国际结算 6 Letter of credit.ppt

Chapter 6 Letter of Credit The flow chart of documentary credit operation(1) The flow chart of documentary credit operation(2) Parties to documentary credit operation continue continue (Advice for the Advising Bank) Example continue continue continue Exchange 1. Drawer: Beneficiary 2. Drawee: Issuing Bank or its Nominated Bank 3. Payee: Beneficiary or Negotiating Bank（Pay to the Order of XX Bank） 4. Amount：do not exceed the maximum value of LC, usually 100% of invoice value. 如果货款金额超过信用证金额，则应签发两张汇票：一张为跟单信用证汇票，金额为信用证最高金额；另一张汇票为一般汇票，金额为超过信用证金额的余额，对此张汇票，开证行不承担付款责任，但可转递给开证申请人。 5．Date of payment: as per stipulation in LC 6． date of Issue and address：date of presentation or negotiation, not later than the valid date of LC, not early than issue date of other document. 7．Issue terms：including name, LC No. and issue date. “:Drawn under xxx（开证行）Letter of Credit No. xxx （证号）Dated xxx（开证日期）”。 ★ Why a back-to-back credit ? The possible reasons are that some official documents would reveal seller’s name and address under transferable LC, e.g. Certificate of Origin, etc. If so, the best option is back-to-back Credit, and trader could avoid revealing his middleman’s position as transferable LC would do. ★ Invoice,draft and official documents must be substituted. ★ Neutral names(forwarder and custom agent) can be used on B/L, etc. just as transferable LC，but not on official documents. Type of LC: Back-to-Back Credit (7) Type of LC: Standby Credit (1) Difference between Commercial LC and Standby LC Commercial LC Standby LC Documents complicated to evidence delivery of goods / service by beneficiary simple, to evidence apparent non-performance or failure of an obligation of applicant invoice, insurance transport documents, etc. a draft statement of default Regulating rules UCP 500 ISP 98 Applicant Always buyer Buyer or Seller Beneficiary Always seller Seller or Buyer It is LC in form and it