Pric of Goods.pptVIP

Practice of International Trade Chapter 6: Collection and Payment Abstract: this chapter mainly introduces the process of international settlement, such as means of payment, payment time, payment place, etc. Among them the L/C and its related issues are discussed in great details. This chapter is a key chapter of this book. Section 1: Instruments of Payment 1. Bill of Exchange, Draft Draft is most commonly used method of payment (1) Definition of Draft The definition of draft according to “Bill Law of the Peoples Republic of China” The definition of draft according to English “Bill of Exchange Act” (2) Main Contents of Draft 1. Definitely recorded items 2. Relatively recorded items (1) Time limit of payment (If no time limit is specified, infer it for sight payment) (2) Place of payment (If no place is specified, infer it for the payer’s place of business or residence) (3) Place of issue (If no place is specified, infer it for the issuer’s place of business or residence) (4) Number (5) Drawn clause Interest and interest rate 3. Parties to a bill of exchange Drawer, Drawee, Payee Usually, the payer is opening bank under L/C or importer under collection (3) Kinds of bill of exchange: By drawers: Banker’s Draft Commercial Draft By documents: Clean Draft or Clean Bill Documentary Draft By time of payment: Sight Draft Usance Bill or Time Bills 5. Endorsement （1）Types of Endorsement Blank Endorsement Endorsement （2）Prior party and Subsequent party Prior party has the liability of guaranteeing subsequent party has his draft being accepted or paid. （3）Discount 6. Dishonour Note: In the above-mentioned steps, sight draft don’t need acceptance. 2. Promissory Note (1) Definition of promissory note Promissory note is an unconditional promise in writing. (2) Basic Content of promissory note (3) Classification of promissory note 1. Commercial paper (including sight and time commercial paper) 2. Cashier’s order (4) The difference between promissory no