《国际结算实务英语》PPT课件.ppt

1、Chapter 5,专业PPT/商演示设计制作,Payment Methods - Letter of Credit,Review,Question 1 : Whats the meaning of collection Question 2 : Types of collection (D/P - right to examine the documents and refuse payment; - any requirement of the applicant should be satisfied by certain documents and clearly indicated

2、when making credit application Issuing application form Issuing bank/the buyers bank - By issuing a credit the issuing bank undertakes full responsibility for payment,Parties to a L/C,Beneficiary/seller - The right to examine a credit upon receipt of it according to the sales contract; - whether be

3、paid or not solely depends on the fulfillment of terms and conditions of the credit. Advising bank - Accurately transmit the terms of credit and check the apparent authenticity of the credit Reimbursing bank - A bank named in credit from which the paying bank, accepting bank or negotiating bank may

4、request cover after paying or negotiating the documents. the reimbursing bank shall not examine the documents,Parties to a L/C,Claim-ing bank,Confirming bank Undertake the same obligations assumed by the issuing bank; Responsible for a credit independently and pay without recourse Negotiating bank I

5、n a negotiation credit, purchases the drafts and documents; When dishonored by the issuing bank, it has the right of recourse to the beneficiary; Obtain the reimbursement from the issuing bank Paying/accepting bank Designated by issuing bank to effect payment or acceptance in most cases to be the ad

6、vising bank; Once it has made payment to the beneficiary, it will lose the right of recourse to the beneficiary; Entitled to obtain reimbursement from the issuing bank,Procedures of a L/C,Seller/ beneficiary,Buyer/ applicant,Advising bank designated bank,Issuing bank,Shipping company,1)contract,2)ap

7、plication and cash deposits,3)opens a L/C,4)advise L/c,5)examine and prepare documents,6)payment,5),8)examine documents and ask the buyer to redeem,9)pick up goods,Procedures of a L/C,1、Sales contract between importer and exporter 2、Importer makes the application form 3、Issuing bank exam the creditw

8、orthiness, pass L/C to the exporters bank 4、Exporters bank pass L/C to the beneficiary 5、Accept L/C or applicant to have it amended, prepared other docs and present to the right bank 6、Check documents 7、Forward docs to reimbursing bank or issuing bank 8、Make reimbursement 9、Issuing bank notify the i

9、mporter 10、Docs are released to the import against his payment,Application and Amendment of L/C,It is a contract between the applicant and the issuing bank Documentary Credit Application form Any discrepancies between the L/C and sales contract may lead to the amendment of the credit Application for

10、 Amendment to Letter of credit,Types of a L/C,According to the Attachment of Commercial Docs - Clean Credit: Payment will be effected only against a draft without any commercial docs attached - Documentary Credit: Payment will be made against title docs either with a draft or not According to the Re

11、vocability of a credit - Irrevocable Credit: it cannot be cancelled or modified without the express consent from the issuing bank, the confirming bank and beneficiary. It gives the beneficiary greater assurance of payment - Revocable Credit: it can be cancelled or modified at any moment without the

12、beneficiarys consent or even without prior notice to the beneficiary.It involves risks to the beneficiary,Types of a L/C,According to the adding of confirmation - Confirmed irrevocable credit: gives the beneficiary a double assurance of payment. Used when the seller does not have confidence that the

13、 issuing bank can effectively guarantee payment . - Silent confirmation: Based on a separate arrangement between the beneficiary and the “confirming” bank. The bank will not be considered the confirming bank by the issuing bank and acquiring no right of claiming reimbursement from the issuing bank.

14、According to the Availability of payment - Irrevocable documentary sight payment credit - Irrevocable documentary deferred payment credit - Irrevocable documentary acceptance payment credit - Irrevocable documentary negotiation payment credit,Types of a L/C,According to the time of credit Availabili

15、ty - Sight or Demand credit . - Time or usance credit Transferable L/C - A credit under which the beneficiary (first beneficiary) may request the bank authorized to pay, incur a deferred payment undertaking, accept or negotiate (the “transferring bank”), or in the case of a freely negotiable credit,

16、 the bank specifically authorised in the credit as a transferring bank, to make the credit available in whole or in part to one or more other beneficiary (second beneficiary),Types of a L/C,Back to Back L/C - The beneficiary of an irrevocable credit (primary credit) may use the credit as security to open a separate credit (back-to-back credit /subsidiary credit),Original beneficiary /new applicant,Buyer/Original applicant,Issuing bank,Advising bank,Real supplier New beneficiary,Issuing bank,Advisin