国际结算chapter 8 letter of credit practice.ppt

Chapter 8.Letter of Credit practice Import credit operation Export credit operation Credit as a Means of Finance Risk Protection 8.1 Import Credit Operation 8.1.1 Documentary credit application When the importer applies for the issue of a documentary credit ,he is requesting his bank to make a promise of payment to the supplier. It is in the importer’s interest to formulate the terms and conditions of the credit with care. 8.1 Import Credit Operation Rules to follow: Refer to documents only Be clear and concise Do not specify impossible documentation Elements of Credit Application 8.1 Import Credit Operation 8.1.2 Security arrangement As a precautionary measure, security for opening a credit is usually required from the applicant by the issuing bank. 8.1 Import Credit Operation 8.1.3 Issuance of the credit Reviewing the documentary credit application Completion of the standard documentary issuance form Transmitting the documentary credit 8.1 Import Credit Operation 8.1.4 Amendment of the credit Problems the beneficiary may often find Procedure for amendment of the credit The standard amendment form 8.1 Import Credit Operation 8.1.5 Examination of documentary and dishonor General principle Whatever the letter of credit stipulated must be carried out. General checklist 8.1 Import Credit Operation 8.1.6 Accepting/Paying/Reimbursing Review the documents Discrepant documents and procedures to be taken by the issuing bank Reimbursement under a letter of credit 8.2 Export Credit Operation 8.2.1 Review the credit Upon receiving the letter of credit opened by the overseas correspondent bank, the advising bank should check the signature or the test code of the credit to determine the apparent authenticity of the credit and then advise the credit to the beneficiary. Points to be checked: 8.2 Export Credit Operation 8.2.2 Advising/Confirming After the seller’s bank has check the cred