全英實務(10 )

1、 Chapter 10 International Payment & Settlement P140Key points:Key points:3 Credit Instruments Bills of exchange; Promissory Note; Check 3 Methods of Settlement Remittance; Collection; L/C.3 Methods of financing for trade Bank Guarantee; Factoring; ForfeitingI. Payment Instruments1、Bill of Exchan

2、ge / Draft The definition and contents: An unconditional order in writing, addressed by one person (drawer) to another (drawee), signed by the person giving it, requiring the drawee to pay on demand, or at a fixed or determinable future time, a sum of money to, or to the order of, a specified person

3、 (the payee), or to any bearer. 返回目錄返回目錄Draft sample: BANK OF CHINA No.123456 This Draft is valid for one Oct.18., 2008 year from the date of issue AMOUNT: USD 98,000,000PAY TO Boine Airplane Co.,Ltd. THE SUM OF UD DOLLARS NIGHTY EIGHT MILLION ONLYTO: BANK OF NEW YORK, NEW YORK CITY, USA BANK OF CHI

4、NA, HEAD OFFICE BEIJING DEPARTMENT _ BANK OF CHINA No.00123456 Nov.30., 2011This Draft is valid for one year from the date of issue AMOUNT: USD 98,000,000.00PAY TO Boine Airplane Co.,Ltd. THE SUM OF US DOLLARS NIGHTY EIGHT MILLION ONLYTO: BANK OF NEW YORK, NEW YORK CITY, USA BANK OF CHINA, HEAD OFFI

5、CE BEIJING DEPARTMENT _Immediate Parties（to a bill of exchange） Drawer:The person who draws the bill of exchange and he is usually the exporter or his banker. Drawee / Payer:The person who is to pay the money and he is usually the importer or the appointed banker under a L/C. Payee:The person who is

6、 to receive the money, he may be, and often is, the same person as the drawer and he is usually the exporter himself or his appointed banker in business or he may be the bearer of the bill. Types of the bill of exchange Bankers draft: both drawer and drawee are banks. Commercial draft: drawer is co.

7、, drawee: co. or bank. Clean bill: without other documents with it.Documentary bill: with shipping documents. Sight bill: payer must pay when it is presented.Usance bill or Time bill: payer must pay at a fixed future time.2、Promissory Note: The definition and contents: An unconditional promise in wr

8、iting made by one person to another, signed by the note maker, engaging to pay, on demand or at a fixed or determinable future time (within 2 months according to Chinas relevant law ), a sum certain in money to, or to a order of, a specified person or the holder. The maker and payer are the same one

9、.返目返目 PROMISSORY NOTEFor GBP 5,000.00 London, 20th Nov. 2011 At 60 days after date I promise to pay Boine Co. or order the sum of five thousand GB POUNDS only. Bank of Netherland, London Signature:_Note sample: Types of the promissory note: Bank note: issued by the bank; Commercial note: issued by a

10、 business or a person. Involved two parties: Note maker and Note payee3. Checque / Check The definition and contents:An unconditional order in writing drawn on a banker signed by the drawer, requiring the banker to pay on demand a sum of certain money to the order of specified person or to a bearer.

11、 31st Sep.,2011 Cheque London, 31st Sep., 2011 No.352876 BANK OF EUROPE LondonTianjin Economic & Development Pay to Tianjin Economic & Development Corp.Corp. or order the sum of Four Hundred and Fifty Pounds. For Sino-British Trading Co., London Signature_ 352876 352876 602386 02211125 00004

12、50000 銀行編碼 支票編號 付款行代號 出票人在付款 根據(jù)支票 磁性編碼 磁性編碼 行的支票專戶 面額加編 賬戶磁碼 的磁碼 450.00 Checque sample:Types of Cheque / check be classified into Common cheque Cash cheque Transfer cheque;In international trade: Check Non-crossed cheque (without 2 parallel lines on top-left corner of the check) Crossed cheque (with

13、 2 parallel lines on top-left corner of the check) II. Money Transfer Types (Modes of settlement) 1、Remittance The definition: Remittance means that the buyer remits money to the seller through a bank on his own initiative. Workflow of Remittance: contractPayer/ importerPayee / exporterBank Parties

14、of remittance and the steps RemitterRemitting bank Paying bank Payee or beneficiary Classification of remittance1) M/T (Mail transfer)2) T/T (Telegraphic transfer) SWIFT3) D/D (Demand draft)Buyer buys bill of exchange from bank and send it to seller. Payment in advanc & Open Accounts Payment in

15、advance 預付 Open account 賒銷（待收款） Consignment 寄售 C.O.D. cash on delivery 交貨付款 C.W.O. cash with order 隨單付款2、Collection Definition: The exporter asks his bank to arrange for the acceptance or payment of the bill overseas, and the bank will take his duty through its own branch office abroad or a correspo

16、ndent bank to get the money. Parties involved in collection: Principal or exporter Remitting bank Collecting bank Payer or importer Presenting bank Types of collection1）Collection on clean bill (光票托收) The exporter collects the payment against the draft only, without any shipping documents attached t

17、hereto.This method is usually used in collecting balance under L/C, advance small sum(小額墊款), commission and costs of samples.返回目錄返回目錄2）Collection on documentary bill (Documentary Collection) (跟單托收) ！ Document against payment (D/P) ！ Bank releases documents to the buyer only against a cash payment. D

18、/P at sight D/P after sight Documents against acceptance (D/A) ！ Bank releases documents to the buyer against acceptance of a bill of exchange (draft) guaranteeing payment at a later date. Workflow of D/P ：Payer / ImporterContractCollecting bankRemitting bankPrincipal / ExporterWorkflow of D/A ：Paye

19、r / ImporterContractCollecting bankRemitting bank Principal / ExporterThe risks and advantageous to seller and buyer with collection D/P & D/A are commercial credit. Collections constitute a risk to seller. The advantageous for the buyer: not opening L/C and will save cost. Its a good option for

20、 the seller: when market is down or seeking new markets.D/P T/R（信托收據(jù)） D/A ! Under D/P after sight, the importer borrows the shipping documents from collecting bank and takes delivery of the goods. When the draft matures (is due), then the importer effects payment. The importer must submits a trust r

21、eceipt when borrowing the documents by which he expresses his intention to take delivery of the goods, clear customs and sell the goods on behalf of collecting bank. If the exporter accepts D/P T/R, he will risk no payment by importer on time. If collecting bank offers D/P T/R without permission fro

22、m the exporter, the bank should be responsible.3. Bank Guarantee 銀行保函 An undertaking by a bank to settle a debt if the debtor fails to make payment. It is a kind of bank credit and is widely used in international trade. A bank guarantee can be used as security for loan.4. International Factoring 國際保

23、理（保付代理） The exporter assigns his accounts receivable to bank or the factor (factoring agent ), aiming at getting cash at a discount from the face value in collection before maturing. Formula: Revenue of factoring = face value x (1- t /365 x r) - f t: days of the draft being matured. r: rate of disco

24、unt. f: discount charge Calculation of revenue with discount One company has a bill of exchange for acceptance of 60 days, the face value is GBP1,000,000. The company would take the payment ahead of time with discount from the factor. If the rate of discount is 8% and the discount charge is GBP100.0

25、0 per payment, how much should the company get after discount of factoring ?Reference: 1,000,000 x (1- 60/365 x 8%) - 100 = ? The advantages for exporter:1. offering more competitive payment conditions;2. buyers credit risk being shouldered by factor;3. getting advance payment for his shipment;4. sa

26、ving investigation cost (factor takes);5. avoiding the complex procedures of opening L/C. The advantages for importer: 1. purchasing goods on credit (bank or factor). 2. refusing payment if goods dont meet contract; 3. saving cost associated with opening L/C. 5. Forfeiting 福費廷 （中長期應收票據(jù)收買） The sellin

27、g, at a discount, of medium to longer term accounts receivable or promissory notes of a foreign buyer for immediate payment, usually a large sum of money and may carrying the guarantee of foreign bank or even the government. exporting jets, huge tankers, equipment of nuclear power station etc.Workfl

28、ow of Forfeiting：Importer2. ContractBank / governmentExporter3. Sending goods1. Forfeiting agreement4. forfeiting5. prompting 6. making payment The advantages of forfeiting for exporter: Providing cash financing for the exporter; Importers bank acts as guarantor for the receivables. More trading opp

29、ortunities.III Letter of credit1、L/C Letter of CreditDefinition of L/C:A written undertaking by the issuing bank given to the seller, at the request of the buyer, to pay at sight or at a future date to a stated sum of money.The L/C is only good for a stated period of time and payable on presentation

30、 of stipulated documents. 返回目錄返回目錄Advantages of L/C compared with Remittance and Collection The L/C is a reliable and safe method of payment, facilitating trade between unknown parties and giving protection to both the seller and the buyer. The advantage of L/C is that it minimizes risks to overseas

31、 customers. L/C is a most commonly used method of payment in the financial business of international trade. According to UCP 600，the beneficiary should present the documents for payment no later than 21 days of B/L opening.2、The nature of the letter of credit L/C is a guarantee from the bank: The is

32、suing bank gives guarantee to the beneficiary, if the beneficiary carries out contract according to the L/C, the issuing bank shall pay. The features of the L/C: 1. the bank has primary liabilities for payment. 首付款 2. It is a self-sufficient document. 獨立于買賣合同 3. It is a pure document deal. 純單據(jù)交易3、Ki

33、nds of L/C1) According to whether the draft is accompanied with the shipping document, L/C can be divided into: Documentary L/C: The bill of exchange should be accompanied with shipping documents the L/C pointed. Mainly used in international trade. Clean L/C:The bill of exchange isnt accompanied wit

34、h shipping documents. Mainly used for payment between head office & its branches.2) Irrevocable L/C: Once the L/C is opened, without agreement of the beneficiary, the opening bank cant amend or revoke the L/C within its validity. As long as the beneficiary provides the documents in accordance wi

35、th the stipulation in the L/C, the opening bank shall perform its duty of payment. According to UCP 600, the L/C unmentioned whether it is revocable or irrevocable is irrevocable.(UCP: Uniform Customs and Practice for Commercial Documentary Credits)3) According to whether the bank confirms, the irre

36、vocable L/C can be classified into: Confirmed L/C: 保兌信用證 The L/C is guaranteed by another bank other than the issuing bank. Double guarantee can be got to seller from the confirming bank and issuing bank. Confirming bank is the first payer! Unconfirmed L/C: 非保兌信用證 The irrevocable L/C is not guarante

37、ed by a bank other than the issuing bank. It is acceptable if the issuing bank is well-known and credible enough.4) According to the method of payment Negotiation L/C: 議付信用證 The beneficiary of the L/C may negotiate for the payment with the appointed bank or any other banks. Open negotiation L/C 公開議付

38、用證 Restricted negotiation L/C 限制性儀付信用證 The negotiation bank may only claim to the beneficiary if the documents are not corresponding with the terms of L/C, and could not take back of the payment from the issuing bank. Payment L/C: 付款信用證 The L/C which the paying or issuing or confirming bank can not

39、claim to the beneficiary if the payment has been made. 5) According to the time of payment,L/C can be classified into :Sight L/C: 即期付款信用證 The L/C which the issuing bank or any other appointed bank make the payment to beneficiary at the moment when receiving the draft. Sight L/C includes sight negoti

40、ation L/C and sight payment L/CDeferred L/C: 延期付款信用證 In which the buyer take delivery of the goods by accepting the documents and agree to pay the bank after a fixed period of time. Buyer may allow to pay in the fixed future time. e.g. 30 days after taking documents, 25 days after the date of shipme

41、nt.6) According to whether the L/C can be transferred or not, it is classified into : Transferable L/C: 可轉(zhuǎn)讓信用證 The beneficiary may allow to transfer all or part of the proceeds (payment) of the L/C to second beneficiary, usually the ultimate supplier of the goods. But it could only be transfered onc

42、e. Commonly used in the Middle-East nations. Non-transferable L/C: 不可轉(zhuǎn)讓信用證 Beneficiary has no right to transfer the L/C to the others, only himself should use it. Any L/C without the “TRANSFERABLE” is not Transferable one.7) Some special L/C : Revolving L/C: 循環(huán)信用證 The issuing bank restores the credi

43、t of original amount after it has been used. The number of times utilized and the period of validity is stated in the credit. It is useful for thick transaction during a fixed period.Acceptance L/C: 承兌信用證 The paying bank accepts the time draft and documents after receiving L/C when the beneficiary p

44、resents the time draft to the bank, and pay the amount on the due date. It is usually used in usance transaction. Reciprocal L/C: 對開信用證 The L/C which the seller and buyer open each other for buying materials or parts and the final goods.It is usually used in counter-trade, processing trade (processi

45、ng with imported materials, parts or designs). Back-to-back L/C: : 對背信用證 A new credit opened on the basis of an already existing, nontransferable credit. It is used by traders to make payment to ultimate supplier. A trade gets a documentary credit from buyer and then opens another credit in favor of

46、 supplier.Red clause L/C 紅條款信用證It is used to pay the supplier with some funds in advance before shipment to finance production of the goods. The credit may be advanced in part or full, and the buyers bank finances the advanced payment, so the bank must ask seller to store the goods by name of the ba

47、nk. Swift L/C 環(huán)銀電協(xié)信用證It is only a standard format to exchange the messages of L/C, foreign exchange, security exchange, L/G etc. though an international non-profit organization called Society for Worldwide Interbank Financial Telecommunication. Its widely used in international trade in Tele-opened c

48、redits since its much more safe, simple, fast and convenient. Standby L/C: 備用信用證 It is a payment guarantee primarily used in some countries (e.g. USA) forbidding opening L/G, but only used as a backup payment method if the original payment method is past due. It has the same function as L/G, the ben

49、eficiary can get the payment from this kind of credit, but buyer may take more risk.L/G: letter of guarantee 銀行保函銀行保函 Banks letter of guarantee. An undertaking by the bank as a guarantor to the beneficiary for the payment if the principal fails in fulfilling the payment. It is a banks credit for tra

50、de, projects and financing. Usage of Terms of Payments 1. Payment by L/C and Remittance: “Payment: 90% of the total invoice value should be paid by L/C and the remaining of 10% be paid by remittance”. 2. Payment by L/C and Collection: “Payment: 50% of the invoice value is available against payment a

51、t sight under this L/C while the remaining of 50% of documents be held against clean draft at sight” . Translation of Terms of Payments 1. Terms of Remittance: (for Payment in Advance, O/A)“買方應不遲于2008年6月10日將100%貨款用電匯預付至賣方.” “The buyer shall pay 100% of the sales proceeds in advance by T/T to reach t

52、he seller no later than June 10th, 2008”.2. Terms of Collection: (usually with documents as B/L)“買方應憑賣方開具的即期跟單匯票于見票時立即付款,付款后交單”“Upon first presentation the buyer shall pay against documentary draft drawn by the seller at sight. The shipping documents are to be delivered against payment only” . O/A (

53、open account trade) 賒賬交易: Payment in Advance 預付貨款預付貨款, C.O.D. (cash on delivery) 貨到付款貨到付款, C.W.O. (cash with order) 隨訂單付現(xiàn)隨訂單付現(xiàn)Usage of Terms of Payments (translation)3. Terms of L/C: “買方通過賣方所接受的銀行,于裝運月份前25天開立并送達賣方不可撤銷見票后30天付款的信用證，有效期至裝運月份后第15天在上海議付?！?“The Buyer shall open through a bank acceptable t

54、o the Seller an Irrevocable Letter of Credit at 30 days sight to reach the Seller 25 days before the month of shipment, valid for negotiation in Shanghai until the 15th day after the month of shipment.” Payment by Irrevocable Sight Credit 憑不可撤銷即期信用證付款 Payment by Irrevocable Documentary Sight Credit

55、憑不可撤銷即期跟單信用證付款 By Irrevocable Credit at 30 days Sight 憑不可撤銷即期信用證見票后30天付款 憑不可撤銷即期信用證提單日后60天付款 By Irrevocable L/C at 60 days after the date of B/L 50%即期信用證,50%即期付款交單 50% by L/C at sight, 50% by D/P at sightDiscrepancy Any inconsistencies found in documents presented, or failures to comply with, the te

56、rms and conditions of the L/C. e.g. Specifications, Unit of quantity, Packing, Terms of trade, Terms of shipment, Terms of insurance, Terms of payment, Inspection, Claim, Force Majeur, Arbitration, Date and Signature (Chop).EXERCISEI、single choice1、Using D/P, D/A, L/C as financing payment，the risk d

57、ecreases from large to small for the seller（ ） A、 D/A、D/P、L/C B、 L/C、D/P、D/A C、 D/P、D/A、L/C D、 D/A、L/C、D/P2、Which is belong to the banks credit for payment of international trade ? （ ） A、remittent B、collection C、letter of credit D、bill of exchange3、According to UCP 600，how many days the beneficiary

58、should present the documents for payment no later than the date of B/L（ ）? A、11 days B、15 days C、21 days D、25 days 4、 When confirming bank confirms to pay the payment, the responsibility of the confirming bank should be （ ） A、first B、second C、third D、forth5、The first payer under L/C is （ ）? A、import

59、er B、opening bank C、exporter D、advising bank6、The action of the holder of Bill of exchange asks the payer to pay is （ ） 。 A、transfer B、draft C、at sight D、advice7、T/T refers to （ ） 。 A、mail transfer B、telegraphic transfer C、remittance transfer D、letter of credit8、Witch of the following settlement is

60、of most risks for seller? （ ）。 A. D/D B. D/A C. D/P at sight D、D/P T/R9、According to UCP 600，transferable L/C can be transfered（ ）。 A、once B、 twice C、3 times D、4 times10、 Which kind of L/C has double guaranteed function for the seller? （ ） 。 A、revolving L/C B、bill L/C C、confirmed L/C D、transferable L/CIIII、yes or no1、If