Chp9 Letter of Credit课件.pptVIP

Chapter NineLetter of Credit Contents Introduction Language focus Writing guidance Practice Assignment Letter of Credit ----What is L/C? An L/C is the written promise of a bank that acts at the request and on the instructions of the applicant and undertakes to pay the beneficiary the amount specified in the credit, provided that the terms and conditions of the credit are observed by the beneficiary. (UCP600：Means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honor a complying presentation.指一项不可撤销的安排，无论其名称或描述如何，该项安排构成开证行对相符交单予以承付的确定承诺。) ----Characteristics of a letter of credit The issuing bank has the primary liabilities for payment.The issuing bank undertakes to effect payment. The bank assumes a primary rather than a secondary liability. L/C is a self-sufficient instrument.A letter of credit stands independent of the sales contract. It is simply a document transaction.The banks deal with documents and not with goods, services and/or other performances to which the documents may relate. ----Advantages of a letter of credit From the importer’s point of view deposit a margin in the bank as a security money obtain shipping documents representing the title of the good after he makes payment stipulate any required terms in the credit to reduce risks From the exporter’s point of view receive payment against the shipping documents when shipping the goods, no worry about difficulties in foreign exchange transfer L/C (an L/C, Ls/C):--To instruct the bank to open (issue) the L/C--This L/C expires on June 15th.--To urge to establish(establishment of) L/C--To check the L/C--To amend (the amendment of ) L/C--To extend (the extension of) L/C--The payment is to be made by confirmed, irrevocable -L/C, …--The L/C stipulations are in exact accordance with the terms set forth in the contract. 上述（货物）： （ the goods） mentioned above/ the above mentioned （goods）/ the named（goods）