order--Endorsable.ppt

Ch13 international payments draft Types of remittance and collection Meaning ,Characteristics catalogues of L/C (2) parties different drawer Banker’s draft commercial draft ①Issuance Issuance---the drawer completes the items in a draft, such as drawee, amount, payee, date, place and so on. ② Presentation ③（Acceptance ） 13.2 Remittance 2. types High risk Imbalance of cash burden Simple process and less expensive Principal---exporter Remitting bank---the seller’s bank Collecting bank---the buyer’s bank Presenting bank drawee---importer 2. types 3. Workflow of Documentary Collection 4.relationship between D/P and D/A 5. D/P ? T/R Upon first presentation the buyer shall pay against documentary draft drawn by the sellers at sight. The shipping documents are to be delivered against payment only. 13.4 letter of credit 2. parties Applicant Beneficiary issuing bank Advising bank Paying bank Negotiating bank Confirming bank 3. characteristics (1)The issuing bank is the first one who will undertake the payment (2)L/C is an independent doc. (3)L/C is a transaction of doc. 4 . Chief contents 5.Flow of a documentary credit Sight L/C Transferable L/C 5）Revolving Credit6）Back to Back Credit7) Reciprocal Credit---compensation trade, barter8) Red Clause Credit9) Stand by Credit （10）Payment/ Acceptance/Negotiation credit Method of payment D/P D/A Condition of present doc. payment acceptance Time of payment At sight or time time Risk of collection Loss of money Loss of money and cargo Relation---Belong to collection and commercial credit difference 建夏蝎蹦姻匹晴备瞳织叙冰骑敏韶映亢恍体选芭侵市酒唾双桃蚕别悬僧秃order---Endorsableorder---Endorsable types D/P at sight D/P30 days after sight D/A30 days after sight Date of Collecting Date of Presentation or acceptance Date of Payment Date of Release we export and chose three types of collection---D/P at sight ,D/P 30days after sight and D/A30 days after sight. Issuing day is Jan. 2nd and doc.