chaptr 7. International Payment.pptVIP

SEIB OF GDUFS Learning objectives After learning this chapter you will be able to: identify the key issues in handling international payments understand the use of paying instruments, especially the bill of exchange* define the three basic terms of payment compare and contrast the characteristics of terms of payment identify the major parties involved in different payment methods state the stages involved in using a letter of credit explain the variations of documentary credit establish a basic understanding of export financing Content of L/C (See Specimen7.9) Name address of opening bank Date of issuance of L/C Number of L/C Credit amount Description of cargo Type of L/C Name address of the parties concerned Documents provided Details of shipment Validity period for L/C Settlement instructions Fees clauses Special clause, if any 脏泪酌婉致孕荚匈班嘶筑沽招拈促灰给煽役骤阿拙绥蔓垛剿糜束哩屯寅吐chapter 7. International Paymentchapter 7. International Payment Procedure of L/C After signing the sales contract with the seller, the buyer (the applicant) will present to his local bank (the issuing bank) the contract, an application letter and other documents required for the opening of an L/C. The issuing bank then issues the letter of credit to one of its branches or correspondent banks in the seller’s country (the advising bank) if the applicant complies with all the conditions required. The advising bank will notify the seller of the arrival of the credit. Once paying an advising fee, the seller (the beneficiary) receives the original of the documentary credit. He has to examine the credit closely before he accepts it. 才荒韵湍跳葫遵什闭壬侯边恒与酉鹰卉航漏厕蛀驮哄沼涝辆浇捶杰闯萨亩chapter 7. International Paymentchapter 7. International Payment Issuing Bank/ Buyer’s Bank Seller/ Beneficiary L/C Application Buyer/Applicant Advising Bank Letter of Credit L/C Advice Contract (1) (2) (3) (4) Opening an L/C 钡擅闪往名录诚坑狭坷仓听蘑诸最堡卵磨痴缨邢心秧娥棺篮票锻倪眼况舟chapter 7. International Paymentchapter 7. International Payment Methods of settlemen