国际贸易实务part2课件.ppt

Chapter 10 International Payments Letter of Credit A letter of credit is a payment term generally used for international sales transactions. It is basically a mechanism, which allows importers/buyers to offer secure terms of payment to exporters/sellers in which a bank(or more than one bank) gets involved. Performance of L/C The performance of L/C is discussed with respect to the procedures of Issuance, Amendment and Utilization respectively as in Figure 10.2, 10.3 and 10.4.(Page 109) Chapter 10 International Payments The Chief Contents of L/C The chief contents of the L/C can be seen as a combination of the chief contents of the sales contract, the required documents and the bank assurance. It might be further broken into the following provisions: The parties involved, including the applicant, the issuing bank, negotiating bank, the paying bank, and the like. Remarks about the L/C. The amount of the L/C. The clauses of the bill of exchange. The clauses about the documents, what documents are required. Particular clauses. Guarantee clauses of the opening bank. Chapter 10 International Payments The Varieties of Documentary Credit The Different Forms of Availability of the Credit The Payment at Sight The Deferred Payment The Negotiation The Acceptance Revocable Documentary Credit Irrevocable Documentary Credit Confirmed Irrevocable Documentary Credit Chapter 10 International Payments Other Payment Methods L/C offers a safe way for the settlement of goods in international trade. But under certain occasions L/C can not be used, as when the deal covers a long period of time or when the business is done in some other area rather than trade. Under such cases, letter of guarantee and stand by L/C can be used. along with the development of international trade, some other methods have been developed for the settlement of payment, among them factoring is now more and more often used. also, various methods of payment can be combined together for the settle