信用证类型.docx

Module 06: Types and Variations of Letters of CreditTopic: StartThis module provides an outline of different types and variations of Letters of Credit.This module will take approximately 60 minutes to complete.Original materials developed by Collyer Consulting LLPTopic: WelcomeWelcomeIn this module you will learn about different types and variations of Letters of Credit.Oracle the owl will appear at different times to give you some important information.At different stages throughout this module, you will be presented with questions or tasks to confirm your understanding of the content.Enjoy!Select the Next button to continue.Oracle Owl Flash AssetHello. My name is Oracle.Welcome to Trade & Supply Chain Operations foundation course on Types and Variations of Letters of Credit.Topic: Learning OutcomesLearning OutcomesCompleting this module will enable you to perform your work in the Trade & Supply Chain Operations area in accordance with ANZ policies and procedures.The tasks that you will be able to complete are: Identify the features and requirements of conditions added to a standard structure of a Letter of Credit. Demonstrate the correct use of terminology with these conditions. List the UCP 600 position regarding these conditions. Describe the risks involved if the correct practices and procedures are not applied to the different variations of Letters of Credit.Oracle Owl Flash AssetAfter each section, you will be asked questions to see how well you have understood the topic.Whilst these questions are compulsory, they are not scored and do not form part of the module assessment.TerminologyThe Letters of Credit process uses very specific terms and phrases. The below buttons provide explanations for some of this terminology.Applicant Usually a customer of an Issuing Bank on whose behalf the Letter of Credit is issued. Usually the buyer of goods or services.Beneficiary The party in whose favour the Letter of Credit has been issued. Usually the Seller of goods or services.Issuing Bank The Bank which issues the Letter of Credit (Usually the Applicants Bank). Issuing Bank provides an irrevocable undertaking to pay the Beneficiary upon receipt of documents in compliance with the terms and conditions of the Letter of Credit.Nominated Bank A Bank authorised by the Issuing Bank to pay the Beneficiary upon receipt of complying documents. The Bank to whom the Beneficiary is instructed to present documents. Usually a Bank in the Beneficiarys country. A Letter of Credit can specify one or more Nominated Banks. It is also common for Letter of Credit to state that any bank in the Beneficiarys country can act as a Nominated Bank.Topic: Credits With Advance Payment ConditionsGreen Clause Credits绿色条款信用,预支信用证的一种。以绿色文字表示预支条款的信用证，与信用证红色条款相类似，但条款更严格。出口商有义务将预支后所采购的货物以开证行名义存入仓库，以后再办装船出口手续。因信用证中习惯将此条款打印成绿色文字因而得此名。绿色条款信用证的运用出口商须将预支资金所采购的契约货物，以银行的名义存放仓库，将仓库单据交付银行持有，以保证该预支金额依信用证规定使用，并受到控制以减少资金被挪用的风险。 在国际贸易的实务中，进口商同意采用绿色条款信用证时，进口商须向开证银行提供担保或抵押，而且一般来讲凡采用绿色条款信用证项下预支金额数量较大，故为了明确其功能，必须在信用证中注明“绿色条款信用证”（Green Clause Credit)字样BackgroundA Green Clause Credit is a type of credit where the Beneficiary is allowed to draw a portion of the credit as an advance of warehousing the goods. A Green Clause is so named because the condition relating to this form of advance was historically typed on a Credit in green ink. Today, a Packing Credit (in the form of a bank loan or advance) is the more common product name that is used and serves a similar purpose.Oracle Owl Flash AssetA Credit is also known as a Documentary Credit, a Documentary Letter of Credit, a Letter of Credit or a L/C.These terms are often used interchangeably.When is it used?A Green Clause credit is often used when partial shipments are not allowed and/or where the goods are of a type that require manufacture or production over a period of time. The Beneficiary in such circumstances may require a Credit to allow for pre-shipment financing in order that they can complete and/or finance the required shipment.In these circumstances, a Green Clause condition can be used in the Credit.List of Glossary Terms on Pagepartial shipments The term partial shipment under a Letter of Credit means multiple shipments. When partial shipments are allowed, the Beneficiary may make multiple shipments, as long as the aggregate of all those shipments does not exceed the value and quantity of goods stated in the Letter of Credit.pre-shipment financingIn some instances the Seller/Producer of the goods may require a loan to manufacture, pack and store the goods. They may approach their bank to provide them such a loan. This type of financing by a bank is called pre-shipment finance.ConditionsA Credit that contains a clause authorising a Nominated Bank to make advances to the Beneficiary against a form of security, such as the storage of the goods in a named warehouse in the name of the Nominated Bank or Issuing Bank, prior to shipment and presentation of documents, is commonly known as a Green Clause Credit. If the Beneficiary fails to present the stipulated documents, covering the shipment of the goods, the Issuing Banks or Applicants reimbursement obligation is reduced through disposal of the security i.e. sale of the goods held in the warehouse.Oracle Owl Flash AssetThere are no UCP 600 rules covering this type of condition and it will be the wording in the Credit that will determine the basis for any advance payment.Points to considerPoints to consider with Green Clause Credits: The Issuing Bank authorises the Nominated Bank to advance funds to the Beneficiary at the risk of the Issuing Bank and, therefore, the Applicant. Advance is usually against presentation of a warehouse receipt providing evidence of storage of goods covered under the Credit. Often they are used to back purchase of agricultural goods such as cotton, rice and coffee.Oracle Owl Flash AssetA typical wording in a Green Clause credit will be as follows: The Nominated Bank is authorised to advance to the Beneficiary up to xx% of the value of this credit against presentation of warehouse warrants issued by ABC Warehousing evidencing receipt of goods into their warehouse in the name of XXX Bank Issuing Bank.Points to considerFurther points to consider with Green Clause Credits: If ANZ agrees to make the advance as the Nominated Bank, all presentations must be made through ANZ so they can ensure that the advanced amount is deducted from any proceeds received. When ANZ issues a Green Clause Credit, the Credit should preferably be restricted to a Nominated Bank and not made freely available with any bank. Oracle Owl Flash AssetFor further guidance on ANZ policy and procedures for Green Clause Credits, please refer to the TSC Product Register and TSC Instruction Manual in MAX.Typical WorkflowThe below diagram describes the typical workflow in a Green Clause Credit where Issuing Bank is providing the financing:Step 1: Beneficiary stores the goods in a warehouse and obtains a warehouse receipt.Step 2: Beneficiary presents warehouse receipt to the Nominated Bank in exchange for pre-shipment finance.Step 3: Nominated Bank sends warehouse receipt to the Issuing Bank and Issuing Bank pays the Nominated Bank for the amount of pre-shipment finance.Step 4: Beneficiary ships the goods to the Applicant, presents shipping documents to the Nominated Bank in exchange for payment (value of shipping documents less amount of pre-shipment finance).Step 5: Nominated Bank sends shipping documents to the Issuing Bank and Issuing Bank pays the Nominated Bank for the value of shipping document less the amount of pre-shipment finance.RisksThere are risks associated with the use of Green Clause Credits. The buttons on the right provide explanations of some of these risks for the parties involved.Please select each button in turn to see further details on the risks for that party.Applicant The Beneficiary may not complete the delivery of all the goods and the Applicant may be required to take control of the goods that have been delivered into the warehouse. These goods may or may not have a commercial value if the order is not completed.Beneficiary No risk as long as they present documents complying with the terms and conditions of the Credit. They receive financing as they deliver the goods into the warehouse, or as may otherwise be agreed.Issuing BankDepending on the conditions of the pre-shipment financing, the Issuing Bank may be required to sell any goods that remain unshipped and in the warehouse, to reduce their exposure under the Credit.Nominated Bank Provided the Credit allows for reimbursement of any amount that has been advanced to the Beneficiary, the Nominated Bank has little or no risk. When the shipping documents are received, the Bank must ensure that only the balance that is due is paid to the Beneficiary.Learning Check 11Beneficiary stores the goods in a warehouse and obtains a warehouse receipt.2Beneficiary presents warehouse receipt to the Nominated Bank in exchange for pre-shipment finance.3Nominated Bank sends warehouse receipt to the Issuing Bank and Issuing Bank pays the Nominated Bank for the amount of pre-shipment finance.4Beneficiary ships the goods to the Applicant, presents shipping documents to the Nominated Bank in exchange for payment.5Nominated Bank sends shipping documents to the Issuing Bank and Issuing Bank pays the Nominated Bank for the value of shipping document less the amount of pre-shipment finance.Red Clause Credits红色条款信用证红条款信用证是一种具有特殊条款的信用证，信用证的进口方允许银行在客户出口交单前向其预先支付款项，从而使客户获得融资。根据客户的需要，我行也可以为其开立红条款信用证。 红条款信用证是允许出口商在装货交单前可以支取全部或部分货款的信用证。开证行在信用证上加列上述条款，通常用红字打成，故此种信用证称“红条款信用证”。 红条款信用证特点：通过红条款信用证，可以将国外开证方(进口方)对出口方的融资传递过来。 在国际贸易实务中，近年来对预支部分款项的条款亦未用红色字体，亦可通用。 红色条款内容须表明允许出口商预支部分金额，然后在指定日期补交单据后，银行扣除预支款的本息，付清余额。 进口商同意采用红色条款信用证，一旦出现风险，其预支款应由进口商承担责任，故采用红色条款信用证时应慎重从事BackgroundA Credit that allows for an advance payment to be made has often been referred to as a Red Clause Credit because the condition relating to the advance was historically typed on the Credit in red ink.This served to clearly distinguish this condition from others stated in the Credit.Oracle Owl Flash AssetWith the increasing use of SWIFT messages, the Red Clause and the Green Clause are gradually fading from the vocabulary of Letter of Credit practitioners. When is it used?Today, a condition allowing an advance payment to be made is quite rare and any advances are usually subject to a maximum of 80% of the credit value. An advance (loan) is often paid against presentation of a simple receipt issued by the Beneficiary where they will undertake to ship the goods as required by the Credit, or return the advance or a percentage that is relative to the value of any goods not shipped. If there are doubts as to a Beneficiarys ability to return the funds, should the need arise, the Applicant may require that the advance be made against the presentation of an advance payment guarantee issued for the amount of the advance, by the bankers of the Beneficiary.Oracle Owl Flash AssetThe difference between a Green Clause Credit and Red Clause Credit is that in a Green Clause Credit, the advance is meant for warehousing.In a Red Clause Credit, it is generally for completion of pre-shipment formalities such as packaging or for procurement of goods.List of Glossary Terms on Pagesimple receipt An acknowledgement indicating receipt of payment. It can also be a bill of exchange/draft.advance payment guaranteeA guarantee from the Sellers bank that guarantees the repayment of the advance paid to the Seller in the event that the goods are not shipped in full.ConditionsIn certain cases, advance payment can be made upon receipt of an advance payment guarantee issued by the Beneficiarys bank in favour of the Applicant.When an advance payment has been made, the Beneficiary will present documents including an invoice for 100% of the value of the goods shipped, less the amount of the advance received.The invoice will be issued for 100% and the draft will be drawn for the lesser amount that is due.In the absence of a requirement for a draft, the beneficiary should highlight the amount that they are claiming in their covering letter that accompanies the documents.Issuing a Bank GuaranteeWhere a Bank Guarantee is issued to secure an advance payment, consideration should be given for the following to be stated as part of the text:This guarantee will automatically reduce by xx% of the value of any invoice presented under letter of credit number xxxxxxx as part of a complying presentation made by name of Beneficiary to name of Nominated Bank.Ideally, the issuer of the guarantee should be a Nominated Bank under the Credit. This will facilitate the automatic reduction in the value of the guarantee, without any requirement for consent to be sought from the Beneficiary.LiabilityBy the inclusion of the above text, or similar, the liability under the guarantee will automatically reduce as a complying presentation is made under the respective Credit.An Applicant that authorises or requests that an advance payment be made against the presentation of an undertaking issued by the Beneficiary, must appreciate that a Nominated Bank will have no involvement in the recovery of any funds due to a failure of the Beneficiary to ship some or all of the required goods and thereafter present documents under the respective credit. The payment risk will lie with the Applicant.List of Glossary Terms on Pagecomplying presentationA presentation of documents that is in accordance with the terms and conditions of the Credit, the applicable provisions of UCP 600 rules and international standard banking practices.Points to considerPoints to consider with Red Clause Credits: The Issuing Bank authorises the Nominated Bank to advance funds to the Beneficiary at the risk of Issuing Bank and therefore the Applicant. The advance is usually against presentation of an undertaking provided by the Beneficiary to ship the goods as per contract terms. The advance can also be backed by a Standby Credit or Advance Payment Guarantee. It is suitable for shipment of custom made goods. Often used to back purchase of agricultural goods such as cotton, rice and coffee.Oracle Owl Flash AssetThere are no UCP 600 rules covering this type of condition and it will be the wording in the Credit that will determine the basis for any advance payment.List of Glossary Terms on PageStandby Credit Type of Documentary Credit that is an undertaking by a bank to effect payment with respect to an unfulfilled obligation on the part of the Applicant or another party. Standby Credits operate in a similar manner to a Guarantee and are often used as a substitute for Guarantees. They can be subject to either UCP 600 or International Standby Practices (ISP 98).Points to considerFurther points to consider with Red Clause Credits: If ANZ agrees to make the advance as a nominated bank, all presentations must be made through ANZ so we can ensure that advanced amount is deducted from any proceeds received. If ANZ agrees to issue an advance payment guarantee as a Nominated Bank, the Guarantee must meet all policy requirements. The Beneficiary must undertake to present shipping documents to ANZ. When ANZ issues a Red Clause Credit, the Credit must preferably be restricted to a Nominated Bank and not made freely available with any bank.Oracle Owl Flash AssetFor further guidance on ANZ policy and procedures for Red Clause Credits, please refer to the TSC Product Register and TSC Instruction Manual in MAX.Typical WorkflowThe below diagram describes the typical workflow in a Red Clause Credit where Issuing Bank is providing the financing:Step 1: Beneficiary presents an undertaking to ship or an advance payment guarantee to the Nominated Bank in exchange for pre-shipment finance.Step 2: Nominated Bank sends undertaking / advance payment guarantee to the Issuing Bank and Issuing Bank pays the Nominated Bank for the amount of pre-shipment finance.Step 3: Beneficiary ships the goods to the Applicant, presents shipping documents to the Nominated Bank in exchange for payment (value of shipping documents less amount of pre-shipment finance).Step 4: Nominated Bank sends shipping documents to the Issuing Bank and Issuing Bank pays the Nominated Bank for the value of shipping document less the amount of pre-shipment finance.RisksThere are risks associated with the use of Red Clause Credits. The buttons on the right provide explanations of some of these risks for the parties involved.Please select each button in turn to see further details on the risks for that party.ApplicantUnless a Bank Guarantee has been issued to secure the advance to be made to the Beneficiary, the Applicant bears the full payment risk if the Beneficiary fails to refund any amount in respect of goods not shipped under the credit.Beneficiary If the Beneficiary has arranged the issuance of a Bank Guarantee to secure the advance payment, then failure to ship the required goods according to the terms and conditions of the Credit will invoke a claim under the Guarantee. They need to present documents complying with the terms and conditions of the credit.Issuing BankUnless a Bank Guarantee has been requested to secure the advance to be made to the Beneficiary, the Issuing Banks only risk lies in any financial arrangements they may have made with the Applicant for the advance payment to be made.Nominated Bank Little or no risk applies as the Credit should