《INTERNATIONAL SETTLEMENTS》(BILINGUAL TEACHING)课程教案

《INTERNATIONAL SETTLEMENTS》(BILINGUAL TEACHING)课程教案 《International Settlements》(Bilingual Teaching) 课程教案 刘昊虹 广东金融学院金融系国际金融教研室 课程类别:专业必修课 开课单位:金融系 授课对象:本科层次国际金融专业 学时与学分:54学时;3学分 使用教材:王益平主编～《国际支付与结算》,International Payments and Settlements,，清华大学出版社～北方交通大学出版社出版社，2004年1月 一、教学目的与教学要求:(五号黑体) 本课程从国际结算的基本原理、基础知识和国际惯例出发，联系实际业务操作，使学生对国际结算原理、国际惯例有初步的了解和认识，并能熟练进行国际结算的各种实际业务操作。本课程包含国际结算的票据、结算方式、单据、国际惯例等主要内容，要求学生掌握国际结算单据的性质、作用、三种票据的区别，熟练进行出票、背书、承兑等票据行为的处理;掌握汇款、托收、信用证业务的流程，结合国际惯例能进行各种国际结算业务的处理;掌握审单的基本原则，结合信用证条款和国际惯例进行单单一致、单证一致的审核。 二、课程内容 第一章 Introduction of International Settlement 国际结算概述 学时:1周，共3学时 教学目的:通过本章的学习可以从整体上把握本学科的基本内容。 教学重点:国际结算的概念、特征、研究内容，国际结算中的银行等。 教学难点:国际结算的特征，国际结算中的银行关系 教学内容 一、Definition of International Settlements International payments and settlements are financial activities conducted among different countries in which payments are effected or funds are transferred from one country to another in order to settle accounts，debts，claims，etc(emerged in the course of political，economic or cultural contacts among them( 二、Characteristics of International Settlement 1、Bank is financial intermediary(From cash-settlement to Non-cash settlement) 2、Currency: Convertible Currency (1) Convertible currency in export country. (2) Convertible currency in import country. (3) Convertible currency in third country, generally referred to US currency. 3、Kinds of Payments Key factors determining the payment method(决定结算方式的主要因素) ?the business relationship between the seller and the buyer ?the nature of the merchandise ?industry norms ?the distance between the buyer and the seller ?the potential for currency fluctuation ?political and economic stability in both the buyer and the seller’s country Settlement based on commercial credit(基于商业信用的结算): Remittance, Collection, Settlement based on bank credit(基于银行信用的结算): Letter of Credit ?Payment in advance预付货款 It is also called advance payment(The buyer places the funds at the disposal of the seller prior to shipment of the goods or provision of services. While this method of payment is expensive and contains a degree of risk，it is quite common when the manufacturing process or services delivered are specialized and capital intensive(In such circumstances the parties may agree to fund the operation by partial payment in advance or by progress payment(It provides greatest security for the seller and involves greatest risk for the buyer( Characteristics: ?Provides greatest security for the seller and greatest risk for the buyer; ?Requires that the buyer has a high level of confidence in the ability and willingness of the seller to deliver the goods as ordered( Basic points to be considered in using advance payment: ?The credit standing of the exporter must be exceedingly good; ?The economic and political conditions in the exporter’s country should be very stable; ?The importer should have sufficient balance sheet liquidity or be confident of obtainingworking capital by way of import financing; ?The importer should have the knowledge that the exchange control authorities in his country will permit advance payment to be made( ?Open account赊销 An arrangement between the buyer and seller whereby the goods are manufactured and delivered before payment is required. Open account provides for payment at some stated specific future date and without the buyer issuing any negotiable instrument evidencing his legal commitment. The seller must has absolute trust that he will be paid at the agreed date(It provides the least risk for the buyer, and the greatest risk for the seller( Essential features of open account business are: ?The credit standing of the importer must be very good; ?The exporter is confident that the government of the importer’s country will not impose regulations deferring or blocking the transfer of funds; ?The exporter has sufficient liquidity to extend any necessary credit to the importer or has access to export financing( ?Remittance汇款 Remittance refers to the transfer of funds from one party to another among different countries. That is, a bank(the remitting bank), at the request of its customer(the remitter), transfers a certain sum of money to its overseas branch or correspondent bank(the paying bank) instructing them to pay to a named person or corporation(the payee or beneficiary)domiciled in the country. ?Collection托收 An arrangement whereby the goods are shipped and the relevant bill of exchange is drawn by the seller on the buyer, and documents are sent to the seller’s bank with clear instructions for collection through one of its correspondent bank located in the domicile of the buyer. ?Documentary collection:(跟单托收) Documentary collection may be described as collection on financial instruments being accompanied by commercial documents or collection on commercial documents without being accompanied by financial instruments, that is, commercial documents without a bill of exchange. —The seller ships the goods and obtains the shipping documents, and usually draws a draft, either at sight or with a tenor of XX days on the buyer for the value of the goods; 一The seller submits the draft(s) and,or document(s)to his bank，which acts as his agent; 一The bank acknowledges that all documents as noted by the seller are presented; 一The seller’s bank sends the draft and other documents along with a collection letter to a correspondent bank usually located in the same city as the buyer; —Acting as an agent for the Remitting Bank, the Collecting Bank notifies the buyer upon receipt of the draft and documents; 一A1l the documents, and usually title to the goods, are released to the buyer upon his payment of the amount specified or his acceptance of the draft for payment at a specified later date( ?Clean collection: (光票托收)Clean collection is collection on financial instruments without being accompanied by commercial documents, such as invoice，bill of lading, insurance policy, etc. 一An arrangement whereby the seller draws only a draft on he buyer for the value of the goods,services and presents the draft to his bank. 一The seller’s bank sends the draft along with a collection instruction letter to a correspondent bank usually in the same city as the buyer. An essential feature of collection is that although it is safer than on open account for the seller, there is the possibility of the buyer or his banker refusing to honor the draft and take up the shipping documents, especially at a time when the market is falling. In such a case, the seller may not receive his payment although he is still the owner of the goods. ?Letter of credit信用证 A letter of credit is an undertaking issued by a bank for the account of the buyer the Applicant)or for its own account, to pay the Beneficiary the value of the draft and,or docments, provided that the terms and conditions of the documentary credit are complied with. A letter of credit provides the most satisfactory method of settling international transactions. Its priamry function is relying on the bank’s undertaking to pay, thereby enabling the seller or the exporter to receive payment as soon as possible after the shipment of his goods and also enabling the buyer or the importer to arrange with his bank for the financing of the payment(It is, therefore, of great importance in the sense that it contributes to the smooth conducting of international trade. ?Bank guarantee银行保函 In intematiohal trade, the buyer wants to be certain that the seller is in a position to honor his commitment as offered or contracted. The former therefore makes it a condition that appropriate security is provided. On the other hand, the seller must find a way to be assured of receiving payment if no special security is provided for the payment such as in open account business and documentary collections. Such security may be obtained through banks in the form of a guarantee. A bank guarantee is used as an instrument for securing performance or payment especially in international business. A bank guarantee is a written promise issued by a bank at the request of its customer, undertaking to make payment to the beneficiary within the limits. It may also be defined as the irrevocable obligation of a bank to pay a sum of money in the event of non-performance of a contract by the principal. 4、Purpose 5、ICC’s Customs and Practice 三、Special implication of international payment and settlement practice As everybody knows, most international payments originate from transactions in the world Trade. They are money transfers as a result of international clearing, such as: ? International trade settlement国际贸易结算 With the expansion of global trade amongst countries, the role of banks, in international trade finance is becoming more and more important. Most transactions must be settled through banks. Without the bank’s participation，international trade would not have been developed to the stage we have reached today. ? International non-trade settlement国际非贸易结算 There are many ways by which funds can be transferred from one country to another under trade service. When the tourists, merchants, delegations or other people go abroad, they need money to spend, to buy something, or to pay for various expenses and charges there. The most comon means for them to carry funds are cash , traveler’s check, traveler’s letter of credit and credit card. These are within the scope of non-trade settlement. 四、Evolution of International Payments and Settlements国际结算的演变 (一)From cash settlement to non-cash settlement从现金结算到非现金结算 ? Cash settlement现金结算 Before the sixth century B.C., goods were exchanged between traders in different countries on a barter basis. A barter system put the trading parties at great inconvenience. Then, a medium of exchange was created in the form of coins at the beginning of the fifth century B.C., thereby ending the barter transactions. These coins were measured and exchanged by weight and fineness among trading countries for settling intemational payments. Since then, international payments have been effected by shipping precious metals taking the form of coins, bars or bullions to or from the trading countries(This direct transfer of precious metals is called a cash settlement. ?Non-cash settlement非现金结算 The shipment of gold or silver across national boundaries was both expensive and risky. Freight costs were high, the risk of being lost, stolen or robbed was omnipresent, and what is more, the speed of transferring funds depended on the speed of transportation facilities, which often slowed the turnover of funds. From the thirteenth century A.D., bills of exchange were created, gradually taking the place of coins in international payments, and the bill of exchange market began to develop. With the establishment of foreign exchange banks, at the end of theighteenth century, international payments could be settled by way of transferring funds through the accounts opened in these banks. From then on, the non-cash settlement era began. Nowadays non-cash settlements are universally adopted all over the world. There is no denying the fact that the establishment of foreign exchange markets does play a very important role in creating and developing non-cash settlements, for foreign exchange banks are allowed to buy and sell foreign exchange freely in these markets so as to meet the needs of international banking business( (二)From direct payment made between international traders to payment effected through a financial intermediary从贸易商之间直接支付到通过金融中介进行支付 As mentioned above, initially, international trade payments were made by the buyers directly to the sellers by means of precious metal shipments. As foreign exchange banks were set up over time in different regions the world over, the payment channel has changed, especially after a new means of payment, namely the bill of exchange, had been widely used in international payments and settlements. These banks acted as intermediaries effecting intemational payments by the buyers to the sellers. With the worldwide banking network and modern banking technicality, banks can not only provide easy and quick transfer of funds needed for conducting international trade but also furnish their customers with valuable economic and credit information. Nowadays, they have become the center of international settlement. (三)From payments under simple price terms to payments under more complex price terms从使用简单贸易术语结算到复杂贸易术语的结算 In the past, international trade payments were settled on very simple price terms, such as cash on delivery, cash on shipment, cash with order, cash before shipment, etc. In modern international trade, a more comprehensive and exact set of terms has been developed. As indicated in INCORTERMS2000(International Rules for the Interpretation of Trade Terms)ICC Publication, the price terms available for use are multifarious and more complicated than before. (四)Internet era互联网的结算 With the development of computer technology, business is done and payments and settlements are effected by means of all kinds of payment systems, which makes it quicker and safer and more convenient for both the Buyer and Seller. Nowadays, Internet is developing very fast. This new type of business transaction is called net banking. Although there are a lot of problems to be solved，net banking is very promising. 五、Bank relationships in international Settlements (一)Sister’s Bank/overseas branch海外分行 (二)Representative Bank (Correspondent)代理行 International banking is effected through the cooperation of commercial banks all over the world. This cooperation comes from the establishment of correspondent relationships between banks. The so-called correspondent bank may be defined as “a bank having direct connection or friendly service relations with another bank”. Even for large international banks such as the Bank of China, the establishment of correspondent relationship is still very important because they cannot do any business without the cooperation of local banks. Under an agency arrangement, a Chinese bank，for example, may have a prior agreement with a foreign bank to the effect that each will function as the agent of the other in its own country. The banks may open deposit accounts with, and entrust business to each other on a reciprocal basis. ?Control documents 控制文件 When establishing a correspondent banking relationship, two banks concerned will exchange information on the services they can perform or cooperate with each other. Usually “A” Bank and “B”Bank shall be supplied with the control documents when they are establishing an agency banking relationship. The control documents include: ? Lists of specimen of authorized signatures It means the authorized person’s signature. 印鉴册 ? Terms and conditions费率 表 关于同志近三年现实表现材料材料类招标技术评分表图表与交易pdf视力表打印pdf用图表说话 pdf By negotiation, both correspondent banks may reach some agreements on the terms and conditions of their business. For example: “If instructions to cancel a collection are received prior to the presentation of bills to drawees, commission will be charged at minimum rate for collections. Postage, cable charges and any other expenses arising from transactions entrusted to our care are to be collected from you at their actual costs.” ? SWIFT authentic key环球银行间金融电讯协会电讯证实码 This is an electronic “key” that is used between SWIFT member banks for authenticating all messages to be transmitted through SWIFT. (三)Accounting Bank账户行 A current account or a checking account may be opened between banks with the establishment of a correspondent banking relationship. Any bank before opening an account in its correspondent bank, must be aware of the detailed conditions of this connection, such as amount of initial deposit, minimum credit balance for covering the cost of services provided, interest rate of the account, overdraft permission, and how often the statement of account is sent. ?Nostro account往账 The Italian word “Nostro” means our and “Vostro” means “your”. Nostro account is the foreign currency account(due from account)of a major bank with the foreign banks abroad to facilitate international payments and settlements. ?Vostro account来账 The Italian word “Vostro” means “your”. Vostro account is an account(due to account)held by a bank on behalf of a correspondent bank( 六、The main contents of International Sttlements settlement Domestic SettlementInternational Settlement International Trade SettlementInternational Non-Trade Settlement MethodsDocumentsSystems Instruments Main methodsOther methodsbasicAdditionalSWIFT ExchangePackingFactoringInvoiceRemittancelist Promissory Letter of WeightCHIPSnoteguaranteememoBill of CollectionLadingCertificate ofForfaiting Original Letter ofInsurance ChequeCHAPSStandby letter All kinds ofcreditdocumentsof creditCertificates *1.SWIFT(Society For Worldwide Interbank Finacial Telecommunication):环球银行 间金融电讯协会 2.CHIPS(Clearing House Interbank Payment System):纽约清算所交换银行相互收付系 统 3.CHAPS(Clearing House Automated Payment System):伦敦交换银行自动收付系统 4.FEDWIRE:全美范围的电子支付系统。 Attention: Major Points Concerning International Payments and Settlements are: 国际支付与结算应注意的主要问题 (1)International payment and settlement methods; (2)The financial instruments that facilitate international payments and settlements; (3)Documents used in international payments and settlements; (4)The currencies used in international payments and settlements; (5)Rules and regulations on international payments and settlements( 思考题:(五号黑体) 1、Define “international settlements”, 2、Illustrate the evolution of international settlements, 3、Illustrate the relationships of the banks in internation fiannce. 4、How many basic methods are be used in international settlements? 第二章 Credit Instruments 信用工具 学时:2,3周，共6学时 教学目的:票据是国际结算业务中必不可少的结算工具，因此是本课程的一个中心内容。 通过本章的学习要求学生对各种票据要从理论和实务两个方面全面领会。 教学重点:票据的概念与性质;汇票的概念、内容和汇票行为;本票的定义与要件、本票 与汇票的主要区别;支票的定义与必要项目、支票的特点、支票的止付与退票、划线支票与 非划线支票。 教学难点:票据流通的形式、票据的性质、汇票的形式要件与汇票的行为。 教学内容 In this chapter，you will learn: The three important negotiable instruments:bill of exchange，promissory note and cheque, The functions of a negotiable instrument The characteristics of each instrument The essentials of each instrument 第一节Introduction of Instruments 一、Definition of Instruments (一)A credit instrument is a written or printed paper by means of which funds are transferred from one person to another. Credit instruments most commonly used in international payments and settlements are bills of exchange, promissory notes and checks. They are also known, negotiable instruments. Credit instruments may also take such forms as traveler’s cheque, certificates of deposit， treasury bills, treasury bonds, etc. (二)A negotiable instrument is a chose in action, the full and legal title to which is transferal by delivery of the instrument(possibly with the transferor’s endorsement)with the result that complete ownership of the instrument and all the property it represents passes freely from equities to the transferee，providing the latter takes the instrument in good faith and for value. (D.Richardson) Bills of exchange, checks, promissory notes, dividend warrants, bearer bonds, bear scrips, debentures payable to bearer, share warrants payable to bearer, Treasury Bills, certificate of deposit are all negotiable instruments, providing they are in a deliverable state, i.e., in favor “the bearer”. 二、Instruments law system (一)British and USA legal system:the British Commonwealth of Nations and USA. 1. British Legal System “Bill of Exchange Act”,1882, drafted by Chambers; Article 1~72: Bill of Exchange Article 73 ~82: Cheque Article 83 ~89: Promissory Note Article 90 ~97: Cheque (1957 Revision) 2. USA legal system “Uniform Negotiable Instrument Law,drafted by Crawford; “Uniform Commercial Code”: Chapter 3:Commercial Paper (二)Continental legal system:the main countries in the European Continent. 1.“Uniform Law for Bills of Exchange and Promissory Notes”, signed at Geneva, 1930 2.“Uniform Law for Cheques”, signed at Geneva, 1931 三、Instruments characteristic (一)Negotiability (1)A negotiable bill may be payable to the order of a specified person. (2)A negotiable bill may be payable to bearer. (3)A bill on which the only or last endorsement is an endorsement in blank may be negotiable. (4) A bill payable to a specified person does not contain words prohibiting transfer or indicating an intention that it should not be transferable , it may also be negotiable. (二)Non-Causative Nature The reason(s) of issue or endorse need not to write on the face of the bill. (三)Requisite in Form The bill must contains the prerequisite items required by the law. (四)presentment 1.Present for payment 2.Present for acceptance (五)Return ability (六)Right Establishing 四、Functions of Instruments (1) As a means of payment (2) As a credit instrument (3) As a transferable instrument 第二节 Bill of Exchange/Draft/Exchange汇票 一、Definition of Bill of exchange A bill of exchange is an unconditional order in writing, addressed by one person(the Drawer) to another(the Drawee)，signed by the person giving it，requiring the person to Whom it is addressed(the Drawee，who when he signs becomes the Acceptor) to pay on demand, or at a fixed or determinable future time，a sum certain in money，to or to the order of a specified person，or to bearer(the payee)((Bills of Exchange Act，1882 of the United Kingdom) 二、Esentials of a bill of exchange In conformity with the Bills of Exchange Act 1882 of the United Kingdom and the Uniform Law on Bills of Exchange and Promissory Notes 1930 of Geneva，a bill of exchange must fulfill the following requirements: ????? Exchange for___________ Guangzhou ________ At _______sight of this FIRST OF Exchange(Second of exchange being unpaid) Pay to the order of__________________________________________ ______________________________________________________ Thesum of_______________________________________________　　 _______________________________________________________ 　　TOFOR 　　　　　　　　　　　　　　　　　　　 Authorized Signature ???? (一)The word “Bill of Exchange” Exchange, draft, bill of exchange (二)Unconditional order in writing 1.Unconditional: Make choice of whether the following bills are acceptable or not Mark X before acceptable or unacceptable you choosed. (1) A bill shows : pay to ABC Co. providing the goods in compliance with contract the sum of one thousand US dollar. It is ?acceptable/?unacceptable (2) A bill shows: Pay to ABC Co. the sum of ten thousand US dollars on condition that shipment of goods has been made. It is ?acceptable/?unacceptable. (3) A bill shows: On demand pay to the order of ABC Co. the sum of twenty thousand US dollars drawn against shipment of 10 bales cotton piece goods from Tianjin to London. It is ? acceptable/?unacceptable. (4) A bill shows: Pay to ABC Co. out of proceeds of sale of woolen blankets the sum of one thousand US dollars. It is ?acceptable/?unacceptable. (5) A bill shows: Pay from our No. 2 account to ABC Co. the sum of one thousand US dollars. It is ?acceptable/?unacceptable. (6) A bill shows: Pay to ABC Co. or order the sum of one thousand pounds and debit our No. 2 account. It is ?acceptable/?unacceptable. (7) A bill shows: After customs clearance pay to the order of ABC Co. the sum of twenty thousand US dollars. It is ?acceptable/?unacceptable. (8) A bill shows: At sight pay to the order of Bank of China the sum of forty thousand US dollars drawn under L/C No. 13234 issued by XYZ Bank New York dated on 15 August 200X. It is ?acceptable/?unacceptable. (9) A bill shows: Pay to Mary the sum of fifty pounds and give her a suit of clothes. It is ? acceptable/?unacceptable. (10) A bill shows: Pay to the order of ABC Co. the sum of one thousand Pounds plus interest. It is ?acceptable/?unacceptable. 2. Order: pay to sb., command to pay 3. In writing (三)Issuance place and date (四)Tenor 1、Bill payable at Sight/on Demand /on Presentation Present for payment; the presentation date is the maturity date. 2、Bills Payable at a Determinable future time ?At XX days/month(s) after sight ?At XX days/month(s) after date The word “after” will be understood to exclude the date mentioned. WThe word “from” will be understood to include the date mentioned. 见票远期Atxxdays/xxmonths 汇票after sight pay to____ 即期汇票 出票远期Atxxdays/xxmonths 汇 汇票after date pay to____ 定期付款票 汇票固定日期后付Atxxdays/xxmonths 远期汇票after 10, July pay to_ 款 期Atxxdays after the date of Bills of Lading pay to_ 限远期汇票板期付款汇票 Atxxdays after presentation of documents pay to_ 延期付款汇票On 24, January fixed pay to_ 算尾不算头月为日历月 xxdaysxxmonth(s) Maturity 起算日过渡时间date after sightafter dateafter the date of B/Lafter presentation of documents AcceptanceDate Date of Date of presentation date of issuanceshipmentof the documents e.g.: ?At 60 days after sight, acceptance date is15, May: 16, May,,,,31, May, 16 days; 1, June,,,,30, June, 30 days; 60-46=14 st maturity date: 14, July?At 30 days from April 1, the maturity date is 30 April. ?The maturity of one month after 31 Jan. is 28. ?The maturity of two months after 28 Feb is 28 Apr. ?The maturity of 180 days after 4 Apr. is 1 Oct., which is nonbusiness day and the maturity will be extended to 7 Oct. 3、Bills payable on a fixed future date At 30 days after 1 Oct. 4、Deferred Payment Bill At 30 days after the date of shipment/presentation of the documents (五)A sum certain in money 1、Interest clause 2、Installment clause 3、One currency is converted into another currency equivalent (六)Drawer(Payer) (七)Payee 1、Restrictive Order: this bill can not be transferred to any other person. 2、Demonstrative Order: this bill can be transferred to an other person by endorsement. 3、Payable to Bearer:this bill can be transferred to an other person by delivery. (八)Drawer For somebody; On behalf of somebody; For •and •on •behalf •of somebody Per pro somebody Signature 三、Additional Form (一)Referee in Case of Need (二)Place of Payment (三)Interest and interest rate (四)Currency (五)Notice of Dishonor Excused (六)Without Recourse (七)Limit of Time for Presentation (八)Drawn Clause (九)Pay this first bill of exchange (second being unpaid) Original: pay this first bill of exchange(second of the same tenor and date being unpaid) to … 出票人签名不符(Signature differs) 大小写金额不符(Words and Figures differs) 大写金额需确认(Amount in words requires drawer's conformation 存款不足(Insufficient fund 汇金额需大写(Amount required in words) 票 奉命止付(Orders not to pay) 必 要支票开出不符 规定 关于下班后关闭电源的规定党章中关于入党时间的规定公务员考核规定下载规定办法文件下载宁波关于闷顶的规定 (Irregularllydrawn) 项 支票未到期(Post-dated) 目 支票逾期提示或过期提示(Out of date or stalecheque) 需收款人背书(Payee's endorsement required) 请与出票人联系(Refer to drawer) 四、Parties involved in bill of exchange You must make sure who is the creditor or debtor of the bill of exchange. (一)Drawer The person who draws a bill of exchange upon/on the drawee for the payment of a certain amount of money. (二)Payee The person to whose order the drawee is to make payment or to whom the money is to be paid. (三)Endorser The payee or a holder: ?signs his name on the back of an instrument ?for the purpose of transferring it to another one (四)Endorsee The person to whom an instrument is endorsed. (五)Guarantor The person who guarantees the acceptance and payment of a bill of exchange, though he is not a party liable thereto. (六)Holder The possessor of an instrument, namely : ?payee(who present the draft to drawee directly) ?endorsee (the last endorsee) ?bearer (七)Holder in due The person who is possession of an instrument that is: ?Complete and regular on its face; ?Taken before maturity without notice of its previous dishonor; ?Taken in good faith and for value ; ?Taken without notice of any infirmity in the instrument or defect in the title of the person negotiating it.( USA Uniform Commercial Code) (八)Payer( Drawee) The person upon whom a bill of exchange is drawn. Drawee is not a certain debtor, because he/she does not sign his/her name on the bill of exchange. 四、Acts of Bill of exchange Present for acceptanceEndorsement Endorsement Issuance …… Present for payment Second Payee drawee Last First …Drawer endorseeendorseeholder First endorserSecond………endorserAcceptancedishonorPayment Recourse Guarantee (一)Issuance: act of giving out bill of exchange. To issue a draft comprises two acts to be performed by the drawer: ?draw and sign a draft; ?deliver it to the payee. (二)Endorsement: sign one’s name on the back of the bill, check and so on. 1.It is an act of negotiation. Prerequisites for a valid endorsement: ?should be normally effected on the back of a draft and signed by the endorser; ?must be made for the whole amount of the draft. 2.Four kinds of endorsements: ?Special Endorsement: A special endorsement is one that specifies an endorsee to whom or to whose order the draft is to be paid, in addition to the signature of an endorser. For example: “Pay John Smiths”. ?Blank Endorsement/Endorsement in Blank: An endorsement in blank is one that shows an endorser’s signature only and specifies no endorsee. It is also called a general endorsement. A draft, so endorsed becomes payable to bearer. ?Restrictive Endorsement: An endorsement is restrictive when it prohibits further transfer of the draft. For example: “Pay John Smiths only” ?Conditional Endorsement: A conditional endorsement is a special endorsement adding some words thereto that create a condition bound to be met before the special endorsee is entitled to receive payment. The endorser is liable only if the condition is fulfilled. For example: “Pay to John Smith upon his delivery of warehouse receipt of 100 cases of corn”. ?Endorsement for Collection (三)Presentation 1.A draft must be duly presented for payment if it is a sight bill or duly presented for acceptance first and then presented for payment at maturity if it is a time bill. 2.Three channels for presentment of bill are as follows: (1) Presenting bill at the counter of drawee bank. (2) Presenting bill through clearing house exchanged in drawee bank. (3) Inter branches and correspondents presenting bill by airmail /courier to inter branch. (四)Acceptance Acceptance of a draft is a signification by the drawee of his assent to the order given by the drawer. He engages, by signing his name across the face of the bill that he will pay when it falls due. So presentment for acceptance is legally necessary to fix the maturity date of a draft payable after sight. Valid acceptance requires: ?the word “accepted”must be written on the bill to be followed by the signature of the acceptor and the date of acceptance. A mere signature of the acceptor without additional words is also justified. ?It ought not be expressed that the drawee will carry out his promise by any other means than the paymentof money. 1、Conditional Acceptance ACCEPTED 1 JUNE,199- Payable on delivery of Bills of Lading FOR ABC BANK Ltd., LONDON SIGNATURE 2、Partial Acceptance ACCEPTED 3 JUNE,199- Payable for amount of GBP800.00 only FOR ABC BANK Ltd., LONDON SIGNATURE 3、Local Acceptance ACCEPTED , JUNE,199- Payable at the Hambros Bank and there only FOR ABC BANK Ltd., LONDON SIGNATURE 4、Qualified Acceptance as to Time ACCEPTANCED , JUNE,199- Payable at 6 months after date FOR ABC BANK Ltd., LONDON SIGNATURESample of acceptance ACCEPTED 20,APRIL, 2002Exchange for GBP5000,00Beijing,5, April ,2002FOR BANK OF EUROPE At 90 days after sight pay to the order ofC Co. 　　　　　　　　　　　　　　　SIGNATURE the sum of FIVE THOUSAND POUNDS Authorized Signature 　　 TOBank of Europe FOR A Company (五)Payment: The act of paying /money paid London　　　　　Beijing 　　　　　　　　　　　　　　　　　　　　　　 1.Act of payment is performed when a bill of exchange is paid. A bill is discharged by payment in drawee or the acceptor. 2.A bill is discharged by payment in due course by the drawee or the acceptor. “Payment in due course” means payment made at or after the maturity of the bill to the holder thereof in good faith and without notice that his title to the bill is defective. 3.Three channels for payment in due course ?On receipt of instruments presented at the counter of drawee bank,cashier must check payee’s endorsement with his name on the front of instruments, and with his identity card. Take note of number of identity card on the back of instruments, then he pays cash to payee. ?On receipt of instruments exchanged through clearing house, bookkeeper must check instruments having been crossed, containing “exchange” stamp, and indorsement made by collecting banker, then he makes payment by taking entries to debit drawer’s account and credit “exchange” accounting item. ?On receipt of instruments airmailed /expedited by inter branch or correspondent, bookkeeper must check endorsement made by inter branch or correspondent, then he makes payment by taking entries to debit drawer’s account and credit “inter branch account”,or “foreign correspondent account”. (六)Dishonor There are two kinds of dishonor: 1. Dishonor for payment, 2. Dishonor for acceptance. To fail to accept a bill of exchange (dishonor by non-acceptance) or to fail to pay a bill of exchange (dishonor by non-payment). (七)Protest A written statement under seal drawn up and signed by a Notary Public or other authorized person for the purpose of giving evidence that a bill of exchange has been presented him for acceptance or for payment but dishonored. (八)Notice of Dishonor A notice on which default of acceptance or of payment by the drawee or the acceptor is advised, to be given by holder of a draft to the drawer and all the endorsers whom he seeks to hold liable for payment. A notice of dishonor must be given by or on behalf of the holder or an endorsee on the next business day after the dishonor of the draft. (九)Right of recourse In the event of a draft being dishonored, the holder has a right of recourse against the other parties thereto, that is, a right to claim compensation from the drawer or any endorser. (十)Acceptance for Honor The acceptance or payment of a bill of exchange, after it has been dishonoured, by a person wishing to save the honour of the drawer or an endorser of the bill. (十一)Guarantee/Aval Act of guarantee is performed by a third party called guarantor, who engages that the bill will be paid on presentation if it is a sight bill or accepted on presentation and paid at maturity if it is a time bill. 1. PER AVAL given for--(被保证人) signed by--(保证人) dated on--(时间) 2. PAYMENT GUARANTEED signed by----(保证人) dated on----(时间) Sample of a guraranteed bill Exchange for GBP5000,00Beijing,5, April ,2002 At 90 days after sight pay to the order ofC Co. 　　　　　　　　　　　　　　　 Payment Guaranteed Signed by B Co.the sum of FIVE THOUSAND POUNDS Dated on 10,April, 　　2002 For B Co. TOBank of Europe FOR A Company Authorized SignatureSignedLondon　　　　Beijing 　　　　　　　　　　　　　　　　　　　 五、Classification of Bill of exchange (一According to the drawer: Banker’s Bill/Trader’s bill 1.Banker’s draft or bank draft It is a draft drawn by a bank on another bank. 2.Trade bill It is a bill issued by a trader on another trader or on a bank. (二)According to the tenor: Sight Bill/Demand Bill 1.Sight bill即期汇票 It is a bill payable on demand or at sight or on presentation. 2.Time bill远期汇票 It is a bill payable at a fixed or determinable future time. (三)According to whether commercial documents are attached thereto: Documentary Bill or Draft/Clean Bill or Draft. (1)Clean bil: It is a bill without shipping documents attached thereto( (2)Documentary bill: It is a bill with shipping documents attached thereto. (四)International Bill of Exchange/Domestic Bill of Exchange (五)Domestic Money Bill/Foreign Money Bill 1.Local currency bill It is a bill on which the amount is denominated in local currency. 2.Foreign currency bill It is a bill on which the amount is denominated in foreign currency. (六)Trader’s Acceptance Bill/Banker’s Acceptance Bill 1.Trader’s acceptance bill商业承兑汇票 It is a time bill drawn on a trader and has been accepted and signed by him for payment at maturity. 2.Banker’s acceptance bill银行承兑汇票 It is a time bill drawn on a bank accepted and signed by this bank for payment at maturity. (七)According to the place of acceptance and plaqce of payment: Direct Bill/Indirect Bill 1.Direct bill It is a bill on which the place of acceptance is the same one as the place of payment. 2.Indirect bill It is a bill on which the place of acceptance is not the same one as the place of payment. (八)According to the payee: Bearer Bill/Order Bill (九)According to the sets: Solar Bill/Set Bill 第三节Promissory Note本票 一、Definition of Promissory Note A promissory note is an unconditional promise in writing made by one person(the Maker)to another (the Payee or the Holder)signed by the Maker engaging to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person or to bearer.二、The differences between a note and a bill are as follows: 1.A promissory note is a promise to pay, whereas a bill of exchange is an order to pay 2.There are only two parties to a promissory note, namely the maker and the payee (or the holder in the case of a bearer note), whereas there are three parties to a bill of exchange, namely the drawer, the drawee and the payee 3.The maker is primarily liable on a promissory note, whereas the drawer is primarily liable, if it is a sight bill, and the acceptor becomes primarily liable, if it is a time bill 4.When issued, a promissory note has an original note only, whereas a bill of exchange may be either a sole bill or a bill in a set. 三、Requisite items of promissory note ?????? Promissory Note for New York ______________ At* * * * ** **sight we promise to pay to___________________________ ____________________________________________________________ the sum of_____________________________________________________ _____________________________________________________________ Payable at _____________ For Authorized Signature(s) ??? (一)The word “Promissory Note” (二)Unconditional Promise in writing (三)Place and date of issue (四)Tenor (五)A sum certain in money (六)Drawer (七)Payee (八)Place of payment 三、Promissory Note kind (一)Trader’s Promissory Note (二)Banker’s Promissory Note 第四节Cheque/Check支票 一、Cheque/Check (一) Definition of Cheque (1)A cheque is a bill of exchange drawn on a bank payable on demand (2)A cheque is an unconditional order in writing, addressed by one person to the paying bank, signed by a person giving it , requiring the bank to whom it is addressed to pay on demand a sum certain in money to or to the order of a specified person or to bearer. (二)Charactristics (1)A check must be unconditional( (2)A check must he drawn on a bank( (3)A surll certain in money must he written on a check，which should be signed by or per procurement for the drawer( 二、Requisite intems of check ????? SWIRE INSURANCE LIMITEDNo.67177 Cheque London, 23, Feb., 2001 Pay to the orderof Guangdong Economic & Technical Corp. ,24,550.00 Sterling Pounds Twenty Four Thousand Five Hundred and Fifty only For and on behalf of HongKongand Shanghai Banking Corporation Ltd. SWIRE INSURANCE LIMITED 254 Canal Street London Authorized Signature(s) ??? (一)Cheque/Check (二)Unconditional order in writing (三)Issuance place and date (四)Pay at sight (五)A sum certain in money (六)Payee bank (七)Payer (八)Drawer 三、Kinds of Cheque (一)Open Cheque One the face of the check, it has not been crossed. (二)Crossed Cheque A crossing is in effect an instruction to the paying bank from the drawer or holder to pay the fund to a bank only. Hence, such checks will not be paid over the counter of the paying bank and must be presented for payment by a collecting bank. 1、General Crossing (1)the words “and company”, or any abbreviation thereof, between two parallel transverse lines, either with or without the words “not negotiable”; (2)two parallel transverse lines simply, either with or without the words “not negotiable”, that addition constitutes a crossing, and the check is crossed generally. 2、Special Crossing Where a check bears across its face an addition of the name of a bank, either with or without the two parallel transverse lines，that addition constitutes fl special crossing. If a check is crossed specially, only the bank mentioned in the check can receive payment from the drawee bank. (三)Cheque Payable to Order (四)Cheque Payable to Bearer (五)Certified Cheque (六)Banker’s Cheque Kinds Writing Characteristic Endorse and deliveryOrderthe order ofsb. Pay to sb. or order sb. Delivery Bearer Pay bearer Draw cash from bankCash chequeNo crossing GeneralDraw cash from bankcrossingNo nominated bankCrossing Special Draw cash from a Nominated bankcrossingnominated bank Bank’s promise to payCertified Certified chequeSignature(name of a bank) Banker’sChequeBank’s promise to payDrawer:a bank Payee :a bank 四、Dishonor and Stop Payment of Cheque (一)Dishonor of Cheque 1、Signature differs 2、words and figures differs 3、Post-dated 4、Insufficient fund 5、Orders not to pay 6、Irregularly drawn 7、Amount required in words 8、Amount in words requires drawer’s confirmation 9、Out of date or stale cheque 10、Payee’s endorsement required 11、Refer to drawer 12、Material alterations to be confirmed by drawer (二)Stop Payment of Cheque 五、Differences among Bill of Exchange and Promissory Note and Cheque (一)Differences between Bill of Exchange and Promissory Note (1)A promissory note is a promise to pay, whereas a bill of exchange is an order to pay (2)There are only two parties to a promissory note，namely the maker and the payee(or the ho1der in the case of a bearer ), whereas there are three parties to a bill of exchange, namely the drawer, the drawee and the payee. (3)The maker is primarily liable on a promissory note，whereas the drawer is primarily liable, if it is a sight bill, and the acceptor becomes primarily liable, if it is a time bill. (4)When issued, a promissory note has an original note only, whereas a bill of exchange may be either a sole bill or a bill in a set, i.e. a bill drawn with second of exchange and third of exchange in addition to the origina1 one. (二)Differences between Bill of Exchange and Cheque ?A billl of exchange may be drawn upon any person，whereas a check must be drawn upon banker. ?Unless a bin is payable on demand, it is usually accepted, whereupon the acceptor is Drinlarny liable party. A check need not be accepted for it is payable only on demand by the drawer is the party primarily liable. ?A bill must be presented for payment when due，or else the drawer will be discharged. Check must be presented for payment within a reasonable time or within a certain time such as 30 days according to the regulations of the country concerned. The drawer of check is not discharged even though it has not been presented for payment within stipulated time unless the delay in presentation incurs losses to the drawer, acceptance. 思考题: 1、简述票据的概念、性质和票据的流通形式 2、什么是汇票,其绝对必要项目有哪些, 3、什么是票据行为,有哪些票据行为, 4、背书的种类有哪些，如何做成背书, 5、什么是承兑,如何做成承兑, 6、把支票划分为划线和非划线有何意义, 7、本票和汇票有何区别 第三章 Methods of Remittance 学时:4,5周，共6学时 教学目的:通过本章学习可以使学生系统掌握汇款结算方式的理论和业务流程。 教学重点:汇款的业务流程、汇款的种类、汇款的头寸调拨、汇款的退汇。 教学难点:汇款的退汇。 教学内容 In this chapter，you will learn: ?Methods, parties and procedures of remittance ?Advantages and disadvantages of remittance ?Practice of remittance ?The function of remittance in international trade There are two main kinds of methods of settlements, namely remittance and reverse remittance. The remittance is that the funds flow in a favorable direction to the payment instructions transmitted therefrom. The reverse remittance is that the funds flow in a contrary direction to the payment instructions transmitted therefrom.. 第一节Introduction of Remittance 一、Definition of Remittance International remittance happens when a client (payer)asks his bank to send a sum of proceeds to a beneficiary abroad by one of the transfer methods at his option. The beneficiary can be pair the designated bank, which is either the remitting bank’s overseas branch or its correspondent bank. That is to say, when remittance is adopted in international trade, the buyer on his initiative remits money to the seller through a bank in accordance with the terms and stipulated in the contract. 二、Remittance Parties Parties involved in international bank remittance include the following: (一)Remitter The remitter is the person who requests his bank to remit funds to beneficiary in a foreign country. The remitter is also the payer. (二)Remitting Bank Remitting bank is the bank transferring funds at the request of a remitter to its correspondent or its branch in another country and instructing the latter to pay a certain amount of money to a beneficiary. (三)Paying Bank The payee(beneficiary)is a person who is addressed to receive the remittance. (四)Payee/Beneficiary Paying bank is the bank entrusted by the remitting bank to pay a certain amount of money to a beneficiary named in the remittance advice. 三、Kinds of Remittance There are three basic ways for a bank to transfer funds for its client from the home country to abroad(They are mail remittance，telegraphic remittance and demand draft. (一)Remittance by Telegraphic Transfer(T/T) Remittance by airmail transfers funds by means of a payment order, a mail advice, or sometimes an advice issued by a remitting bank, at the request of the remitter. It is more generally known as mail transfer or M/T. A payment order, mail advice or credit advice,please debit advice is an authenticated order in writing addressed by one bank to another instructing the latter to pay a sum certain in money to a specified person or a beneficiary named thereon. (二)Remittance by Mail Transfer(M/T) Remittance by cable/telex/SWIFT is often referred to as cable transfer or telegraphic transfer, namely, T/T. It is exactly the same as a mail transfer, except that instructions from the remitting bank to the paying bank are transmitted by cable instead of by airmail. It is therefore quicker(but more expensive than mail transfer is(It is often used when the remittance amount is 1arge and the transfer of funds is subject to a time limit. The only means of authenticating a cable transfer is the test key. However, remittance by SWIFT should be authenticated by SWIFT authentic key. (三)Remittance by Banker’ Demand Draft(D/D) Remittance of banker’s demand draft is often referred to as demand draft (D/D). A banker’s draft is a negotiable instrument drawn by a bank on its overseas branch or its respondent abroad ordering the latter to pay on demand the stated amount to the holder of the draft. It is often used when the client wants to transfer the funds to his beneficiary himself. at the counter of the drawee bank or collect the proceeds through his own bank for his account( (四)Procedures of remittance 1、Usually adopted procedures for M/T and T/T The operations conducted by the remitting bank are called the outward remittance and those carried out by the paying bank are called the inward remittance(The procedures for bank remittance by mail or by cable usually comprise the following steps: (1)The remitter(a bank’s customer)makes out the necessary application form and gives his signed written application to his bank instructing it to issue an M/T or T/T. Indicating the beneficiary’s full name，address and the name of beneficiary’s banker(if any). This actually means that the remitter sends a written order to the remitting bank to pay t the debit of the remitter’s account or against cash deposit. (2)The remitting bank debits his customer’s account with the amount to be remitter together with its commission and expenses (if any). (3)The remitting bank issues a payment order to its branch or correspondent in the place where the beneficiary is domiciled. The payment order specifies the details of the payment: amount, name and address of the Beneficiary, and name of the remitter. The payment order must be authenticated with the authorized signatures of the remitting bank. (4)Upon receipt of the payment order, the paying bank verifies the authorized signatures notifies the beneficiary，and pays to him the stated amount minus expenses charged by itself. (5)The paying bank claims reimbursement from the remitting bank in accordance with the latter’s instructions. The whole procedure virtually is done by entries over banking accounts, where the buyer’s bank(remitting bank)debits his account and credits the account of the correspondent bank, receipt of the payment instructions, the latter(the paying bank)passes a reciprocal entry over it account with the remitting bank and pays the money over to the exporter. The following diagram illustrates the procedures. (二)Usually adopted procedure for D/D (1)A written request to issue fl draft is made by the remitter(a bank’s customer). (2)m remitting bank(the draft(issuing bank)debits the customer’s account with the amount of the draft plus bank commission(if any)，issues fl bank draft and hands it to the remitter. (3)The issuing bank sends an advice(a special letter of advice or a non-negotiable copy of the draft)by airmail to the drawee bank，namely its overseas branch or its correspondent abroad, instructing the latter to pay it on presentation of the original draft as well as how to reimburse it. Nowadays most banks usually omit airmailing the advice to the drawee bank. (4)The remitter forwards the draft to the payee. (5)The payee presents the draft to the drawee bank for payment. (6)The drawee bank verifies the signatures, pays the draft, and claims back the amount that is paid according to its agency arrangement with the remitting bank(If the signatures can not be identified, the paying bank will only pay the draft on collection basis. 四、Comparison of Three kinds of Remittance 五、Advantages and disadvantages (一)Advantages 1、Advantages of remittance by demand draft: (1)Demand draft can be used for paying small amounts; (2)Demand draft is a negotiable instrument, which can be transferred from one person to another by endorsement, so that it is more convenient in use for payment; (3)In time of war,one can transfer funds out of the enemy country by means of the demand draft in virtue of its negotiability. 2、Advantages of remittance by airmail: It involves bank-to-bank instructions with banks responsible for making payments, so it is rather reliable. Advantages of remittance by cable: (1)It is the fastest way to transfer funds; (2)It involves bank-to-bank instructions with banks responsible for making payments, so it is quite safe, especially when large amount is transferred. (二) Disadvantages 1、Disadvantages of remittance by demand draft: (1)As a remitter himself is responsible for mailing the demand draft, its transmission slower than that of T/T and cannot serve the of quick payment; (2)It is possible for a demand draft to be lost, stolen or destroyed. The remitting bank generally reluctant to stop payment on a draft issued by itself for this would mean an act as dishonor on its part which will have an unfavorable effect on its credit.worthiness. To make payment on lost draft is time consuming. 2、Disadvantages of remittance by airmail: (1)It is possible for the mail transfer order to be delayed or lost in the post, thus caused difficulty for its payment; (2)As the mail transfer exclusively depends on international airmail service, its transmission is slower than that of T/T and cannot serve the purpose of quick payment; 3、Disadvantages of remittance by airmail: (1)It is more expensive as compared with M/T or D/D, but if the amount transferred is large, the interest cost which should be otherwise incurred due to time delay can be saved; (2)The beneficiary must await notification from the bank concerned. 第二节 Reimbursement of Remittance Cover and cancellation of remittance (一)Reimbursement of Remittance Cover ?Remitting Bank is an accounting bank In cover, we have credited your a/c with us. ?Paying Bank is an accounting bank In cover, please debit our (H.O) a/c with you.?Reimburse through an intermediary bank In cover, we have authorized X Bank to debit our a/c and credit your a/c with them. 二、Cancellation of remittance ?Cancellation of mail transfer or telegraphic transfer Mail transfer or telegraphic transfer can be cancelled before its payment is made. It is usually done at the request of the remitter or the payee who refuses to receive the payment. Whenever the paying bank receives an advice from the remitting bank to cancel the latter’s payment order, it will do so accordingly. Once the payment has been made, the remittance cannot be cancelled. The remitter himself may contact the payee to claim back the remittance payment. ?Cancellation of a bank draft already issued If the remitter requests the remitting bank to cancel a bank draft already issued by reason of its being lost or stolen, the latter is generally reluctant to do so because the remitting bank the responsibility of guaranteeing the draft’s payment once it is issued. However, the remitting bank may issue a duplicate of draft against a letter of indemnity from the remitter, if the paying bank confirms that the original one has not yet been paid. 第三节 Methods of Remittance in international trade In international trade，remittance as a settlement of claims and debts, according to the time of shipment and of payment, falls into two categories: the so called “cash before shipment” method and “shipment at first settlement later” method. The former is known as payment in advance, and the latter open account. Whichever of these two methods of settlement is decided upon, the same methods of payment are available to the importer: SWIFT or telegraphic transfer, mail transfer or demand draft. However, these two methods of settlement are not popularly used in international trade, because of the risk involved for the importers or exporters. 一、Payment in Advance Payment in advance signifies that the importer pays the exporter before delivery of the goods. In fact, importers are seldom prepared to make fun payment in advance of the shipment of goods. It is more common to find that they are prepared to pay in advance only a certain percentage of the value of the goods, that is, so called down payment. Payment in advance usually appears in transactions in small amount or in particular business Lines. The buyer has to advance the capital too early and undertake the risk of late delivery or non-delivery. 二、Payment after Arrival of the Goods Open account business is also called payment after arrival of goods. The seller may be prepared to ship his goods on open account when the exporter is well acquainted with the financial status 0f the buyer and entertains no doubt about his solvency, or when the exporter sells goods to his an overseas branch or subsidiary. Under open account business, the exporter sends his shipping documents to the buyer who remits in due course or at agreed intervals the agreed price either by T/T, M/T, or D/D through a bank. The exporter makes no precise date for payment of the goods shipped(Instead, he is prepared to rely on his past experience of the buyer’s integrity to effect settlement at the proper time. 思考题:(五号黑体) 1、什么是汇款,有哪几种方式, 2、汇出行与汇入行如何划拨头寸, 3、如何办理退汇, 第四章 Methods of Collection 学时:6,8周，共8学时 教学目的:通过本章学习可以使学生系统掌握托收结算方式的理论和业务流程。 教学重点:托收的业务流程，托收的交单方式，托收的偿付，托收业务中的融资。 教学难点:托收的交单条件，托收业务中的融资。 教学内容 In this chapter, you will learn: Definition of collection, parties and types of collection Procedure, outward and inward collection Risk protection and financing under collection methods 第一节Introduction of Collection 一、Definition of Collection (一)Collection is an arrangement whereby the goods are shipped and a relevant bill of exchange is drawn by the seller on the buyer, and,or shipping documents are forwarded by the seller’s bank with clear instructions for collection through one of its correspondent bank located in the domestic of the buyer. (二)According to the Definition given in the Uniform Rules for Collections (ICC Publication No. 522), collection means the handling by banks, on instructions received of documents, in order: (1)obtain acceptance and,or, as the case may be, payment; (2)deliver commercial documents against acceptance, or as the case may be, against payment; (3)deliver documents on other terms and conditions. 二、Parties involved in collection There are four main parties to a collection transaction. Note that each party has several names. This is because business people and banks each have their own way of thinking about and naming each party to the transaction. For instance, as far as business people are concerned there are just buyers and sellers and the Buyer’s bank and the seller’s bank. Banks, however, are not concerned with buying and selling. They are concerned with remitting (sending)documents from the principal(seller)and presenting drafts to the drawee(buyer)for payment. (一)Principal(seller/exporter/drawer) The principal is generally the customer of a bank who prepares documentation(collection documents)and submits(remits)them to his bank(remitting bank)with a collection order for payment from the buyer(drawee). The principal is also sometimes called the remitter. (二)Remitting Bank (principal’s/seller’s/exporter’s bank) The remitting bank is the bank receiving documentation from the seller for forwarding to the Buyer’s bank along with instructions for payment. (三)Collecting Bank (presenting bank) This Can be any bank other than the remitting bank involved in processing the collection. Specifically, this is the bank that presents the documents to the buyer and collects cash payment or a promise to pay in the future from the buyer in exchange for the documents. Normally the collecting bank is a correspondent or branch of the remitting bank in the importer’s country. If the collecting bank is not located near the importer, it will send the documents to a presenting bank in the importer’s city. (四)Payer (buyer,importer) The drawee is the party that makes cash payment or accepts a draft according to the terms of the collection order in exchange for the documents from the presenting,collecting bank and takes possession of the goods. The drawee is the one on whom a draft is drawn and who owes the indicated amount. Sometimes, in case of non-acceptance and,or non-payment，there may be another party, and that is case of need. (五)Representative in case of need It is the representative appointed by the principal to act as case of need in the event of non-acceptance and,or non-payment. Whose power should be clearly and fully stated in the collection. 三、Kinds of Collection (一)Clean Collection 1.Clean collections are collections on financial instruments without being accompanied by commercial documents, such as invoice，bill of lading, insurance policy, etc. 2.Features (1)Under clean collection, only the draft and, if necessary, an instruction letter are sent out for collection. The documents are sent directly by the exporter to the importer or the exporter’s foreign agent. (2)The exporter is, in fact, shipping on open-account terms. Clean collection may also be used when the goods are shipped to agents overseas on consignment. (3)A clean collection may represent an underlying trade transaction or a purely financial transaction involving no movement of merchandise and, therefore, no documents. (4)This method lacks the protection of the documentary collection. It is generally used in countries where a draft is needed for legal purposes or because it is required by the exchange control authorities( (二)Documentary Collection 1.Documentary collections may be described as collections on financial instruments being accompanied by commercial documents or collections on commercial documents without being accompanied by financial instruments, that is, commercial documents without a bill of exchange. 2.Documentary collection is a payment mechanism that allows the exporters to retain ownership of the goods until they receive payment or are reasonably certain that they will receive it. 第二节 Condtion of delivery of documents 一、Documents against payment (一)Definition of D/P The collecting bank may release the documents only against full and immediate payment, insofar as national, federal or local laws or regulations do not prevent it. In practice buyers prefer to postpone the takeover of the documents and the payment until after the arrival of the goods. In order to take precautions against such a practice on the part of the importer, a clear term “payment on first presentation of the documents” should be included in the collection Order. (二)Advantage to the seller This type of collection offers the greatest security to the exporter. (一)Documents against payment at sight (D/P at sight ) Under this method, the seller issues a sight draft. The collecting bank presents the sight draft to the buyer. When the buyer sees it he must pay the money at once, then he can get the shipping documents. (二)Documents against payment at XX days after sight (D/P at XX days after sight) Under this method, the seller issues a term draft. The collecting bank presents the term draft to the buyer for acceptance. At the maturity, the collecting bank presents the accepted term draft for payment. When the buyer pay the money at once, he can get the shipping documents. 二、Documents against acceptance(D/A) (一)Definition of D/A The presenting bank may release the documents to the buyer against the buyer’s acceptance of a draft, drawn payable 30-180 days after sight or due ON a definite date. (二)Advantage to the buyer After acceptance, the buyer gains possession of the goods before the payment is made and is able to dispose of the goods as he wishes. (三)Disadvantage to the seller The seller, however, bears the risk of the buyer’s non-payment. If the seller intends to have the shipping documents released against acceptance, he must be sure that the buyer will be in a position to pay the time bill at maturity because he will lose control of the goods and rely on the credit worthiness and integrity of his overseas customer to pay on due date. 第三节 Risk protection and financing under collection 一、Risks involved (一)Risks for exporter Seldom does a seller accept payment by D/P or D/A unless the buyer is of unquestionable integrity or if there is a special relation between the seller and the buyer. Generally speaking, most of the risks the exporter assumes include : acceptance risk, credit risk of the importer, political risk of the importer’s country, foreign exchange transfer risk and documentary risk that the shipment may fail to clear cutoms. Risks for exporter: ?Non-acceptance of merchandise ?Non-payment of trade acceptance ?possession of goods ?exchange restrictions (二)Exporter’s measures against risks In order to avoid or minimize these risks, the seller, besides having a clear picture of these collection risks, should take some measures. ?the exporter should always make sure that the overseas importer is of good reputation and of good financial standing. Otherwise, an importer without satisfactory creditworthiness may reject the goods on some pretext after its arrival, in the hope of driving the seller into a price reduction. Failing to take delivery of the goods promptly upon its arrival at the final destination will result in substantial demurrage and insurance costs, as well as damages to the goods especially to those perishable goods. ?the exporter should take into account the economic and political conditions in the importing country. For instance, if the market price of the imported goods falls, the importer may also find a pretext to refuse payment. ?the exporter should also pay attention to the foreign exchange regulations in the importing country so that outward payment made by the importer will present no problem. 二、Loan in collection (一)Bill purchased (loan Secured by Documentary Bill, BP) Financing by banks for exporters under documentary collection methods takes the form of collection bill purchased. Collection bill purchased means that the remitting bank purchases the documentary bill drawn by the exporter on the importer. (二)Trust receipt(D/P at XX days after sight to issue trust receipt in exchange for documents, D/P, T/T) (三)Risks for importer (1)Payment may have to be made prior to the arrival of the goods. No opportunity is then available to inspect the goods before making payment. Whether the goods are of the contract description entirely depends on the exporter’s credit standing. (2)By accepting a bill of exchange under the documents against acceptance collection, the importer incurs two separate legal liabilities; that is, he will have another legal liability on the bill of exchange besides his 1iability on the sales contract. (3)In some countries, if a bill of exchange is protested, this can ruin the reputation of a trader and may be considered an act of bankruptcy. Therefore the consequences of non-acceptance or non-payment on the part of the importer will be worse than anything else. 第四节 Instruction for reimbursement 一、Remitting Bank is an accounting bank Collection Instruction: When collected please credit our a/c with you under your cable/airmail advice to us. 二、Collecting Bank is an accounting ban Collection Instruction: Please collect the proceeds and authorize us by cable/airmail to debit your account with us. 三、Reimbursement through a third bank Collection Instruction: Please collect and remit the proceeds to X bank for credit of our account with them under their cable/airmail advice to us. 第五节 Uniform Rules for Collection(URC522) 一、General Provisions and Definition 二、Form and structure of Collection 三、Form of Presentation 四、Liabilities and Responsibilities 五、Payment 六、Interest, Charges and Expenses 七、Other Provisions URC 522 1.2 Application适用范围 The Uniforrn Rules for Collections, 1995 Revision, ICC Publication No. 522, shall apply to all collections where such rules are incorporated into the text of the“collection instruction”and are binding on all parties thereto unless otherwise expressly agreed or contrary to the provisions of a national, state or local law and,or regulation which can not be departed from. Banks shall have no obligation to handle either a collection or any collection instruction or subsequent related instructions. If a bank elects, for any reason, not to handle a collection or any related instructions received by it, it must advise the party from whom it received the collection or instructions by telecommunication, or if that is not possible, by other expeditious means, without delay. 1.3 Major contents主要内容 Uniform Rules for Collection(ICC Publication No. 522)consist of seven parts with 26 articles altogether. 1. Part A: General Provisions and Definition This part consists of Articles 1-3, including the application of URC 522, Definition of collections and documents, and parties to a collection. 2. Part B: Form and Structure of Collections It has been made clear in the URC that ICC Publication No. 522 is binding on a11 parties concerned only if it is stated in the collection instructions that the collection is subject to URC 522. The form and information items of collection are stipulated in detail. The liability and responsibility of the instructing party and the instructed party are also made clear. 3. Part C:Form of Presentation This part is made up of Articles 5-8, specifying the procedure, methods and precautions of presentation, stipulating the time limit for the presenting bank to handle sight,tenor collection presentation, etc. 4. Part D: art is composed of Articles 9-15, including the liability and responsibility banks shall assume for the goods, services or performances related to documents. This part also stipulates disclaimer for acts of an instructed party, disclaimer on documents received，disclaimer on effectiveness of documents, disclaimer on delays, loss in transit and translation. 5. Part E: Payment Articles 16 to 19 constitute Part E, requiring that amounts collected should be made available without delay to the party from whom the Collection instruction was received. This part is also about different operations under “payment in local currency”, “payment in foreign currency” and “partial payment”. 6. Part F :Interest,Charges and Expenses This part made up of Articles 20-21 is about the collection of interest, charges and expenses and the corresponing provisions in collection instruction. 7. Part G: Other Provisions Articles 22-26 make up Part G, involving acceptance, protest, case-of-need and advice form and method of advice, and advice of payment, acceptance, non-payment and non-acceptance. ?Necessity of drawing up URC With the development of international economy and trade early in the 20 century, collection received increasing importance and gradually became a settlement method. Many disputes and conflicts arose from the different understanding of the obligations and rights of respective parties and from different operations in handling the collections. ?1956 Version of URC(ICC Publication No. 192) The International Chamber of Commerce (ICC) deemed it necessary to draw up the “Uniform Rules for Collection of Commercial Paper”. This was implemented in 1956, and the Uniform Rules came into force in 1958(ICC Publication No(192), and these rules were adopted by a grit number of banks throughout the world, though not so universally as in the case of the Uniform Customs. ?1968 Version of URC(ICC Publication No. 254) In 1967, the ICC submitted a revised text of the Uniform Rules for adoption by the banks in the various countries, and it was put into force on January 1, 1968. These revised Uniform Rules for the Collection of Commercial Paper (ICC Publication No. 254) differed from the previous regulations mainly in their construction and terminology. These new Uniform Rules comprised, in a uniform “code”, all provisions relating to the collection of commercial paper, in contrast withthe previous regulation of 1956, which contained rules on commercial paper in general and the special(additional)rules to be applied to documentary remittances. ?1979 Version of URC(ICC Publication No. 322) After almost ten years of practical application，and with the development of international trade and improvement of international collection, these Rules were further developed, mainly by changes in the titles and the wording of the text and by inclusion of some provisions deemed to be necessary. This is the Uniform Rules for Collection (ICC Publication No. 322) were adopted by banks in many countries and played a positive role in facilitating the international trade. ?1995 Version of URC(ICC Publication No. 522) However, the limitations and inadaptability of the rules became increasingly obvious. It was essential that the previous regulation should be revised and complemented in order to keep up with new developments in international finance, trade, transportation and computer technology. The revised regulations published in July 1995 came into force on January 1, 1996(ICC Publication No. 522)and these are the current Uniform Rules for Collection. This development has interested bankers throughout the world since the new Rules replaced the previous ones. In making revision, the ICC’S Banking Commission took into account both the evolutions in practice since 1979 and specific problems that have arisen that could not be solved by the existing rules. This revision refiected the policy of the ICC to keep abreast of changes in international commerce. 思考题:(五号黑体) 1、什么是跟单托收,有哪些当事人,其基本当事人的责任各是什么, 2、简述汇款和跟单托收的基本程序 3、分析跟单托收对进出口商的利弊 4、简述押汇和贴现的区别。 第五章 Methods of Letter of Credit 学时:9,11周，共12学时 教学目的:信用证是目前最重要的国际结算方式，通过本章学习要求学生对跟单信用证这一 结算方式的理论与实务进行全面理解和把握。 教学重点:信用证的性质、内容、业务流程;信用证的修改和撤销。 教学难点:信用证的性质、内容和业务流程;信用证的修改和撤销。 教学内容 In this chapter, you will learn: ?Characteristics of a letter of credit ?Benefits of the documentary credit ?Basic documentary credit procedure ?Different types of credits 第一节Introduction of L/C The letter of credit is the most widely used instrument of international banking. It has had along and successful history as a means of facilitating international trade, particularly during times of economic and political uncertainty. In international trade it is almost impossible to match payment with physical delivery of the Goods, which constitutes conflicting problems for trade. Since the exporter prefers to get paid before releasing the goods and the importer prefers to obtain control over the goods before paying the money. And collection also involves great risks for both the buyer and seller as is mentioned in the previous paragraphs. The letter of credit is an effective means to solve the problems. Its objective is to facilitate international payment by meal-Is of the creditworthiness of the bank. This method of payment offers security to both the senor and the buyer. The former has security to get paid provided he presents impeccable documents while the latter has the security to get the goods required through the documents he stipulated in the credit. 一、Definition of L/C The documentary credit or letter of credit is an undertaking issued by a bank for the account of the buyer(the applicant)or for its own account, to pay the beneficiary the value of the draft and/or documents provided that the terms and conditions of the documentary credit are complied with. The documentary credit 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. It does this, however, by making payment against documents representing the goods rather than against the goods themselves. 二、Documentary L/C characteristic Its main characteristics are as follows: (一)The issuing bank undertakes to effect payment，quite independent of whether the applicant is bankrupt or is in default or not, provided the documents presented are in compliance with the terms and conditions of the credit. (二)A letter of credit stands independent of the sales contract. Although the credit is issued on the basis of the contract, banks are in no way concerned with or bound by such credit, even if any reference whatsoever to such contract is included in the credit(The bank(when issuing the credit has no regard for the sales contract but follows a1l application handed in by the buyer. (三)In letter of credit business, banks deal with documents and not with goods, services or other performances to which the documents may relate. They check exclusively on the basis of the documents presented to them to see whether the terms of the credit are fulfilled. They are not in a position to verify whether the goods supplied actually conform to those specified in the credit. (四)Banks engaged in letter of credit business assumes no responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any documents presented. Their main responsibility in this respect is to examine each document presented to see whether it appears on the face to be in compliance with the credit terms. (五)Banks dealing letter of credit business assume no responsibility for the acts of third parties taking part in one way or another in the credit transaction. 三、L/C parities There are four main parties to a documentary credit transaction and some other parties, which facilitate the transaction.Each party has multiple names. The name used for each party to the transaction depends upon who is speaking. Business people like to use the nan'les buyer, seller, buyer’s bank and seller’s bank. The banks prefer to use the names applicant, beneficiary, issuing bank, advising bank, confirming bank, nominated paying/negotiating/accepting bank and transferring bank, if any. (一) Applicant,importer,the buyer: The applicant is always an importer or a buyer, who fills out and signs an application form, requesting the bank to issue a credit in favor of an exporter or a seller abroad. (二) Beneficiary exporter,the seller: The exporter or the seller in whose favor the credit issued, because such a credit is considered to benefit the exporter by its assurance of payment to him. (三) Issuing Bank,opening bank,the buyer’s bank:The bank which issues a letter of credit at the request of an applicant. By issuing a credit the issuing bank undertakes full responsibility for payment against proper documents presented by the beneficiary. (四) Advising Bank(Transmitting Bank): Correspondent bank or branch of the issuing bank to whom the letter of credit is routed for transmission to the beneficiary. It has the task of informing the beneficiary that the credit has been issued in his favor so that the beneficiary may make necessary preparation for shipping the goods and drafting the documents stipulated in the credit. (五) Negotiating Bank: A bank that purchases the documents under the credit(If all the credit terms are met, the negotiating bank will buy the exporter’s drafts with or without recourse and then it will send the drafts and documents to the issuing bank for reimbursement. (六) Paying Bank,drawee bank: A bank who is authorized by the issuing bank to pay the beneficiary according to the terms and conditions of the credit. (七) Reimbursing Bank:The bank from which the nominated paying bank or any negotiating bank that has made a payment under the credit may obtain reimbursement. It can be the issuing bank itself, or an authorized bank of the issuing bank. (八) Confirming Bank: A bank, usually the advising bank, which adds its undertaking to those of the issuing bank and assumes liability under the credit. 四、Benefits of the documentary credit (一)Facilitates financing the documentary credit (二)Provides legal protection (三)Assures expert examination of documents 五、Documentary L/C items (一)Basic clauses 1、Form of Credit 2、L/C Number 3、Date of Issue 4、Beneficiary and Applicant 5、L/C Amount 6、Terms of Validity( Expiry Date) 7、Opening Bank’s Name and Signature 8、Engagement/Undertaking Clause (二) Documents clauses 1、Commercial Invoice 2、Customs Invoice 3、Consular Invoice 4、Bill of Lading (B/L) 5、Airway Bill 6、Combined Transport Document 7、Cargo Receipt 8、Parcel Post Receipt 9、Insurance Policy 10、Insurance Certificate 11、Packing List 12、Weight Memo 13、Certificate of Origin 14、Inspection Certificate 15、Other Documents (三) Goods clauses 1、Name of COmmodity 2、Specification 3、Quantity 4、Unit Price 5、Price Terms 6、Packing 7、Shipping Mark (四) Shipping clauses 1、Port of Loading/Shipment, Place of Taking Charge 2、Port of Discharge or Destination 3、Latest Date for Shipment 4、Partial Shipment Allowed or not Allowed 5、Transshipment Allowed or not Allowed 6、Mode of Transportation (五) Other clauses 1、Instructions to advising Bank 2、Instructions to Negotiating or Paying Bank (1)Endorsement Clause (2)Method of Despatching Documents (3)Method of Reimbursement 3、Additional Clause/Special Conditions 六、Uniform Customs and Practice for Documentary Letter of Credit(UCP500) (一)General Provisions and Definition (二)Form and Notification of Credits (三)Liabilities and Responsibilities (四)Documents (五)Miscellaneous Provisions (六)Transferable Credit (七)Assignment of Proceeds 第二节L/C flow chart 一、Application for L/C The following numbered steps correspond to the above diagram. (1)The buyer and seller agree on the terms of the sale. ?Specifying a documentary credit as the means of payment; ?Naming an advising bank; ?Listing the required documents. (2)The buyer applies to his bank for the opening of the credit and the security agreement between the applicant and the issuing bank. (3)The issuing bank sends the documentary credit to the advising bank named in the credit. (4)The advising bank informs the seller of the documentary credit. 二、Issuance of L/C When the issuing bank is satisfied that he can open the credit for the beneficiary and the security agreement has been made，he can issue the documentary credit according to the clauses in the application made by the applicant and advise the credit through another bank. He should carefully check the application for the following points. ?Review the terms and conditions of the proposed documentary credit to ensure that they are in compliance with the policies of the bank and in accordance with the legal requirements or regulations of the issuing bank. ?Review the application to see if every detail is correctly completed. ?Review the applicant’s instructions to see whether they are acceptable or whether the bank is authorized to choose its own correspondent for advising the credit. ?Review the application to see whether it requires to submit any documents, the performance or production of which is totally dependent on the performance by a third party not controlled by the beneficiary(or whether there are any “non-documentary conditions’ stated in the application. 2(Completion of the standard documentary issuance form 三、Advise of L/C ?Examine the L/C ?Amend the L/C The following numbered steps correspond to the above diagram. ?The seller requests that the buyer make an amendment to the credit. This can be done by a telephone call, a fax, or by face-to-face negotiation. ?If the buyer agrees, he instructs the issuing bank tO issue the amendment. ?The issuing bank makes the amendment and notifies the advising bank of the amendment. ?The advising bank notifies the seller of the amendment. ?Confirm the L/C 四、Negotiate of L/C (一) (1)The Seller ships the goods to the buyer and obtains the title documents from the shipping line. (2)The seller prepares and presents all the documents as required by the credit to the nominated bank. (3)The advising/ confirming bank reviews the document package making certain the documents are in conformity with the terms and conditions 0f the credit and pays the seller according to the terms of the credit. (4)The advising,confirming bank sends the documents to the issuing bank by mail or by courier or other telegraphic means. (5)The issuing bank:reviews the documents make certain that they are in conformity with the terms of the credit; 1. General principle The principles for examining documents are based upon the UCP 500 rules by the International Chamber of Commerce and the International Banking Committee throughout the World, that is: the documents must comply with the terms and conditions of the letter of credit on the one hand and they must be consistent with each other on the other hand. The bank examiner should first read the letter of credit so as to have the knowledge of what documents it requires and then see whether he has received all of them. Than he should go over the letter of credit point by point, making sure that each requirement has been complied with by the documents. Moreover, he has to check whether the documents are consistent with each other. (二)The Rule to follow: “Whatever the letter of credit stipulated must be carried out.” Some important principles to keep in mind: (1)Banks deal exclusively with documents:They are not in a position to verify whether the goods supplied are actually identical with those specified in the credit. They are only concerned with whether the documents presented are in conformity with the terms and conditions of the credit or not. (2)Banks observe the rule of “strict compliance”. It is imperative for the banks to make certain that the documents presented are exactly in compliance with those specified in the credit, so that their interests wilI be protected. (3)Banks assume no responsibility for authenticity, form or validity of the documents. (4)Banks assume no responsibility for the act of the third parties taking part in the credit operations, conditions of the credit shall be determined by international standard banking practice and UCP500 rules. Documents, which appear on the face to be inconsistent with one another, will beconsidered as not appearing on the face to be in compliance with the terms and conditions of thecredit. ?Documents not stipulated in the credit will not be examined by banks. If they receive such documents, they shall return them to the presenter or pass them on without responsibility. ?The issuing bank，the confirming bank, if any, or nominated bank acting on their behalf, shall each have a reasonable time，not to exceed seven banking days following the date of receipt of the documents。to examine the documents and determine whether to take up or refuse the documents and to inform the party from which it received the documents accordingly. ?If the issuing bank decides to refuse the documents, it must give to that effect by telecommunication, or, if that is not possible, by other expeditious means, without delay but not later than the close of the seventh banking day following the date of receipt of the documents. ?Such notice must state all discrepancies in respect of which the bank refuses the documents and must also state whether it is holding the documents at disposal of, or is returning them to, the presenter. (三)Discrepant documents and procedures to be taken by the issuing bank The issuing bank has up to seven banking days following the receipt of the documents presented by another bank to examine and notify the result(If it finds discrepancies in the documents, it can choose from several options: (1)Refuse to accept the documents and return them to the advising or the confirming bank so that the beneficiary can correct them and represent them during the period of validity under the documentary credit and in accordance with UCP 500, Article 43. (2)If it feels the discrepancy is not material to the transaction, it can ask the buyer/ applicant for a waiver for specific discrepancy，but must do so within seven banking days. (3)The user may request the opening bank to present the documents to the buyer on a collection basis. (4)To pay, negotiate or accept with reserve or against indemnity. That is to say, if the applicant refuses to pay the discrepant document, the bank has recourse to the beneficiary. Once the correspondent bank has examined the documents and found them to be in order, it will not hesitate to honor any credit to which it has added its confirmation(If the credit is Unconfirmed, the correspondent bank that advised the credit is not bound to honor the documents，but in the interest of his customer, it will usually do so. Depending on the agreed method of settlement, the correspondent bank either pays out the credit amount，accepts the bill of exchange orin the event of a deferred payment credit issues an undertaking to make payment at a later date. In the first case, the beneficiary obtains liquid funds immediately. If the credit is available by acceptance, he can either wait for the accepted bill to maturity or convert it into cash by discounting it at his bank. (1)Negotiation: It means the giving of value for the draft(s)and/or document(s)by the bank authorized to negotiate. Mere examination of the documents without giving value does not constitute a negotiation. The draft drawn under a negotiation credit can be a sight draft/usance draft drawn on the issuing bank or nominated bank, but it cann’t be drawn on the applicant. In a negotiation credit, the issuing bank may authorize the advising bank or another bank to negotiate the documents under the credit; it may be authorized to be freely negotiable by any bank. When banks negotiate the credit, they deduct the interest from the negotiation date to the agreed payment date and give the net amount to the beneficiary, then remit the documents to the issuing bank or nominated reimbursing bank for reimbursemen. (2)Payment: If the sight credit stipulates “the credit is payable at the counters of the advising bank”, the advising bank then becomes the nominated paying bank. As soon as the beneficiary submits the complying documents, the advising bank can effect payment to the beneficiary and then send the documents to the issuing bank or nominated reimbursing bank for reimbursement( If the credit is a deferred payment credit, there is no need to draw a draft. The deferred payment is made by the issuing bank, confirming bank or nominated paying bank. It is better for beneficiary to require that the credit be confirmed(The export bank will ask for reimbursement from the issuing bank after his deferred payment to the beneficiary (3)Acceptance:If the acceptance credit stipulates the advising bank or another bank as the drawee of the draft under the credit, the advising bank can accept the draft and make payment at maturity. 五、Documents Taken up by Issuing Bank (一)Payment and reimbursement under the letter of credit are very important procedures in the letter of credit transaction, the correspondent bank forwards the documents to the issuing bank and requests reimbursement, either immediately or at a later date(depending on the terms of the credit), the issuing bank must check the documents and reimburse it according to their instrution. Issuing bank must taken up the documents within 7 days after receipt the documents. (二)Claim for reimbursement The correspondent bank forwards the documents to the issuing bank and requests Reimbursement, either immediately or at a later date depending on the terms of reimbursement. If the transaction is conducted in the local currency of the Correspondent bank, this bank can debit the amount to the issuing bank’s account (vostro account). If the credit amount is expressed in the currency of the issuing bank’s country, the issuing bank will credit the account of the Correspondent bank (nostro account from the Correspondent bank’s point of view). Examples of this type of reimbursement instructions are: You are requested at sight/at maturity to credit the above total sum to us/our H.O. account with you under telex/airmail advice to us; We have today debited the above total sum to your account with us/our H.O. Beijing; 一Please authorize us/our H.O. Beijing by cable/airmaiJ to debit your account with the above total amount. In the case of a documentary credit issued in a third currency, settlement is not quite so Simple. The issuing bank has to authorize a bank in the respective currency area to credit or transfer the owed amount to the Correspondent bank. Examples of this type of reimbursement instructions are: 一Please pay/remit the proceeds by T/T or airmail to XX bank for the credit of us/our H.O. account with them under their telex/airmail advice to us; 一We have requested XX bank by telex/airmail to debit your account and credit us/our H. O. account with the above proceeds; We have claimed reimbursement as per our telex of today requesting you (or reimbursing bank)to credit the above sum under your(their)telex/airmail advice to us. 2(Payment refused by the issuing bank If the documents presented by the correspondent meet the credit requirements, the issuing bank then has to effect payment or make reimbursement, as stipulated, to the Confirming bank or any other bank that has paid, accepted or negotiated under the credit. If the issuing bank considers that these documents appear on their face not to be in compliance with the terms and conditions of the credit, it must inform the bank sending the documents of the refusal of payment, paying bank, accepting bank or negotiating bank shall mail/cable the issuing bank immediately, following the banks’ regular practice or the UCP rules to urge the latter to effect payment promptly, together with the interest caused by the delay payment, if any. It occasionally happens that an issuing bank without a reputable credit standing may collude with the applicant to refuse payment. In that case, the beneficiary and negotiating bank must be cautious and take certain measures to press the issuing bank for making payment. If actual discrepancies do exist, the beneficiary must present again the correct documents immediately or contact the opener directly，asking him to accept the documents and effect payment. Whenever the issuing bank refuses payment or places a reservation for an alleged discrepancy, the paying, accepting or negotiating bank must cooperate of one mind with the beneficiary to make every effort to receive payment as soon as possible. 六、Take Delivery of Goods against Documents Retired The issuing bank checks the documents to ensure that they meet the requirements of the Credit. If they are in order, the documents are released to the buyer against payment of the amount due, either immediately or at a later date depending on the terms of the security agreement. On the strength of the documents，the buyer now take possession of the goods and proceed with the import formalities. 七、Risk Protection As we have seen, letters of credit enjoy a peculiar status in the payment cycle. Because they guarantee the underlying commercial transaction, they have to be a legally independent vehicle from that transaction. This means that if the supporting documents give every appearance of being genuine, banks are obliged by international law to pay against them. Effectively this changes the status of the back—up documentation for an L/C. It means that a bill of lading is a negotiable document，and a counterfeit copy could well be worth millions of dollars. It is strange，that traders do not realize this(There is often an implicit trust in international trade, but the key message to all our Clients，when entering into a new relationship, should be caveat exporter. Documents supporting L/Cthat are susceptible to forgery are: bills of lading, commercial Invoices, insurance certificates and certificates of quality. The potential fraudster has a series of options open. He could ship, for instance, sub-standard goods or even rubbish inside the correct packing cases and then, using the genuine bill of lading, obtain payment through the L/C. Alternatively, and frequently much cheaper, if he can obtain an entire set of forged backing documents, including the bill of lading, he may present them to the bank negotiating the L/C and obtain payment. The crime would, in both instances, not normally be detected until after the ship had reached its destination, weeks, sometimes months after the payment had been made. Therefore, whenever being approached by an unusual transaction with unknown parties, importers and banks should exercise extreme caution to avoid becoming involved in fraudulent transactions. The best way to avoid fraud is to have a detailed investigation about the creditworthiness of the prospective trader. 第三节L/C Parties 一、Applicant 二、Beneficiary 三、Issuing Bank 四、Advising Bank/Transferring Bank 五、Negotiating Bank 六、Paying Bank 七、Reimbursing Bank 八、Confirming Bank 思考题:(五号黑体) 1、如何理解信用证的性质及作用, 2、信用证各主要当事人的责权是什么, 3、说明信用证结算的业务流程 4、简述银行开出信用证的方式, 5、审证之后如何进一步处理业务, 6、如何修改信用证,应坚持的原则是什么, 第六章 Types of Credit 学时:12,13周，共4学时 教学目的:熟悉不可撤销信用证、即期付款信用证、延期付款信用证、承兑信用证、议付信 用证、可转让信用证、对背信用证、循环信用证、对开信用证、预支信用证所适用的贸易背 景、开立格式和操作流程。 教学重点:普通信用证、特殊信用证的格式，处理流程。 教学难点:可转让信用证、对背信用证的处理及区别。 教学内容 第一节Common L/C 一、Irrevocable/revocable/confirmed L/C (一)Irrevocable L/C 1.Definition of L/C A credit that constitutes a definite undertaking of the issuing bank, provided that the stipulated documents are presented to the nominated bank or to the issuing bank and that them terms and conditions of the documentary credit are complied with, to pay, accept drafts and/or document(s)presented under the documentary credit. It can’t be cancelled/modified without the express consent of the issuing bank, the confirming bank(if any)and the beneficiary. Therefore, it constitutes an undertaking by the issuing bank to make payment. 2. Function clause: ?We(The Issuing Bank)hereby issue in your favor this irrevocable documentary credit that is available by payment,negotiation of your draft. ?We hereby engage with you that all drafts drawn in conformity with the terms of this credit will be duly honored on presentation. (二)Revocable L/C A credit that may be amended or cancelled or revoked by the Issuing Bank without the Beneficiary’s permission and even without prior notice to the Beneficiary up to the by the bank at which the Issuing Bank has made the documentary credit available. The revocable credit therefore does not constitute an undertaking by the issuing bank. It involves risks to the beneficiary since the documentary credit may be amended or cancelled while the goods are in transit and before the documents may have been presented, before payment has been made. (三)Confirmed irrevocable L/C A credit that carries the commitment to pay by both the issuing bank and the advising bank. It is advised to the beneficiary with another bank’s confirmation added thereto. It constitutes a definite undertaking of the confirming bank, in addition to that of the issuing bank, provided that the stipulated documents are presented to the confirming bank or to any other nominated bank on or before the expiry date and the terms and conditions of the documentary credit are complied with, to pay, to accept draft(s)or to negotiate. Confirmation is only added to an irrevocable credit at the request of the issuing bank. It is used when the seller does not have confidence that the issuing bank can effectively guarantee payment. Therefore, if the issuing bank is considered to be a first class bank，there may not be any need to have its documentary credit confirmed by another bank. If the advising bank confirms the credit, it must pay without recourse to the seller when the documents are presented, provided they are in order and the credit requirements are met. The issuing bank’s authorization clause: ?The advising bank is authorized to add your confirmation. ?Please notify the beneficiary and add your confirmation. ?Please add your confirmation if the beneficiary required. The confirming bank’s engagement clause: ?At the request of the correspond(Issuing Bank)we(Advising Bank)have been requested to add our confirmation to this credit and we hereby undertake that all drafts drawn by you (Beneficiary) in accordance with the terms of the credit will be duly honored by US. ?At the request of the correspondent bank we confirm the credit and also engage with you that drafts drawn in conformity with the terms of this credit will be paid by US. ?This credit bears our confirmation and we hereby engage to negotiate, or accept on presentation to us, drafts drawn and documents presented in conformity with the terms of this credit. ?We have been requested to add our confirmation to this credit and we hereby undertake to honor all drafts drawn in accordance with the terms of the credit( ?Silent confirmation Silent confirmation represents an agreement between a bank and the beneficiary for that bank to “add its confirmation” to the documentary credit despite not being so authorized by the issuing bank. In this case the beneficiary and the advising bank make an independent agreement that adds the bank’s confirmation to the credit for a fee. 二、Sight payment/ Deferred payment/Acceptance/Negotiation L/C (一) Sight Payment L/C 1.A letter of credit calling for payment upon the presentation of the documents either with or without a sight draft. Under such a credit，the beneficiary(the drawer)is entitled to receive payment at once on presentation of his draft to the drawee bank or to the issuing bank if drawn on the issuing bank, once the relevant documents have been checked and found to be in order. Payment is sometimes efleeted only against a receipt issued by the beneficiary but usually against correct documents without any receipt( 2.Function clause: ?Available by sight draft drawn on issuing bank against complying documents: ?Payment is to be made upon presentation of the complying documents at the counters of a bank. (二) Deferred Payment L/C 1.Under a deferred payment credit，the beneficiary does not receive payment when he presents the documents, but at a later date specified in the credit. In this way, the importer gains the documents and thereby of the goods or service)before becoming liable forpayment. No draft is required for this credit. 2. Function clause: “Available against presentation of the following documents, but payment only at „days after presentation of documents” or “„payable at„days after bill of lading date”, etc. In economic terms, a deferred payment credit is equivalent to acceptance credit, except that in the absence of a bill of exchange there is no possibility for discounting. However, the undertaking to pay established by a deferred payment credit can on certain conditions be accepted as security for an advance. (三) Acceptance L/C A credit available by acceptance, under which a bank specifically nominated therein is authorized to accept the draft drawn under the credit. The draft there under must be a time bill drawn to the issuing bank, advising bank, or any other drawee bank. The clause used in the credit is as follows: “This credit is available by acceptance of your draft drawn on xxx bank.” presentation of the compliance documents, the nominated bank accepts the bill. The bill call be discounted in order to obtain the credit amount immediately. The purpose of an acceptance credit is to give the importer time to make payment. If he can resell the goods before payment falls due, he can use the proceeds to meet the bill of exchange. In this way, he avoids the necessity of borrowing money to finance the transaction. (四) Negotiation L/C A credit treated as negotiable is either a sight credit or a time credit, for drafts to be drawn on the issuing bank or on any other drawee bank. The so-called negotiation is to buy the draft from the beneficiary or to give value for draft and/or documents by the bank to negotiate(In this the negotiating bank a holder in due course(Negotiation of drafts and/or documents is with recourse to the beneficiary unless the credit has been confirmed by the negotiating bank( 第二节Special L/C 一、Transferable L/C (一) Definition: A credit under which the beneficiary(the first beneficiary)may request the bank authorized to pay, incur a deferred payment undertaking, accept or negotiate(the transferring bank), or in the event of a freely negotiable credit, the bank specially authorized in the credit as the transferring bank to make the documentary credit available in whole or in part to one or more other beneficiary(ies )(second beneficiary). (二) characteristic ? A credit can be transferred only if it is expressly designated as “transferable’ ’by the issuing bank. Terms such as “divisible”, “fractionable”, “assignable”, and “transmissible” do not consider the credit transferable. If such terms are used they shall be disregarded. ? A transferable credit can be transferred once. The second beneficiary cannot further transfer. ?The undersigned beneficiary hereby irrevocably transfers all his rights under the credit to the undersigned beneficiary waives his right to substitute his own invoice and drafts for those of the transferee. ?A transferable credit can be transferred only under the terms stated in the original credit. However, the intermediary may transfer the credit with the following changes: ?The name and address of the first beneficiary may be substituted for that of the original buyer; ?Unit prices and total amount of the credit may be reduced to enable the original beneficiary an allowance for profit; ?The expiration date, the final shipment date, and the final date for presentation of documents may all be shortened to allow the intermediary time to meet obligations under the original credit; ?Insurance coverage may be increased jn order to provide the percentage amount of cover stipulated in the original credit. ?Amendments to the transferable credit Since the ultimate buyer and the actual supplier of the credit may be separated by the intermediary, there is the question of how to deal with amendments. According to UCP 500 sub- article 48(d), the beneficiary must, at the time of making a request for transfer, and prior to the transfer of the credit, irrevocably instruct whether the transferring bank may advise amendments to the secondary beneficiary. Options for transfer fights on amendments include full or partial transfer of the credit with: 一、Retainment of rights on amendments; Partial waiver of rights on amendments; Waiver of rights on amendments. 二、Back-to-back L/C A back-to-back credit may be used when the credit issued in favor of the exporter (the middleman) is not transferable or though transferable it does not meet his requirements. The exporter, namely, the beneficiary of the first credit, offers it as a security to the advising bank or his banker for the issuance of a second credit. In other words, the two credits are put “back to bank”, the one being issued on the security of the other. A back-to-back documentary credit involves two separates documentary credits. 三、Reciprocal Letter of Credit (一)Definition: It is a kind of pre—shipment financing intended to assist the exporter in the production or procurement of the goods sold. It is a credit with a special clause added thereto that authorizes the advising bank or any other nominated banks to make advances to the beneficiary before his submission of documents. The red clause is so called because the clause was originally written in red ink to draw attention to the unique nature of this documentary credit(Nowadays jt is seldom used. A red clause letter of credit will be established only at the request of the applicant, it places the onus of final repayment on the applicant, who would be liable for repayment of the advances if the beneficiary failed to present the documents called for under the credit, and who would be liable for all costs, such as interest of foreign exchange hedging, incurred by the issuing bank confirming bank, if any, or any other nominated bank. (二)Function clause: 1. The negotiating bank is hereby authorized to make advance to the beneficiary up to a1l aggregate amount of USD200,000( 20, of the amount of L/C). The advances, with the interest at the ruling rate of exchange at the time of payment of such advance, are to be deducted from the proceeds of the drafts drawn under this credit. 2. We hereby authorize you to make such advances, which are to be repaid, with interest, from the payment to be made under the credit. It is understood that the making of the temporary advances or the payments to the above mentioned beneficiary should be optional on the part of you. 四、Revolving letter of credit (一)Definition : The amount shall be reinstated after each negotiation only upon receipt of issuing bank’s notice stating that the credit might be renewed. The amount of each shipment shall be reinstated after each negotiation only upon receipt of Credit writing importer’s issuing bank’s notice stating that the credit might be renewed. (二)Function clause: 1.Should the negotiating bank not be advised of stopping renewal within„days after each negotiation, the unused balance of this credit shall be increased to the original amount. th2. Per„calendar months cumulative commencing with 15, March 2001, revolving on the thfirst business day of each successive month and ending with 15, December 2001. 3.The unused balance of each shipment is not cumulative to the following shipment. 五、Anticipatory Letter of Credit 六、Standby L/C 思考题:(五号黑体) 1、可转让信用证与对背信用证的联系与区别是什么, 2、预支信用证与出口押汇的区别是什么, 3、即期付款、延期付款、承兑、议付信用证的区别是什么, 第七章 Other Methods of Settlement System 学时:14,15周，共4学时 教学目的:熟悉保函、保理、福费廷等其它结算方式的格式、特点和操作流程。 教学重点:保函、保理、福费廷的格式，处理流程。 教学难点:保函、保理、福费廷的处理及区别。 教学内容 第一节Letter of Guarantee( L/G) lnternational trade, on the one hand, the buyer wants to be certain that the seller is in a on to honor his commitment as offered or contracted. The fomler ther,efore it a on that appropriate security be provided. On the other hand, the seller must find a wav to be assured payment if no special security is provided for the payment such as in account business and documentary collections. Such security may be obtained through banks in the form of guarantee. 一、Definition of Letter of Guarantee Letter of Guarantee is used as an instrument for securing performance, especially in international business. A bank guarantee is a written promise issued by a bank at the request of its cutomer, undertaking to make payment to the beneficiary within the linlits of a stated sum of money in the event of default by the principal. A bank guarantee may also be defined as an independent obligation where the guarantor (a bank/financial institution/surety)has to make a special agreement its customer, ensuring that it will be refunded by him for any payment to be effected under the contract of guarantee. 二、Parties involved in Letter of Guarantee (一)Beneficiary Beneficiary is the party in whose favor the guarantee is issued. He is secured against the risk of the principal’s not fulfilling his obligations towards the beneficiary in respect of the underlying transaction for which the demand guarantee is given. He will not obtain a sHIn of money if the obligations are not fulfilled. (二)Principal The principal is the person at whose request the guarantee is issued, e.g. in tender guarantee /bond the principal is the party tendering or the party to whom the contract has been awarded. The principal will be claimed if he is in breach of his obligations( (三)Guarantor The guarantor is a surety， a bank or financial institution that issues a letter ot guarantee undertaking to make payHlent to the beneficiary in the event of default of the principal against the presentation of a written denland and other specified documents. He is not required to decide whether the beneficiary and principal have or have not fulfilled their obligations under the underlying tmsaction with which the guarantor is not concerned. That is to say, the guarantor’s willing to meet its commitment in terms of the guarantee, without becoming involved impossible disputes between beneficiary and principal regarding correct performance by the princlpal’s obligations. (四)Instructing party Sometimes, a bank or a financial institution or any other body acting as an instructing party. The instructing party instructs the bank or a financial institution located in the beneficiary’s country to issue a letter of guarantee on behalf of the principal in favor of a specified party named therein. 三、Types of bank guarantee (一)Direct guarantee and indirect guarantee 1.Direct guarantee occurs when the client authorizes the bank to issue a guarantee directly to the beneficiary An indirect guarantee is a guarantee where a second bank is involved. This bank (usually a foreign bank located in the beneficiary’s country of domicile) will be requested by the initiating bank to issue a guarantee in return for the latter’s counter—guarantee. Thus the initiating bank protects the foreign bank from the risk of a bank which could result from the beneficiary submitting a claim under the foreign bank’s guarantee. The initiating bank must formally pledge to pay the amount claimed by the beneficiary under the guarantee upon demand by the guaranteeing bank. 2. Indirect guarantees are mainly used in connection with international business 3. 1n terms Of the conditions for a claim In terms of the conditions for a claim, a guarantee or bond may be classified into unconditional bond and conditional( Unconditional bonds can be caJled at the sole discretion of the buyer. The bank must pay if called upon to do so, even in circumstances where it may be clear to the exporter that the claim is wholly unjustified. If the bank has to pay under the bond, it will debit the customer’s account under the authority of the counter indemnity. The exporter will then be left with the unenviable ask of claiming reimbursement in the courts of the buyer’s country. It must be stressed that banks never become involved in contractual disputes. If payment is called forwhich conforms to the terms of the bond, the bank must pay. Conditional bonds can be divided into two types: (a)conditional bonds requiring documentary evidence and(b)conditional bonds that do not require documentary evidence. Conditional bonds requiring documentary evidence give maximum protection to the exporter. Payment can only be called for by the buyer against production of a specified document, such as a certificate of award by an independent arbitrator. Unfortunately, this type of conditional bond is often unacceptable，particularly in the case of Middle East buyers. Conditional bonds that do not require documentary evidenee are less better than unconditional bonds from the exporter’s point of view. Such bonds often specify that payment must be made in the event of default or failure on the part of the contractor to perform his obligations under the above-mentioned contract( 4(In terms of the payment prerequisite under guarantee In terms of the payment prerequisite under guarantee, a guarantee is subdivided into payment guarantee and credit guarantee. Payment guarantee is a security mechanism for payment of the contract amount. Under a payment guarantee, it is stipulated that the bank undertakes to pay, provided the documents presented are in strict compliance with the terms and conditions of the guarantee. In this case, the issuing bank is primarily liable to the beneficiary. Included in this category are payment bond, deferred payment bond, guarantee for compensation trade, loan guarantee, overdraft guarantee, leasing guarantee, and payment guarantee for commission or any other charges. Credit guarantee is a defaLllt instrument that covers the risk of non(performance or defective performance by the contractor. Credit guarantees often include a bid bond, performance bond， advance payment guarantee, quality guarantee，maintenance guarantee, etc. 四、Procedure (1)The underlying contract is entered into by and between the principal and the beneficiarv. (2)The principal applies to a bank and requests the issuance of the guamntee. (3)If the guarantor(usually a bank)is satisfied that joining in a guarantee is justified, it then issues a letter of guarantee undertaking to make payment to the beneficiary in compensatioin the event of default of the principal against the presentation of a written demand and other specified documents. (4)At the same time, the principal will be asked to sign a counter indemitv to authorize the guarantor to debit the account with the cost of any payments under the guarantee. (5) In case the principal does not fulfil his obligations towards the beneficiarv in respect of the underlying transaction for which the guarantee is given，the principal is claimed and so the guarantor answers for the debt, default of the principal(in case of accessory guarantee). The payment is triggered by presentation of a claim complying with the formal requirements of the instrument itself(in case of independent guarantee). (6)The guarantor debits the principal’s account as previously authorized in the counter indemnity signed by the principal with any money paid out under the guarantee. 五、Kinds (一)Bid Bond投标保函 Bid bond is an undertaking given by a bank at the request of a tenderer in favor of a party inviting tenders abroad, whereby the guarantor undertakes to make payment to the beneficiary within the limit of a stated sun'l of money in the event of default by the principal in the obligations. (二)Performance Bond A performance guarantee(bond)is an undertaking given by a bank(the guarantor)at the request of a supplier of goods or services or a contractor(the principal)to a buyer or an employer (the beneficiary), whereby the guarantor undertakes to make payment to the beneficiary within the limit of a stated sum of money in the event of default by the supplier or the contractor in due performance of the terms of a contract between the principal and the beneficiary. (三)Repayment Guarantee A repayment guarantee is an undertaking given by a bank(the guarantor)at the request of a supplier of goods or services or other contractor(the principal)to a buyer or an employer(the beneficiary)whereby the bank undertakes to make payment to the beneficiary within the limits of a stated sum of money in the event of default by the principal to repay, in accordance with the terms and conditions of a contract between the principal and the beneficiary，any sum or sums advanced or paid by the beneficiary to the principal. (四)Import guarantee It is issued at the request of the importer to guarantee his effecting payment in accordance with the terms and conditions of the relative contract. It is mainly employed to secure the payment on an open account basis. Should the importer fail to make payment wholly or partially within the time limit as stipulated in the contract，the guarantor bank undertakes to effect payment for the unpaid value of goods delivered by the exporter plus interest, if any. 第二节Factoring 一、Definition of Factoring (一) Denifition: The factor acts as a manager of exporter’s sales and provides his client with finance based on the level of sales and on the other hand evaluates the importer’creditworthiness either by himself or with the aid of his correspondent or agent, so as to ensure the final payment. (二)Functions 1. Credit approval The factor acts as the client’s credit department to evaluate the importer’s credit standing to determine credit line for his client’s customer so that he can exercise the function. If the importer appears not to be a reliable one as a result of this, the factor will not approve this transaction. 2. Credit protection By purchasing the client’s accounts receiVables without recourse, factoring can protect the clients from risk of the merchandise quality, quantity and terms meet the requirements of sales contract between the client and his customer. However, the client takes full responsibility if the goods are claimed to be defective or any disputes occur concerning the shipment. 3(Management of accounts receivable Upon shipment, the client invoicas his customer and sends a copy to the factor. The invoice indicates that it is payable to the factor. At maturity of the invoice, the factor will collect payment from the client’s customer. 4(Financing The factor may gmt financing to the client prior to the maturity of the invoice by purchasing the latter’s accounts receivables 二、Proceduresof factoring A factoring agreement will be signed after an assessment of the exporter has been made by the factor。baSed on the written information including the business conditions，the balance sheet and other required infonnation presented by the exporter and the investigation made by the factor( A factoring consists of the following procedures (1)Application for credit approval ?)The sales contract is concluded between the buyer and the seller on open account terms ?The seller applies to a financial institution(usually a bank)for credxt—approval. ?The bank acting as a factor makes a credit assessment of the customer/buyer ?The factor agrees to the credit limit/cover. (2)Delivery of goods and making out invoice ?The seller delivers the goods and makes out the invoice to the buyer? ?The seller forwards a copy of invoice to the factor. ?The factor updates the sales ledger. ?The factor generally makes 80,of invoice value available to the seller. ?The factorr notifies the buyer of the status of the creditor. (3)Payment collection ?The factor performs the collection activity when the invoices fall due. ?The buyer effects payment to the factor. ?The factor updates the sales ledger. ?The factor pays the balance to the seller. In a factoring business the factor assumes financial and administrative responsibility for the invoice including credit cover against customer’s insolvency. Generally 80,of the invoice value immediately available to the seller. The balance is payable within a fixed number of days after the invoice date or when the customer makes his payment. 三、Advantages to exporters (1)The seller gets access to finance linked to his current levels of business. By contrast, the amount available under a traditional overdraft arrangement is based on the historic balance sheet ratios. When a company is up against its overdraft limit and yet confident of its sales prospects, the factoring can finance a higher level of sales. (2)The seller is in a position to improve the relationship with his suppliers through prompt payment and to extract the optimum terms when making his purchases，for example，through bulk purchase discounts or simply for cash payment. (3)Factoring furnishes finance for growth to the seller, without requiring an injection of new equity from external sources or any additional guarantees from the management( (4)The seller saves the cost of maintaining his own administrative department. (5)The seller can get assistance from the factor by latter’S providing an assessment of the creditworthiness of the overseas buyers as well aS by latter’S offering credit protection and collection service. Thus, the exporter is free to concentrate on international sales and development of new markets because the factor has assumed responsibility for sales accounting and collection of funds. (6)The seller will increase sales through factors’knowledge of the market and~bility to offer credit lines. (7)Open account agreements with the buyer, guaranteed by the factor, are made possible( That is, the factor guarantees the credit risk of the foreign buyer. In this way, the seller will be able to offer competitive open account selling terms in the highly competitive market. (8)Seller’s bad debts will be eliminated. That is to say, all delinquent account receivable risks are eliminated for the exporter and assumed by the factor. 第三节Forfaiting 一、Forfaiting (一) Denifition: Forfaiting is the term generally used to denote the purchase of obligations falling due at some future date. Arising from deliveries of goods and services mostly export transactions without recourse to any previous holder of the obligation. The word“forfaiting”comes from the French“forfait”and thus conveys the idea of surrendering rights, which is of fundamental importance in forfeiting. This expression is rendered by “Forfaitierung”in German. (二)Origins of the forfeiting market The origins of the forfeiting market lay in changes in the world economic structure that took place during the late fifties and early sixties of the 20th century，when the seller’s market for capital goods gradually changed into a buyer’s market. A considerable expansion in intemational trade took place, accompanied by an increasing tendency for importers to demand periods of credit extending beyond the traditional 90 or 180 days. In addition, these times saw the lowering of trade barriers created in the prewar years of depression and the cold-war era. The resurgence of trade between the West and Eastern Europe coupled with the growing importance of the developing countries of Africa, Asia and Latin America created many financial problems for the West European exporters. (三)Characteristics (1)The goods involved in forfeiting are usually capital goods (2)Forfeiting is a medium-term business in the sense that only those maturities from six months to five or six years are to be considered. However, every forfeiter will impose his own 1imits to be determined largely by market conditions and his assessment of the risks involved in a particular transaction. (3)The purchase of bins of exchange or promissory notes falling due on some future date by a forfeiter is without recourse to any previous holder if the drawee of the draft/maker of the promissory note(importer)fails to pay it at maturity. (4)Forfeiting is a relatively inexpensive and attractive altemative to other forms of export financing for the exporter. By forfeiting the exporter wishes to pass all risks and responsibilities for collection to the forfeiter in exchange for immediate cash payment. The exporter virtually converts his credit based sale into a cash transaction. (5)Unless the credit standing of the importer(drawee)is first class, any forfeited bill must carry a collateral security in the form of an“aval”or an unconditional and irrevocable bank guarantee acceptable to the forfeiter ensuring the holder thereof that the importer will pay it at maturity. The fulfillment of this condition is of the utmost importance in view of the non-recourse. 思考题:(五号黑体) 1、什么是从属性保函和独立性保函,特点是什么, 2、银行保函有哪些当事人, 3、试对保函和信用证进行比较。 4、试述保函的业务流程。 5、什么是备用证,它与保函有何区别, 6、什么是保理业务,它什么功能, 7、分析保理业务的利弊。 第八章 Documents and Examination 学时:15,18周，共12学时 教学目的:掌握信用证业务中单据的制作，明确银行审单的原则。掌握各种单据的格式和条 款。结合信用证和《跟单信用证统一惯例》(UCP500)的规定对单据进行单单一致、单证一 致的审核。 教学重点:商业发票、海运提单、保险单据。 教学难点:信用证下全套单据的审核。 教学内容 In this chapter, you will learn: ?The importance of documents in international settlements ?Some major documents used in documentary credits ?Sample documents 第一节Introduction of Documents 一、Documents affections In the process of intemational trade settlements, the televant parties are dealing with documents, not goods. Banks will generally pay against documents;exporters will only receive payment by handling over the required documents; importers will only rely on documents. Documents are at the heart of all forms of international payment. It is, therefore, essential to have a good knowledge of the function of the different kinds of documents, their limitations as well as the specific problems that may possibly arise when handling them. The documents called for by a payment method will differ somewhat according to the nature of the transaction, the goods and the countries of exporters and importers. Some documents, however, such as bill of lading and commercial invoice, are required in all transactions. (一)Bank pay according to the documents (二)Documents are the evidence for fulfill the contract (三)Documents stands for goods (四)Documents is a precondition of bank join international settlement 二、Documents Kinds (一)Financial documents资金单据 Draft Promissory note Check (二)Commercial documents商业单据 Commercialinvoice Proforma invoice Receipt invoice Sample invoice ConsulRr invoice Customs invoice Legalized or visaed invoice (三)Shipping documents运输单据 Marine,Ocean bill of lading Non—negotiable oce(0yl waybill Rail(way bill Road waybill Air waybill Post parcel receipt Combined,multi—modal transport document (四)Insurance document保险单据 Insurance policy Insurance certificate Cover note Combined certificate (五)Miscellaneous documents官方单据 Certificate of origin Health certificate Certificate of inspection Export,import license Packing list Weight list ( (一) Basic documents; (二) Additional Documents) 三、General Rules for Handling Documents (一)Ambiguity as to issuers of documents According to the UCP Rules, if terms such as “first class”, “well known”, “qualified”, “independent”, “official”, “competent” or “local” used in a documentary credit to refer to the issuer of fl required document, banks are authorized to accept whatever documents that are presented, provided that they appear on the face to be in compliance with the credit and were not issued by the seller(beneficiary). (二)Originals The originals of specified documents should be provided unless copies are called for or allowed. If more than one originals are required, the buyer should specify in the credit how many are necessary. Unless otherwise noted in the credit, banks are authorized to accept documents as originals,even if they were produced or appear to have been produced on a copy machine, by a computer system, provided they have the notation “original” and are, when necessary, signed. (三)Authentication Banks are not responsible for the verification of the certification or authorized signature. Certificates must usually bear the signature of the issuer. Unless otherwise stipulated in the Credit, banks are authorized to accept documents that appear to satisfy the requirement. (四)Signature Banks are authorized to accept documents that have been signed by facsimile, perforated signature, stamp, symbol, or any other mechanical or electronic method. (五)Unspecified issuers or contents of documents If the credit does not nanle a specific content of a document (other than transport documents, insurance documents, and commercial invoice), banks are authorized to accept documents as presented so long as the data contained in the documents are consistent with the credit and other stipulated documents. (六)Issuance date Unless otherwise noted in the documentary credit, banks are authorized to accept documents dated prior to the issuance date of the credit. So long as all other terms of the credit are complied with. Attention: 1.According to the UCP Rules, if terms such aS “first class”, “well_known”, “qualified”, “independent”, “official”, “competent”, or “local”are used in a documentary credit to refer to the issuer of a required document, banks are authorized to accept whatever documents are presented, provided that they appear on the face to be in compliance with the credit and were not issued by the seller(beneficiary).这些单据的表面与信用证相符并且不是由卖方(受益人)出 具的，银行将照根据《统一惯例》的条款，如果使用诸如“第二流的”、“著名的”、“合格的”、 “独立的”、“正式的”、“有资格的”、“当地的”以及类似的词语来描述信用证项下的出单人， 只要予接受。 2(Unless otherwise noted in the credit, banks are authorized to accept documents as originals, even if they were produced or appear to have been produced on a copy machine, by a computer system，or are carbon copies, provided they have the notation “original “and are, when necessary, signed.除非信用证另有规定，银行将有权接受下述方法或从表面上看是用下述方法制作的单 据作为正本单据:影印、计算机系统处理或复写等方法。但条件是上述方法制作的单据须加 注“正本”的字样，并且如有必要，在表面签名。 3(The commercial invoice is the key accounting document describing the commercial transaction. 第二节Bill of Lading 一、Definition of Bill of Lading ( Marine,Ocean,Port to port bill of lading) A marine bill of lading is a transport document coveting port-to-port shipments of goods(for carriage of goods solely by sea) The marine bill of lading contains the following key elements: (1)Name of carrier with a signature identified as that of carrier, or ship’s master, or agent for or on behalf of either the carrier or ship’s master. (2)An indication or notation that the goods have been loaded “on board”or shipped on a named vessel. Also, the date of issuance or date of loading. (3)An indication of the port of loading and the port of discharge as specified in the original documentary credit. (4)A sole original, or if issued in multiple originals, the full set of originals. (5)The terms and conditions of carriage or a reference to the terms and conditions of carriage in another source or document. 二、Bill of Lading Parties (一)Carrier (二)Shipper (三)Consignee (四)Transferee (五)Holder (六)Notify Party 三、Bill of Lading affections (一)Receipt for the Goods (二)Evidence of the Contract of Carriage (三)Documents of Title 四、Bill of Lading Kinds (一)Shipped/ Received B/L (二)Clean/Dirty B/L (三)Direct/ Transshipment/Through B/L (四)Liner/ Charter Party B/L 1.Liner B/L: This kind of document fulfils all the normal functions of a bill of lading, including that of document of title. The liner bill of lading indicates that goods are being transported on a ship that travels on a scheduled route and has a reserved berth at destination; thus the exporter earl reasonably assunle that his goods will reach the buyer’s country by a fixed date. 2.Charter Party B/L: A charter party bill of lading is issued by the hirer of a ship to the exporter. The terms of this kind of bill of lading are subject to the contract of hire between the ship’s owner. Such a bill is usually marked subject to charter party, therefore it is not usually considered to be document of title. A charter party bill of lading is a transport document covering port-to-port shipments of goods issued by a party chartering a vessel. The charter party bill of lacting contains the following elements: (1)An indication that the bill of lading is subject to a charter party. (2)A signature or authentication by the ship’s master or owner, or agent for or on behalf of either the ship’s master or owner. (3)Unless otherwise stated in the documentary credit, does not name the carrier. (4)An indication or notation that the goods have been loaded “on board”or shipped on a named vessel. Also, the date of issuance or date of loading. (5)An indication of the port of loading and the port of discharge as specified in the original documentary credit. (6)A sole original, or if issued in multiple originals, the full set of originals. (7)No indication that the named vessel is propelled by sail only. (8)Meets any other stipulations of the documentary credit (五)Unstable/Stale B/L (六)Container/Forwarder B/L (七)Long Form/Short Form B/L Short Form B/L:This type of bill of lading does not contain the full details of the contract of the carriage on the back.. However, they fulfill all the other functions of bills of lading, and in particular they are considered to be documents of title( (八)Cargo receipt,Railway bill货运收据,铁路运输单 When the goods are dispatched by rai1way, a cargo receipt or a railway bill may be issued. A cargo receipt is not a document of title, just an acknowledgement of receipt of goods for dispatch, so it is non-negotiable. A cargo receipt contains the following elements: (1)Date of issue; (2)Name and address of sender and consignee; (3)Name of the originating railway station/place designated for delivery; (4)Ordinary description of goods and method of packing and，in the case of dangerous goods，its generally recognized description; (5)Gross weight of goods or its quantity; (6)Carriage charges; (九) Courier receipt快邮收据 A courier receipt is a document issued by a courier or expedited delivery service evidencing receipt of goods for delivery to a named consignee. In documentary credit transactions courier receipts should include the following elements: (1)Appears on its face to the issuer; (2)Appears on its face to be stamped, signed, or authenticated by the service; (3)Name and address of the shipper(seller); (4)Name and address of the consignee(buyer); (5)The date of pick up or receipt of the goods by the service; (6)Meets any other stipulations of the documentary credit. (十) Post receipt邮包收据 A post receipt is a document issued by the postal service of a country evidencing receipt of goods for delivery to a named consignee 五、B/L examination(checklist for the transport documents) “Full set of clean on board Bill of lading made out to•order•with blank endorsed,marked with “Freight prepaid /paid /to collect,•notifying_” (全套的、清洁的、已装船提单，空白抬头、空白背书，•写明运费预付,已付，被通知人 为,,,) 1. Ensure that the full set of originals issued is presented. 2. Ensure that it is not a claret party transport document unless authorized in the credit. 3. Ensure that it is not a forwarder’s transport documents unless it is authorized in the credit under UCP500 Article 30. 4. Ensure that the name of the consignee is as required in the credit. 5. Ensure that if the transport document requires endorsement, it is appropriately endorsed. 6. Ensure that it bears the name of the shipper or his agent. 7. Ensure that the name and address, if any, of the notifying party is as required in the credit. 8. Ensure that the description of the goods generally corresponds to the description of the goods as stated in the credit and that the marks and numbeet as well another specifications, if any, are identical to those appearing on the other documents. 9. Ensure that the indication of “freight prepaid” or “freight collect” as required by the terms of the credit appears on it. 10. Ensure that there are no clauses on the transport docment that may render it “foul” or “unclear”. 11. Ensure that all other conditions stipulated in the appropriate transport Ariticles of UCP500 are complied with. 第三节Insurance Documents An insurance document is a contract whereby the insurer (insurance company) undertakes to indemnify the assured in a manner and to the extent thereby agreed，against certain losses，that is to say，the losses incidental to carriage“adventure”(It is a document indicating the type and amount of insurance coverage in force on a particular shipment(Used to assure the consignee that insurance is provided to cover loss of or damage to cargo while in transmit( In documentary credit transactions the insurance document includes the following elements: (1)Appears on its face to be issued and signed by an insurance carrier，underwriter or agent for same; (2)Covers the risks specified in the documentary credit; (3)Indication that the coverage is effective at the latest from the date of loading of the goods on board a transport document(bill of lading，etc); (4)Specifies coverage for at least 1 10 percent of either((a) The CIF or CIP value of the shipment，if such can be determined from the various documents on their face，otherwise，(b) the amount of the payment，acceptance or negotiation specified in the documentary credit，or(c) the gross amount of the commercial invoice; (5)It is presented as the sole original，or if issued in more than one original，all the originals; (6) The insurance currency should be consistent with the currency of the documentary credit( 一、Definition of Insurance Documents 二、Insurance Documents Kinds (一)Insurance Policy (二)Insurance Certificate (三)Combined Insurance Certificate/ Cover Note Cover note: It is a document normally issued to give notice that insurance has been placed pending the production of a policy or a certificate. Such document does not contain full details of the insurance to be effected. In most Cases，this applies to transactions insured by the importer under FOB or CFR terms. ( 三、Insurance Documents Examination The following points should always be noted when examining the insurance document: (1)Is the insurance document issued and signed by an insurance company，underwriter，or their agent? (2)Is it the correct type of the insurance document as stated in the credit? (3)Has the document covered all the risks stipulated in the credit? (4)Does the document cover the full period of transit? (5)Is the information in the insurance document concerning mode of transport and transport mute consistent with the documentary credit? (6)Is the currency of the insurance document the same as that shown in the credit? (7)Is the percentage of the insurance the same as specified in the credit? (8)Is the merchandise description consistent with that shown in the credit? (9)Are the transport details the same as stated in the credit(the vessel, the port of loading, port of destination，buyer’s premises)? (10)If endorsement is required，is the document properly endorsed? (11)Is the full set of insurance documents presented? 第四节Commercial Invoice 一、Definition of Commercial Invoice The commerciaJ invoice is the key accounting document describing the commercial transaction between the buyer and the seller. It is a document giving details of goods, service, price, quantity, settlement terms and shipment. It includes the following elements: (1)Name and address of seller (2)Name and address of buyer (3)Date of issuance (4)Invoice number (5)Orderor contract number (6)Quantity and description of the goods (7)Unit price, total price, other agreed upon charges, and total invoice amount stated in the currency of the documentary credit. (8)Shipping details: including weight of the goods，number of packages，and shipping marks and numbers. (9)Terms Of delivery and payment (10)Any other information as required in the documentary credit(e.g.country of origin) 二、Commercial Invoice items (一)Heading (二)Body (三)Complementary Clause 三、Commercial Invoice kinds (一)Customs Invoice (二)Consular Invoice (三)Proforma Invoice (四)Certified Invoice (五)Manufacturer’s Invoice 四、Customs invoice海关发票 A customs invoice is a special invoice required by the importing customs for the purpose of determining the value and origin of the imported goods(It is prepared by the exporter?It is also called certified invoice，combined certificate of value and origin，etc( The customs invoice of each country will have its own form and content(Certain elements are 1ikely to be included in all customs invoices: 五、Commercial Invoice Examination( checklist for the invoice) 1. Ensure that it is issued by the beneficiary. 2. Unless otherwise stipulated in the credit, ensure that it is made out in the name of the applicant. 3. Ensure that it is not titled “Pro-forma” or “provisional” invoice. 4. Ensure that the description of the goods corresponds with the merchandise description in the creditl 5. Ensure that no additional detrimental description of the goods appears that may question their condition or valuel 6. Banks will not accept the notation in the invoice that goods are “used”, “secondhand”, “rebuilt”, or “reconditioned” when not authorized by the credit. 7. Ensure that the details of the goods, prices, and terms as mentioned in the credit are included in the invoice. 8. Ensure that any other information supplied in the invoice, such as marks, numbers, transportation information etc. it is consistent with that of the other documents. 9. Ensure that currency of the invoice is the same as that of the credit. 10. Ensurethat the value of the invoice corresponds with that of the draft. 11. Ensure that the value of the invoice corresponds with that of the draft. 12. Ensure that invoice covers the complete shipment as required by the credit if no part shipments are allowed. 13.l Ensure that if required by the credit, the invoice is signed, notarized, legalisted, certified, etc. 14. Ensure that the information relative to the shipment, packaging, weight, freight charges, or other related charges corresponds with that appearing on the other documents. 15. Ensure that the correct number of original(s) copy(ies) is presented. 第五节Additional Documents 一、Bill of Exchange When examining a draft，the following points should always be noted: (1)Is the L,(2 number required on the draft absent or incorrect? (2)Is presentation of the draft after the expiry date? (3)Does the amount of the draft agree with the credit amount and invoice? (4)Is the tenor the same as shown in the credit? (5)Is the draft drawn by the beneficiary? (6)Is the drawer’s signature presented on the draft? (7)Is the draft drawn on the nominated party in the credit? (8)Is the quantity and description of the goods consistent with those on other documents of this transaction? (9)Are the shipping marks and numbers consistent with tb~xse on other documents? (10)Is the freight terms consistent with those stipulated in the documentary credit? (11)Does the transport document meet the stipulations of the credit with regard to transshipment? (12)If the transport document states “on deck” stowage, is it allowed by the credit? 二、Packing List (一)Items of packiong list A packing list is a document prepared by the shipper listing the kinds and quantities of merchandise in a particular shipment( The packing list should include the following elements. (1)Name and address of seller (2)Name and address of buyer (3)Date of issuance (4)Invoice number (5)Order or contract number (6)Quantity and description of the goods (7)Shipping details including: weight of the goods, number of packages, and shipping marks and numbers (8)Quantity and description of contents of each package，carton，crate or container (9)Any other information aS required in the documentary credit (e.g. country of origin) (二)chelist for the packing list. 1. Ensure that it is a unique document and not combined with any other documents. 2. Ensure that it corresponds with the requirements of the credit. A detailed packing list requires a listing of the contents of each package, carton, etc. and other relevant information. 3. Ensure that the data on it is consistent with that of the other documents. 三、Weight List (一)Items of Weight List Certain elements likely to be included in all export licenses: (1)Name and address of seller; (2)Name and address of buyer; (3)Date of issuance; (4)Validity date; (5)Description of goods covered by license; (6)Name of country of origin; (7)Name of country of ultimate destination. (二)checklist for the weight list. 1. Ensure that it is unique document and not combined with any other document. 2. Ensure that it signed if a certificate is called for, or as otherwise stated in the credit. 3. Ensure that the data on it is consistent with that of the other documents. 四、Certificate of Origin (一)Items of Certificate of Origin In documentary credit transactions a certificate of origin should include the following elements: (1) Key details (typically consignor, consignee, and description of goods) regarding the Shipment. Also, such details to be in conformity with other documents(e.g. Documentary Credit, commercial invoice) (2) A statement of origin of the goods (3)The signature and,or stamp or seal of the certifying authority (二)Cheklist for the Certificate of Origin 1. Ensure that it is a unique document and not combined with other document. 2. Ensure that it signed, notarized, legaliosed, visaed as required by the credit. 3. Ensure that the data on it is consistent with that of the other documents. 4. Ensure that the country of origin is specified, and that it meets the requirements of the credit. 五、Certificate of Quantity Chelist for the Certificate of Quantity 1. Ensure that it is a unique document and not combined with other document. 2. Ensure that it signed, if a certificate is called for, or as otherwise stated in the credit. 3. Ensure that the data on it is consistent with that of the other documents. 六、Certificate of Quality A document issued by 1 authority, as stated in the documentary credit, indicating that goods have been inspected(typically according to a set of industry: customer, government, or carrier specifications)prior to shipment and the results of the inspection: Inspection certificateS are generally obtained from neutral testing organizations. When examining the Inspection Certificate, the bank concerned must pay attention to: (1)The description and mark of the goods must be the same aS those mentioned in the commercial invoice and other documents to ascertain that the goods inspected are exactly those exported. (2)The wording on the inspection certificate must be exactly the same as those mentioned in the invoice and must be in compliance with the terms and conditions of the credit. (3)The inspection date must be earlier than B/L’ s date or conforill to that stipulated in the letter of credit(If the credit stipulates inspection to be made upon shipment, the inspecting date must be the same as the bill of 1ading date or prior to it. 七、Most common discrepancies in examination of documents Perhaps the greatest problem associated with documentary credits is discrepancies with documents as they are prepared, presented and examined by sellers, buyers, and the banks. All parties have the obligation to check the documents to make certain they are in order and all parties are at risk for failing to do SO properly. The most common discrepancies occurring in a credit transaction are as follows: (1)Bill qualified(unclean bill of lading). (2)No evidence of goods actually “shipped on board”; (3)Shipment made between ports other than those stated in the credit; (4)Goods shipped on deck; (5)Presentation of an insurance document of a type other than that required in the Credit; 思考题:(五号黑体) 1、什么是商业发票，有何作用, 2、什么是海运提单，有何作用, 3、多式联运单据与联运提单有何异同, 4、什么是保险单，有什么作用, 5、什么是海关发票和领事发票,各起什么作用, 6、银行审核单据的基本原则是什么, 7、海运提单、保险单据、商业发票审核的常见不符点有哪些,