進出口實務(wù)7.

1、Chapter SevenChapter SevenInternational PaymentsInternational Payments2Learning objectives l After learning this chapter you will be able to:identify the key issues in handling international payments understand the use of paying instruments, especially the bill of exchangedefine the three basic term

2、s of payment compare and contrast the characteristics of terms of paymentidentify the major parties involved in different payment methodsstate the stages involved in using a letter of creditexplain the variations of documentary creditestablish a basic understanding of export financing37.1 Issues In

3、ConcernWho will bear the credit risk?In what currency the payment would be made?What are the costs of each method of payment?What might be the political or legal risks?4Determinant Factors of PaymentNature of merchandiseIndustry norms/practicesDistance between buyer and sellerPotential currency fluc

4、tuationPolitical & economic stabilityRelationship between buyer and seller5International Paymentl Credit instrumentsBill of Exchange/ Draft 匯票Promissory Note 本票Check 支票l Terms of paymentRemittance 匯付Collection 托收Letter of Credit 信用證6l Differences between payment instruments and payment termspaym

5、ent instruments - Financial documents which can be used in different manners serving specific paying purposepayment terms - A series of activities or operations facilitating the movement of funds from one destination to the otherInternational Payment77.2 Paying Instrument : Draft / Bill of Exchange

6、匯票lDefinition: A draft is an unconditional written order addressed by one person to another, singed by the person giving it, requiring the addressed person to pay at sight or at a fixed future time the sum of money clearly specified, to the payee or to his order. 8Three parties concernedl A: The dra

7、wer Normally the exporter Fill in the content of a bill of exchange and sign his name l B: The drawee / payer The party to whom B/E is addressed If sight draft, make payment If time draft, accept the draft and pay when the amount is due Under L/C the bank Under collection the importerl C: The payee/

8、beneficiary The party who is supposed to receive the payment usually the exporter or the bank at which the drawer has his account Present B/E to the payer for payment or acceptance9Three parties concerned10The content of a B/E (Specimen 7.1-7.4)l The words of “Bill of Exchange” or “Draft”l The date

9、and place of issuance of draftl A specific sum which shall be exactly the same with that indicated on export invoicel The tenor, that is, the period of credit If not stipulated, regarded as Sight draftl The name of the draweel The name and signature of the drawerl The name of the payee or order or b

10、earerl The endorsement of the payee when applicable 11Procedure of a B/E practicelIssuance 出票 The act of the drawer issuing a draft to the draweelPresentation 示票The act of the payee or the bearer presenting the draft to the payer for payment or acceptanceTwo results: being honored or dishonored12Pro

11、cedure of a B/E practicelPayment 付款- Draft honored by paymentFor sight draft, the payer pays to the payee a specified sum of money indicated on the draft at presentation.13Procedure of a B/E practicelAcceptance 承兌 - Draft honored by acceptanceThe act of the payer making acceptance by cross-signing o

12、n the face of the bill and promising to pay on or before the expiry date of a time/usance draftAn accepted bill shall be returned to the presenting party 14Procedure of a B/E practicel Discount 貼現(xiàn)An accepted draft is negotiableIf the holder wants to get money before mature date, the draft can be dis

13、counted by a discounting bank at the prevailing discount rateIt is the sale of an accepted time bill for less than its face value before its maturity date. l Endorsement 背書The act of the transferor in transferring a draft to the transferee by making a signature on the back of the draft15Procedure of

14、 a B/E practicel Dishonor 拒付The refusal of the drawee or payer to make payment or acceptance of a duly presented draftHolder can recourse the drawer for paymentTo exercise his right of recourse, the bill holder needs to present a Certificate of Protest (拒付證明）from a notary public Draft with the word

15、“without recourse” can hardly be discounted16Types of draftlClean draft vs. documentary draft光票與跟單匯票lBankers Draft vs. Commercial draft 銀行匯票與商業(yè)匯票lSight draft vs. time draft即期匯票與遠期匯票17Clean Draft vs. Documentary DraftlClean Draft is the one which is used without the company of any commercial document

16、sEg. Bankers DraftlDocumentary Draft is the one that calls for the attachment of relevant commercial documents. Popular in international trade Eg. Commercial Draft18Bankers Draft vs. Commercial Draftl Bankers Draft is an order from one bank (the drawer) to another (the drawee) with whom it normally

17、maintains a correspondent relationship, to pay to a named person (the payee) a specified sum of money on demand.l Commercial Draft is an order from a firm or individual (the drawer) to another firm, individual or bank (the drawee) to pay to a named person (the payee) a specified sum of money on dema

18、nd.19Sight Draft vs. Time Draft l Sight draft is the one that is payable on sight of the documents of title or on first presentation of the title documents. Normally used when the exporter wishes to retain title to the goods until it reaches its destination and payment is made. Bearing the wording a

19、s “at sight of this bill of exchange, pay to” Not bank credit, therefore higher risksl Time draft (usance draft, term draft) is the one that is payable in a specified number of days after sight, after the date of issuance or acceptance, or at a fixed future time. Bearing the wording as “at 30/45/60/

20、90 days sight of this bill of exchange, pay to .” In case of dishonor, the exporter or the foreign bank can sue for the money on the basis of documentary draft alone207.3.1 RemittancelDefinitionAfter conclusion of a business transaction, the debtor instructs his bank to send (remit) the transaction

21、amount to his creditor in export country. It is the debtor who takes initiative to send the payable amount to his creditor.21Procedure of remittance and parties involved l First, the remitter (the importer) applies for a remittance. To do so the importer needs to have sufficient funds in his account

22、 in the bank. l The remitting bank either issues a remittance instruction to, or draws a draft on, one of its overseas branches or correspondent banks in the exporters country. l When the overseas branch or correspondent bank receives the remittance instruction, it becomes the paying bank and will c

23、redit the payees (the exporters) account with the relevant amount accordingly. Procedure of remittance and parties involved l In the event of using a demand draft, the remitting bank will give the draft to the importer and the importer will then provide the draft to the exporter by his own way. Once

24、 the exporter receives the draft, he can present it to the nominated paying bank for the withdrawal of payment. 2223Procedure of remittance The importer/ the remitterThe exporter/ the remitteeThe remitting bankThe paying bank 1. Submit applicationa2. Issue the remittance instruction (telex, SWIFT)b2

25、. Draw a draft on paying bank (normally a demand draft)a3/b5. Make paymentb4. Present the draftb3. Surrender the draft24Types of remittancel Three types of remittanceMail transfer (M/T) 信匯lby mailllower charges, but slowTelegraphic transfer (T/T) 電匯lby telecommunication system (telex or telegraph or

26、 swift). lFaster, safer, but more expensiveBankers Demand Draft (D/D) 票匯lImp. buys a check from a bank in imp. country and sends to the exp. lLowest charge, slowest lTransferable 257.3.2 Collection 托收l Definitionan arrangement whereby the seller draws a draft on the buyer and authorizes its bank to

27、collect. A means of payment ensuring that the goods are handed over to the buyer only when he pays the amount shown on a bill or when he accepts the bill and commits to pay by a specified date.l Parties involvedDrawer / exporter/principal 委托人Drawee / importer / payer 付款人Remitting bank（托收行）in exporti

28、ng country Collecting bank （代收行）in the importing country 26Procedure of Documentary Collectionl Exporter collecting shipping documents;l Exporter drawing a B/E on importer;l Exporter submitting all documents with complete instructions for collection to a local bank (remitting bank) and instructing t

29、he bank to effect collection for him;l Remitting bank forwarding B/E with other documents to its correspondent bank (collecting bank) in the importers country passing on exactly the instructions received from exporterl Collecting bank/presenting bank presenting bill and documents to importer;l Colle

30、cting bank/presenting bank releasing documents to the importer upon receipt of payments or acceptance from importer;l Collecting bank remitting payments to remitting bank;l Remitting bank crediting payment to principal (exporter)s account. 27Procedure of Documentary Collection and Parties InvolvedDr

31、awer(seller)Remitting bank(drawers bank)Drawee(buyer)Collecting bank(drawees bank)1. Contract2. Goods 3. Application + Documents +Draft 4. Advice of terms of collection + documents + draft 5. Advise of collection 9. Payment8. Payment6. Payment/Acceptance7. Documents released28Types of Collectionl Do

32、cumentary CollectionDocuments against Payment (D/P) 付款交單lthe collecting bank releases the documents to the importer only upon full and immediate cash payment. Documents against Acceptance (D/A) 承兌交單lIf a period of credit to the importer is agreed upon, a usance bill will be used lThe documents will

33、be released against acceptance by the importer. l Clean Collection 光票托收 without the company of commercial documents297.3.3 Letter of Creditl DefinitionThe written promise of a bank, undertaken on behalf of a buyer, to pay a seller the amount specified in the credit provided the seller complies with

34、the terms and conditions set forth in the creditl FeaturesBank creditlSecurity of payment to exporterlEnsure importer receive goods as ordered (payment released only if title documents are received)Care only for documents, not for actual transaction of the goods 30Content of L/C (See Specimen7.9)l N

35、ame & address of opening bankl Date of issuance of L/Cl Number of L/Cl Credit amountl Description of cargol Type of L/Cl Name & address of the parties concernedl Documents providedl Details of shipmentl Validity period for L/Cl Settlement instructions l Fees clausesl Special clause, if any31

36、Procedure of L/Cl After signing the sales contract with the seller, the buyer (the applicant) will present to his local bank (the issuing bank) the contract, an application letter and other documents required for the opening of an L/C. l The issuing bank then issues the letter of credit to one of it

37、s branches or correspondent banks in the sellers country (the advising bank) if the applicant complies with all the conditions required. l The advising bank will notify the seller of the arrival of the credit. l Once paying an advising fee, the seller (the beneficiary) receives the original of the d

38、ocumentary credit. He has to examine the credit closely before he accepts it. 32Issuing Bank/ Buyers BankSeller/ BeneficiaryL/C ApplicationBuyer/Applicant Advising BankLetter of CreditL/C AdviceContract (1)(2)(3)(4)Opening an L/C 33Methods of settlement l Settlement by sight paymentl Settlement by d

39、eferred paymentl Settlement by acceptancel Settlement by negotiation34Settlement by Sight Payment Docs released Buyer/Applicant Seller/ BeneficiaryIssuing Bank/ Buyer s BankPresenting BankDocsDocsGoods (5)(10)(7)(6)Payment (9)Payment (8)Payment (11)35Settlement by Deferred Payment Docs released Buye

40、r/Applicant Seller/ BeneficiaryIssuing Bank/ Buyer s BankPresenting BankDocsDocsGoods (5)(8)(7)(6)Payment (10)Payment (9)Payment (11)36Settlement by Acceptance DocsBuyer/Applicant Seller/ BeneficiaryIssuing Bank/ Buyer s BankPresenting BankDraft & DocsDraft & DocsGoods (5)(7)(6)Payment (11)P

41、ayment (8)Payment (9)Draft drawn onAcceptance notice(12)(10)37Settlement by Negotiation Docs ReleasedBuyer/Applicant Seller/ BeneficiaryIssuing Bank/ Buyer s BankNegotiating BankDraft & DocsDraft & DocsGoods (5)(11)(8)(6)Payment /Acceptance(7)Payment /Acceptance(9)Payment (10)Draft drawn on3

42、8Types of Letter of Credit 1. Revocable vs. Irrevocable CreditlRevocable credit 可撤銷的信用證An L/C which can be amended or cancelled by the issuing bank without prior notice of the beneficiary.unfavorable to the exporter therefore not widely employed The cancellation can be made before the date the L/C e

43、xpires.Otherwise, the opening bank shall reimburse the negotiation bank or payment bank if the payment is effected by them before receipt of the notice of cancellation.lIrrevocable credit 不可撤銷的信用證An L/C which cannot be cancelled or amended without the agreement of the beneficiary (the exporter) and

44、all other parties.Gives assurance of payment, but less flexible to change credit termlAccording to UCP600, if the wording of revocable or irrevocable not found on the credit, this credit shall be deemed as irrevocable39Types of Letter of Credit 2. Confirmed vs. Unconfirmed CreditlConfirmed credit 已保

45、兌信用證An L/C that a bank, other than the issuing bank, undertakes to honor the credit issued by adding its confirmationConfirming bank signs under the statement, “We hereby add our confirmation to this credit”. Confirming bank will be liable for payment in case of default by the issuing bank.It should

46、 be an irrevocable credit. Double insurance of payment lUnconfirmed credit 未保兌信用證An L/C which does not indicate the undertaking to effect payment by any other bank, except the issuing bank40Types of Letter of Credit 3. Sight vs. Usance CreditlSight credit 即期信用證An L/C under which the opening bank wil

47、l immediately effect payment upon presentation of all documents as long as the documents are in accordance with terms in credit.lUsance/term credit 遠期信用證An L/C which indicates that payment will not be made at the date of receipt of documents until the maturity date specified in the credit provided t

48、hat all the documents presented are in accordance with the credit.41Types of Letter of Credit 4. Straight vs. Open CreditlStraight credit 限制議付信用證An L/C that is available to the beneficiary by presentation of documents to the issuing bank. Beneficiary presenting documents directly to the issuing bank

49、 rather than to any other bankIn practice, the beneficiary normally presents documents to a nominated local bank known as negotiation bank lOpen credit 自由議付信用證Also free negotiable creditThe issuing bank commits to honoring drafts and documents held by third parties as long as the documents comply wi

50、th the credit.42Types of Letter of Credit5. Transferable vs. Non-transferable creditlTransferrable credit 可轉(zhuǎn)讓信用證Under which the beneficiary is entitled to instruct the advising bank to transfer his rights, in whole or in part, to another party.Used especially when the exporter is not the direct manu

51、facturer but a middle merchant Transferor the prime/first beneficiary; transferee the second beneficiaryA credit must state clearly that it is “transferable”A transferable L/C can be transferred once only, namely, from first beneficiary to second beneficiary(ies).Where there are several second benef

52、iciaries involved, the credit must permit partial shipments.lNon-transferable credit 不可轉(zhuǎn)讓信用證An L/C under which the beneficiary is not entitled to transfer his rights, in whole or in part, to another party.43Types of Letter of Credit6. Revolving Credit 可循環(huán)信用證l A revolving credit obliges the issuing b

53、ank to restore the credit to the original amount after it has been utilized, without the need for amendment. l Used especially for ongoing transactions. 44Types of Letter of Credit7. Reciprocal Credit 對開信用證l A reciprocal credit is a counter credit under which the applicant of a first credit becomes

54、the beneficiary of the second reciprocal credit, while the beneficiary of the first credit becomes the applicant of the second reciprocal credit.l It is often used in barter transactions, trade of processing incoming materials, counter trade or compensation trade. 45Types of Letter of Credit8. Back

55、to Back Credit 背對背信用證l Credit payment arrangement in which a documentary credit is used as the “backup” for issuing a new creditl Mainly used by middlepersonsl The first credit must be irrevocable and non-transferable 46Types of Letter of Credit9. Red Clause/Anticipatory Credit 紅條款/預(yù)支信用證lAn anticipa

56、tory credit authorizes the advising bank to make advances to the beneficiary before his presentation of documents required.lThe applicant is bearing the liability of repayment in case of the beneficiarys failure of presenting documents for settlement. 47Types of Letter of Credit10. Standby Credit 備用

57、信用證l A standby credit is a clean credit that guarantees the payment for a possible unfulfilled obligation on the part of the applicant.l It is similar to a Letter of Guarantee. 48Letter of Creditl Characteristics Its content should comply with the sales contract, but once opened the credit will exis

58、t independent from the contract.It provides a high level of protection and security to both buyers and sellers engaged in international trade. lThe 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 met.lThe buyer is

59、assured that payment will be released to the seller only after the bank has received the title documents called for in the credit.Banks only deal with documents, not involved in any detail of the actual transaction. 49Letter of CreditlGoverned byUniform Customs and Practice for Documentary Credits 6

60、00 (UCP600)507.7 Letter of Guarantee (L/G)lDefinitionLetter of Guarantee is an irrevocable undertaking by which the issuer holds itself financially liable for the consequences of non-performance of the obligations by a third party towards the beneficiary.51l Both seller and buyer can be the beneficiary of an L/Gl Two kinds o