Chp9 Letter of Credit.ppt

1、Chapter NineLetter of Credit,Contents Introduction Language focus Writing guidance Practice Assignment,Letter of Credit -What is L/C? An L/C is the written promise of a bank that acts at the request and on the instructions of the applicant and undertakes to pay the beneficiary the amount specified i

2、n the credit, provided that the terms and conditions of the credit are observed by the beneficiary. (UCP600：Means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honor a complying presentation.指一項(xiàng)不可撤銷的安排，無(wú)論其名稱或描述如

3、何，該項(xiàng)安排構(gòu)成開證行對(duì)相符交單予以承付的確定承諾。),Introduction to Letter of Credit,-Characteristics of a letter of credit The issuing bank has the primary liabilities for payment.The issuing bank undertakes to effect payment. The bank assumes a primary rather than a secondary liability. L/C is a self-sufficient instrumen

4、t.A letter of credit stands independent of the sales contract. It is simply a document transaction.The banks deal with documents and not with goods, services and/or other performances to which the documents may relate.,-Advantages of a letter of credit From the importers point of view deposit a marg

5、in in the bank as a security money obtain shipping documents representing the title of the good after he makes payment stipulate any required terms in the credit to reduce risks From the exporters point of view receive payment against the shipping documents when shipping the goods, no worry about di

6、fficulties in foreign exchange transfer,-Parties to an L/C Applicant or opener申請(qǐng)人 Beneficiary收益人 Issuing / opening Bank Advising bank通知行 Transmitting bank轉(zhuǎn)遞行 Confirming bank保兌行 Negotiating bank議付行 Paying bank付款行 Accepting bank承兌行 Reimbursing bank償付行,Parties in the L/C 1 5 2 8 4 6 3 7,applicant,benef

7、iciary,Issuing bank,Paying bank,advising bank /negotiating,-Contents of a letter of credit Name and address of the issuing bank Type of the credit Name and address of the beneficiary Amount of the credit and its currency Expiry date of the credit and its place to be expired Name and address of the a

8、pplicant L/C number and date of issue Drawer and drawee as well as tenor of the draft,Description, quantity, unit price, specification, price terms, packing, shipping mark, etc. Full details of the documents to be presented commercial invoice（商業(yè)發(fā)票） marine bill of lading（海運(yùn)提單） insurance policy or ins

9、urance certificate（保險(xiǎn)單） certificate of origin（原產(chǎn)地證） inspection certificate（商檢證） customs invoice（海關(guān)發(fā)票） air waybill（航空運(yùn)單） railway consignment note（鐵路運(yùn)單）,Partial shipment permitted /not permitted Transshipment allowed/ not allowed Port of shipment and port of discharge Latest date for shipment and the

10、latest date for presentation of documents Instructions to the advising bank, negotiating bank or paying bank Other special terms and conditions The undertaking clause of the issuing bank The indication “This credit is subject to UCP600”,-Classification of letters of credit According to the attaching

11、 of documents Clean Credit Documentary credit According to the revocability of credit Revocable credit Irrevocable credit According to the adding of confirmation confirmed credit Unconfirmed credit,According to the time of payment Sight credit Usance or time credit According to the method of payment

12、 Payment credit（付款信用證） Available by payment with the issuing bank Available by payment with a third bank Available by payment with the advising bank Deferred payment letter of credit（延期付款信用證） Acceptance letter of credit（承兌信用證） Negotiation credit（議付信用證）,According to credit amount to be used revolving

13、ly Automatic revolving L/C Semi-Automatic revolving L/C Non-Automatic revolving L/C According to whether credit can be transferred or not Transferable credit Non-transferable credit,According to opening of credit relying on another credit Back to back credit（對(duì)背信用證） Counter credit or reciprocal credi

14、t（對(duì)開信用證） According to the combination of letter of credit with other methods of payment Letter of credit in combination with remittance Letter of credit in combination with collection,(1)Agreement to settlement by a letter of credit (2)Application for issuing a letter of credit (3)Opening a letter o

15、f credit (4)Notification, transmission or confirmation of a letter of credit (5) L/C amendment (6)L/C utilization and settlement,Procedure of the L/C,(1)Exporter urges importer to open a L/C; (2)Importer notices seller for the L/C; (3)Amendment of L/C; (4)Dispute arise in dealing with the L/C;,Objec

16、tives in L/C business,Aspects of L/C,Types of L/C Parties of L/C Procedure of Issuing L/C,出口商 （受益人） （債權(quán)人）,進(jìn)口商 （開證申請(qǐng)人） （債務(wù)人）,出口地銀行 通知/議付行,進(jìn)口地銀行 （開證行）,1簽訂貿(mào)易合同,輪船 公司,5發(fā)貨,14貨物,6提單,13提單,8 墊 款 議 付,7交單 要求 議付,4通知 信用 證,12付款 贖單,11通知 贖單,2申請(qǐng) 開證,3開立并寄出信用證,9寄單索匯,10償付墊款,Translation,L/C (an L/C, Ls/C):-To instruct

17、the bank to open (issue) the L/C-This L/C expires on June 15th.-To urge to establish(establishment of) L/C-To check the L/C-To amend (the amendment of ) L/C-To extend (the extension of) L/C-The payment is to be made by confirmed, irrevocable -L/C, -The L/C stipulations are in exact accordance with t

18、he terms set forth in the contract.,Language Focus,上述（貨物）： （ the goods） mentioned above/ the above mentioned （goods）/ the named（goods）/ the captioned （goods）/ the said （goods）/（the goods）in question/ the foregoing (goods) Contract: Keep / observe/ abide by/ bear in mind of a contract Perform/ in per

19、formance of a contract Breach/violate/ in violation of a contract Cancel /rescind a contract,In writing a letter of urging establishment of L/C, please be tactful: In the first letter of urging establishment of L/C, the seller should first state the fact that the goods ordered are ready for shipment

20、 but the relevant L/C has not yet been received and then express his hope that, upon receipt of this letter, the buyer will open the L/C immediately. If the first letter brings no reply, the seller should send out a second one to urge the buyer to open the L/C immediately. The second letter, though

21、still restrained, he may express disappointment and surprise.,Referring to your L/C No. AC-3 covering 2000 tons of steel shipped on 3rd Oct. the L/C was presented to us yesterday. Upon checking, we found the following discrepancies: It is regrettable to find the following discrepancies in your L/C,

22、please amend it. We appreciate your prompt attention.,關(guān)于要求改證的句型:,Thank you for your cooperation in promptly opening L/C. However, the L/C was presented a wrong printed figure, please instruct your opening bank to amend it as soon as possible, so that we can arrange an earlier vessel for shipment.,Pr

23、actices 1. 通常，我方只接受保兌的、不可撤銷的即期信用證。 As a rule, we only accept confirmed irrevocable letter of credit payable by draft at sight. 我們很遺憾的告知貴方，我們直到今天才收到你方有關(guān)上述銷售確認(rèn)書的信用證。 We regret to inform you that we did not receive your L/C covering the above Sales Confirmation till today.,3. 必須在信用證規(guī)定的期間向開證行或保兌行（如果有）或任

24、何其他指定銀行提交單據(jù)。 Presentment of documents must be made to the issuing bank or the confirming bank, if any, or any other nominated bank within the period specified in the credit. 由于供應(yīng)商的延誤，我們不能按信用證規(guī)定在6月30日之前發(fā)貨，故請(qǐng)將信用證的船期和有效期分別延展1個(gè)月。 Owing to some delay on the part of our suppliers, we are not in a position

25、 to ship the goods before June 30 as stipulated in the L/C. Kindly extend the shipping date and credit validity for one month respectively.,1.We are writing to inform you that your L/C No.1234 opened_ Standard Chartered Bank should be amended_: 2.We have received your L/C No.336_ our Sales Confirmat

26、ion No. 4789. We find that the price terms CIF have been mistakenly indicated as CFR. Please refer _ the said contract and _ the amendment_. 3. The time of shipment is approaching. Please _ the L/C as soon as you can. 4. We consider it _ to make it clear that for future transaction CAD can only be a

27、ccepted if the amount _ is below US $ 3,000 or its _ in RMB _ the conversion rate then _.,5. According to the contract the blouses will be packed _ assorted colours. 6. We are glad to inform you that we have opened an irrevocable L/C No. 465 _ your favour _ US $ 4,000 _ Barclays Bank plc, London, _

28、until 3 December. 7. As the amount of the transaction is less than US $ 3,000, we wish to _ payment _ D/A basis. 8. The L/C authorizes you to _ at sight _ the Bank after shipment is made.,9. Goods _ Contract No. 112 were dispatched yesterday. 10. We have written to you _ two occasions in the last tw

29、o months _ the establishment of the relevant L/C. 11. _ examination of the credit, we find transshipment and partial shipments are not allowed. 12. Please _ shipment and validity of the L/C _July and August 20 _ with the amendment _us by June.,Please answer some basic questions concerning L/C: 1.Are

30、 you clear about the definition of L/C? 2.As we are fully aware that L/C has so many advantages, are there any limitations of an L/C? 3.Is the advising bank playing a role of advising only? 4.Are you clear about the procedure of a documentary L/C as well as the basic requirements in each step? 5.Are

31、 you clear about the contents of an L/C?,6.Whats the distinguish between a buyers time L/C and a sellers time L/C? 7.Since we do business with our buyers, If we need to ask for amendment of the L/C, can the buyer and seller make a discussion without the issuing bank directly? How can we do? 8.If we

32、are the seller under payment of L/C, can we present documents against an application for amendment from the buyer without receiving the original amendment advice from the bank?,我們的付款方式，一般是以保兌的，不可撤銷的，以我公司為收益人的，按發(fā)票金額見(jiàn)票即付的信用證支付。該信用證應(yīng)通過(guò)我們認(rèn)可的銀行開出。 Our usual mode of payment is by confirmed, irrevocable le

33、tter of credit, available by draft at sight for the full amount of the invoice value to be established in our favor through a bank acceptable to us.,翻譯,2. 為了你方在你市場(chǎng)推銷我方產(chǎn)品鋪平道路，我方將接受即期付款交單方式付款，以示特別照顧. In order to pave the way for your pushing the sale of our products in your market, we will accept the

34、payment by D/P at sight as a special accommodation.,3. 盡管我方多次提醒，貴方至今尚未開立信用證。 In spite of our numerous reminders, you havent opened the letter of credit so far. 4.我們很遺憾的發(fā)現(xiàn)有些條款與合同中的條款不符。 However, we regret to have found that there are certain clauses which do not conform to those of the contract.,5. 第

35、268號(hào)合約項(xiàng)下的800輛自行車備妥待運(yùn)已久，但至今我們尚未收到你們的有關(guān)信用證。請(qǐng)速開來(lái)，以便裝運(yùn)。 The 800 bicycles under Contract 268 have been ready for shipment for quite some time, but we have not yet received your covering L/C to date. Please open the L/C as soon as possible so that we may effect shipment.,6. 現(xiàn)通知，你方通過(guò)利物浦麥加利銀行開出的有關(guān)我方第187號(hào)售貨確

36、認(rèn)書的信用證第H-15號(hào)剛剛收到。 經(jīng)審閱其中條款，我們遺憾地發(fā)現(xiàn)某些地方與合同規(guī)定的條款不符，其不符之處如下： 1）傭金應(yīng)是3，不是6 2）貨物應(yīng)于10月11月之間裝運(yùn)，不是10月30日或30日之前裝運(yùn) 3）貨物按發(fā)票價(jià)值的110投保保險(xiǎn)，不是150。,We are pleased to inform you that L/C No. H-15 issued by the Chartered Bank of Liverpool for our S/C No. 187 has just been received. However , on examining the clauses cont

37、ained therein, we regretfully find that certain points are not in conformity with the terms stipulated in the contract. The discrepancies are as follows: 1) Commission is 3%, not 6%. 2) Shipment is to be made during Oct./Nov. instead of “on or before 30th October”. 3) Goods should be insured for 110

38、% of the invoice value, not 150%,7. 由于供應(yīng)商的延誤，我們不能按信用證規(guī)定在6月30日之前發(fā)貨，故請(qǐng)將信用證的船期和有效期分別延展1個(gè)月。 Owing to some delay on the part of our suppliers, we are not in a position to ship the goods before June 30 as stipulated in the L/C. Kindly extend the shipping date and credit validity for one month respectively

39、.,8. 收到你方789號(hào)信用證，謝謝。 經(jīng)核對(duì)條款，我們遺憾地發(fā)現(xiàn)你方信用證要求2000年10月裝運(yùn)，但我方合約規(guī)定11月份裝運(yùn)。因此，務(wù)請(qǐng)把裝運(yùn)期和議付期分別展至2000年11月30日和12月15日。 請(qǐng)即辦理展證事宜，并盡早電復(fù)。 We thank you for your L/C No.789, but on checking its clauses we find with regret that your L/C calls for shipment in October,2000, whereas our contract stipulate for November shipm

40、ent. Therefore, it is imperative for your to extend the shipment date to November 30, and negotiation date to December 15,2000 respectively. Please act promptly and let us have your cable reply the soonest possible.,Write a letter in English asking for amendments to the following letter of credit by

41、 checking it with the given contract terms.(20%) A. Copenhagen Bank Date: 4 January 2000 To: Bank of China, Beijing We hereby open our Irrevocable Letter of Credit No.112235 in favor of China Trading Corporation for account of Copenhagen Import Company up to an amount of GBP1,455.00 (Say Pounds Ster

42、ling One Thousand Four Hundred And Fifty-five Only) for 100% of the invoice value relative to the shipment of 150 metric tons of Writing Paper Type 501 at GBP97 per m/t CIF Copenhagen as per your S/C No. PO5476 from Copenhagen to China port. Drafts to be drawn at sight on our bank and accompanied by

43、 the following documents marked “X”:,(X) Commercial Invoice in triplicate (X) Bill of Lading in triplicate made out to our order quoting L/C No. 112235, marked FREIGHT COLLECT (X) One original Marine Insurance Policy or Certificate for All Risks and War Risk, covering 110% of the invoice value, with

44、 claims payable in Copenhagen in the currency of draft(s) Partial shipments and transshipment are prohibited. Shipment must be effected not later than 31 March, 2000. This L/C is valid at our counter until 15 April 2000.,附：PO5476號(hào)合同主要條款： 賣方：中國(guó)貿(mào)易公司 買方：哥本哈根進(jìn)口公司 商品名稱：寫字紙 規(guī)格：501型 數(shù)量：150公噸 單價(jià)：CIF哥本哈根每公噸9

45、7英鎊 總值：14,550英鎊 裝運(yùn)期：2000年3月31日前自中國(guó)港口至哥本哈根 保險(xiǎn)：由賣方按發(fā)票金額的110%保一切險(xiǎn)和戰(zhàn)爭(zhēng)險(xiǎn) 支付：不可撤銷的即期信用證，于裝運(yùn)前1個(gè)月開到賣方，并于上述裝運(yùn)期后15天內(nèi)在中國(guó)議付有效,Dear Sirs, While we thank you for your L/C No.112235, we regret to say that we have found some discrepancies. You are therefore requested to make the following amendments: 1. The amount b

46、oth in figures and in words should respectively read “GBP14,500”(Say Pounds Sterling Fourteen Thousand Five Hundred And Fifty Only); 2. “From Copenhagen to China port” should read “from China port to Copenhagen”; 3. The Bill of Lading should be marked “Freight Prepaid” instead “Freight Collect”;,4.D

47、elete the clause “Partial shipments and transshipment prohibited”; 5. “This L/C is valid at our counter” should be amended to read “This L/C is valid at your counter”; Please confirm the amendments by fax as soon as possible. Yours sincerely,B. LONDON BANK Irrevocable Documentary Credit No.: LST150

48、Date and place of issue: 15th September 2001, London Date and place of expiry: 15th December 2001, London Applicant: London Imp. Co., Ltd. Beneficiary: South Export Corp., Guangzhou Advising bank: Bank of China, Guangzhou Branch Amount:GBP10,000 (Say G Pounds Ten Thousand Only) Partial shipments and

49、 transshipment are prohibited. Shipment from China port to London, latest 30th November 2001.,Credit available against presentation of the following documents and of your draft at sight for 90% of the invoice value: Signed commercial invoice in quadruplicate. Full set of clean on board ocean Bills o

50、f Lading made out to order of London Bank marked freight prepaid. Insurance certificate or policy endorsed in blank for full invoice value plus 10%, covering All Risks and War Risk. Covering 5m/t Fresh Shrimps, first grade, at GBP2000 per m/t CIF London as per Contract No. 245B.,245B號(hào)合同主要條款： 買方： 倫敦食

51、品進(jìn)口有限公司 賣方：廣州南方出口公司 5公噸一級(jí)凍蝦每公噸CIF倫敦2200英鎊，2001年11月30日前中國(guó)港口用直達(dá)輪運(yùn)往倫敦。保險(xiǎn)由賣方按發(fā)票金額的110%投保一切險(xiǎn)和戰(zhàn)爭(zhēng)險(xiǎn)。 憑不可撤銷的即期信用證支付。,Dear Sirs, We have received the above mentioned L/C against our Contract No.245B. after checking the L/C carefully, we have found a number of discrepancies and would request you to make the fo

52、llowing amendments: 1.The place of expiry should be China instead of London. 2.The correct name of the applicant is “London Food Imp. Co. Ltd”, not “London Imp. Co., Ltd.” 3.Please increase the unit price to GBP2200 per m/t and the total amount both in figure and in words to “GBP11000”(Say Sterling

53、Pounds Eleven Thousand Only).,4.Amend the clause “Partial shipments and transshipment are prohibited.” to read “Partial shipments are allowed. Transshipment is prohibited. 5.“your draft at sight for 90% of the invoice value” should be amended to read “your draft at sight for 100% of the invoice valu

54、e”. 6.The contracted goods is “Frozen Shrimps”, not “Fresh Shrimps”. We hope you will send us your amendment advice without any delay so as to enable us effect shipment in time. Yours faithfully,C. HUA CHIAO COMMERCIAL BANK LTD. 88-89 Des Voeux Road, Central, Hong Kong Irrevocable Documentary Credit No. F07567 Date and place of issue: September 28, 1995 Hong Kong Date and place of expire: November 30, 1995Hongkong Applicant: J. Brown & Co., 175 Queens Way, Hong Kong Beneficiary: Liaoning Textiles I/E Cor