Unit10TermsofPayment1.ppt

Unit Ten Terms of Payment Brief Introduction The mode of payment includes Remittance (T/T, M/T, D/D), Collection (D/P, D/A) and L/C. L/C is the most frequently adopted mode of payment in China’s foreign trade. Introduction 付款方式 Introduction Terms of Payment Part One Payment (I). Introduction Payment plays an important role in foreign trade. It is often complicated. The mode of payment for each transaction is to be agreed upon between the two trading parties at the time of placing an order. The most often adopted mode of payment in our foreign trade is the letter of credit (abbreviated to L/C). 1.1. The L/C 1.1.1. The Definition of an L/C A letter of credit is a documentary issued by your bank that essentially acts as an irrevocable guarantee of payment to a beneficiary or a seller. It is reliable and safe for both sellers and buyers. An L/C asks the bank to perform the obligation of payment firstly. The bank guarantee that sellers can quickly and safely get payment and buyers can punctually receive shipment documents to get goods. As long as the document conforms to the stipulations of the L/C, the bank has to pay to the seller, although the buyer doesn’t or can’t pay. [信用证是由一家银行（开征行）依照申请人（客户）的要求和指示或以其自身的名义，在符合L/C 条款的条件下凭规定的单据向受益人付款的书面保证文件。] 1.1.2. The parties about a documentary L/C  the applicant(opener/importer/buyer)(申请人): 向银行申请开立信用证的人 the opening/issuing bank(开证行): 接受开证申请人的委托开立信用证的银行,承担保证付款的责任。 the advising/notifying bank(通知行): 指受开证行的委托，将信用证转交出口人的银行，它只证明信用证的真实性，不承担其他义务。 the confirming bank(保兑行): the paying/drawee bank(汇入行): 信用证上指定付款的银行，多数情况下，付款行就是开证行。 the negotiating bank(议付行): 指愿意买入受益人交来跟单汇票的银行。 the accepting bank(承兑行): the transmitting bank (转递行): the remitting bank(汇出行): the beneficiary(exporter/seller)(受益人): 指信用证上所指定的有权使用该证的人，即出口人或实际供货人。 the exporters/ importers bank (出口/进口方银行)? the sellers/ buyers bank (卖方/买方银行) 1.1.3. The general procedures for issuing an L/C a. The buyer and the seller concl