International_Settlement3

1、International Settlement 3I . translating the following terms.(16%)1. letter of credit2. irrevocable credit3. confirming bank4. negotiating bank n . Decide whether the following statements are true or false.(20%)1. A letter of credit places a bank 's credit instead of a commercial credit, so the

2、 beneficiary has no risks to get payment. ( )2. The issuing bank can't dishonor the documentary bill when the documents are complied with the terms and conditions of the credit whereas the goods are not complied with the contract. ( )3. A commercial invoice is a statement describing the merchand

3、ise, its cost, and shipping charges. ( )4. The main responsibility of banks under L/C is to examine each document presentedto see whether it appears on the face to be in compliance with the credit terms.( )5. An irrevocable credit cannot be amended, revoked or cancelled. ( )6. Instructions for the i

4、ssuance of a credit, the credit itself, instructions for an amendment thereto, and the amendment itself, must be complete ,precise and not include excessive detail. ( )7. When the issuing bank nominating another bank to advise the credit, the latter can select to advise the credit or select not to a

5、dvise the credit. ( )8. When a bank decides to advise the credit, it shall take reasonable care to check the apparent authenticity of the credit which it advise. ( )9. A revocable credit can be cancelled or amended by the issuing bank at any moment and without prior notice to the beneficiary.( )10.

6、When the issuing bank adds the word “confirm ”in the credit, it means the credit is confirmed by the issuing bank, then the issuing bank becomes the confirming bank. ( )11. The bill of lading is evidence of the contract of carriage between the applicant and e carrier. ( )12. Banks deal exclusively w

7、ith documents means they are not in a position to verify whether the goods supplied are actually identical with those specified in the credit. ( )aon13. Unless otherwise stipulated in the credit, a transferable credit can be transferred only once. ( )14. The bank will accept the bill of lading indic

8、ated with the notation as board”or “on deck”. ()15. The beneficiary of a transferred credit is the middleman. ( )16. The applicant is liable for repayment of the advances if the beneficiary failed to present the documents called for under the red clause credit. ( )17. If an issuing bank increases th

9、e amount from USD20,000.00 to USD25,000.00, the issuing bank shall be irrevocably bound by the amendment by it , the confirming bank may extend its confirmation to the amendment or not extend its confirmation to the amendment. ( )18. The issuing bank, the confirming bank, or nominated bank shall eac

10、h have a reasonable time, not to exceed 3 days following the day of receipt of the documents, to examine the documents. ()19. A bank will not accept a cover note. ()20. A bill of lading that bears a wording “bale broken”is an unclean bill of lading. ( )川.Choose the best answers to each of the follow

11、ing question.(20%)1. The drawee under a credit can b(e).A. negotiating bank B. issuing bank C. paying bankD. accepting bank E. confirming bank2. When examing the documents under credit, the principles involved include () .A. banks deal exclusively with documentsB. banks observe the rule of“strict co

12、mpliance”C. banks assumeno responsibility for authenticity, form or validity of the documentsD. banks assume no responsibility for the act of the third parites taking part in the credit operationsE. banks take secondary liability3. When there is a middleman in international trade, the available cred

13、it are ( ).A. reciprocal credit B. back-to-back credit C. negotiation creditD. transferable credit E. revolving credit4. ( ) need to examine the documents before payment.A. Issuing bank B. Negotiating bank C. Paying bank D. Accepting bank E. Reimbursing bank) don 't have the right of5. When it i

14、s dishonored by the issuing bank, ( recourse to the beneficiary.A. confirming bank B. negotiating bank C. paying bank D. accepting bank E.deferred paying bank7. When buyers apply to open a credit, they must obey the rules as ().A. refer to documents only B. be clear conciseC. do not specify impossib

15、le documentationD. have adequate funds in his account E. on commercial basis 9. The functions of a bill of lading are ( ABCD ).A. as a receipt of the goods B. as evidence of the contract for carriage C. as a quasi-negotiable document D. as document of titleE. as a key accounting document10. When ben

16、eficiary presents the documentation to the bank, the principle involved ().A. completeness B. correctness C. consistencyD. standard E. simpleIV. Analyze the p rinc ip les and casesin international settlementsand give your opinion. (24%)1. Terms such as "first class", "well known"

17、, "qualified", "independent", "official","competent" or "local" used to describe the issuer of a document allow any issuer except the beneficiary to issue that document. Unless required to be used in a document, words such as "prompt", &quo

18、t;immediately" or "as soon as possible" will be disregarded. The words "to", "until", "till", “from ”and “ between ” whendutsoedetermine a period of shipment include the date or dates mentioned, and the words“before ” and "after"exclude the date

19、 mentioned.(UCP600, Article 3)答：用诸如“第一流的”、“著名的”、“合格的”、“独立的”、“正式的”、“有 资格的”或“本地的”等词语描述单据的出单人时，允许除受益人之外的任 何人出具该单据。除非要求在单据中使用，否则诸如“迅速地” 、“立刻地”或“尽快地”等词 语将被不予理会。信用证作为审单的标准，应该确保用此准确和唯一性，如果出现了一些表示 不明确的规定时，为确保信用证的顺利使用，这些不明确的规定将被忽略。 这也要求申请人在申请开证时应做到清楚、简洁。2. A bank assumes no liability or responsibility for th

20、e form, sufficiency, accuracy,genuineness,falsification or legal effect of any document, or for the general or particular conditions stipulated in a document or superimposed thereon; nor does it assume any liability or responsibility for the description, quantity, weight, quality, condition, packing

21、,delivery, value or existence of the goods, services or other performance representedby any document.( UCP600, Article 34) 答：信用证业务中，银行对任何单据的形式、充分性、准确性、内容真实性， 虚假性或法律效力，或对单据中规定或添加的一般或特殊条件，概不负责； 银行对任何单据所代表的货物，服务或其他履约行为的描述、数量、重量、 品质、状况、包装、交付、价值或其存在与否也概不负责。 信用证处理中银行不涉及商业事务和商业纠纷， 仅就单据的表面是否符合信 用证的规定进行审核，而无

22、需处理单据本身的真实性和单据相关的货物状 况。3. On 11, July, 2013, a beneficiary received the following L/C. Before the validity of the credit, the beneficiary presented a set of documents to the bank, indicating the quantity: 995 tons , the amount : USD99,500.00. The issuing bank dishonored for the reason as: “The quant

23、ity and the amount are not complied with the terms and conditions of credit.”IRREVOCABLE CREDITL/C amou nt;: about USD100,000.00Unit p rice: USD100 per ton, qua ntity: 1000 tonsTotal price: USD100,000.00, C.I. F., New York 答：开证行拒付理由不成立。UCP600第30条：信用证金额、数量与单价的伸缩度 A款规定：“约”或“大 约”用于信用证金额或信用证规定的数量或单价时，应解

24、释为允许有关金额 或数量或单价有不超过10%的增减幅度。本题信用证前出现了大约字样，因 此受益人提交单据的金额中出现上下10%的增减都属于可接受范围。USD99,500.00属于上下10%的增减范围内，因此开证行的拒付不成立。V .Practice(20%)PI ease an swer the questio ns accordi ng to the give n credit. In the commercial in voice, the maker is SUMITOMO COR PORATION, TOKYO (Yes/No), the con sig nee is JIANGSU

25、NATIVE P RODUCE IMP. AND EXP.(GROUP) CORP., NANJING . (Yes/No) (2%)(2) The amou nt of the commercial inv oice is JP Y 3,001,123.13, it's comp lied with the terms and conditions of the credit. (Yes/No) (2%)(3) PI ease fill in the draft accord ing to the credit.(7%)_Nanji ng, 14, Ap ril, 2015 sigh

26、t pay to the orderFor:Excha nge for _ Atof the sum ofDraw n un derTo: List the required documents. (1%) When the Air waybill indicates the goods have been sent by partial shi pments and tran ssh ipmen t, it is comp lied with the terms and con diti ons of the credit. (Yes/No) (1%) This is a con firme

27、d credit. (Yes/No) (1%)(7) If the date of shipment is 31, March, 2015, the beneficiary must present the docume nts within 15, Ap ril, 2015. (Yes/No) (1%) The total amount insured is USD3,385,882.5. (Yes/No) (2%) The issu ing bank will acce pt a full set of in sura nee p olicy. (Yes/No) (1%) Jiangsu

28、native produce Imp. & Exp. (Group) assumes to pay for the ban' charges. (Yes/No) (1%)(11) The documents must be sent to the drawee bank in one lot. (Yes/No) (1%):MT: 700 01:40A form of documentary credit: IRREVOCABLE:20 documentary credit number: 100934028D-01001:31C date of issue:20150314:3

29、1D date and p lace of ex piry: 20150415 P.R. OF CHINA:50 applicant: SUMITOMO CORPORA TION,2-2 HITOTSUBASHI, CHIYODA-KUTOKYO:59 beneficiary: JIANGSU NATIVE P RODUCE IMP. AND EXP .(GROU P) COR P., 36 GONG YUAN ROAD. NANJINGTHE PEOPLE 'S REPUBLIC OF CHINA:32B amount: CURRENCY JP Y 3,078,075.00:41-:

30、 available with /by: ANY BANK BY NEGOTIATION:42C: drafts at, : DRAFT AT 90 DAYS SIGHT:42-: drawee: THE MITSUI TRUST AND BANKING CO. LTD. HEAD OFFICE, TOKYO:43p partial shi pments: P ROHIBITED:43T transshi pment: P ROHIBITED:44A loading in charge: CHINESE AIR PORT:44B for trans portation to: NARITA,

31、AIR PORT:44C latest date of shi pment:20150331:45A shi pment of goods:700 KGS NET OF CHINESE ROYAL JELLY (PRODUCTS BY LAOSHAN FACTORY) IN REFRIGERATEDCONTAINER A T JPY 4,510.00 PER KG NET. LESS DISC. 2.5% CIF NARITA AIR PORT:46A: documents required:+SIGNED COMMERCIAL INVOICE IN QUINTUPLICATE(5) INDI

32、CATINGAPPLICANT 'S REF NO.MCC1-94-0120 WHICH MUST BE GIVEN ON ALL OTHER DOCUMENTS+P ACKING LIST IN DUP LICATE+FULL SET OF CLEAN AIR WAYBILL CONSIGNED TO SUMITOMO CORPORA TION TOKYO AND MARKED FREIGHT PREP AID AND SHOWING SAME NAMES AS NOTIFY P ARTY AS CONSIGNEE AND INDICATING ACTUAL FLIGHT DATE+

33、FULL SET OF INSURANCE CERTIFICATES ENDORSED IN BLANK, FOR 110PCT INVOICE VALUE COVERING THE INSTITUTE CARGO CLAUSES(ALL RISKS), AND THE INSTITUTE WAR CLAUSES AND THE INSTITUTE STRIKES RIOTS AND CIVIL COMMOTIONS CLAUSE AND I.O .P.CLAIMS ARE P AYABLE IN JAPAN IN CURRENCY OF DRAFTS.INSURANCE TO BE EFFECTED BY SHIPPER+ORIGINAL GSP FORM A, CERTIFICATE OF NO ANTIBIOTICS AND COP lES OF CERTIFICATE OF QUALITY ALSO REQUIREDSHIPPING MARKS SHOULD INCLUDE SUMIT IN TRIANGLE.TRANS PORT DOCUMENTS WHICH BEAR REFERENCE BY STA MP OF OTHERWISE TO COSTS ADD