliance with the terms and conditions of the credit.Characteristics of a letter of credit: P71● The issuing bank takes primary liabilities for payment, provided the documents presented are in compliancewith the terms and conditions of the credit. 条件：出口商单证一致单单相符The L/C proves a relationship (a contract) between exporter and bank. L/C represents a bank’s credit .● L/C serves as self-sufficient instrument. A credit by its nature is a separate transaction from the sales contract orother contracts 与买卖合同相分离● L/C follows pure documents principle. The bank deals with only documents, but not the goods, services orperformance to which the documents may relate. 信用证各方处理单据非货物Functions of L/C P74● L/C minimizes the risks of defaults in foreign trade, providing more security for both parties. 风险最小● It achieves a commercially acceptable compromise between the conflicting interests of buyer and seller b ymatching time of payment for the goods with the time of their delivery.● L/C increase financing for both parties in foreign trade. 加强各方融资Parties to a L/C:● Applicant 申请人● Issuing bank 开证行● Beneficiary 受益人Amendment of L/C● Ad vising bank ／Transmitting bank 通知行／转递行● Confirming bank保兑行Parties to a documentary credit:● Nominated bank 被指定银行---Pay, negotiate or accept the L/C as instructed by the issuing bank-- negotiating the documents with recourse to the beneficiary 被指定银行对受益人有追索权-- paying bank（honor）pays without recourse to the beneficiary● Reimbursing bank 偿付行--无审单责任流程：Process of a documentary credit:● Application for L/C---- Application form, Security● Issuance of L/C --- Credit risk● Advising／Transmitting L/C---Verification of authenticity 检查真实性● Review of L/C by the beneficiary ----Dispatching goods Preparing the full set of documents Presentation ofdocuments-- Soft Clause L/C cases （开证申请人（买方）通知船公司、日期、目的港、验货人等，受益人才能装船。

⑥ : payment bank
Usually the opening bank or a third bank designated bank, makes payment to the beneficiary against presentation of stipulated documents.
⑦ Particulate clauses
第十四页，共20页。
L/C: procedures
① The importer applies to the issuing bank for the L/C application form: restatement of the clauses of the sales contract
of the importer. It is responsible for the payment of the goods.
第九页，共20页。
L/C: Parties involved
③ : advising bank 通知银行 Usually the correspondent of issuing
第三页，共20页。
Terms of Payment:
3. Remittance 汇付 The buyer himself remits money to the seller through b/c.
Mail transfer 信汇 Telegraphic transfer 电汇 Demand transfer 票汇 Note: Only when the transactions are
② Remarks of the l/c, the No.,type, date, etc.
③ The clauses of the bill of change, such as the amount of bill, drawer and drawee, the paying date

➢ 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
➢ Place and Date of Issue --Place（where the issuing bank is located） --Date（when the L/C is issued）
➢ Date and Place of Expiry --A definite date，not a period
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
What is a letter of credit
➢ A L/c is a written undertaking by the issuing bank to the beneficiary, under which the bank will pay a sum certain in money to the beneficiary if the beneficiary of the L/C provides the bank with specified documents within a prescribed time period, which all comply with the terms and conditions of the credit.