unit 11International_payments_and_settlements

1、Unit 11 International Payments and Settlements（国际支付与结算）（国际支付与结算）The Research Objective of International Settlement 1.Tools of international payment and settlement（国际结算工具）（国际结算工具）2.Methods of international paymentand settlement（国际结算方式）（国际结算方式）3. Documents of international Payment and Settlement（国际结算单

2、据）（国际结算单据）4.International payment system （国际支付体系）（国际支付体系）Bill of Exchange汇票汇票Check支票支票Promissory Note本票本票Remittance汇款汇款Collection托收托收Letter of credit信用证信用证Factoring保理保理Forfeiting福费廷福费廷Letter of guarantee银行保函银行保函Invoice发票发票Transport Documents运输单据运输单据Insurance Documents保险单据保险单据 etc.SWIFT(环球银行金融电讯协会）环球

3、银行金融电讯协会） CHIPS（清算所同业支付系统）（清算所同业支付系统）CHAPS（交换银行自动收付系统）（交换银行自动收付系统）etc.Foundation of international settlementNowadays methods are constantly developing nWords meaning of international settlement(国际结算的字面理解）国际结算的字面理解）What is international settlement?international1. Of, relating to, or involving two or

4、more nations2. Extending across or transcending national boundariessettlementTransfer of money to provide forthe future needs of a personIn simple words, international settlement means money transfer across national borders. What is international settlement?nDefinition of International settlement：In

5、ternational settlement refers to the money transfer via banks to settle accounts, debts and claims among different countries.n国际结算的定义：国际结算的定义：国际结算是指处于两个不同国家的当事人，通过银行办理的两国间货币收付业务。What is international settlement?nThree elements in international settlement（国际结算中的三要素）（国际结算中的三要素）（1）Persons in different

6、countries（不同国家）（2）Banks Participation（银行参与）（3）Funds transfer (资金转移）Evolution of Modern International Settlementn From barter transaction to cash settlement从易货交易到现金结算n From cash settlement to non-cash settlements从现金结算到非现金结算n From direct payment made between international traders to payment effected t

7、hrough a financial intermediary从直接支付到通过金融中介支付n From payments under simple price terms to payments under more complex price terms从简单贸易术语结算到复杂贸易术语结算n From traditional settlement to E-settlement从传统结算到电子结算Trade TermsE 组启运组启运EXWEx works工厂交货工厂交货F组组主运费未付主运费未付FCAFree CarrierFASFree Alongside ShipFOBFree On

8、Board货交承运人货交承运人船边交货船边交货船上交货船上交货C组组主运费已付主运费已付CFRCost and FreightCIFCost Insurance and FreightCPTCarriage Paid ToCIPCarriage and Insurance Paid To成本加运费成本加运费成本加保险费、运费成本加保险费、运费运费付至运费付至运费保险费付至运费保险费付至D组组到达到达DAFDelivered at FrontierDESDelivered Ex ShipDEQDelivered Ex QuayDDUDelivered Duty UnpaidDDPDelivere

9、d Duty Paid边境交货边境交货目的港船上交货目的港船上交货目的港码头交货目的港码头交货未完税交货未完税交货完税后交货完税后交货Basic Methods of International SettlementIn any international trade transaction, credit is provided by either the supplier (exporter), the buyer (importer), one or more financial institutions, or any combination of the above.The form

10、 of credit whereby the supplier funds the entire trade cycle is known as supplier credit.Basic Methods of International SettlementSettlement on commercial credit基于商业信用的结算Settlement on bank credit基于银行信用的结算1.Payment in advance(预付货款）2.Open account（赊账交易）3.Remittance(汇付）4.Collection（托收）1. Letter of credi

11、t（信用证）2. Bank guarantee（银行保函）Basic Methods of International SettlementMethod 1: Prepaymentsn The goods will not be shipped until the buyer has paid the seller.n Time of payment: Before shipmentn Goods available to buyers: After paymentn Risk to exporter: Nonen Risk to importer: Relies completely on

12、exporter to ship goods as orderedBasic Methods of International SettlementMethod 2: Open Accountsn The exporter ships the merchandise first and expects the buyer to remit payment according to the agreed-upon terms.n Time of payment: As agreed uponn Goods available to buyers: Before paymentn Risk to

13、exporter: Relies completely on buyer to pay account as agreed uponn Risk to importer: NoneMethods of PaymentRisk AssessmentExporters Risk Importers Risk LOWLOWHighHigh Open Account Collection Letters of Credit Cash in AdvancenDocuments are playing more and more important roles in international settl

14、ement because payments are made against documents rather than the actual goods.What is negotiable instruments?Commercial DocumentsFinancial Documentsrepresents the title of goodsrefer to negotiate instrumentsmade out for the purpose ofmaking or collecting paymentsBroad meaning of documentDocument of

15、 Title, evidence the legal right of possession or control of commodities or money.Narrow meaning of documentDraftsPromissory NotesChequesTypes of Negotiable InstrumentsnA bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requir

16、ing the person to whom it is addressed 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.nIn a simple words, A bill of exchange or draft is a three-party instrument that is an unconditional written order by one

17、 party that orders the second party to pay money to a third party.n汇票是由出票人向另一人签发的要求即期、定期或在可以确定的将来时间向指定人或根据其指令向来人无条件支付一定金额的书面命令。What is Bills of Exchange (Draft)?Three parties concernednA: The drawer nNormally the exporternFill in the content of a bill of exchange and sign his name nB: The drawee / p

18、ayer nThe party to whom B/E is addressednIf sight draft, make paymentnIf time draft, accept the draft and pay when the amount is due nUnder L/C the banknUnder collection the importernC: The payee/beneficiarynThe party who is supposed to receive the paymentnusually the exporter or the bank at which t

19、he drawer has his accountnPresent B/E to the payer for payment or acceptanceThree parties concernedElements of Bill of Exchange1) Issue（出票）（出票） 9) Protest (拒绝证书拒绝证书)2) Endorsement（背书）（背书） 10) Acceptance for Sbs Honour (参加承兑参加承兑)3) Presentation（提示）（提示） 11) Payment for Sbs Honour and Pay or for Bbs Ho

20、nour (参加付款和参加付款人参加付款和参加付款人)4) Acceptance（承兑）（承兑） 12) Guarantee(保证保证)5) Payment（付款）（付款）6) Dishonour（拒付或退票（拒付或退票)7) Recourse（追索（追索)8) Notice of Dishonour(拒付通知拒付通知)Acts of Bill of Exchange 1. According to the tenor: (1)Sight draft is the one that is payable on sight of the documents of title or on firs

21、t presentation of the title documents to him by his bank.nNormally used when the exporter wishes to retain title to the goods until it reaches its destination and payment is made.nBearing the wording as “at sight of this bill of exchange, pay to”nNot bank credit, therefore higher risks(2)Time draft

22、(usance draft, term draft) is the one that is payable in a specified number of days after sight, the date of issue or acceptance, or at fixed future time.nBearing the wording as “at 30/45/60/90 days sight of this bill of exchange, pay to .”nIn case of dishonor, the exporter or the foreign bank can s

23、ue for the money on the basis of documentary draft aloneClassification of bills of exchange: 2. According to whether or not the shipping documents are attached:(1) Clean Draft： is the one which is used without he company of any commercial documentsEg. Bankers Draft(2)Documentary Draft： is the one th

24、at calls for the attachment of relevant commercial documents. nPopular in international trade Eg. Commercial DraftClassification of bills of exchange: It is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determinabl

25、e future time, a sum certain in money, to, or to the order of, a specified person or to bearer.Definition of the Promissory Note: Promissory note is: a written promise to pay a determinate sum of money made between two parties. Maker: The issuer of a promissory note. Payee: The person to whom the no

26、te is to be paid.PROMISSORY NOTESPROMISSORY NOTE Difference Between a Promissory Note and a Bill of Exchange: 1. It is a payment promise, not a payment order. 2. There are only two parties to a promissory note, the maker and the payee. 3. The maker is primarily liable on the promissory note. 4. When

27、 issued, it has an original note only. 5. There is no acceptance requirement.Promissory NotesRemittancenDefinitionAfter conclusion of a business transaction, the debtor instructs his bank to send (remit) the transaction amount to his creditor in export country. It is the debtor who takes initiative

28、to send the payable amount to his creditor.Procedure of remittance and parties involved nFirst, the remitter (the importer) applies for a remittance. To do so the importer needs to have sufficient funds in his account in the bank. nThe remitting bank either issues a remittance instruction to, or dra

29、ws a draft on, one of its overseas branches or correspondent banks in the exporters country. nWhen the overseas branch or correspondent bank receives the remittance instruction, it becomes the paying bank and will credit the payees (the exporters) account with the relevant amount accordingly. nIn th

30、e event of using a demand draft, the remitting bank will give the draft to the importer and the importer will then provide the draft to the exporter by his own way. Once the exporter receives the draft, he can present it to the nominated paying bank for the withdrawal of payment. Procedure of remitt

31、ance Types of remittancenThree types of remittancenMail transfer (M/T) 信汇信汇 by mail lower charges, but slownTelegraphic transfer (T/T) 电汇电汇 by telecommunication system (telex or telegraph or swift). Faster, safer, but more expensivenBankers Demand Draft (D/D) 票汇票汇 Imp. buys a check from a bank in im

32、p. country and sends to the exp. Lowest charge, slowest Transferable Exporter/payeeImporter/remitter(1) Application / paymentExp. BankPaying BankImp. BankRemitting Bank(2) instruct(3) PaymentMail/Telegraphic TransferM/T T/T Exporter/payeeImporter/remitter(1) Buy a draftExp. BankPaying BankImp. BankR

33、emitting Bank(2) Mail draft(3) Drawn on(5) PaymentD/D (4) Present draftCollection 托收托收nDefinitionnan arrangement whereby the seller draws a draft on the buyer and authorizes its bank to collect. nA means of payment ensuring that the goods are handed over to the buyer only when he pays the amount sho

34、wn on a bill or when he accepts the bill and commits to pay by a specified date.nParties involvednDrawer / exporter/principal 委托人委托人nDrawee / importer / payernRemitting bank（托收行）（托收行）in exporting country nCollecting bank （代收行）（代收行）in the importing country Procedure of Documentary Collection and part

35、ies involvedTypes of CollectionnDocumentary CollectionnDocuments against Payment (D/P) 付款交单付款交单 the collecting bank releases the documents to the importer only upon full and immediate cash payment. nDocuments against Acceptance (D/A) 承兑交单承兑交单 As a period of credit to the importer is agreed upon, a u

36、sance bill will be used The documents is released against acceptance by the importer. The importer obtains the documents of title to the cargo. nClean Collection 光票托收光票托收 without the company of commercial documentsLetter of CreditnDefinitionThe written promise of a bank, undertaken on behalf of a bu

37、yer, to pay a seller the amount specified in the credit provided the seller complies with the terms and conditions set forth in the creditnFeaturesnBank credit Security of payment to exporter Ensure importer receive goods as ordered (payment released only if title documents are received)nCare only f

38、or documents, but not for actual situation of the goods Issuing Bank/ Buyers BankSeller/ BeneficiaryL/C ApplicationBuyer/Applicant Advising BankLetter of CreditL/C AdviceContract (1)(2)(3)(4)Procedure of L/C ：Opening an L/C Methods of settlement nSettlement by sight paymentnSettlement by deferred pa

39、ymentnSettlement by acceptancenSettlement by negotiationSettlement by Sight Payment Docs released Buyer/Applicant Seller/ BeneficiaryIssuing Bank/ Buyers BankPresenting BankDocsDocsGoods (5)(11)(7)(6)Payment (9)Payment (8)Payment (10)Settlement by Deferred Payment Docs released Buyer/Applicant Selle

40、r/ BeneficiaryIssuing Bank/ Buyers BankPresenting BankDocsDocsGoods (5)(8)(7)(6)Payment (11)Payment (10)Payment (9)DocsBuyer/Applicant Seller/ BeneficiaryIssuing Bank/ Buyers BankPresenting BankDraft & DocsDraft & DocsGoods (5)(10)(7)(6)Payment (13)Payment (8)Payment (9)Draft drawn onAccepta

41、nce noticeAcceptance(11)(12)Settlement by Acceptance Settlement by Negotiation Docs ReleasedBuyer/Applicant Seller/ BeneficiaryIssuing Bank/ Buyers BankNegotiating BankDraft & DocsDraft & DocsGoods (5)(10)(8)(6)Payment (7)Payment (9)Payment (11)Draft drawn onSpeaking PracticenDialogue 1 nW:

42、Well, weve settled the question of price, quality and quantity. Now what about the terms of payment? nB: We only accept payment by irrevocable letter of credit payable against shipping documents. nW: I see. Could you make an exception and accept D/A or D/P? nB: Im afraid not. We insist on a letter o

43、f credit. nW: To tell you the truth, a letter of credit would increase the cost of my import. When I open a letter of credit with a bank, I have to pay a deposit. Thatll tie up my money and increase my cost. nB: Consult your bank and see if they will reduce the required deposit to a minimum. nW: Still, there will be bank charges in connection with the credit. It would help me greatly if you would ac