unit 9 Letter of credit.pptVIP

Unit 9 Letter of Credit Content Discussion Introduction Writing skills Practice Focal words Discussion What is L/C? Whom are involved in L/C? How to carry out a L/C? Introduction Definition Characteristics of a L/C Contents of a L/C Parties involved in a L/C Procedures of L/C Definition a conditional bank undertaking of payment the most frequently used mode of payment assurance of payment - to seller - to buyer a catalyst in dealings Definition A L/C is a written undertaking by the issuing bank to the beneficiary, under which the bank will pay a sum certain in money to the beneficiary if the beneficiary of the L/C provides the bank with specified documents within a prescribed time period, which all comply with the terms and conditions of the credit. 信用证是银行（开证行）根据买方（申请人）的要求和指示开立的，凭符合信用证条款的单据，向卖方（受益人）支付一定金额的书面承诺。 Characteristics of a L/C Primary Liability of the Issuing Bank to Make Payment Separated from the sales Contracts Dealing with Documents Only High level of protection and security to both buyers and sellers Contents of a L/C Items on the credit itself Basic parties Items on draft Settlement conditions Items on goods, shipping documents , transport and insurance L/C amount and currency Additional conditions Reimbursement of the paying, accepting and negotiating bank The notation of the credit 信用证主要内容 (1)对信用证本身的说明。如其种类、性质、有效期及到期地点。 (2)对货物的要求。根据合同进行描述。 (3)对运输的要求。 (4)对单据的要求，即货物单据、运输单据、保险单据及其它有关单证 (5)特殊要求。 (6)开证行对受益人及汇票持有人保证付款的责任文句。 (7)国外来证大多数均加注：“除另有规定外，本证根据国际商会《跟单信用证统一惯例(1993年修订)》即国际商会500号出版物 （《ucp500》）办理。” (8)银行间电汇索偿条款(t/t reimbursement clause)。 Parties involved in a L/C Applicant/buyer 申请人 Issuing bank/the buyer’s bank 开证行 Beneficiary/seller 受益人 Advising/Notifying bank 通知行 Confirming bank 保兑行 Negotiating bank 议付行 Applicant Importer or buyer, who fills out and signs an application form, requesting the bank to issue a credit in favor of an exporter abroad. Issuing bank It is the bank receiving the applicatio