国际结算双语教材英语版

1、Introduction to International Settlement International political, economic and cultural exchange inevitably leads to credits and debtsowed by one country to another.The international settlement involves both tangible and intangible trades, foreigninvestments, funds borrowed from or lent to other cou

2、ntries and so forth. To be more specific,international payments and settlements can also be necessary financial activities rendered fromcommercial payments, payments for the services rendered, payments between governments, andthe transfer of funds among countries.1.1 Definition International payment

3、s and settlements are financial activities conducted among differentcountries in which either payments are effected or funds are transferred from one country toanother for the purpose of settling accounts, debts, claims, etc.1.2 Types of International Settlement Usually international settlement is d

4、ivided into three broad categories: remittance, collectionand letter of credit. Negotiable instruments, however, ways of international settlement anddocuments used in the international settlement sometimes constitute the framework ofinternational settlement. For example, the following payment terms

5、can be read in the salescontracts. （1）The supplier agrees that the buyer will effect payments under the term of T/T against receipt of B/L by fax.(2) Hong Kong suppliers agree that the buyer will effect payments under the term of CAD(Cash against Documents).(3) Only in case of new suppliers and firs

6、t order to them, the buyer might agree to effect payments under L/C termsThe L/C charges on the buyer's side will be born by the buyer and the L/C charges on supplier's side will be born by the supplier. The Bill of Lading is made out toorder and notify the buyer.(4) In case that the supplie

7、r still insist on L/C terms even after the first order, the supplier agree to take over all L/C charges on him as well as the buyer's side. In those cases we request a Bill of Lading. 1.3 History and Development of International SettlementTracing back the history of international settlement, the

8、 medium of exchange originatedfrom coins. Later on, commercial drafts and other credit instruments emerged and becamepopular to meet the needs of the constantly increasing business activities in both geographicalregions and volume of the international trade.Depending on the creditability of financia

9、l institutions, both buyers and sellers are usuallywilling to complete their settlement through banks respectively, and a financial arrangementcould be reached then. Therefore, many banks have focused on their business of internationalsettlement and trade finance.Most of the international payments o

10、riginate from transactions in the world trade. With theenormous amount of international trade activities, the volume of the international settlement hasreached trillions of US dollars nowadays. Banks; as a result, are focusing more and more on thedevelopment of the business because it is a major res

11、ource of profit.1.4 International Customs and PracticesThe International Chamber of Commerce is the world business organization. It is the onlyrepresentative body that speaks with authority on behalf of enterprises from all services in everypart of the world.（1）International Practices concerning Bil

12、ls: Bill of Exchange Act, 1882, Jeva Uniform Bill Act.(2) International Practices concerning Settlement：(Uniform Rules for Collection, ICC Publication No: 522), Uniform Customs and Practice for Commercial Documentary Credits,1993 Revision, ICC Publication No. 500). (3) International Practices concer

13、ning Documents: Hague Rules, Hamburg Rules,International Convention Concerning the Transport of Goods by Rail, Agreement on InternationalRail-Road through Transport of Goods, Uniform Rules for a Combined Transport Documents,Institute Cargo Clauses, ICC, International Rules for Interpretation of Trad

14、e Terms, Incoterms2000 and UNCITRAL Arbitration Rule.Instruments2.1General IntroductionBills of Exchange, cheques, and promissory notes are all known as negotiable instruments.It is a fundamental principle of property law that we cannot obtain a better title than thatpossessed by the person from who

15、m we received it. There is always the risk that that person hasno title to the property because he has stolen it or obtained it from some other person who got improperly. The true owner, on discovering the property and proving his right to it, can demandthe property be restored to him. Our remedy is

16、 to look for the person from which we received theproperty and try to get our money back. That person will in turn claim from his immediatetransferor, this tracing right goes on up to the unfortunate one who bought the property from thethief.2.2 Bills of Exchange2.2.1 DefinitionA Bill of Exchange (d

17、raft) is a commercial instrument. It is an unconditional order in writing, addressed by one person to another，signed by the person giving 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 specifie

18、d person or to the bearer A typical Bill of Exchange is drawn in this manner(see Specimen 2.1）· Note:l An unconditional order in writing.l Addressed by one person (the drawer).l To another (the drawee).l Signed by the person giving it.l Requiring the person to whom it is addressed.、l To pay.l O

19、n demand or at a fixed or determinable future time.l A sum certain in money:l To or to the order of a specified person or the bearer.2.2.2 Liability on Bills of ExchangeThe liability on a Bill of Exchange is by signature only: no signature, no liability. In another words, no person is liable as draw

20、er, endorser or acceptor of a bill who has not signed.2.2.3 Endorsement of Bills of ExchangeFor many commercial contracts, the benefits of the contract may be transferred from oneperson to another. With a Bill of Exchange, this transfer is effected by delivery, or byendorsement and delivery. Endorse

21、ment is a signature and a signature must be the same with the transferor's name as stated on the bill. It is normally on the back of the document. There are four types of endorsement: blank, special, restrictive or conditional.2 2.4 Acceptance of Bills of ExchangeThe drawee has no liability on t

22、he bill until he signs the bill in,such a way as to signifyacceptance of liability to pay the money stated on the bill. The acceptance of a bill is thesignification by the drawee of his assent to the order of the drawer. An acceptance is invalidunless it complies with the following conditions, namel

23、y:（1）It must be written on the bill and signed by the drawee. The mere signature of the drawee, without additional words, is sufficient. (2) It must not express that the drawee will perform his promise by any other means thanthe payment of money. Acceptance may be made before signature by the drawer

24、. It may also be accepted when overdue or when previously by non-acceptance or non-payment.2.2.5 Holders of Bills of Exchange.A holder for value is the holder of bill for which value has been given: he is a holder forvalue as regards all parties prior to himself. Once value is given for a bill, the-

25、holder giving valueand all subsequent holders are holders for value. A holder for value has the right of transferability conferred upon him by the common law. He has exactly the same rights together, with faults and failings, if any, of the person who transferred the bill to him.2.2.6Duties of Holde

26、rs of a Bill of ExchangeA Bill of Exchange holder must do two things：present the bill for acceptance and present the bill for payment. The holder must carry out his duties. Alternatively, he can transfer the bill to another person, within a "reasonable time" of receiving the bill.Presentin

27、g the bill for acceptance is personal. The bill is presented to the drawee personallyfor acceptance, wherever he is. In so doing, the holder gains an extra signature and thereby anextra liability on the bill. If the drawee refuses to accept the bill, the bill is then dishonored bynon-acceptance and

28、the holder can immediately sue all prior parties to the bill.Presentment for payment is local, meaning that the bill must be presented at the right placewhether or not the person liable on the bill is at that place. The right place is the place stated onthe bill as being the place of payment, otherw

29、ise the bill should be presented at the place of business or the place of the drawee/acceptor. The payment should be presented during business hours.2.2.7 Liability of Drawers，Drawees and Endorsers（1）Liability of DrawersBy drawing the bill the drawer commits himself to the following:a. That it will

30、be duly accepted or paid on presentment, andb. That if it is dishonored he will compensate the holder or any endorser for any losssuffered. (2) Liability of DraweesBefore acceptance, the drawee is not liable to any holder (though he may be personallyliable to the drawer if he dishonors a bill proper

31、ly drawn upon him).After acceptance, the drawee becomes the person primarily liable on the bill, and engagesthat he will pay the bill according to the terms of his acceptance. (3) Liability of EndorsersAny person who endorses a bill makes a commitment that it will be duly paid upon presentment. If t

32、he bill is dishonored he will compensate the holder who is compelled to pay it.2.2.8 Dishonor of Bills of ExchangeIf a bill is dishonored by non-acceptance or non-payment, the holder must inform all priorparties that the bill has been dishonored. If such notice has not been given within a reasonable

33、time, all prior parties except the person primarily liable on the bill will cease to be liable to theholder. The person primarily liable on the bill is the drawer. Once the bill is accepted, theacceptor assumes primary liability.2.3 Cheques2.3.1 DefinitionA cheque is an unconditional order in writin

34、g, addressed by a person to a bank, signed by the person making it, requiring the bank to pay on demand a sum certain in money to onto the order of a specified person or to the bearer.2.3.2Parties to a ChequeThree parties are essentially involved:l The Payee, a person to whom a cheque is expressed t

35、o be payable.l The Drawer, the person who writes the cheque.l The Drawee, the bank on whom the cheque is drawn and to whom the order to pay is given.2.3.3 SignatureAn agent may sign a cheque if he is authorized. For example; a bank officer may sign on behalf of the bank for which he works provided h

36、e is an authorized signatory.2.3.4 ForgeryIf the drawer has not signed (and he cannot truly have done that if his signature has beenforged), then the document without the drawer's signature is not a cheque.For example, if John Black steals Wolf Smith's cheque book, forges Mr. Smith's sig

37、nature toa cheque USDS,000 and presents it to the bank on which it is drawn and obtained payment, thebank cannot debit Mr. Smith's account with it, for the bank's only authority to debit the account is Mr. Smith's genuine signature. The bank would lose the money unless the forgery was im

38、mediately discovered after payment. However, if the bank had paid the forger John Black，then its only right would be against the forger, for what it was worth.2.4 Promissory Notes2.4.1 DefinitionA promissory note is an unconditional promise in writing, made by one person (the maker)to another (the p

39、ayee or the holder), signed by the maker, engaging to pay on demand or at afixed or determinable future time a sum certain in money, to or to the order of a specified personor to bearer.A promissory note is a promise, and a bill is an order. There is no need to protest adishonored note. And as the m

40、aker of a promissory note is the person primarily liable on it, therecan be no acceptance.A promissory note is not complete when the maker signs it. It must also be delivered to thepayee or bearer.A typical promissory note is made in this manner(see Specimen 2.3).Note:l An unconditional promise in w

41、riting.l The maker.l The payee or the holder.l Engaging to pay.l On demand or at a fixed or determinable future time.l A sum certain in money.2.4.2 Liability of MakersThe maker of a promissory note should be engaged in the payment according to its tenor, and is precluded from denying to a holder in

42、due course the existence of the payee and his then capacity to endorse.2.4.3 Banker's Drafts A banker's draft is a negotiable instrument drawn payable to order by a bank as drawer onthe same bank as' drawee, in another word, the drawer and drawee are the same person. It isissued by a ban

43、k forcertain fixed amounts, always payable to bearer and on demand. Eventhough the draft may be drawn by a branch of head office or another branch; and the bank isconsidered as one entity for this purpose. It is also a legal tender.It goes without saying that a banker's draft is as good as cash

44、for many commercial purposes,dishonor of it being unheard of unless it is known that the presenter is not entitled to it.Remittance and Collections3.1 DefinitionRemittance refers to the transfer of funds from one party to another among differentcountries through banks. At the request of its customer

45、, a bank transfers a certain sum of moneyto its overseas branches or correspondent banks and instructs them to pay a named person orcorporation in that country.3.2 Means or Instruments of RemittanceThe remittance will be done by several means or instruments such as mail transfer, demand draft and te

46、legraphic transfer. The instruments mentioned above bear their characteristics, which will be discussed later.3.2.1 Mail Transfer (M/T)A mail transfer is to transfer funds by means of a payment order or a mail advice, or sometimes a debit advice issued by a remitting bank, at the request of a remitt

47、er. Either of a payment order, mail advice or debit advice must be authenticated with tested key or theauthorized signatures of the remitting bank. It instructs the paying bank to pay a certain sum ofmoney to the beneficiary. Upon receipt of the payment order, the paying bank verifies the testedkey

48、or the authorized signature, notifies the beneficiary, pays to him and claims reimbursementfrom the remitting bank. In practice, the remitting bank credits the account for the paying bank in the remitting bank.3.2.2 Demand Drafts（D/D）A demand draft is often used when the customer wants to transfer t

49、he funds to hisbeneficiary by himself. The remitter will make a written request of issuance to the remitting bank.Then the remitting bank debits the remitter's account, issues a bank draft and forwards it to theremitter who may send or carry it abroad to the payee. Upon receipt of the draft, the

50、 payee caneither present it for payment to the drawees bank or sell it to his own bank crediting his account.The drawee's bank verifies the signature, pays the draft and claims back the amount paid in accordance with its agency arrangement with the remitting bank.3.2.3Telegraphic Transfer（T/T）Te

51、legraphic transfer refers to remittance by SWIFT. It is exactly the same as a mail transfer,except that instruction from the remitting bank to the paying bank is transmitted bycable/telex/SWIFT instead of by mail. Therefore, it is faster, but more expensive than the mailtransfer. It is often used wh

52、en the remittance amount is large and the transfer of funds is subjectto a time limit. Thus, 90% remittance is done through T/T.Table 3.1 Comparison among T/T,MT and D/DItemsT/TM/TD/DMethods of transferTelex/Cable/SWIFTAirmailMail or carried by remitterTime of transfer FastestSlowSecurityQuite safeR

53、eliable, but may be lost/delayed in postStop-payment is time consumingNotification from bank to beneficiary bankYesYesYesEndorsementNoNoYesNegotiableNoNoYesMethod of authenticationTest key of SWIFT, authentication keyAuthorized signatureAuthorized signatureChareHighMost charge the remitter while som

54、e may charge beneficiary LowThe whole charge remitterLowest The cost of collection charges the bank3.2.3 Collections3.3.1 DefinitionAfter the exporter has shipped the goods or rendered services to his customers abroad, hedraws a Bill of Exchange on the latter with or without shipping documents attac

55、hed thereto andthen gives the draft to his bank together with his appropriate collection instructions. Thus, a collection on the basis of commercial credit is usually processed through banks acting as the intermediary.3.3.2 Workflow（1）The exporter ships goods and obtains documents of title from the

56、shipping line.(2) The exporter, known as the principal, delivers the following documents to his bank(remitting bank): a. a Bill of Exchange drawn on the importer; b. documents for goods of title andc. a collection order which contains the exporter's instructions to the remitting bank.(3) The rem

57、itting bank completes its own collection order addressed to the importer'sbank.(4) If the instructions are D/P (documents against payment), the importer's bank willrelease the documents to the importer only against payment. If the instructions are D/A(documents against acceptance), the impor

58、ter's bank will release the documents againstacceptance of the Bill of Exchange by the importer.(5) The bank credits the proceeds to the principal's account.3.3.3 Documentary Collections（1）DefinitionA documentary collection is an operation in which a bank collects payment on behalf of thesel

59、ler (the principal) by delivering documents to the buyer.Documentary collections are suitable in cases where the exporter is reluctant to supply thegoods on an open account basis, but does not need the strong security provided by a documentarycredit. A documentary collection is more secure than settlement on open account, because theimpo