Chapter 1 Export and Import Financing.docVIP

Chapter 17 Export and Import Financing Ⅰ. Teaching Objective Let students have general knowledge of export and import financing Ⅱ. Teaching Focuses L/C, Draft, and B/L Ⅲ. Teaching Procedure Lack of trust Because of living in a different country, speaking a different language, and abiding by a different legal system, it is difficult to track down if the other party defaults on an obligation. That causes the lack of trust. The lack of trust ---- exacerbated by the distance between the two parties (in space, language, and culture as well as the problems of using an undeveloped international legal system to enforce contractual obligations) Each party has its own different set of preferences. Introduce a third party to act as an intermediary----usually it’s a reputable bank. ( L/C) Letter of Credit Definition L/C. A binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller. Basically, a letter of credit gives the seller reassurance that he will receive the payment for the goods. In order for the payment to occur, the seller has to present the bank with the necessary shipping documents confirming the delivery of goods within a given time frame. It is often used in international trade to eliminate risks such as unfamiliarity with the foreign country, customs, or political instability How to handle Import Letter of Credit operation? ???? The Operation flow 信用证(Letter of Credit，L／C)信用证是一种由银行依照客户的要求和指示开立的有条件的承诺付款的书面文件。其当事人有：(1)开证申请人(Applicant).向银行申请开立信用证的人,在信用证中又称开证人(Opener)。(2)开证行(Opening／Issuing Bank)。接受开证申请人的委托开立信用证的银行，它承担保证付款的责任。(3)通知行(Advising/Notifying Bank)。指受开证行的委托，将信用证转交出口人的银行，它只证明信用证的真实性，不承担其他义务。(4)受益人(Benificiary)。指信用证上所指定的有权使用该证的人，即出口人或实际供货人。(5)议付银行(Negotiating Bank)。指愿意买入受益人交来跟单汇票的银行。(6)付款银行(Paying／Drawee Bank)。信用证上指定付款的银行，在多数情况下，付款行就是开证行。信用证方式的一般收付程序(1)开证申请人根据合同填写开证申请书并交纳押金或提供其他保证，请开证行开证。(2)开证行根据申请书内容，向受益人开出信用证并寄交出口人所在地通知行。(3)通知行核对印鉴无误后，将信用证交受益人。(4)受益人审核信用证内容与合同规定相符后，按