国际贸易实务教学课件：Chapter 5 International Payment.pptVIP

INTERNATIONAL PAYMENT * 8) Advantages and Disadvantages of L/C Advantages: a. The seller and the buyer are both protected. b. For buyer, the goods will conform to the agreement. c. For seller, the goods will be paid for. Disadvantages: a. Ambiguous expressions or negligence may bring loss to the related party. b. Both parties may suffer from the fraudulent act. c. The buyer needs to pay service fee for opening of L/C. Modes of payments—letter of credit INTERNATIONAL PAYMENT * 4. Letter of Guarantee, Bank Guarantee, L/G (银行保证函) A bank guarantee is an undertaking by a bank to settle a debt in the event that the debtor fails to make payment. 银行保函是银行替代进口方向对方开立的以对方为受益人的保证承担付款、签订合同和履行合同的书面文件。 Modes of payments—letter of guarantee INTERNATIONAL PAYMENT * 5. Examples of Terms of Payment in Contract 1. Upon first presentation the Buyers shall pay against documentary draft drawn by the Sellers at sight. The shipping documents are to be delivered against payment only. 2. By Irrevocable Letter of Credit available by Seller’s documentary draft at sight, to be valid for negotiation in China until 15 days after date of shipment. The L/C must reach the Sellers 30 days before the contracted month of shipment. 3. All the payment shall be made in the US currency by the Buyer to the Seller by telegraphic transfer to the Seller’s designated accounts with the banks in China. Modes of payments—letter of credit INTERNATIONAL PAYMENT * I. Define or explain the following terms: 1. Remittance 2. Collection 3. Letter of Credit 4. M/T 5. D/D 6. D/P at sight 7. D/P after sight 8. D/A 9. Documentary L/C 10. Irrevocable L/C 11. Confirmed L/C 12. Usance L/C 13. Revolving L/C 14. Letter of Guarantee 15. T/T II. Questions: 1. Please compare three types of remittance: M/T, T/T and D/D. 2. As far as the seller’s benefit is concer