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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.
documentary
collection (跟单托收)
documents against payment (D/P)付款交单
documents against acceptance (D/A)承兑交单
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Introduction
Three basic methods of effecting payments in international business:
Chapter Seven Payment
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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
Letter of Credit (信用证)
Revocable L/C & Irrevocable L/C (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)
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L/C
an irrevocable L/C
.8Leabharlann 172839
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Collection (托收)
collection on clean bill (光票托收付)
documentary collection (跟单托收)
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5
Introduction
Three basic methods of effecting payments in international business:
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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.
Remittance(汇付)
Mail Transfer(M/T) (信汇)
Telegraphic Transfer(T/T) (电汇)
Demand Draft(D/D) (票汇)
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4
Introduction
Three basic methods of effecting payments in international business:
be able to check the L/C.
be able to make the amendment by business letter
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3
Introduction
Three basic methods of effecting payments in international business:
与展期 Exercises
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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.
2. Buyer applies to his issuing
bank, usually in Buyer's country,
for letter of credit in favor of Seller
(beneficiary).
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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.
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.
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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).
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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.
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