国际贸易实务英文二讲解周瑞琪InternationalPayment

国际贸易实务英文二讲解周瑞琪InternationalPaymentLearningobjectivesAfterlearningthischapteryouwillbeableto:identifythekeyissuesinhandlinginternationalpaymentsunderstandtheuseofpayinginstruments,especiallythebillofexchange2definethethreebasictermsofpaymentcompareandcontrastthecharacteristicsoftermsofpaymentidentifythemajorpartiesinvolvedindifferentpaymentmethodsstatethestagesinvolvedinusingaletterofcreditexplainthevariationsofdocumentarycreditestablishabasicunderstandingofexportfinancing2SEIBOFGDUFS7.1IssuesInConcernWhowillbearthecreditrisk?Inwhatcurrencythepaymentwouldbemade?Whatarethecostsofeachmethodofpayment?Whatmightbethepoliticalorlegalrisks?3SEIBOFGDUFSDeterminantFactorsofPaymentNatureofmerchandiseIndustrynorms/practicesDistancebetweenbuyerandsellerPotentialcurrencyfluctuationPolitical&economicstabilityRelationshipbetweenbuyerandseller4SEIBOFGDUFSInternationalPaymentCreditinstrumentsBillofExchange/Draft汇票PromissoryNote本票Check支票TermsofpaymentRemittance汇付Collection托收LetterofCredit信用证5SEIBOFGDUFSInternationalPayment6SEIBOFGDUFS7.2PayingInstrument:

Draft/BillofExchange汇票Definition:

Adraftisanunconditionalwrittenorderaddressedbyonepersontoanother,singedbythepersongivingit,requiringtheaddressedpersontopayatsightoratafixedfuturetimethesumofmoneyclearlyspecified,tothepayeeortohisorder.7SEIBOFGDUFSThreepartiesconcernedA:ThedrawerNormallytheexporterFillinthecontentofabillofexchangeandsignhisnameB:Thedrawee/payerThepartytowhomB/EisaddressedIfsightdraft,makepaymentIftimedraft,acceptthedraftandpaywhentheamountisdueUnderL/C–thebankUndercollection–theimporterC:Thepayee/beneficiaryThepartywhoissupposedtoreceivethepaymentusuallytheexporterorthebankatwhichthedrawerhashisaccountPresentB/Etothepayerforpaymentoracceptance8SEIBOFGDUFSThreepartiesconcerned9SEIBOFGDUFSThecontentofaB/E(Specimen7.1-7.4)Thewordsof“BillofExchange”or“Draft”ThedateandplaceofissuanceofdraftAspecificsumwhichshallbeexactlythesamewiththatindicatedonexportinvoiceThetenor,thatis,theperiodofcreditIfnotstipulated,regardedasSightdraftThenameofthedraweeThenameandsignatureofthedrawerThenameofthepayeeororderorbearerTheendorsementofthepayeewhenapplicable

10SEIBOFGDUFSProcedureofaB/EpracticeIssuance出票TheactofthedrawerissuingadrafttothedraweePresentation示票TheactofthepayeeorthebearerpresentingthedrafttothepayerforpaymentoracceptanceTworesults:beinghonoredordishonored11SEIBOFGDUFSProcedureofaB/EpracticePayment付款---DrafthonoredbypaymentForsightdraft,thepayerpaystothepayeeaspecifiedsumofmoneyindicatedonthedraftatpresentation.12SEIBOFGDUFSProcedureofaB/Epractice13SEIBOFGDUFSProcedureofaB/EpracticeDiscount贴现AnaccepteddraftisnegotiableIftheholderwantstogetmoneybeforematuredate,thedraftcanbediscountedbyadiscountingbankattheprevailingdiscountrateItisthesaleofanacceptedtimebillforlessthanitsfacevaluebeforeitsmaturitydate.

Endorsement背书Theactofthetransferorintransferringadrafttothetransfereebymakingasignatureonthebackofthedraft14SEIBOFGDUFSProcedureofaB/Epractice15SEIBOFGDUFSTypesofdraftCleandraftvs.documentarydraft 光票与跟单汇票Banker’sDraftvs.Commercialdraft 银行汇票与商业汇票Sightdraftvs.timedraft 即期汇票与远期汇票16SEIBOFGDUFSCleanDraftvs.DocumentaryDraftCleanDraftistheonewhichisusedwithoutthecompanyofanycommercialdocuments Eg.Banker’sDraftDocumentaryDraftistheonethatcallsfortheattachmentofrelevantcommercialdocuments.Popularininternationaltrade Eg.CommercialDraft17SEIBOFGDUFSBanker’sDraftvs.CommercialDraftBanker’sDraftisanorderfromonebank(thedrawer)toanother(thedrawee)withwhomitnormallymaintainsacorrespondentrelationship,topaytoanamedperson(thepayee)aspecifiedsumofmoneyondemand.CommercialDraftisanorderfromafirmorindividual(thedrawer)toanotherfirm,individualorbank(thedrawee)topaytoanamedperson(thepayee)aspecifiedsumofmoneyondemand.18SEIBOFGDUFSSightDraftvs.TimeDraft

Sightdraftistheonethatispayableonsightofthedocumentsoftitleoronfirstpresentationofthetitledocuments.Normallyusedwhentheexporterwishestoretaintitletothegoodsuntilitreachesitsdestinationandpaymentismade.Bearingthewordingas“atsightofthisbillofexchange,payto…”Notbankcredit,thereforehigherrisksTimedraft(usancedraft,termdraft)istheonethatispayableinaspecifiednumberofdaysaftersight,afterthedateofissuanceoracceptance,oratafixedfuturetime.Bearingthewordingas“at30/45/60/90dayssightofthisbillofexchange,payto….”Incaseofdishonor,theexporterortheforeignbankcansueforthemoneyonthebasisofdocumentarydraftalone19SEIBOFGDUFS7.3.1RemittanceDefinition

Afterconclusionofabusinesstransaction,thedebtorinstructshisbanktosend(remit)thetransactionamounttohiscreditorinexportcountry.Itisthedebtorwhotakesinitiativetosendthepayableamounttohiscreditor.20SEIBOFGDUFSProcedureofremittanceandpartiesinvolvedFirst,theremitter(theimporter)appliesforaremittance.Todosotheimporterneedstohavesufficientfundsinhisaccountinthebank.Theremittingbankeitherissuesaremittanceinstructionto,ordrawsadrafton,oneofitsoverseasbranchesorcorrespondentbanksintheexporter’scountry.Whentheoverseasbranchorcorrespondentbankreceivestheremittanceinstruction,itbecomesthepayingbankandwillcreditthepayee’s(theexporter’s)accountwiththerelevantamountaccordingly.Intheeventofusingademanddraft,theremittingbankwillgivethedrafttotheimporterandtheimporterwillthenprovidethedrafttotheexporterbyhisownway.Oncetheexporterreceivesthedraft,hecanpresentittothenominatedpayingbankforthewithdrawalofpayment.21SEIBOFGDUFSProcedureofremittanceTheimporter/theremitterTheexporter/theremitteeTheremittingbankThepayingbank1.Submitapplicationa2.Issuetheremittanceinstruction(telex,SWIFT)b2.Drawadraftonpayingbank(normallyademanddraft)a3/b5.Makepaymentb4.Presentthedraftb3.Surrenderthedraft22SEIBOFGDUFSTypesofremittanceThreetypesofremittanceMailtransfer(M/T)信汇bymaillowercharges,butslowTelegraphictransfer(T/T)电汇bytelecommunicationsystem(telexortelegraphorswift).Faster,safer,butmoreexpensiveBanker’sDemandDraft(D/D)票汇Imp.buysacheckfromabankinimp.countryandsendstotheexp.Lowestcharge,slowestTransferable23SEIBOFGDUFS7.3.2Collection托收Definitionanarrangementwherebythesellerdrawsadraftonthebuyerandauthorizesitsbanktocollect.

Ameansofpaymentensuringthatthegoodsarehandedovertothebuyeronlywhenhepaystheamountshownonabillorwhenheacceptsthebillandcommitstopaybyaspecifieddate.PartiesinvolvedDrawer/exporter/principal委托人Drawee/importer/payer付款人Remittingbank（托收行）inexportingcountryCollectingbank（代收行）intheimportingcountry24SEIBOFGDUFSProcedureofDocumentaryCollectionExportercollectingshippingdocuments;ExporterdrawingaB/Eonimporter;Exportersubmittingalldocumentswithcompleteinstructionsforcollectiontoalocalbank(remittingbank)andinstructingthebanktoeffectcollectionforhim;RemittingbankforwardingB/Ewithotherdocumentstoitscorrespondentbank(collectingbank)intheimporter’scountrypassingonexactlytheinstructionsreceivedfromexporterCollectingbank/presentingbankpresentingbillanddocumentstoimporter;Collectingbank/presentingbankreleasingdocumentstotheimporteruponreceiptofpaymentsoracceptancefromimporter;Collectingbankremittingpaymentstoremittingbank;Remittingbankcreditingpaymenttoprincipal(exporter)’saccount.25SEIBOFGDUFSProcedureofDocumentaryCollectionandPartiesInvolvedDrawer(seller)Remittingbank(drawer’sbank)Drawee(buyer)Collectingbank(drawee’sbank)1.Contract2.Goods3.Application+Documents+Draft4.Adviceoftermsofcollection+documents+draft5.Adviseofcollection9.Payment8.Payment6.Payment/Acceptance7.Documentsreleased26SEIBOFGDUFSTypesofCollectionDocumentaryCollectionDocumentsagainstPayment(D/P)付款交单thecollectingbankreleasesthedocumentstotheimporteronlyuponfullandimmediatecashpayment.

DocumentsagainstAcceptance(D/A)承兑交单Ifaperiodofcredittotheimporterisagreedupon,ausancebillwillbeusedThedocumentswillbereleasedagainstacceptancebytheimporter.CleanCollection光票托收–withoutthecompanyofcommercialdocuments27SEIBOFGDUFS7.3.3LetterofCredit28SEIBOFGDUFSContentofL/C(SeeSpecimen7.9)Name&addressofopeningbankDateofissuanceofL/CNumberofL/CCreditamountDescriptionofcargoTypeofL/CName&addressofthepartiesconcernedDocumentsprovidedDetailsofshipmentValidityperiodforL/CSettlementinstructionsFeesclausesSpecialclause,ifany29SEIBOFGDUFSProcedureofL/CAftersigningthesalescontractwiththeseller,thebuyer(theapplicant)willpresenttohislocalbank(theissuingbank)thecontract,anapplicationletterandotherdocumentsrequiredfortheopeningofanL/C.Theissuingbankthenissuestheletterofcredittooneofitsbranchesorcorrespondentbanksintheseller’scountry(theadvisingbank)iftheapplicantcomplieswithalltheconditionsrequired.Theadvisingbankwillnotifythesellerofthearrivalofthecredit.Oncepayinganadvisingfee,theseller(thebeneficiary)receivestheoriginalofthedocumentarycredit.Hehastoexaminethecreditcloselybeforeheacceptsit.30SEIBOFGDUFSIssuingBank/Buyer’sBankSeller/BeneficiaryL/CApplicationBuyer/ApplicantAdvisingBankLetterofCreditL/CAdviceContract(1)(2)(3)(4)OpeninganL/C31SEIBOFGDUFSMethodsofsettlement

SettlementbysightpaymentSettlementbydeferredpaymentSettlementbyacceptanceSettlementbynegotiation32SEIBOFGDUFSSettlementbySightPaymentDocsreleasedBuyer/ApplicantSeller/BeneficiaryIssuingBank/Buyer’sBankPresentingBankDocsDocsGoods(5)(10)(7)(6)Payment(9)Payment(8)Payment(11)33SEIBOFGDUFSSettlementbyDeferredPaymentDocsreleasedBuyer/ApplicantSeller/BeneficiaryIssuingBank/Buyer’sBankPresentingBankDocsDocsGoods(5)(8)(7)(6)Payment(10)Payment(9)Payment(11)34SEIBOFGDUFSSettlementbyAcceptanceDocsBuyer/ApplicantSeller/BeneficiaryIssuingBank/Buyer’sBankPresentingBankDraft&DocsDraft&DocsGoods(5)(7)(6)Payment(11)Payment(8)Payment(9)DraftdrawnonAcceptancenotice(12)(10)35SEIBOFGDUFSSettlementbyNegotiationDocsReleasedBuyer/ApplicantSeller/BeneficiaryIssuingBank/Buyer’sBankNegotiatingBankDraft&DocsDraft&DocsGoods(5)(11)(8)(6)Payment/Acceptance(7)Payment/Acceptance(9)Payment(10)Draftdrawnon36SEIBOFGDUFSTypesofLetterofCredit

1.Revocablevs.IrrevocableCreditRevocablecredit可撤销的信用证AnL/Cwhichcanbeamendedorcancelledbytheissuingbankwithoutpriornoticeofthebeneficiary.unfavorabletotheexporterthereforenotwidelyemployedThecancellationcanbemadebeforethedatetheL/Cexpires.Otherwise,theopeningbankshallreimbursethenegotiationbankorpaymentbankifthepaymentiseffectedbythembeforereceiptofthenoticeofcancellation.Irrevocablecredit不可撤销的信用证AnL/Cwhichcannotbecancelledoramendedwithouttheagreementofthebeneficiary(theexporter)andallotherparties.Givesassuranceofpayment,butlessflexibletochangecredittermAccordingtoUCP600,ifthewordingofrevocableorirrevocablenotfoundonthecredit,thiscreditshallbedeemedasirrevocable37SEIBOFGDUFSTypesofLetterofCredit

2.Confirmedvs.UnconfirmedCreditConfirmedcredit已保兑信用证AnL/Cthatabank,otherthantheissuingbank,undertakestohonorthecreditissuedbyaddingitsconfirmationConfirmingbanksignsunderthestatement,“Weherebyaddourconfirmationtothiscredit”.Confirmingbankwillbeliableforpaymentincaseofdefaultbytheissuingbank.Itshouldbeanirrevocablecredit.DoubleinsuranceofpaymentUnconfirmedcredit未保兑信用证AnL/Cwhichdoesnotindicatetheundertakingtoeffectpaymentbyanyotherbank,excepttheissuingbank38SEIBOFGDUFSTypesofLetterofCredit

3.Sightvs.UsanceCreditSightcredit即期信用证AnL/Cunderwhichtheopeningbankwillimmediatelyeffectpaymentuponpresentationofalldocumentsaslongasthedocumentsareinaccordancewithtermsincredit.Usance/termcredit远期信用证AnL/Cwhichindicatesthatpaymentwillnotbemadeatthedateofreceiptofdocumentsuntilthematuritydatespecifiedinthecreditprovidedthatallthedocumentspresentedareinaccordancewiththecredit.39SEIBOFGDUFSTypesofLetterofCredit

4.Straightvs.OpenCreditStraightcredit限制议付信用证AnL/Cthatisavailabletothebeneficiarybypresentationofdocumentstotheissuingbank.BeneficiarypresentingdocumentsdirectlytotheissuingbankratherthantoanyotherbankInpractice,thebeneficiarynormallypresentsdocumentstoanominatedlocalbankknownasnegotiationbankOpencredit自由议付信用证AlsofreenegotiablecreditTheissuingbankcommitstohonoringdraftsanddocumentsheldbythirdpartiesaslongasthedocumentscomplywiththecredit.40SEIBOFGDUFSTypesofLetterofCredit5.Transferablevs.Non-transferablecreditTransferrablecredit可转让信用证Underwhichthebeneficiaryisentitledtoinstructtheadvisingbanktotransferhisrights,inwholeorinpart,toanotherparty.UsedespeciallywhentheexporterisnotthedirectmanufacturerbutamiddlemerchantTransferor–theprime/firstbeneficiary;transferee–thesecondbeneficiaryAcreditmuststateclearlythatitis“transferable”AtransferableL/Ccanbetransferredonceonly,namely,fromfirstbeneficiarytosecondbeneficiary(ies).Wherethereareseveralsecondbeneficiariesinvolved,thecreditmustpermitpartialshipments.Non-transferablecredit不可转让信用证AnL/Cunderwhichthebeneficiaryisnotentitledtotransferhisrights,inwholeorinpart,toanotherparty.41SEIBOFGDUFSTypesofLetterofCredit6.RevolvingCredit可循环信用证Arevolvingcreditobligestheissuingbanktorestorethecredittotheoriginalamountafterithasbeenutilized,withouttheneedforamendment.

Usedespeciallyforongoingtransactions.42SEIBOFGDUFSTypesofLetterofCredit7.ReciprocalCredit对开信用证Areciprocalcreditisacountercreditunderwhichtheapplicantofafirstcreditbecomesthebeneficiaryofthesecondreciprocalcredit,whilethebeneficiaryofthefirstcreditbecomestheapplicantofthesecondreciprocalcredit.Itisoftenusedinbartertransactions,tradeofprocessingincomingmaterials,countertradeorcompensationtrade.43SEIBOFGDUFSTypesofLetterofCredit8.BacktoBackCredit背对背信用证Creditpaymentarrangementinwhichadocumentarycreditisusedasthe“backup”forissuinganewcreditMainlyusedbymiddlepersonsThefirstcreditmustbeirrevocableandnon-transferable44SEIBOFGDUFSTypesofLetterofCredit9.RedClause/AnticipatoryCredit红条款/预支信用证Ananticipatorycreditauthorizestheadvisingbanktomakeadvancestothebeneficiarybeforehispresentationofdocumentsrequired.Theapplicantisbearingtheliabilityofrepaymentincaseofthebeneficiary’sfailureofpresentingdocumentsforsettlement.45SEIBOFGDUFSTypesofLetterofCredit10.StandbyCredit备用信用证Astandbycreditisacleancreditthatguaranteesthepaymentforapossibleunfulfilledobligationonthepartoftheapplicant.ItissimilartoaLetterofGuarantee.46SEIBOFGDUFSLetterofCredit47SEIBOFGDUFSLetterofCreditGovernedbyUniformCustomsandPracticeforDocumentaryCredits600(UCP600)48SEIBOFGDUFS7.7LetterofGuarantee(L/G)Definition

LetterofGuaranteeisanirrevocableundertakingbywhichtheissuerholdsitselffinanciallyliablefortheconsequencesofnon-performanceoftheobligationsbyathirdpartytowardsthebeneficiary.49SEIBOFGDUFSBothsellerandbuyercanbethebeneficiaryofanL/GTwokindsofL/G:creditL/GandpaymentL/GWidelyusedintradeofcommodityandserviceEssentialrequirementsofanL/G:IrrevocableUnconditionalFullytransferableAbstract(theguaranteemustnotbedependantonperformanceoftheunderlyingsupplycontractDivisible(eachindividualrepaymentamountanddatemustbespecified)7.7LetterofGuarantee(L/G)50SE