国际贸易英语信用证LetterofCredit.pptVIP

Unit 4 Execution of the Contract Terms of Payment: L/C※ Collection (D/P and D/A) ※ Remittance ※ Open account Cash in advance Terms of Payment: Collection: 托收 The exporter authorizes the bank to collect the money from the importer. 出口人委托银行向进口人收取货款 D/P: documents against payment 付款交单 D/A：documents against acceptance 承兑交单 Terms of Payment: Remittance 汇付 The buyer himself remits money to the seller through b/c. Mail transfer 信汇 Telegraphic transfer 电汇 Demand transfer 票汇 Note: Only when the transactions are very small and the finance involved is small too. 1. L/C: Definition RESONS OF USING L/C： ： foreign credit reports are often sketchy and do not give the right information. The country in which the foreign importer is located may be in a weak financial position. Importer is reputable, conditions beyond his control prevent him from fulfilling his obligation. 1. L/C: Definition Generally: a documentary letter of credit is defined as instrument by which a bank promises to pay the seller for his goods providing the seller conform exactly to the condition laid down in the L/C 1. L/C: Definition Specifically: it is an arrangement, whereby the buyer requires his bank to establish a credit in favor of the seller. The buyer’s bank undertakes, or authorizes its correspondent bank in the exporter’s country, to pay the exporter a sum of money against presentation of specified shipping documents. 1. L/C: Definition Advantages: Security of payment to the exporter. Enable the buyer to ensure that he received the goods as ordered. L/C: Parties involved : applicant 申请者 The party who applies for the opening of L/C, usually importer. : opening bank 开户行 Which opens the L/C upon the request of the importer. It is responsible for the payment of the goods. L/C: Parties involved : advising bank 通知银行 Usually the correspondent of issuing bank 开证行代理行 The bank in the exporter’s country who informs the exporter that a L/C has been opened in his favor, and transfer the L/C to the