国际结算英文

1、International SettlementChapter 1 INTRUCTION Teaching aims and demands： International settlement is a practical subject. Learning of this s u b j e c t b e g i n s w i t h t h e fundamental knowledge and the general structure which is also the bases for studying the later chapters1. 1 Concept of int

2、ernational settlementinternational settlement is the transaction arising from sales of commodities ,services provided, transfer of funds, international borrowing and loan between two parties located in different countries which must be entrusted to the banks for payment of or claims to the money on

3、behalf of them .international settlement refers to payment activities that could clear credits and debts among governments ,companies ,organizations or individuals in different countries.2.Classification in international settlement (1) International settlement of trade (2)Non- trade settlement1.2 Tr

4、aditional payment methods 一，From cash settlement to non-cash settlement Cash settlement Its an original and simpler method of settlement which is based on direct settlement made between the buyers and the sellers . 二，From direct payment made between international traders to payment effected through

5、a financial intermediary 三，Payment against documents for trade 四，Iccs Customs and Practice 1， （URC522） 2.（UCP） Uniform Customs and Practice for commercial documentary .1993 Revision .ICC Publication No.600) 3.(E- UCP) 4.(URR725) 5.ISP98 6.ISBP International standard banking practice for the examinat

6、ion of documents under documentary credits 7.DOCDEX ICC Rules for documentary Credit Dispute Resolution Expertise 8.URCG 9.URDG五。Characteristics of modern international payments and settlements1.transfer of foreign exchange funds and convey of banking messages are very much facilitated2.Vehicle curr

7、encies are more diversified than before 3. International lending is often combined with international payments 4.Great importance is attached to high efficiency on the part of the foreign bank1.4 Banks in international settlements 1.Branch or Sub- branch 2.Representative office 3.Agency 4.Subsidiary

8、 5.Affiliate 6.Consortium bank 7.Correspondent bank Control documents Test Key Book of Authorized signature Schedule of Terms and condition 8.Depository bank Nostro Account Vostro account1.5 The fundamental content of the international settlement 1. Financial instrument using in the international se

9、ttlement 1) Credit instrument 2) Notes or bills Bill of exchange Promissory Cheque 2. The styles of international settlement 1) remittance 2) collection 3) L/C 4) L/G 5) standby L/C 6) factoring 7) Forfaiting 3.Documents 1)Commercial invoice 2)Insurance Policy 3)B/LChapter 2 Bill of Exchange 2.1 Not

10、es(Bills) 一、Characteristics of notes 1.Right of holder 2.Unconditional Contract 3.Requisite in Form 4.Written Confirmation 5.Negotiability2.2 Bill of Exchange 一、Concept of Bill of ExchangeA Bill of Exchange is An Conditional Order of Writing, Addressed by One person to another, signed by the person

11、give it ,requiring 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.二、二、Absolutely required items of the bill of exchange 1.Bill of Exchange 2.Unconditional order A、pay to the o

12、rder of B company in our No.1 account the sum of one thousand pounds. B、Pay to the order of B company provided the goods are complied with contract the sum of . 3.Amount A。With interest Pay to the order of B company the sum of one thousand pounds plus interest calculate at the rate of 3% per annum f

13、rom the date here of to the of payment B .by state installments Pay to the order of B company the sum of one thousand pounds by ten equal consecutive monthly installments C. according to an indicated rate of exchange Pay to the order of B company the sum of one thousand pounds converted into us doll

14、ar at current rate of exchange 4.Name of Drawee 5. Name of Payee A. Restrictive order Pay to B co.,not transferable Pay to the order of B co. only B. Demonstrative order Pay to the order of B co. Pay to B co. or order Pay to B co. C. Bearer order Pay to B co. or bearer Pay to Bearer 6. Date of issue

15、 7. Drawers signature BILL OF EXCHANGE Exchange for USD15,277.00 Shanghai MARCH 1 2005 (Date) At SIGHT of this FIRST of Exchange (Second of Exchange being unpaid) Pay to JOHN SMITH OR BEARER the sum of US DOLLARS FIFTEEN THOUSAND TWO HUNDRED AND SEVENTY SEVEN ONLY To: HABIB BANK LIMITED P.O.BOX 888，

16、 . DUBAI, U.A.E SHANGHAI ABC COMPANY LIMITED 方 之 (Authorized Signature) BILL OF EXCHANGE Exchange for USD15,277.00 Shanghai MARCH 1 2005 (Date) At SIGHT of this FIRST of Exchange (Second of Exchange being unpaid) Pay to THE ORDER OF BANK OF CHINA the sum of US DOLLARS FIFTEEN THOUSAND TWO HUNDRED AN

17、D SEVENTY SEVEN ONLY To: HABIB BANK LIMITED P.O.BOX 888， . DUBAI, U.A.E SHANGHAI TEXTILES COMPANY LIMITED 方 之 (Authorized Signature)凭 Drawn under 信用证号L/C No. 日期 年 月 日 Date 按 息 付款Payable with interest %per annum号码 汇票金额 中国 辽宁 锦州 年 月 日No. Exchange for Jinzhou,Liaoning,China. 见票 日 后 （本 汇 票 之 副 本 未 付） 付A

18、t sight of this FIRST of Exchange(Section of exchange being unpaid)受 款 人pay to the order of 金 额the sum of 此致To:三、三、Relative required record items of bill of exchange（一）Tenor Sight（demand） draftAt sight pay to the order of On Demand pay to the order ofOn Presentation pay to the order of2、time(date )

19、draft 1）payable on a fixed future date On 20th July 20* pay to the order of -2)、At a fixed time after date At 30 days after date Pay to the order of -3)、At a fixed time after sight At 30 days after sight Pay to the order of - 4）Payable at a fixed time after the happening of a specified event At 30 d

20、ays afer bill of lading date pay to the order2. Place of Issue 3. Place of Payment四、四、Alternative record items of the bill of exchange1. A Banker Designated as payer 2. Referee in case of need 3. Protest waived4. Notice of Dishonor Excused5. Without recourse 2.3 Acts of bills of exchange 一、Issue 二、E

21、ndorsement Kinds of Endorsement 1.Special Endorsement 2.Blank Endorsement 3.Restrictive Endorsement 4.Conditional Endorsement 5. Endorsement for Collection 6. Endorsement in Pledge 7.Reverse Endorsement 三、 Presentment Presentment for Acceptance Presentment for Payment 四、Acceptance 1.General Acceptan

22、ce 2.Qualified Acceptance (1).Conditional Acceptance (2). Partial Acceptance (3).Local Acceptance (4). Qualified Acceptance as to time 五、Payment 六、Dishonor ,Notice of Dishonor,Protest 七、Recourse 八、Acceptance for Honor 九、GuaranteeTypes of bill of exchange1. the Bankers Draft and the Trade Bill 2. Ban

23、kers Acceptance Bill and the Trades Acceptance Bill3. Sight Draft and the time Bill4. clean bill and Documentary Bill 5.inland bill and Foreign billSection 2 promissory note. The definition of the promissory note A promissory note is an unconditional promise in writing made by one person to another

24、signed by the maker engage 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 . .Types of promissory noteAccording to the drawer it can be divided into Trades Promissory Note and Bankers Promissory Note . Absolutely

25、 required record items of promissory check 1. The words of promissory note2. Unconditional promise to pay 3. Amount4. Name of Drawee 5. Date of issue6. Drawers signatureSection 3 Cheque一. The definition and the characteristic 1. Definition “Briefly speaking ,a cheque is a bill of e x c h a n g e d r

26、 a w n o n a b a n k demand .Detailedly speaking ,a cheque is an unconditional order in writing addressed by the customer to a bank sighned by that customer authorizing the bank to pay on demand a sum certain in money to or to the order of a specified person or to bearer.”二. The characteristic1) No

27、forward cheque, it pays upon presentation2) With certain issue conditions3) The drawee is the bank4) Belonging to commercial credit the debtor is drawer三. Absolutely required record items of cheque1. The words of cheque2. The entrust of Unconditional promise to pay 3. determined Amount4. Name of Dra

28、wee 5. Date of issue6. Drawers signature 四四.Issue.Issue 五五.Presentment.Presentment 六六.Payment.Payment 七七.Crossing the Cheque.Crossing the Cheque 八八.Certified to pay.Certified to pay九。九。 The obligation of the parties of cheque 1. The drawers obligation 1). opens an account from bank2). Bounced cheque

29、 prohibited 3). If the Paying banks refuse to pay the drawer take the responsibility to pay. 4). after the noticed due the drawer still bear the responsibility 十. Types of cheque 1. order cheque2. blank cheque3. open cheques4. crossed cheques5. generally crossed6. specially crossed7. certified pay8.

30、 bankers cheque Chapter 5 Remittance and collectionSection 1 Remittance1. The meaning and the party concerned of remittanceThe remittance Remittance also calls to remit to pay, which is bank consign amount of money payee at the request of drawer in certain way of balance of accounts methodRemitter R

31、emitter is drawer, who is the party who entrusts to remit amount of money to payee, who also is the buyer or import in the international trade. Remitting BankRemitting Bank is a bank that accepting a remitter entrusts to remit the amount of moneyPaying Bank Paying Bank is to accept entrust of remitt

32、ing bank, put down certain amount of money to the bank of payee.Beneficiary or PayeeThe payee is the party who take remittance when receives remittance collection notice of paying bank, usually is a selling party.CategoryIt is divided into telegraphic transfer, mail transfer, D.D according to the se

33、ttlement instrument difference.(1) Telegraphic transfer T/TTelegraphic transfer is a kind of settlement method, which is remitting bank send escort fax or telegram to paying bank abroad according to remitters application and ask paying bank to pay amount of money to payee.(2) Mail transfer M/TIt is

34、settlement method, which is remitting bank use airmail to ask paying bank to pay amount of money to payee according to remitters application. (3) Demand Draft D/D It is a kind of settlement method, which is remitting bank establish a demand draft from its correspondent or agency as paying bank accor

35、ding to remitters application, and pay amount of money to payee. 3. Procedure of remittancea. The remitter fill in remittance application and give amount of money to remitting bank to remit, also remitter should choose telegraphic transfer when fill in remittance application. b. Remitting bank accep

36、t an application, return telegraphic transfer to remitter and draw bank draft immediately.c. Remitting bank use fax or SWIFT to send out a remittance authorization toward theforeign correspondent or agency according to the contents of application.d. Paying bank should notify payee withdraw money aft

37、er receive the remittance authorization and check airtight escort.e. Payee hold notification and other relevant certificates to paying bank to withdraw money and sign on the payee receipt.f. Paying bank should pay a remittance immediately after checking without any error.g. Paying bank mail record n

38、otification to remitting bankSection 2 International settlement method collection1. The definition of collection The collection is an exporter to draw financial note or business voucher or both.2. Collection the party concerned and its right obligation(A), Principal(1), The principal is the party co

39、ncerned that entrusts bank to carry on a collection.(2), The right and obligation of principalMainly exercise to sign with importer of match coalescent item, implement with the contract of bankObligation:Consign goods,Submit payments,Fill in collection application,Draw the bank draft for a collectio

40、n (B), Remitting Bank(1), is that accept entrust of principal and carry out a collection through a foreign bank agency.(2), Obligation the collection:Make an authorization letter to send a foreign agency, include voucherCheck the voucher whether voucher name and number are the same with application.

41、(C), Collecting Bank(1)mean a bank that to be entrusted to carry out to accept a payment toward the drawer (2)Obligation of the collection:(D), Drawee1, is the party concerned that is requested to pay the voucher according to the collection authorization Usually it is importer2, the drawer have the

42、right to check voucher and decide whether accept or not, undertakes the obligation of payment or acceptance according to the collection in the meantime.3. The category of collection and the way to collect(A), The category of collection(1) Clean Bill for Collection(2) Documentary Bill for Collection(

43、B), the way to collect(1). Documents against Payment D/PMean the collection bank give shipping documents to importer after the importers make payment, which is divided into: D/P at sight and D/P at -days after sight4. The characteristics and usage of collection (A) The characteristics of collection:

44、(1) The collection is based on business credit(2) The collection has a stronger safety(3) The funds in the collection business bea (B) The usage of Clean Bill for Collection and Documentary Bill for CollectionMake use of of collection balance of accounts method(1) The usage of Clean Bill for Collect

45、ion(2) The usage of Documentary Bill for CollectionIt is one of the ways to settle accounts in an international trade, compare with remittance, it is more safe, simple, and lower in price.How to avoid risk in Documentary Bill for Collection:(1), Investigate credit of importer;(2), Understand reputat

46、ion of an import country (3), Submit document and use price condition correctly(4), have a correct idea in choosing collection bank(5), insures conveyance insurance.Chapter 6 method of settlement in international trade - L/CThe specific objective of this chapter is to:Explain definition, characteris

47、tics, process and types of letter of creditBasic contents: There are four sections in this chapter, which include definition and content of L/C; rights and obligation of specified party; L/C process; types of L/C. Key point of this chapter:Characteristics and types of L/C;Rights and obligation of sp

48、ecified party.Section 1 definition and content of L/C1. Definition of L/CA letter of credit is an instrument issued by a bank on behalf of the importer (buyer) promising to pay the exporter (beneficiary) upon presentation of shipping documents in compliance with the terms stipulated therein.Accordin

49、g to UCP500, documentary of letter of credit and Stand-by letter of credit are a kind of promise, the confirming bank is obligated to honor drawings made by the beneficiary in compliance with the L/C regardless of the issuing banks ability to make that payment.In UCP500：1. Make payment to beneficiar

50、y or its assigner or acceptor.1. Authorize another bank to make payment or accept.2.2. Authorize another paying bank.2.Uniform Customs and Practice for Documentary Credit ICC publication No.500.Uniform Customs and Practice for Documentary Credit ICC publication No.500.is an important uniform customs

51、 and practice in international trade and international settlement, which is enacted and published by international chamber of commerce.But UCP500 is recommended by international chamber of commerce and dont have mandatory, only have sanction to a bank that adopt Uniform Customs and Practice for Docu

52、mentary Credit ICC publication No.500, besides, there is no legal effect to other banks that dont adopt the uniform. If L/C document give clear indication, specified party will be restricted by UCP500; Court should make arbitrament according to UCP500 when dealing with L/C dispute. In china, needing

53、 to record above mentioned provisions when opening L/C. subject to the Uniform Customs and Practice for Documentary Credit (1993.Revision International Chamber of Commerce Paris ,France ,Publication No.500)3. Characteristics of L/Ca. Issuing bank assume the responsibility for paymentb. L/C is self-s

54、ufficiency document with independence.c. Object of L/C is bill of documen1.1. Function of L/CL/C can be used in the following aspects according to documentary of letter operation guide:(1) A good instrument for purchasing foreign goods and foreign equipment financing(2) Helping issuing bank finance

55、from importer and control capital spending.(3) Provide confidence and guarantee for commercial transaction(4) L/C shall be a common instrument to guarantee accept payment from exporter, if there is no additional complex provisions. 1) Guarantee importer gathering safely It has essentially guaranteed

56、 payment to the exporter, provided the exporter complies with the terms and conditions of the L/C.(2) Guarantee importer accept bill of document (that represent property interest) after making payment, thus, importer can pick up goods depended on the bill of document.Exporter can be restricted by im

57、porter through controlling L/C provisions, and shipping must accord with prescript quantity,specification,quality and shipping date in provisions. After making payment, opening bank guarantee that importer get documents of title.(3) Importer and exporter can acquire financing which is offered by iss

58、uing bank or other banks under L/C provisions.Section 2 Rights and obligation of L/C parities1. ApplicantBecause importers have already promised the method of settlement in trading contract, applicant must be restricted by two contracts (One is import and export trading contract, another one is agen

59、cy agreement application form which is signed with issuing bank) when applicants apply for opening L/C.Obligation of Applicant:Applicant must abide promise of application form, and have and undertake corresponding rights and obligation.a. Having reasonable indication for opening L/CExpression must b

60、e certain, concise, consistence in application form in order to avoid distorting.b. Providing guarantee for opening L/CIssuing bank usually ask applicant to offer guarantee in order to avoid risk, guarantee can include cash, chattel, real property or guarantee from the third party.c. Make payment an