外贸英语课件7.pptVIP

6.1 Instruments of payment 支付工具 1. Bill of exchange 汇票 Mail Transfer (M/T) (2)Telegraphic Transfer (T/T) (3)Demand Draft (D/D) 2 . Collection 托收 Types of collection (4)Advising bank (5)Confirming bank The collecting bank will release the documents to the importer after he has made the acceptance, and the importer will make the payment only at the expiry of the draft. D/A is more risky than D/P for the exporter. Step 1 The exporter ships goods and obtains the shipping documents The process of collection Step 2 The exporter, known as the principal, delivers the following documents to the remitting bank: bill of exchange; shipping documents; a collection order which contains the exporters instructions to the remitting bank. Step 3 The remitting bank sends the collection instruction and the documents to the collecting bank. Step 4 If the instructions are D/P, the collecting bank will release the documents to the importer only against payment. If the instructions are D/A, the collecting bank will release the documents against acceptance of the bill of exchange by the importer. Step 5 After the importer makes the payment, the collecting bank will transfer accounts to the remitting bank. Step 6 The remitting bank transfers the account to the principal. Definition of the L/C According to the Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600 (“UCP600”), Credit 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. 3. Letter of Credit 信用证 Letter of Credit belongs to bank credit. As long as the beneficiary presents the stipulated documents in conformity with the L/C, the issuing bank of the L/C must make the payment firstly. 3. Letter of Credit 信用证 Features of the L/C Banks deal with documents. In letter of credit business, banks deal with documents, not goods or services or performance