10. International Payment and settlement A-国际商务英语-大学课件.pptVIP

Chapter 10 International Payment and Settlement 10.3 Credit Instrument Credit Instrument A credit instrument is a document that has monetary value, or is evidence of a financial transaction. A written or printed paper Credit Instrument Draft / Bill of Exchange Promissory note Check 1. Draft / Bill of Exchange 汇票 Definition: A draft is an unconditional written order addressed by one person to another, singed by the person giving it, requiring the addressed person to pay at sight or at a fixed future time the sum of money clearly specified, to the payee or to his order. Three parties concerned A: The drawer Normally the exporter Fill in the content of a bill of exchange and sign his name B: The drawee The party to whom B/E is addressed If sight draft, make payment If time draft, accept the draft and pay when the amount is due C: The payee The party who is supposed to receive the payment usually the exporter or the bank at which the drawer has his account Present B/E to the payer for payment or acceptance Three parties concerned The content of a B/E The words of “Exchange” or “Draft” The date and place of issuance of draft A specific sum which shall be exactly the same with that indicated on export invoice The tenor, that is, the period of credit If not stipulated, regarded as Sight draft The name of the drawee The name and signature of the drawer The name of the payee or order or bearer The endorsement of the payee when applicable A typical bill of exchange Procedure of a B/E practice Issuance 出票 Presentation 提示 Acceptance 承兑 --- Draft honored by acceptance Payment 支付 Procedure of a B/E practice Issuance 出票 The act of the drawer issuing a draft to the drawee Restrictive payee Pay….Co. only, pay…Co. not transferable To order Pay….Co. order, pay to the order of …Co. To bearer Pay bearer, pay…Co. or bearer Procedure of a B/E practice Endorsement 背书 Effected on the back of a draft and signed by the endorser The whole amount of the draft Blank Endorse