国际贸易英语信用证Letter of Credit

1、Unit 4 Execution of the ContractTerms of Payment:nL/CnCollection (D/P and D/A) nRemittance nOpen account nCash in advanceTerms of Payment:nCollection: 托收 The exporter authorizes the bank tocollect the money from the importer.出口人委托银行向进口人收取货款D/P: documents against payment 付款交单D/A：documents against acc

2、eptance 承兑交单Terms of Payment:nRemittance 汇付n The buyer himself remits money to the seller through b/c.nMail transfer 信汇nTelegraphic transfer 电汇nDemand transfer 票汇nNote: Only when the transactions are very small and the finance involved is small too.1. L/C: Definition RESONS OF USING L/C：n： foreign c

3、redit reports are often sketchy and do not give the right information.nThe country in which the foreign importer is located may be in a weak financial position.nImporter is reputable, conditions beyond his control prevent him from fulfilling his obligation.1. L/C: DefinitionGenerally: a documentary

4、letter of credit is defined as instrument by which a bank promises to pay the seller for his goods providing the seller conform exactly to the condition laid down in the L/C1. L/C: DefinitionSpecifically: it is an arrangement, whereby the buyer requires his bank to establish a credit in favor of the

5、 seller. The buyers bank undertakes, or authorizes its correspondent bank in the exporters country, to pay the exporter a sum of money against presentation of specified shipping documents.1. L/C: DefinitionAdvantages:nSecurity of payment to the exporter.Enable the buyer to ensure that he received th

6、e goods as ordered. L/C: Parties involvedn: applicant 申请者nThe party who applies for the opening of L/C, usually importer.n: opening bank 开户行nWhich opens the L/C upon the request of the importer. It is responsible for the payment of the goods.L/C: Parties involvedn: advising bank 通知银行nUsually the cor

7、respondent of issuing bank 开证行代理行nThe bank in the exporters country who informs the exporter that a L/C has been opened in his favor, and transfer the L/C to the exporter.L/C: Parties involvedn: beneficiary 受益人nUsually the exporter, who is entitled to receive the L/C for the payment of the goods.n:

8、negotiating bank 议付银行nThe bank who buy an exporters draft submitted to it under a L/C and then forward the draft and documents to the opening bank for reimbursement. Usually is the advising bank.L/C: Parties involvedn: payment bank nUsually the opening bank or a third bank designated bank, makes pay

9、ment to the beneficiary against presentation of stipulated documents.n: confirming bank 保兑行nThe bank which is requested to add its own commitment to the L/C, USUALLY the advising bank.L/C: chief contentsnthe parties involvednRemarks of the l/c, the No.,type, date, etc.nThe clauses of the bill of cha

10、nge, such as the amount of bill, drawer and drawee, the paying daten the amount of L/Cn the clauses about the documents, description of the goodsL/C: chief contentsn guarantee clauses of the opening bank, which testifies that the opening bank will hold itself responsible for the payment to the benef

11、iciary or the holder of the drafts.nParticulate clausesL/C: proceduresnThe importer applies to the issuing bank for the L/Cn application form: restatement of the clauses of the sales contractnThe L/C is drawn by the issuing bank.nThe advising bank informs the seller of the arrival of L/CL/C: procedu

12、resnThe beneficiary check the L/C, he should mainly focus on :The shipping dateThe time of validity of L/CQuantity of goods and amount of paymentThe address of the beneficiaryThe price term, loading and unloading portsInsurance clausesThe consignee of the B/LPacking description of the goodsL/C: proc

13、eduresnWhen the seller has made sure there are no more problems, he should make the delivery of the goods and then comes to negotiating bank for negotiation.nHaving effected the payment to the negotiating bank, the paying bank then presents the documents to the buyer upon his payment of the amount o

14、f the due or acceptance of the draft. With the documents the buyer can get the delivery of the goods.L/C: classificationsnRevocable / irrevocable L/CnConfirmed/unconfirmed L/CnSight L/C and usance L/CnTransferable /non transferable L/CnRevolving L/CnBack to back L/CnRed clause creditsnStandby L/CL/C

15、: True or false exercises nUnder l/c, the money of the bank is used for the settlement of the payment in international trade.nThe opening bank is usually a bank where the exporter keeps an account.nThe negotiating bank must be designated in the L/CnThe paying bank can claim its payment back by exercising the right of recourse.L/C: True or false exercisesnAn advising bank is usually located in the country of the e