TermsofPayment国际贸易付款条件.ppt

TermsofPayment CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment CharacteristicsofInternationalPaymentIssues ReducedCreditInformationLackofPersonalContactDifficultandExpensiveCollectionsNoEasyLegalRecourseHigherLitigationCostsMistrust CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment RisksinInternationalTrade CountryRiskCountryriskisalsoknownaspoliticalrisk Theprobabilityofnotgettingpaidbyacreditor becausethecreditor scountryhas Insufficientforeignexchangereserves Notallowedthecreditortopaythedebt politicalembargo Politicalriskcanalsomeantheprobabilityofnationalizationofafirm ssubsidiarybythehostcountry RisksinInternationalTrade CommercialRiskTheprobabilityofnotgettingpaidbyacreditor becausethiscreditordoesnothavethefundstopaythedebtorbecausethecreditorrefusestopaythedebt ExposureTherelativeconsequencesofabad debtriskforanexporter theriskofa 50 000losswouldrepresentagreaterexposureforasmallexporterthanforalargeexporter CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment AlternativeTermsofPayment CashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCard AlternativeTermsofPayment Table7 1 AdvantagesandDisadvantagesofSeveralTermsofPayment CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment CashinAdvance DefinitionInaCashinAdvancetransaction theexporterrequeststhatthecustomerprovidepaymentinadvance beforeshipmentofthegoodscantakeplace Itistheultimate risk free alternativefortheexporter InaCashinAdvancetransaction theriskiscompletelytransferredtotheimporter CashinAdvance ApplicabilityThismethodisonlyjustifiedinrarecases Itcouldbeusedwhentheimporterisperceivedasbeingveryhighrisk commercialorcountryrisk Itshouldbeavoided CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment OpenAccount DefinitionInanOpenAccounttransaction theexporterconductsinternationalbusinessinamannersimilartothewayitconductsbusinessdomestically Theexportershipsthegoods accompaniedbyaninvoice andexpectstheimportertopaywithinadefinedtimeperiod 30 60days OpenAccount ApplicabilityTheexporterisconfidentthattheimporterwillpay e g long standingbusinessrelationship TheexporteriscompetingwithcompaniesthatofferOpenAccountterms Theexporterwantstocreategoodwill Incaseswheretheexporterisunsureoftheimporter scredit theexportercanusecreditinsurance OpenAccount CreditInsuranceAninsurancepolicyunderwhichcommercialriskiscovered Theinsurancecompanybearstheriskofnon paymentbytheimporter deductingaslightpercentageofthereceivable Creditinsurancedoesnotcoverpoliticalrisk unlesstheexporterhasexplicitlyaskedforadditionalpoliticalcoveragethatisobtainedthroughtheEx ImBank OpenAccount InternationalFactoringAmeansoffinancinginternationalreceivableaccounts Thefirmcanaskafactoringcompanytoadvancefundsonareceivableaccount Withrecoursewheretheowneroftheaccountreceivableisstillresponsibleforcollectingit Withoutrecoursewherethecollectionresponsibilityentirelyshiftstothefactoringhouse CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment LetterofCredit DefinitionALetterofCreditisadocumentwithwhichtheimporter sbankpromisestopaytheexporteriftheimporterdoesnotpay ALetterofCreditisdocumentary theexporterisonlypaidifitcanproducethedocumentsrequiredbytheimporter sbank Theexporterisnotpaiduntilitproducesalloftherequireddocumentstotheimporter sbank AlsocalledDocumentaryCredit LetterofCredit IssuingBankThebankprovidingtheLetterofCredittotheimporter Thebankthatwillpaytheexporterwhenitprovidesallthenecessarydocuments shouldtheimporterbeunabletopay AdvisingBankThebankthatdetermineswhetherthetermsoftheLetterofCreditofferedbytheIssuingBankareappropriate TheAdvisingBankisgenerallytheexporter sregularbank Insomecases theexporter sbankwilldelegatethisroletoanotherbankwhichismoreexperiencedininternationaltrade LetterofCredit ApplicantThefirmaskingtheIssuingBankforaLetteraCredit Usually theapplicantistheimporter BeneficiaryThefirmnamedinaLetterofCreditasthefirmtowhichtheissuingbankispromisingpaymentiftheimporterdoesnotpay Usually thebeneficiaryofaLetterofCreditistheexporter LetterofCredit Process IssuanceFirstStep Negotiationbetweenexporterandimporter SecondStep Applicant Importer requeststhebanktoopenaLetterofCredit L C onimporter sbehalfandnamingexporterasbeneficiary ThirdStep IssuingBanksendsthisL CtoAdvisingBank Exporter sBank FourthStep TheAdvisingBanknotifiesthebeneficiarythattheL Cisacceptable LetterofCredit IssuanceofaLetterofCredit LetterofCredit Process ShipmentFifthStepTheexportershipsthemerchandisetotheimporter Afteralldocumentsarecollected theexportersendsthemtotheAdvisingBank whichchecksthemagainstthetermsoftheL C andsendsthemtoIssuingBank Sixthstep Afterreceivingandcheckingthedocuments theIssuingBanknotifiestheimporter whousesthemtoclearCustoms LetterofCredit Process ShipmentUnderaLetterofCredit LetterofCredit Process PaymentSeventhStep ImporterpaysIssuingBank EighthStep IssuingBankpaysAdvisingBank NinthStep AdvisingBankpaysExporter LetterofCredit Process PaymentUnderaLetterofCredit LetterofCredit Process Entire Simplified ProcessofaLetterofCredit LetterofCredit ALetterofCreditis IrrevocableItcannotbealteredwithouttheexpressconsentofallpartiesinvolved VirtuallyallLettersofCreditareirrevocable DocumentaryThebeneficiarymustpresentacertainsetofdocuments billoflading invoiceandmiscellaneouscertificates tothebank Itispaidondocuments notthesafearrivalofthegoods LetterofCredit ConfirmedLetterofCreditTheexporterasksabanktoprovideanadditionallevelofpaymentsecuritytoaLetterofCredit Iftheimporterdoesnotpay andtheIssuingBankdoesnotpay theConfirmingBankpays CorrespondentBankAforeignbankwithwhichadomesticbankhasapreferredbusinessrelationship LetterofCredit DiscrepanciesAdifferencebetweenthedocumentsrequiredbytheLetterofCreditandthedocumentsprovidedbytheexporter Adiscrepancycanbeassimpleasamisspellingandassignificantasachangeintheinvoiceamount SinceLettersofCreditaredocumentary anydiscrepancyis intheory aviolationofthetermsoftheLetterofCreditandthereforeinvalidatesit Inpractice lettersofcreditareamendedwiththeapprovalofboththeissuerandthebeneficiary LetterofCredit LeadingCausesofDiscrepanciesinLettersofCredit asapercentageofalldiscrepancies LetterofCredit AmendmentsAchangetoaLetterofCredittowhichallpartiestoaLetterofCreditagree theexporter theimporter theIssuingBank andtheAdvisingBank Ingeneral amendmentsareonlymadeiftherearediscrepancies aseveryamendmentcoststheexporterandimportermoney LetterofCredit DraftsLettersofCreditcanalsobeaccompaniedbyDrafts iftheExporterwantstoextendcredittotheImporter DraftsareexplainedunderDocumentaryCollection LetterofCredit UCP500UniversalCustomsandPracticeforDocumentaryCredit 1993Revision InternationalChamberofCommerce URR525UniformRulesforBank to BankReimbursementsunderDocumentaryCredits OutlinestheresponsibilitiesofthebanksinvolvedininternationaltransactionsundertheUCP500 LetterofCredit ApplicabilityLettersOfCreditusedtobetheinstrumentofallinternationaltransactions LettersofCreditareanoutstandingmeansofmakingsurethattheexporterwillbepaid LettersofCreditarecostly LettersofCreditarecumbersome LetterofCredit Stand ByLettersofCreditHaveamuchlongervalidityperiod Sometimeslongerthanoneyear Usuallyapplytomorethanoneshipmentfromtheexportertotheimporter Stand ByLettersofCreditwerecreatedbyUnitedStatesbanksasasubstituteforbankguarantees CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment DocumentaryCollection DefinitionItisaprocessbywhichanexporterasksabankto safeguard itsinterestsintheforeigncountrybynotreleasingthedocuments ItisaccompaniedbyaBillofExchange alsocalledaDraft ItinvolvesaLetterofInstructionstothePresentingBank DocumentaryCollection RemittingBankThebankthatinteractswiththeexporterandwiththePresentingBankintheimportingcountry ReceivesthedocumentsfromtheexporterandthensendsthemtothePresentingBank Ithasnoobligationtorenderjudgmentoradviceonthequalityofthepacketofdocuments itjusttransmitsthemtothePresentingBank PresentingBankThebankthatinteractswiththeimporteronbehalfoftheexporter ReceivesthedocumentsfromtheexporterorfromtheRemittingBankandholdsthemuntiltheimportereithersignsadraftorpaystheexporter FollowstheLetterofInstructionsfromtheExporter DocumentaryCollection SightDraftTheRemittingBankisinstructedtoreleasethedocumentsonlywhentheImporterpays Theimporterhastopay onsight TimeDraftTheRemittingBankisinstructedtoreleasethedocumentsonlyaftertheImporterhassignedtheDraft APromissoryNotethattheimporterhastopayin30 60 90or180daysafterthedateatwhichitsignstheDraft Theexporterextendscredittotheimporter DocumentaryCollection DateDraftTheRemittingBankisinstructedtoreleasethedocumentsonlyaftertheImporterhassignedtheDraft APromissoryNotethattheimporterhastopayin30 60 90or180daysafterthedateatwhichthegoodswereshipped BOLdate Theexporterextendscredittotheimporter DocumentaryCollection Banker sAcceptanceTheRemittingBankisinstructedtosigntheDraftonbehalfoftheImporter TheRemittingBankonlydoessoifitisconvincedthattheImporterwilleventuallypay TheRemittingBank avals theDraft Theoppositeof Trader sAcceptance DocumentaryCollection ApplicabilityAlmostassecureasaLetterofCreditifusedwithaBanker sAcceptance butaboutasexpensiveinthatcase DocumentaryCollection ProcessofADocumentaryCollection CharacteristicsofInternationalPaymentIssuesRisksinInternationalTradeAlternativeTermsofPaymentCashinAdvanceOpenAccountLetterofCreditDocumentaryCollectionProcurementCardsTradeCardTermsofPaymentasaMarketingTool TermsofPayment ProcurementCards DefinitionA CreditCard foracompany EachdepartmentofthecompanyhasaCreditCardwithaspecificnumberandcanmakepurchaseslimitedtocertainvendorsandcertainamounts pertransactionandpermonth Thecompanygetsaitemizedbillattheendofthemonth ProcurementCards ProcessApurchaseismade TheExportergetspaid rightaway butatadiscount 2 3percent TheImporterdoesnothavetopayuntilthebillingdate TheImporter sBank issuingtheProcurementCard istheoneextendingcredittotheImporter ProcurementCards AdvantagesExcellentexchangerates PaymenttermsareadvantageoustoExporter TheImporterdoesnothavetopayuntilthebillingdate MinimalRiskforExporter ProcurementCards DisadvantagesExchangeRatefees 2 3percent Nodocu