国际结算笔记3.ppt

1、Chapter5 methods of international settlement,Chapter5 methods of international settlement,remittance definition In international trade, the buyer on his own initiative remits money to the seller through a bank in accordance with the terms and time stipulated in the contact. Parties The remitter: the

2、 person who requests his bank to remit funds to a beneficiary in a foreign country.,Chapter5 methods of international settlement,Remitting bank: the bank transferring funds at the request of a remitter to its correspondent or its branch in another country and instructing the latter to pay a certain

3、amount of money to a beneficiary. paying bank: the bank entrusted by the remitting bank to pay a certain amount of money to a beneficiary named in the remittance advice. The payee: a person who is addressed to receive the remittance.,Chapter5 methods of international settlement,types T/T (telegraphi

4、c transfer) : remittance by cable/telex/SWIFT M/T (mail transfer): remittance by airmail (see P71) D/D (demand draft ): remittance by bankers demand draft. (see P71) A bankers draft is a negotiable instrument drawn by a bank on its overseas branch or its correspondent bank abroad ordering the latter

5、 to pay on demand the stated amount to the holder of the draft.,Chapter5 methods of international settlement,Reimbursement methods crediting vostro account of the paying bank: when paying bank opens a current account with the remitting bank, such as In cover, we have credited the sum to your account

6、 with us. Debiting remitting banks nostro account: when the paying bank maintains the remitting banks account, such as: Please debit the sum to our account with you, or You are authorized to debit the sum to our account with you.,Chapter5 methods of international settlement,Instructing a reimbursing

7、 bank to effect payment by debiting the remitting banks nostro account: when the remitting bank doesnt open an account with the paying bank, the former may instruct its correspondent with which it maintains an account, to debit the account and credit the paying banks account if the paying bank also

8、has an account with that correspondent, such as: In cover, we have authorized The Bank of Tokyo, New York to debit our account and credit your account with the above sum.,Chapter5 methods of international settlement,Instructing the paying bank to claim reimbursement from another branch of the same b

9、ank or another bank with which the remitting bank opens an account: In cover, please reimburse yourselves to the debiting of our account with The Bank of Tokyo, New York. According to the payments agreement between two countries: In cover, you are authorized to debit our Central Banks clearing accou

10、nt with your Central Bank.,Chapter5 means of international settlement,Collection definition “Collection” means the handling by banks of documents, in accordance with instructions received, in order to: Obtain payment and/or acceptance; or Deliver documents against payment and/or against acceptance;

11、or Deliver documents on other terms and conditions.,Chapter5 means of international settlement,classifications clean collection: means collection of financial documents not accompanied by commercial documents. documentary collection: means collection of: Financial documents accompanied by commercial

12、 documents; Commercial documents not accompanied by financial documents.,Chapter5 means of international settlement,Parties The principal (remitter/seller/drawer): the person who prepares documents and submits them to his bank (remitting bank) with a collection order for payment from the buyer (draw

13、ee); The remitting bank: the bank receiving documents from the seller for forwarding to the buyers bank along with instructions for payment; The collecting or presenting bank: the bank that presents the documents to the buyer and collects cash payment or a promise to pay in the future from the buyer

14、 in exchange for the documents. The drawee (buyer): the party that makes cash payment or accepts a draft in exchange for the documents from the collecting bank.,流程 D/P,D/A,Chapter5 means of international settlement,Collection order The collection order is a standard form of authority that enables th

15、e exporter to include specific instructions to his bank regarding the documentary collection. If the collecting bank cant comply with the instructions given in the collection order, it must immediately advise the remitting bank. See exhibit 5-2.,Chapter5 means of international settlement,Risks invol

16、ved in Collection For exporter, Non-acceptance of merchandise; Non-payment of trade acceptance: the exporter takes not only the risk that the time draft will not be accepted, but also the risk that the acceptance will not be paid at maturity; possession of goods; Exchange restrictions.,Chapter5 mean

17、s of international settlement,For importer, Payment may have to be made prior to the arrival of the goods; By accepting a bill of exchange under the documents against acceptance collection, the importer incurs a separate legal liability on the bill of exchange besides his liability on the sales cont

18、ract; In some countries, if a bill of exchange is protested, this can ruin the reputation of the importer.,Chapter5 means of international settlement,letter of credit (L/C) definition and characteristics Definition: A documentary credit is any arrangement, however named or described, whereby a bank

19、(the issuing bank) acting at the request and on the instructions of a customer (the applicant) or on its own behalf:,Chapter5 means of international settlement,is to make a payment to or to the order of a third party (the beneficiary), or is to accept and pay bills of exchange drawn by the beneficia

20、ry; authorizes another bank to effect such payment or to accept and pay such bills of exchange; authorizes another bank to negotiate, against stipulated documents, provided that the terms and conditions of the credit are complied with.,Chapter5 means of international settlement,Characteristics: The

21、issuing bank takes the first responsibility to pay, independent of whether the applicant is bankrupt or is in default or not, provided the documents presented are in compliance with the terms and conditions of the credit; L/C is a transaction of documents (article 4); L/C is independent on trade con

22、tract (article 3).,Chapter5 means of international settlement,Advantages The seller is assured that payment will be made by a party independent of the buyer so long as the terms and conditions of the credit are complied with; The buyer is assured that payment will be made to the seller only after th

23、e bank has received the title documents called for in the credit. parties and their relationship applicant: an importer who requests his bank to issue a credit in favor of the exporter; issuing bank or opening bank: the bank which issues a letter of credit at the request of an applicant; (article 9a

24、 ) beneficiary of L/C: the exporter in whose favor the credit is issued;,Chapter5 means of international settlement,advising bank or notifying bank( transmitting bank): correspondent bank or branch of the issuing bank to whom the letter of credit is routed for transmission to the beneficiary; (artic

25、le 7) paying bank or drawee bank, paying bank agent: a bank who is authorized by the issuing bank to pay the beneficiary; accepting bank: a bank accepting the draft under the credit; negotiating bank: a bank that purchases the documents under the credit; (article 10 and 14),Chapter5 means of interna

26、tional settlement,confirming bank: a bank, usually the advising bank, which adds its undertaking to those of the issuing bank and assumes liability under the credit; (article 9b, c, d) reimbursing bank: the bank from which the nominated paying bank, accepting bank or any negotiating bank that has ma

27、de a payment, may obtain reimbursement; (article 19) transferring bank; transferor of L/C; transferee of L/C. Liabilities and responsibilities of banks under L/C (article 13, 15, 16, 17, 18),Part1：国际结算方式概览,See an example of SWIFT L/C。 流程图：,Chapter5 means of international settlement,Classifications r

28、evocable credit Acceptance L/C: a credit available by acceptance, under which the nominated bank is authorized to accept the draft; Deferred payment credit: a credit under which the beneficiary doesnt receive payment when he presents the documents, but at a later date specified in the credit. No dra

29、ft is required.,Chapter5 means of international settlement,Negotiation L/C: a credit under which a specifically nominated bank or any bank is authorized to negotiate the documents and /or drafts. Negotiation of drafts and/or documents is with recourse to the beneficiary unless the credit has been co

30、nfirmed by the negotiating bank. The differences among the above L/Cs see appendix. stand-by L/C ,Chapter5 means of international settlement,special types of L/C revolving L/C Under the terms of this L/C, the amount is renewed or re-instated without specific amendments to the documentary credit. Thi

31、s type of L/C may be revocable or irrevocable and will revolve in relation to time and value. The revolving clause can be formulated in different ways with different words stipulated in the credit: automatic; semi-automatic; non-automatic.,Chapter5 means of international settlement,reciprocal L/C, t

32、he beneficiary and the applicant in the first L/C are the applicant and the beneficiary in the second L/C. This credit is generally used in a barter transaction. anticipatory L/C or red clause L/C- a credit with a special clause that authorizes the confirming bank, or any other nominated bank, to ma

33、ke advances to the beneficiary before presentation of documents. It is a kind of pre-shipment financing intended to assist the exporter in the production or procurement of the goods sold.,Chapter5 means of international settlement,A Usance Letter of Credit Payable at Sight is a usance L/C issued by

34、the issuing bank, which undertakes to pay the beneficiary at sight, provided the required documents are submitted and the terms of the credit are complied with, while the applicant makes reimbursement to the issuing bank when the tenor is due. It is a kind of finance offered to the applicant and the

35、 interest thereof is normally borne by the applicant.,Letters concerning Letters of Credit,Discrepancies in Documents under Our Letter of Credit No. 4081419 We are in receipt of your captioned payment advice together with the relative documents. We regret to advise you that we are unable to make pay

36、ment for the reason of the following discrepancies in the documents: 1. Net weight is not indicated on the invoice, packing list and inspection certificate; 2. The number of cases shown on the invoice and the bill of lading is not consistent. We have referred the matter to our clients, who state tha

37、t the above discrepancies are unacceptable to them. They, however, express the idea that the payment will be effected upon receipt of relative revised documents and deducting the delay penalty from the invoice value. Please take note of the above and convey the same to the beneficiaries. We are now

38、holding the documents at your disposal pending your instructions.,Chapter5 means of international settlement,A B/L shows only the gross weight (205.85MT) whereas the other documents show only the net weight (200 MT). Is this acceptable? A credit does not allow partial shipments, the beneficiary pres

39、ents 3 sets of B/L, each with a different date of loading on board but indicating the same vessel and the same journey. Should this be considered a partial shipment?,Chapter5 means of international settlement,3. A credit concerns a shipment of Fish/average weight 400/450 grams per piece. The documents presented show some piec