《termsofpayment国际贸易支付方式.ppt

Learning objectives To learn the basic three instruments of payment – bill of exchange, promissory note and cheque. To learn the modes of payment in int’l trade – remittance, collection, letter of credit. To be aware of the payment process under different payment methods. To learn the payment clause in a sales contract. Terms of Payment Terms of payment define the conditions under which the seller and buyer agree to settle the financial amount of the sales contract. It includes: Method of payment; Amount; Place and date of payment; Cost relating to the payment. Financial instruments In int’l trade, currencies and bills are two major means of payment. It is difficult for the buyer to pay and the seller to deliver the goods face to face. They use documents to fulfill their respective obligations, i.e., the seller delivers the goods and is paid against the documents, meanwhile the buyer makes payment and get the goods against the documents. Banks are intermediaries, and bills are instruments of payment. Instruments of Int’l Settlement 国际结算工具 1. Bill of exchange/draft 汇票 Bill of Exchange 汇票 A written, dated, and signed three-party instrument containing an unconditional order by a drawer（出票人） that directs a drawee（受票人/付款人） to pay a definite sum of money to or to order of a specified party (payee)（受款人） at a specified future date. Also known as a draft. 是出票人签发的，委托付款人在见票时或者在将来可以确定的时间或固定时间无条件支付确定的金额给收款人或者持票人的票据。 Parties of the bill of exchange Drawer - The party who writes the order and gives directions to another person to make a specific payment of money. He is usually the exporter. Drawee/payer - The party to whom the order is addressed and who is to pay the money. He is usually the importer. - He may honor or dishonor the bill. Payee - The party who is to receive the payment. - If the bill is transferred, he is called the original holder/transferor. Examples of Sight Draft见票即付的汇票格式 Procedure of using bills of exchange Issue（出票）: it comp