【国际结算】PPT+练习4.ppt

Topic 4 Documentary Letter of Credit （L/C）跟单信用证 A letter of credit is a settlement method on bank credit. Documentary Credit means an undertaking issued by a bank (“issuing bank”) at the request and on the instructions of a customer (the applicant) to pay a determinable sum to the exporter (the “beneficiary”), provided the documents presented by the beneficiary are in compliance with the terms and conditions of the credit. Characteristics of a letter of credit: ● The issuing bank takes primary liabilities for payment, provided the documents presented are in compliance with the terms and conditions of the credit. The L/C proves a relationship (a contract) between exporter and bank. L/C represents a bank’s credit instead of a commercial credit. ● L/C serves as self-sufficient instrument. A credit by its nature is a separate transaction from the sales contract or other contracts ● L/C follows pure documents principle. The bank deals with only documents, but not the goods, services or performance to which the documents may relate. Functions of L/C ● L/C minimizes the risks of defaults in foreign trade, providing more security for both parties. ● It achieves a commercially acceptable compromise between the conflicting interests of buyer and seller by matching time of payment for the goods with the time of their delivery. ● L/C facilitates financing for both parties in foreign trade. Forms and contents Contents of letters of credit and the applications Forms of letters of credit Amendments to letters of credit Parties to a documentary credit: ● Applicant 申请人 ● Issuing bank 开证行 ● Beneficiary 受益人 Amendment of L/C -- case ● Advising bank ／Transmitting bank 通知行／转递行 ● Confirming bank保兑行 - cases Parties to a documentary credit:  ● Nominated bank 被指定银行 Pay, negotiate or accept the L/C as instructed by the issuing bank -- negotiating the documents with recourse to the beneficiary