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项目十一 Terms of Payment

付 款

Objectives

• understand the three main methods of payment, esp. L/C

• know how to urge the establishment of an L/C• know how to write an advice of the

establishment of an L/c• know how to make a request for extending an

L/C• know how to request the amendment of an

L/C

Payment

• Payment plays an important role in the course of business.

• International payments are financial activities conducted among different countries.

• Payment in international trade is much more complicated than that in domestic trade.

Three Main Methods of Payment

1 1

2 2

3 3

•Remittance 汇付

•Letter of Credit 信用证

•Collection 托收

• Terms of Payment

Remittance

Collection L/C

Mail transfer

Demand draft

Telegraphic

transfer

Confirmed L/C

Irrevocable L/C

Documentary L/C

Documents against Acceptance

Documents against Payment

D/P at sight

D/P after sight

Forms of Remittance 汇付形式

• Mail Transfer (M/T) 信汇

• Telegraphic Transfer (T/T)电汇

• Demand Draft (D/D) 票汇

Types of Remittance 汇付种类

• Payment in Advance 预付货款

• Payment after Arrival of the Goods 货到付款

• Cash against Documents (CAD) 凭单付现

• Remittance against Documents 凭单付汇

Collection

• D/P

D/P at sight D/P after sight

• D/A

(documents against payment 付款交单）

(documents against acceptance 承兑交单）

Letter of Credit

The most generally used methods of payment in foreign trade

Types of credit

Basic contents of L/C

Settlement Procedures of L/C

跟单信用证（跟单信用证（ Documentary CreditDocumentary Credit ）是）是开证行开证行凭跟单汇票凭跟单汇票或或单纯凭单据单纯凭单据付款的信付款的信用证。用证。单据是指代表货物或证明货物已交运的运单据是指代表货物或证明货物已交运的运输单据。输单据。如提单、铁路运单、航空运单等如提单、铁路运单、航空运单等。通常还包括发票、保险单等商业单和国。通常还包括发票、保险单等商业单和国际贸易中一般使用跟单信用证。际贸易中一般使用跟单信用证。

光票信用证（光票信用证（ Clean CreditClean Credit ）是）是开证开证行仅凭不附单据的汇票付款的信用证行仅凭不附单据的汇票付款的信用证，，汇票如附有不包括汇票如附有不包括运输单据运输单据的发票、货的发票、货物清单等，仍属光票。物清单等，仍属光票。

根据是否要求受益人提交单据分为跟单信用证根据是否要求受益人提交单据分为跟单信用证(Documentary Credit) (Documentary Credit) 和光票信用证和光票信用证 (Clean Credit)

不可撤销信用证是指信用证一经开出，不可撤销信用证是指信用证一经开出，在有在有效期内效期内，，未经受益人、开证人及保兑行（如未经受益人、开证人及保兑行（如果有）的同意，开证行不得片面修改或撤销果有）的同意，开证行不得片面修改或撤销信用证的规定和承诺信用证的规定和承诺。。信用证上未注明可否撤销，即为不可撤销信信用证上未注明可否撤销，即为不可撤销信用证。国际贸易中使用的信用证，基本上是用证。国际贸易中使用的信用证，基本上是不可撤销信用证。不可撤销信用证。

可撤销信用证是指开证行有权随时予以可撤销信用证是指开证行有权随时予以修改或撤销，但若受益人已按信用证规修改或撤销，但若受益人已按信用证规定得到议付、承兑或延期付款保证，则定得到议付、承兑或延期付款保证，则银行的撤销或修改无效银行的撤销或修改无效

根据开证行的责任分为不可撤销信用证和可撤销信用证根据开证行的责任分为不可撤销信用证和可撤销信用证

保兑信用证（保兑信用证（ Confirmed Letter of CreditConfirmed Letter of Credit）是指开证行开出的信用证，）是指开证行开出的信用证，由另一家银行由另一家银行保证对符合信用证条款规定的单据履行付款保证对符合信用证条款规定的单据履行付款义务。义务。对信用证加保兑的银行称为保兑行，对信用证加保兑的银行称为保兑行，保兑行承担与开证行相同的第一性付款责任保兑行承担与开证行相同的第一性付款责任。。

当开证银行资信好和成交金额不大时，一般都使用不保兑的信用证。我国银行不开具要求另一家银行保兑的信用证，故我国进口企业通常不接受开立保兑信用证的要求。

根据是否有另一家银行为信用证加保，可分为保兑信用根据是否有另一家银行为信用证加保，可分为保兑信用证和不保兑信用证证和不保兑信用证

Basic Contents of a Letter of Credit

• The L/C has no fixed and unified style,

but its basic contents are the same,

including the following components:

(1) Illustration of the L/C itself, including the L/C’s kind, nature, number, issuing date, validity, basic parties concerned, amount, etc.;

(2) Request for the goods, including the goods’ name, quality, quantity, specifications, packing, price, etc.;

(3) Request for transport, including the shipment date, shipment place/port and destination place/port, transport method, allowing or prohibiting transshipment or partial shipment etc.;

(4) Request for documents, including three kinds of documents as follows: ① Goods documents, including commercial invoice, packing list, certificate of origin, inspection certificate, etc.; ② Transport documents, namely bill of lading; ③ Insurance documents, namely insurance policy.

Besides, other documents may be required, such as sample certificate and copy of shipping advice.

(5) Special clauses, making different stipulations according to the change of political and trade conditions in importing countries and the needs of a specific transaction.

(6) The obligation sentences made by the issuing bank on guaranteeing to make payment provided the documents or the draft presented by the beneficiary are in conformity with the terms of the L/C.

Letters Concerning Payment and L/C

• Usually, a letter on payment and L/C concerns one of the following topics:

(1) The seller urges the buyer to rush the opening of the L/C.

(2) The buyer advises the seller of the establishment of the L/C.

(3) The seller asks for the amendment of the L/C.(4) The seller asks the buyer to extend the L/C.

Urging Establishment of L/C

• There are circumstances where the buyer fails to establish the L/C, or the L/C does not reach the seller in time; then the seller has to send a letter to urge the buyer to expedite the L/C or to ascertain its whereabouts.

This kind of letter should be written according to the following steps:

(1) Remind your receiver that you haven’t received the L/C and indicate the current situation;

(2) State clearly your request that the receiver should open the L/C without delay;

(3) Express expectations of the receiver’s cooperation and an early reply.

To maintain the good relations with the receiver, the tone of the letter should be serious but courteous.

Advising Establishment of an L/C

As soon as the buyer applies to the bank to open an L/C, he should write a letter to inform the seller so that the seller can begin to arrange the shipment.

Such a letter is straightforward and routine, usually making clear the details such as the type of L/C, credit amount, the issuing bank, the validity of the L/C and documents for negotiation.

Letters on Amendment to an L/COn receiving the relevant L/C, the seller should

first of all make a thorough examination of the L/C.

Check whether the clauses in L/C are in exact accordance with the terms stated in S/C

A minor difference between the L/C and S/C, if not discovered or duly amended, may result in the seller’s failure to get the payment.

Conditions of Amendment

The seller should ask the buyer to amend the L/C in the following cases:

Differences between L/C and S/C

Unforeseen special clauses to which the seller does not agree in the L/C

Unexpected situations with regard to supply, shipping, etc. arise

The letter of this nature should cover the following steps:

(1) Express appreciation to the receiver for opening the L/C;

(2) State your suggestions to amend the L/C and explain the reasons;

(3) Thank the receiver for cooperation and look forward to receiving the amended L/C.

Letters on Extension of L/C

• The seller will have to ask for extension of the expiry date as well as the date of shipment of the L/C in the following cases:

The seller may fail to get the goods ready for shipment in time.

The buyer may request that the shipment be postponed for one reason or another

The letter of this nature should cover the following steps:

(1) Express appreciation to the receiver for opening the L/C;

(2) Give the reasons why you have to ask for the extension of the L/C;

(3) Put forwad the detailed requirements of shipment and validity extension;

(4) Thank the receiver for cooperation and look forward to receiving the amended L/C.