外贸函电 chapter 9 letter of credit

Chapter 9Letter of Credit信 用 证1. Definition of L/CA letter of Credit is the written promise of a bank that acts on the instructions of the applicant and undertakes to pay the beneficiary the amount of money specified in the credit.信用证 (Letter of Credit， LC) 指 开证银行 应 申请人 的要求并按其指示向 第三方 开立的载有一定 金额的，在一定的 期限 内 凭 符合规定的 单据 付款 的书面保证文件。信用证 是 国际贸易 中最主要、最常用的支付方式。2. Parties in an L/C(1) The Applicant （开证申请人）The importer (buyer) who applies for the letter of credit is called the applicant or the opener.(2) The Issuing Bank （开证行）The bank that issues the credit is called the issuing bank (Opening Bank/ Establishing Bank) (3) The Advising Bank （通知行）The advising bank refers to the correspondent bank at the sellers country who advises the L/C to the beneficiary.(4) The Confirming Bank （保兑行）The bank that adds its confirmation to the credit is called the confirming bank.(5) The Negotiating Bank （议付行）The bank, either nominated by the opening bank or at its own choice, buys the exporters draft is called a negotiating bank.(6) The Beneficiary （受益人）The exporter in whose favor the credit is opened is called the beneficiary.3. The Contents of an L/C(1) General Statements(2) Credit Number, date of issue, date and place of negotiation(3)(2) Types of L/C(4) irrevocable , transferable , confirmed(5)(3) Parties to an L/C(6)(4) Draft Clauses(7) The Drawee, the tenor, other clause(5) Description of CommoditiesName, specifications, quantity quality, packing, price, etc.(6) Currency and Amount(7) Terms of shipment and insurancePort of loading, port of discharge; latest shipment date; insurance(8) Documents requiredCommercial invoice; B/L; packing list, certificate of origin4. Categories of Letter of Credit(1) Documentary Credit and Clean Credit （ 跟单 信用证与 光票 信用证）Documentary Credit means that payment are effected against drafts and shipping documents.Clean Credit means the opening bank effects payment only against the draft and without any shipping documents attached.(2) Revocable and irrevocable L/C （可撤销与不可撤销信用证）Revocable L/C means that the L/C can be amended or cancelled by the issuing bank at any moment and without prior notice to the beneficiary.Irrevocable L/C means that once the L/C is opened, it cannot be cancelled or amended without agreement of the relevant parties.(3) Confirmed and Unconfirmed L/C （保兑与不保兑信用证）If a credit is confirmed by a bank, it is a confirmed credit.(4) Sight credit and Usance CreditA sight credit is one by which payment can be made upon presentation of the drafts and the impeccable documents.A usance credit is one by which payment cannot be made until a specified time after sight.5. Operation of Documentary L/C(1) Application of an L/CBuyer/ApplicantAdvising BankIssuing BankSeller/BeneficiaryContractApplies Sends CreditNotifies(2) Amendment of an L/CBuyer/ApplicantAdvising BankIssuing BankSeller/BeneficiaryAsking for AmendmentApplies for Amendment Amendment AdviceNotifies(3) Payment of the L/CBuyer/Ap