International Payment

1、 Chapter 6 International Payment 8hrs Section 1 Payment InstrumentsSection 2 RemittanceSection 3 CollectionSection 4 L/C paymentSection 5 L/GSection 6 International FactoringSection 7 Combination of various methodsSection 8 Terms of payment in S/C Section 1 Payment InstrumentsBill of ExchangePromiss

2、ory Notecheck Definition (中国票据法) A bill of exchange is a negotiable instrument, signed and issued by the drawer, who authorizes the drawee to pay unconditionally a sum certain in money to the payee or the holder at sight or on a specified date. Law of the Peoples Republic of China on Negotiable Inst

3、ruments 汇票是出票人签发的，委托付款人在见票时或在指定日期无条件支付确定汇票是出票人签发的，委托付款人在见票时或在指定日期无条件支付确定的金额给收款人或者持票人的票据。的金额给收款人或者持票人的票据。中华人民共和国票据法 1996.1.1 1) Bill of exchange 汇票汇票 (Bill / Draft)1. Payment Instruments Definition from British encyclopaedia Form of commercial credit instrument, or IOU, used in international trade. A

4、 BOE 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 stated sum in money to, or to order of, a specified person, or to bearer. Section 3

5、 of the UK Bills of Exchange Act 由一人签发给另一人的无条件书面命令，要求受票人见票时或于未来由一人签发给另一人的无条件书面命令，要求受票人见票时或于未来某一规定的或可以确定的时间，将一定金额的款项支付给某一特定的某一规定的或可以确定的时间，将一定金额的款项支付给某一特定的人或其指定人，或持票人。人或其指定人，或持票人。英国票据法英国票据法2. Basic contents of BOEWords expressing it to be a bill of exchange An unconditional order to payA sum certain i

6、n money Name of payer Name of payeeDate of issue Signature of the drawerNote: If no date of payment is shown, it is at sight; if place of payment is not mentioned, it is at the payers premises and if place of issuance is not shown, the drawers premises is. 缺少规定事项之一的，缺少规定事项之一的，汇票无效汇票无效Example： 3. Exp

7、ressions of time of payment for a usance draft： At xx days after sight 见票后若干天付款 At xx days after date 出票后若干天付款 At xx days after date of Bill of Lading 提单签发日后若干天付款 Fixed Date 指定日期付款 4）Using of a sight Bill To draw / Issue 出票 Presentation 提示Payment 付款5）Using of a time BillTo draw / Issue 出票 Presentati

8、on 提示Acceptance 承兑 transfer or pay 转让或付款 DishonorRecourse 拒付和追索Drawer出票人/卖方出票出票承兑、付款承兑、付款提示提示Payee收款人 Payer / Drawee付款人/受票人/买方背书转让背书转让Discount贴现 The act ofThe act of a bank, a discount company or a person of buying an immature usance bill of exchange by deducting a certain percentage of interest.6)

9、Some key conceptsDiscount贴现 The act ofThe act of a bank, a discount company or a person of buying an immature usance bill of exchange by deducting a certain percentage of interest.6) Some key conceptsDishonor & Right of Recourse拒付与追索权 Dishonor:Dishonor: To refuse or decline to accept or pay; - said

10、of a bill, check, note, or draft which is due or presented; as, to dishonor a bill exchange.( Drawees disappearance, death or bankrupt are also regarded as dishonor.) Once a a bill, check or note is dishonored, the bearer has the right of recourse-the right to recover a bad debt, over all prior part

11、ies including drawer of the bill, check or note and accepter if a usance bill is accepted.7) Titles of draft Restrictive payee Pay Co. only 记名抬头 To order Pay to the order of Co. 凭指示 To bearer Pay bearer 空白抬头8) Types of Endorsement of draft v Restrictive endorsement 限制性背书 Pay Co. only ;Pay bank,not t

12、ransferablev Special endorsement 特别背书/记名背书 Pay bank or orderv Blank endorsement空白背书/不记名背书Clean draft 光票光票Documentary draft 跟单汇票跟单汇票With transport doc. ?Bankers Draft 银行汇票银行汇票:drawer and payer are banks Commercial Draft 商商业汇票业汇票9）Classification of Drafts：Drawer ?Time of paymentTime /Usance draft远期汇票远

13、期汇票Sight Bill即期汇票即期汇票Acceptor 承兑人?Commercial Acceptance Bill商业承兑汇票商业承兑汇票Bankers Acceptance Bill银行承兑汇票银行承兑汇票2. Promissory Note 本票本票Definition：An unconditional promise in writing made by one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a

14、 sum certain in money, to or to the order of a specified person, or to bearer. 本票必须记载下列事项：（1）表明“本票”的字样；（2）无条件支付的承诺；（3）确定的金额；（4）收款人名称；（5）出票日期；（6）出票人签章。 Types of promissory note: commercial, bankers, sight, usance (2 months max.) Note: if the holder of a promissory note does not present within specifi

15、ed time, he losses the right of recourse against the prior party, except the drawer. Promissory notes used in international trade are mostly bankers note. Some banks issue sight, bearer promissory note, which are used as money. 3. Check 支票支票 Definition：A negotiable instrument that is signed by the d

16、rawer, who authorizes the bank or other financial institution handling check deposit to pay unconditionally a sum certain in money to the payee or the bearer at sight.现金支票: 支票上印有“现金”字样，只能用于支取现金；转帐支票: 支票上印有“转帐”字样，只能用于转帐；普通支票: 支票上未印有“现金”或“转帐”宇样的，可以用于支取现金， 也可以用于转帐。划线支票: 在普通支票左上角划两条平行线的, 为划线支票只能用于转帐，不能用

17、于支取现金。空头支票:支票的票面金额大于出票人在银行存款的支票. 开出的出票人要负法律上的责任。 Section 2 Remittance2. CollectionCommercial credit3. L/CBank credit1. RemittanceGenerals: Payment Methods in intl tradeForward & backward transfer顺汇和逆汇 Favorable exchange/forward transfer /draft by remittance means that the draft floats in the same di

18、rection with that of the money. Remittance is of forward transfer。 Redraft/backward transfer means that the floating directions of money and draft are opposite. Collection is of backward transfer.Key concepts Key concepts RemittanceRemitter（Importer）Remitting Bank（汇出行）（汇出行）Payee（Exporter）Receiving B

19、ank（汇入行）（汇入行）1)contract(advance payment or after shipment)2）申请书、）申请书、交款交款3）payment order(通知通知)4）汇款通知、）汇款通知、付款付款1. Operation chart of remittanceRemittance汇付汇付5）paid & credit notice1 1）买卖合同规定以汇款方式付款；）买卖合同规定以汇款方式付款；2 2）汇款人出具汇款申请书，交付所汇金额及汇费；）汇款人出具汇款申请书，交付所汇金额及汇费；3 3）汇出行接受委托后按申请书的指示通知汇入行将汇款解付给收款人；）汇出行接受委

20、托后按申请书的指示通知汇入行将汇款解付给收款人；4 4）汇入行在收到委托通知书后通知收款人取款；）汇入行在收到委托通知书后通知收款人取款；5 5）汇入行解付汇款后，向汇出行收回垫款或邮寄付讫借记通知（）汇入行解付汇款后，向汇出行收回垫款或邮寄付讫借记通知（debit debit advice)advice)进行转帐。进行转帐。 汇汇 付付(remittance) 流流 程程:Remittance 汇付汇付2. Types of Payment orders & types of remittance 付款委付款委托书的种类及汇款方式托书的种类及汇款方式Types of RemittanceMa

21、il Transfer信汇信汇 Telegraphic Transfer电汇电汇 Demand Draft票汇票汇 M/TD/DT/T3. Characteristics of remittance 1.Risky, why? 1.Risky, why? Commercial creditCommercial credit. Seller? . Seller? Buyer?Buyer? 2.Unbalance bearing of capital, advance 2.Unbalance bearing of capital, advance payment? Payment after sh

22、ipment or payment? Payment after shipment or against receipt of the goods? against receipt of the goods? 3.Simple procedures/convenient & less 3.Simple procedures/convenient & less fees. Why?fees. Why?4. Application of remittance in intl trade Remittance is commonly used for Payment in advance, Cash

23、 with Order (订货付现), Open Account (赊销), down payment（定金）, balance of proceed, installments & other business payment.Section 3 CollectionSection 3 Collection托收托收 1 Definition: “Collection” means the handling by banks of documents （financial and/or commercial） in accordance received, in order to: obtai

24、n payment and/or acceptance, or deliver documents against payment and/or against acceptance, or deliver documents on other terms and conditions. ICC Uniform Rules for Collections, ICC Publication No. 522(URC522)，1995 托收是指银行依据所收到的指示处理单据（金融即或商业），以便于取得付款和/或承兑；或凭以付款或承兑交单；或按照其他条款和条件交单。 也可以按一下表述理解 托收是指债权人

25、(出口人)出具以债务人(进口人)为付款人的汇票委托出口地银行（托收行）通过其在进口地的关系行（代收行）向债务人收取货款的一种支付方式。又叫银行托收。Principal（Exporter）Remitting Bank（托收行）（托收行）Payer（Importer）Collecting Bank（代收行）（代收行）S/CS/C 1 1）托收申请托收申请 单据、汇单据、汇票票2 2）单据、汇票、委托书单据、汇票、委托书3 3）提示汇票）提示汇票2. Operation chart for Documentary Collection 跟跟单托收流单托收流 程程 简简 图图4 4）审单付款审单付款5

26、 5）交）交 单单6 6）交付货款）交付货款7 7）交款）交款Collection托收托收1 1）出口人按合同规定发货后，填写托收申请书，开立汇票连同货运单据交）出口人按合同规定发货后，填写托收申请书，开立汇票连同货运单据交托收行委托代收货款；托收行委托代收货款；2 2）托收行根据出口人的指示，向代收行发出托收委托书连同汇票、单据寄）托收行根据出口人的指示，向代收行发出托收委托书连同汇票、单据寄交代收行委托代收；交代收行委托代收；3 3）代收行按照委托书的指示向进口人提示汇票与单据；）代收行按照委托书的指示向进口人提示汇票与单据；4 4）进口人审单无误后付款；）进口人审单无误后付款；5 5）代

27、收行交单；）代收行交单；6 6）代收行办理转帐并通知托收行款已收妥；）代收行办理转帐并通知托收行款已收妥；7 7）托收行向出口人交款。）托收行向出口人交款。跟单托收跟单托收(Documentary Collection) 流流 程程:3. Characteristics of Collection Commercial credit, shippers bear risks of not obtaining money from payer of draft. Exporter ship goods first and then collect proceeds afterwards, whi

28、ch means providing capital credit to importer. Both remitting and collecting banks act only in accordance with principals instructions, not adding any promises and/or liabilities as to drawees honoring of draft presented or caring of goods shipped. Simple procedures and charges, favorable to buyers

29、whose interest of purchasing maybe stimulated, and exporters may have more business.?CollectionClean collection 光票托收光票托收Documentary collectionD/P 付款交单付款交单D/A 承兑交单承兑交单D/P sightD/P after sight4. Classification of Collection 托收的种类托收的种类Collection bill purchased托收出口押汇托收出口押汇The bank purchases the shippers

30、 shipping document and draft with recourseCollection托收托收Trust receipt (T/R) 信托收据信托收据A document, used in collection, presented to the collecting bank by the buyer promising to honor the sellers usance draft when it matures and against which the collecting bank usually releases the shipping documents

31、which will be sold or used to take delivery of the goods by the buyer. 5. key conceptsSection 4 Letter of Credit L/C 信用证信用证1. Definition Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a comply

32、ing presentation. The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600 是是银行（银行（issuing bank)issuing bank)根据申请人根据申请人( (applicantapplicant) /) /进口人进口人的请的请求和指示向受益人（求和指示向受益人（beneficiarybeneficiary）/ /出口人出口人开立的载有一定开立的载有一定金额，保证在一定期限内金额，保证在一定期限内凭符合规定的单据付款的凭符合规定的单

33、据付款的书面文书面文件件. .2 Parties to L/CApplicant 开证申请人开证申请人Issuing/Opening Bank 开证行开证行Beneficiary 受益人受益人Negotiating Bank 议付行议付行Advising Bank 通知行通知行Paying Bank 付款行付款行Reimbursing Bank 偿付行偿付行Confirming Bank 保兑行保兑行vAdvising bank means the bank that advises the credit at the request of the issuing bank. v通知行意指应开

34、证行要求通知信用证的银行。 vApplicant means the party on whose request the credit is issued. v申请人意指发出开立信用证申请的一方。 vBeneficiary means the party in whose favour a credit is issued. v受益人意指信用证中受益的一方。vConfirming bank means the bank that adds its confirmation to a credit upon the issuing banks authorization or request.

35、 v保兑行意指应开证行的授权或请求对信用证加具保兑的银行。vIssuing bank means the bank that issues a credit at the request of an applicant or on its own behalf. v开证行意指应申请人要求或代表其自身开立信用证的银行。 3. Main contents of an L/C1) About L/C itself including type of L/C, amount, expiry date and place.2) Description of goods including name of

36、 commodity, specifications, quantity, packing, price etc.3) Shipment requirement including latest date of delivery, port/place of shipment and destination, mode of transportation, partial shipment and transshipment etc.4) Documents required: mainly five types (1) doc. relating to goods including inv

37、oice, packing list, weighing memo, certificate of origin, inspection certificate etc; (2) shipment doc.- Bill of Lading (B/L) which representing title to the goods shipped；(3) insurance doc. as insurance policy or certificate (4) financial doc. as draft; (5) other doc. As shipment advice, certificat

38、e of dispatching a set of non negotiable doc., post receipt, certificate of age, flag of carrying vessel etc.;5) Additional/special conditions;6) Instructions to advising and/or negotiation banks;7) Issuing banks undertaking on payment.Applicant(Importer)Beneficiary(Exporter)Issuing Bank(1)(2)Advisi

39、ng Bank(4)(5)(3)(6)(7)订立合同订立合同3. 开证开证2. 申请开证申请开证4. 通知受益人通知受益人5. 交单议付交单议付6. 寄单索偿寄单索偿7. 付款赎单付款赎单4 4 即期不可撤销跟单议付信用证流程图即期不可撤销跟单议付信用证流程图5. Characteristics of L/C1.Opening Banks Primary liabilities for payment 开证行开证行负首要付款责任；负首要付款责任；2.Self-sufficient instrument信用证是一项信用证是一项自足文件自足文件；3.Pure documentary transac

40、tion信用证业务是纯粹的单据业务。信用证业务是纯粹的单据业务。银行信用银行信用依据买卖合同，又依据买卖合同，又独立于合同。独立于合同。银行凭单付款，不银行凭单付款，不问货物问货物Negotiation 议付vNegotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance

41、 funds to the beneficiary on or before the banking day on which reimbursement is due to (to be paid to) the nominated bank. UCP600 2007 Revisionv议付意指被指定银行在其应获得偿付的银行日或在此之前，通过向受益人预付或者同意向受益人预付款项的方式购买相符提示项下的汇票（汇票付款人为被指定银行以外的银行）及/或单据。 6. Key conceptsConfirmation保兑vConfirmation means a definite undertakin

42、g of the confirming bank, in addition to that of the issuing bank, to honour or negotiate a complying presentation. UCP600 2007 Revisionv保兑意指保兑行在开证行之外对于相符提示做出兑付或议付的确定承诺。 Presentation提示vPresentation means either the delivery of documents under a credit to the issuing bank or nominated bank or the doc

43、uments so delivered. UCP600 2007 Revisionv提示意指信用证项下单据被提交至开证行或被指定银行，抑或按此方式提交的单据。 7. Classification of L/C1.With shipping doc.?Clean L/CDocumentary L/C2. Revocable ?Revocable L/CIrrevocable L/C3.Time of paymentSight L/CTime L/C；Usance L/C4. Confirmed?4. Confirmed?Confirmed L/CConfirmed L/CNon-confirme

44、d L/CNon-confirmed L/C5. Transferable?5. Transferable?Transferable L/CTransferable L/CNon-transferable L/CNon-transferable L/C6. Form of 6. Form of paymentpaymentSight payment L/CSight payment L/CDeferred payment L/CDeferred payment L/CAcceptance L/CAcceptance L/CNegotiation L/CNegotiation L/C8. Usa

45、nce Letter of Credit Usance Letter of Credit means that the issuing or the paying bank effects payment within stipulated time upon receipt of doc. under L/C. Bankers Acceptance Credit means that the issuing bank is the payer of a time draft drawn under an L/C., once the draft is accepted, the issuin

46、g bank should, as the acceptor, bear the responsibility to pay the drawer, endorser or the bearer. 9. Deferred Payment Credit Deferred Payment Credit(延期付款信用证)means that it is stipulated in the L/C that the issuing undertakes to pay at a specified time after date of shipment or receipt by the bank of

47、 the relevant doc. Under this L/C, the exporter cant not obtain money by discounting draft in the intl financial market, therefore he can either use its own money or borrow from a bank. So the export price should?10. Usance Credit payable at sight假远期信用证 Usance Credit payable at sight means that bene

48、ficiary draws a time draft which is to be discounted by the paying bank with the applicant bearing all discount interest and fees. This L/C seams to be a time one, but, the exporter can still get paid at sight and for full amount, so it is sight for exporter but time for importer.11. Transferable Cr

49、edit Transferable Credit means that under the request of the first beneficiary, the amount of the L/C can be transferred totally or partially to one or several secondary beneficiaries through the transferring bank. An L/C can be transferred, only once, when it is clearly market “transferable”, with

50、all the conditions of the original L/C remain unchanged except clauses as amount, unit price, time of shipment, date of presentation of doc., expiry date and name of applicant.12. Back to Back Credit背对背信用证 Back to Back Credit means a newly opened L/C, based on and similar to an original L/C in conte

51、nt, by the advising bank and at the request of the beneficiary of that L/C. The beneficiary of a back to back credit can be of d o m e s t i c o r o v e r s e a s , a n d v e r y o f t e n i s a middleman/broker. A back to back L/C can only be issued on the basis of an irrevocable L/C. 13.Revolving

52、Credit循环信用证Revolving Credit means that the amount of L/C shall be automatically restored to the original amount after each negotiation or shipment, but shall not be considered exhausted unless and until the aggregate amount of negotiations is reached. 是指信用证被全部或部分使用后，其金额又恢复到原金额，可再次使用，直至达到规定的次数或规定的总金额

53、为止。It is usually used for S/C by partial shipment. Advantages of revolving L/C: no need for opening Ls/C repeatedly and thus saving opening fees for the importer.The exporter doesnt have to check and amend Ls/C from time to time.14. Reciprocal L/C对开信用证 Reciprocal Letter of credit means two Ls/C of a

54、bout equal in amount with the applicant of each being the beneficiary of the other and each issuing bank being the advising bank of the other. They can be opened at the same time or one after the other. They are mostly used in processing and compensation trade.15. Anticipatory L/C预支信用证Anticipatory L

55、/C (also known as Red Clause L/C) means an L/C in which the opening bank authorizes the paying bank (usually the advising bank) to advance payment to the beneficiary for total or partial amount of the L/C， and undertakes to reimburse the paying bank with interest. 受益人先收款后交单。 This L/C is usually avai

56、lable against exporters clean draft.16. Standby Letter of Credit 备用信用证 A special type of L/C applicable to UCP 600, in which the opening bank undertakes to reimburse the beneficiary without recourse against beneficiarys draft, drawn under this standby L/C and in compliance with its stipulations, and

57、 notice and/or certificate evidencing applicants failure in performing his liabilities. A bank can issue such a credit for itself. Standby L/C is usually used in business like bidding, performance of contract, advance payment, O/A and repayment. Its kind of L/G in the form of L/C.Section 5 Bankers L

58、etter Guarantee (L/G)银行保函银行保函Bankers L/G is a written form of undertaking issued by a bank at the request of an applicant to a third party (beneficiary) promising to pay the beneficiary accordingly against his claim in case the applicant fails to fulfill its liabilities and/or obligations. 1. Definition2. Types of L/G Performance Guarantee(履约保函) Import Performance Guaran