Return
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EXPORT-IMPORT PROCEDURE
5. If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.
Chapter Seven Payment
1
Main Content
Revision Objective General Introduction to Payment Terms of Payment付款条件 Urging Establishment of L/C催开信用证 L/C Amendment & Extension信用证的修改
与展期 Exercises
2
Objectives
Upon completion of this chapter, the students will: understand the flow chart of L/C. be able to urge the opening of the relative L/C. be able to check the L/C. be able to make the amendment by business letter
(可撤销信用证与不可撤销信用证) Sight Credit / Term Credit
(即期信用证与远期信用证)
7
L/C
an irrevocable L/C
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Return
17 28 39 4 10 5 11 6
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EXPORT-IMPORT PROCEDURE
1. Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit). 2. Buyer applies to his issuing bank, usually in Buyer's country, for letter of credit in favor of Seller (beneficiary).
Demand Draft(D/D) (票汇)
4
Introduction
Three basic methods of effecting payments in international business:
Collection (托收)
lection on clean bill (光票托收付)
Return 3
Introduction
Three basic methods of effecting payments in international business:
Remittance(汇付)
Mail Transfer(M/T) (信汇)
Telegraphic Transfer(T/T) (电汇)
documentary collection (跟单托收)
5
Introduction
Three basic methods of effecting payments in international business:
documentary collection (跟单托收)
documents against payment (D/P)付款交单
Return
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EXPORT-IMPORT PROCEDURE
documents against acceptance (D/A)承兑交单
6
Introduction
Three basic methods of effecting payments in international business:
Letter of Credit (信用证) Revocable L/C & Irrevocable L/C
Return
10
EXPORT-IMPORT PROCEDURE
3.Issuing bank requests another bank to advise, and usually to confirm, the credit. 4. Advising bank forwards letter of credit to Seller informing about the terms and conditions of credit.
Return
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EXPORT-IMPORT PROCEDURE
9. Bank examines the documents and draft for compliance with credit terms. If complied with, Seller's draft is honored. 10. Documents release to Buyer after payment.
Return
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EXPORT-IMPORT PROCEDURE
6. Seller presents documents evidencing the shipment and draft (bill of exchange) to negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.
Return
13
EXPORT-IMPORT PROCEDURE
7. Bank examines the documents and draft for compliance with credit terms. If complied with, bank will negotiate.
8. Bank sends the documents and draft to the issuing bank.