International Payments and Settlements _ Documentation for Settlements

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					International Settlements


         Business School of
      Shanghai Dianji University
Text books
《国际结算 ----国际贸易融资支付方法》
   赵薇编著 东南大学出版社 2005年


Reference books
   《国际结算》 贺瑛主编 复旦大学出版社 2006年
   《国际结算》 张东祥主编 武汉大学出版社 2004年
   Incoterms 2004: 国际贸易术语解释通则
   UCP 600: 跟单信用证统一惯例
CHAPTER ONE
Introduction
 1.What shall we learn in this
          course?
A.    Negotiable Instruments
     1. Bill of Exchange
     2. Promissory Note
     3. Cheque
     The functions and acts of the Negotiable
      instruments will be discussed, and the
      relative laws concerning the financial will be
      briefly introduced.
B. Payment Techniques:
1. by remittance:
i) by T/T          ii) by M/T       iii) by D/D
2. by collection:
i) by D/P at sight
ii) by D/P after sight
iii) by D/A
3. by L/C
4. others: factoring, Forfeiting, L/G, etc.
    Since payment by L/C is the most important way
     used in the international trade, discussion would
     be stressed on L/C as well as the UCP 600.
C. Documentation
1. Financial Documents:
  i) B/ E         ii) Cheque iii) Promissory Note
2. Commercial Documents
  i) Invoice: Commercial INV, Customs INV…
  ii)Transport Documents: B/L, AWB, MTD…
 iii) Insurance Documents
4.Public Certificate: I/C, E/L, C/O,
5. Other Documents:
  Packing List, BENE Certificate,etc.
2. How shall we learn for this
          lesson?
to get the principal knowledge through the lectures.
to consolidate the knowledge through self-taught
learning with supplementary materials, and by
doing exercises after lesson.
to have discussions on the subject between
students, or between students and the teacher in
the lesson or after the lesson.
to have an extensive reading on the reference
materials in addition to the textbook,
3. The supplementary materials will
 include:
①Samples and demonstrations of documentation
 Students are requested to observe carefully the
 given documents and to see how each entry is
 filled.
②UCP 600
  The English version is given and students are
 requested to read carefully the clauses therein.
③Exercise for understanding UCP 600
 Statements are given and students are requested to
 judge whether they are true or false.
     4. Further References
跟单信用证统一惯例,国际商会第600号出版物,
解释与应用. 上海《中国对外经济贸易丛书》编撰
委员会.2007年7月 (北京东路47号外贸职大内)
Any other books concerning international
payments and settlements, and concerning
the documentation for international trade or
settlements
www.moftec.gov.cn; www.chinafiw.com;
www.aqsiq.gov.cn; www.pbc.gov.cn;
中华人民共和国票据法
 5. How to take down lecture notes
① Catch the key words first if you cannot catch all.
② Try to use symbols for frequently used nouns.
 e.g. E          Exporter;     I         Importer
 or, try to use simplified words for frequently used
 words, e.g.
 BK       bank;          BENE         beneficiary;
 DOC        document; RCPT             receipt;
 ACPT accept; UOS           unless otherwise
 specified
③Try to use phonetic symbols when you cannot
 catch a word.
④Take ACDG to your own personal requirements
⑤Re-sort notes after lesson
6. What the international payments
    and settlements deal with?
⑪ Trade payments: The importer makes
 payment to the exporter for the imported
 goods;
⑫ Payments for the services rendered: by
 those who accepted the services, for
 example, insurance premium, freight,
 postage, or bank commissions,etc;
                     to be continued
⑬ Payments between governments:
military aid, government loans, or
disaster relief, etc;
⑭ Others: overseas remittances,
educational expenses, or inheritance,
etc.
⑮ Transfer of funds among countries:
international investment, foreign
company’s loans, bonds, etc;
       7. Evolution of international
        payments and settlements
⑪ From cash settlements to non-cash settlements:
                       2 goats               2 goats
  A 2 goats B      A                 B   A              B
                       1 gold coin           a cheque
    1 pig
  on a barter basis Cash settlement      non-cash settlement

⑫ From direct payment to payment through a financial
 intermediary:
     payment          payment
  B          A    B              Bank        A
⑬ From payment under simple price terms to payment
 under more complex price terms:
 C.O.D, C.W.O,etc          FOB, CFR,CIF, FCA,etc
    8. Basic points for attention
⑪Selection on currencies:
a) Clearing currency under bilateral government
  payment agreement
b) Internationally convertible currency
c) „hard currency‟ and/or „soft currency‟
⑫ Time of payment: in advance, against
 documents, on delivery, or open account,etc.
⑬ Method of payment: by remittance, by
 collection, by L/C, by bank‟s guarantee, etc
⑭ Foreign exchange control regulations
⑮ Shipping documents.
     9. Characteristics of modern
international payments & settlements

 ⑪ Becoming much more facilitated with the
  development of telecommunications.
 ⑫ More vehicle currencies are involved.
 ⑬ Lending is often combined with payment.
 ⑭ The efficiency of foreign exchange banks
  becomes higher so as to enable themselves
  to win in the keen competition.
   CHAPTER TWO

Negotiable Instruments
       (票据)

2.1 General introduction
   I. Characteristics of negotiable
                instrument
  A negotiable instrument can be transferred
without informing the drawer or drawee by
delivery, with or without endorsement.
  A person to whom a negotiable instrument
is negotiated has the full right and legal title
to the instrument.
  A transferee in good faith and for value
has the legal right to the ownership and
possession of the instrument, even though
his transferor had title defect or no title at all.
 II. Functions of a negotiable
          instrument
  As a means of payments to avoid the risks of
wrong counting, loss or robbery during
transportation for payment in cash.
  As a credit instrument to get loans from the
bank or to discount it at the money market.
  As a negotiable instrument. All rights and
property embodied in the instrument can pass
free from the transferor to the transferee,
provided the latter takes it in good faith and for
value.
     III. Parties to a negotiable
              instrument
⑪ Drawer; ⑫ Drawee;           ⑬ Payee;
⑭ Acceptor;
⑮ Endorser (Transferor);
⑯ Endorsee (Transferee);
⑰ Acceptor for honour;       ⑱ Guarantor;
⑲ Holder;
⑳ Holder for value;
⑴ Holder in due course (Bona fide holder).
2.2 Bill of Exchange
Laws on Negotiable Instruments
 Most countries have their own laws
governing the negotiable instruments.
British Bill of Exchange Act (BBEA)
  Convention Providing a Uniform Law for
Bill of Exchange and Promissory Notes,
1930, (ULB); Convention Providing a
Uniform Law for Cheques, 1931,(ULC)
  Law of the People‟s Republic of China on
the negotiable instruments, 1995
 To solve the existing conflict among those laws,
 the FLWG were stipulated in the Chinese laws:
   The provisions, except those on which we have
 announced reservations, of the international
 treaty concluded or acceded to by us (PRC) has
 the priority over the domestic law.
 The law of the place of issue shall apply to:
① the particulars concerning the issuance (出
 票);
② the time limitation for exercising the right    of
 recourse (追索).
    The law of the place where the act takes
 place shall apply to the endorsement,
 acceptance, payment or guaranty .
    The law of the place of payment shall
 apply to
① particulars concerning the issuance of
 cheques, if the parties concerned agree;
② time limitation for the presentment and for
 issue of proof of dishonour; manner of
 proof of dishonour;
③ procedure for applying for preservation of
 rights when the instrument is lost.
I. What a bill of exchange is

A bill of exchange is an unconditional
order in writing addressed by one person
( drawer) to another (drawee), signed by
the person giving it, requiring the person to
whom it is addressed to pay on demand or
at a fixed or determinable future time a
sum certain in money to or to the order of
a specified person (payee or holder) or to
bearer.
         汇票的定义
根据《英国票据法》规定,汇票是一人向另一人签发
的,要求即期或定期或在可以确定的将来的时间, 对某
人或其指定人或持票人支付一定数额金钱的无条件的书
面支付委托。
我国票据法规定,汇票是出票人签发的,委托付款人在
见票时或者在指定的日期无条件支付确定的金额给收款
人或者持票人的票据。
一般以《英国票据法》的定义为准。
Example:
    Shanghai AAA I/E Corp (the drawer)
drew a draft under the L/C No. 262618
dated Jan 20, 2002 issued by the Bank of
China, Singapore (drawn clause) at sight
(tenor) on the Bank of China, Singapore
(drawee), payable to the order of the
Bank of China, Shanghai (payee), for
USD729,000 (a sum certain)
         II. What a bill of
      exchange should bear
(1)words expressing it to be a bill of exchange;
(2)an unconditional order to pay;
a) pay if the goods are up to standard X
b) drawn under S/C No.123 or drawn under
 XXX Bank L/C No.KC1234 dated May 5, 2003

                          drawn clause √
⑳Acceptance for honour supra protest.
 The acceptor for honour signs his name on
 the face of a draft after it is dishonoured and
 protested, and indicates for whose honour the
 acceptance is made.
 If the draft is not paid by the drawee at its
 maturity, and if it is dully protested for non-
 payment, the acceptor for honour shall pay.
 When acceptance for honour supra protest
 involved, the maturity date for a draft payable
 after sight is counted from the date of protest
 for non-acceptance.
⑴Payment for honour supra protest - any
 person not liable on a draft pays the bill
 for the honour of a liable party after a
 draft is dishonoured and protested for
 non-payment.
⑵Guarantee
 The guarantor bears the same
 responsibility as the guaranteed.
IV Lost bill of Exchange
   The owner of a lost bill must immediately
 advise all parties concerned of stopping
 payment, and may request the drawer to
 issue a duplicate draft of the same tenor.
   Security should be given to the drawer in
 case the lost bill has been transferred to
 someone in good faith and for value.
 Discounting a draft – to sell an accepted time
draft before it falls due to a financial institution
(discount house), the holder will get:
υ= V - D
         V ×t × d               t×d
   =V-
           360
                    = V(1   –     360
                                      )
Where, υ is the net proceeds discounted; V is the
face value of the draft; D is the discount interest; t
is the tenor (days from discounting to the maturity
date); and d is the discount rate (% p.a.).
360 stands for the basic days in a year, but in
Britain, 365 for a normal year and 366 for a leap
year.
Accepting house – a financial
institution, acting as the drawee and
acceptor of a time draft, lends his
creditworthiness to a person, acting as
the drawer and payee, by accepting the
draft so as to enable the person to
discount the draft in the discount market,
and hence to finance his business.
Operation sequence of an accommodation
bill: Drawer &         4       Discount
            Payee             3                 House

               5                                6       7
        2
   1                           Drawee
                          (accepting house)


1.issue a draft, and present for acceptance; 2.accepted draft
3.discount the accepted draft;           4.net value discounted;
5. pay before maturity;       6. present for payment at
    maturity;
7.pay the face value.
Ⅴ.Classification of Bill of Exchanges
 1. ACDG TO the drawer: a)banker‟s draft
 b)trader‟s draft
 2. ACDG TO the acceptor: a)banker‟s acceptance
 bill b) Trader‟s acceptance bill
 3. ACDG TO the tenor: a) sight draft b) time bill
 4. ACDG TO whether SHPG DOCS are attached:
 a)clean bill b) documentary bill
 5. ACDG TO the currency denominated: a)local
 currency bill b)foreign currency bill
 6. ACDG TO the places of acceptance & payment:
 a)direct bill b)indirect bill
 7. ACDG TO the places of issue & payment:
 a)inland bill b)foreign bill
1.3 Promissory Note
A promissory Note is an unconditional
promise in writing made by one person
(the maker) to another (the payee or the
holder) signed by the maker engaging to
pay on demand or at a fixed or
determinable future time a sum certain in
money to or to the order of a specified
person or bearer.
ACDG TO Chinese Law, a promissory
note can only be issued by a banker, and
payable at sight.
Essentials to a promissory note:
a) words expressing it to be the
 “promissory note”;
b) unconditional promise to pay;
c) payee or his order;
d) maker‟s signature;
e) (place & )date of issue;
f) (period of payment);
g) a sum certain in money;
h) (place of payment).
1.4 Cheques
A cheque is an unconditional order in
writing addressed by the drawer (depositor)
to his bank (the drawee) signed by the
drawer authorising the bank to pay on
demand a specified sum of money to or to
the order of a named person or to bearer
(the payee).
The bank will pay the cheque because he
can debit the amount to the drawer‟s
account.
Ⅰ.Essentials to a cheque:
 a)words expressing it as a “cheque”;
 b)unconditional order in writing;
 c)name of the paying bank;
 d)drawer‟s signature;
 e)(place) and date of issue;
 f) (address of the paying bank);
 g)a sum certain in money; and
 h)(name of the payee).
Ⅱ. Features of a cheque
Ⅲ. Countermand of payment
Ⅳ. Wrongful dishonour of a cheque
Ⅴ. Types
⑪ open (uncrossed cheque)
⑫ crossed check
① general crossed cheque
② special crossed cheque
        CHAPTER TWO
         Remittance

        A bank, at the request of its customer,
transfers funds to its overseas branch or cor-
respondent bank, instructing them to pay to a
named person or company.
I. Parties related to a remittance:
1. Remitter      payer, generally the buyer;
2. Payee     beneficiary, generally the seller;
3. Remitting bank      a bank in the same
  place of the remitter;
4. Paying bank     generally a bank in the
  same place of the payee.
II. Accounts between international
   banks:
 If Bank A opens an account with Bank
 B, Bank A will call this account as
 nostro account, i.e. our account; Bank B
 will call this account as vostro account,
 i.e. your account.
III. Methods of reimbursement:
 (if funds are transferred from Bank A to
 Bank B,)
①Bank A credits the amount to Bank B‟s
 account with Bank A;
② Bank A authorizes Bank B to debit the
 amount to Bank A‟s account with Bank B;
③ Bank A authorizes Bank C, a reimbursing
 bank, to debit the amount to Bank A‟s
 account with Bank C and credit the amount
 to the Bank B‟s account with Bank C .
IV. Ways of transfer
1.By M/T (mail transfer)
    Remitter                      Payee
          1                           3
                        2
   Remitting Bank               Paying Bank
①apply for remittance;
②debit the remitter‟s account (amount to be remitted,
 bank commission, airmail expense), issue and send
 a payment order by airmail;
③verify the authentication of the payment order,
 notify and pay the payee; claim reimbursement.
IV. Ways of transfer
2.By T/T (telegraphic transfer)
    Remitter                      Payee
          1                           3
                        2
   Remitting Bank               Paying Bank
①apply for remittance;
②debit the remitter‟s account, issue and send a
 payment order by telegraph, or by telex or through
 SWIFT;
③verify the authentication of the payment order,
 notify and pay the payee; claim reimbursement.
3.by D/D, remittance by banker‟s demand draft
  remitter             4
                               payee
    1        2                    5    6
  Remitting bank           3
                               Drawee bank
(draft-issuing bank)

① request to issue a banker‟s draft;
② debit the remitter‟s account (amount of the draft,
 bank commission), issue a draft and hand to remitter
③ send an advice or N/N copy of the draft;
④ send the draft;
⑤ present the draft for payment;
⑥ verify and pay the draft, claim reimbursement.
CHAPTE THREE

   Collection
Collection – the bank receiving collection
 order handles financial documents and/or
 commercial documents, and surrenders the
 documents against acceptance or payment,
 or against other conditions.
A. Common Types of Collection:
⑪ According to whether commercial DOCS
 are attached:
① clean collection; ② documentary collection.
                    (to be continued)
⑫ According the condition of surrendering
 the DOCS:
① D/P at sight, against payment;(with/
 without sight draft.)
② D/P after sight, against payment;(time
 draft is necessary.)
③ D/A, against acceptance; (time draft is
 necessary.)
   Collection Operations
 1) D/P at sight:
                                   S/C
   Drawee (importer)                1            Principal (exporter)

                      4
                  5
            6                                          2
                          (Presenting bank)                   8
                                             3
                 Collecting bank         7        Remitting bank

(Case of need)
Remarks for D/P at sight
①make SHPT;
② make out SHPG DOCS;apply for collection;
③ send collection order and SHPG DOCS;
④ present documents according to the
 collection order;
⑤ check documents; pay if the DOCS are right;
⑥ surrender the DOCS;
⑦ advise & transfer the funds;
⑧ transfer the sales proceeds.
   2)D/P after sight:
                                     s/c
       Drawee                         1            Principal(exporter)
       (importer)
                             4
                         5                                      10
                     6                                   2
                 7               (Presenting bank)
           8
                                               3
                 Collecting bank           9         Remitting Bank

(case of need)
Remarks for D/P after sight
①make SHPT;
② make out SHPG DOCS;apply for collection;
③ send collection order and SHPG DOCS;
④ present documents according to the
 collection order;
⑤ check documents; accept the time draft if the
 DOCS are right; hand back the DOCS;
⑥ present DOCS at the maturity of the time
 draft;
⑦ pay the draft;       ⑧ surrender the DOCS;
⑨ advise & transfer the funds;
⑩transfer the sales proceeds.
   3) D/ A:
                                     s/c
       Drawee                         1            Principal(exporter)
       (importer)
                             4
                         5                                      10
                     6                                   2
                 7               (Presenting bank)
           8
                                               3
                 Collecting bank           9         Remitting Bank

(case of need)
 Remarks for D/A:
①make SHPT;
② make out SHPG DOCS;apply for collection;
③ send collection order and SHPG DOCS;
④ present documents according to the collection
 order;
⑤ check documents; accept the time draft if the
 DOCS are right; hand back the draft;
⑥ surrender the DOCS; ⑦ present the draft at its
 maturity;
⑧ pay the draft;   ⑨ advise & transfer the
 funds;
⑩transfer the sales proceeds.
B. Document examination in collection:
1) Banks are not liable for checking DOCS;
2) General respects in checking DOCS (for the seller):
① whether the DOCS are in line with S/C request;
② whether the B/L, insurance policy & draft are
  endorsed correctly;
③ whether the draft is properly drawn;
④ whether the B/L is in a full set;
⑤ whether DOCS can meet the customs
  requirements of the import country (all the
  requirements should be clarified in the business
  negotiation)
C.Risks involved in collection:
1) The exporter‟s risk
a) The importer might reject documents ① due to
   decline in the market prices; ②due to being
   unable to obtain import licence or get approval
   from the Foreign Exchange Control Authorities;
   ③in the hope of pressing the exporter to cut the
   price.
b) The importer becomes bankrupt or disappeared
   after taking up and selling the goods in the case of
   D/A;
c) In the case of D/P after sight, the collecting bank,
   in some country, will release the DOCS after the
   importer accepts the draft.
2) The importer‟s risks
  in the case of documents against
  payment, if the exporter deliver goods
  inconsistent with the those described in
  the documents presented, or even
  deliver nothing, the importer will suffer a
  lot.
D.Financing under collection:
a) The exporter could get partially or fully
  financed from the remitting bank
  through negotiation, usually giving a
  General Letter of Hypothecation as a
  pledge;
b) The importer could „borrow‟ the DOCS
  in the case of D/P after sight under
  Trust Receipt to the collecting Bank ,
  becoming a trustee of the bank before
  payment.
CHAPTER FOUR

Letter of Credit (L/C)
 Ⅰ. Characteristics of an L/C


1.The issuing BK assumes the
  primary liability in payment.
2. L/C stands independent of the S/C
3.Banks only deal with documents
  Ⅱ. Parties concerned in an
              L/C
1.Applicant (accountee/ principal/
  accreditor/ opener/ orderer)
2.Beneficiary
3.Opening bank (issuing bank/
  establishing bank)
4.Advising bank (notifying bank)
5. Negotiating bank
6. Confirming bank
7. Paying bank
8.Accepting bank
9.Claiming Bank
10.Reimbursing bank

                    2
Opening bank            6         Claiming bank
          1                            3
      5                                     4
               Reimbursing bank
     Ⅲ. Contents of an L/C
1. Information about L/C itself
① Types
② L/C No. & issuing date
③ Period for presentation
④ Date & place of expiry
2. Parties concerned
3.Amount & currency of the L/C
4.Description of goods
5.Terms and conditions for SHPT
6.Documents required:
⑪ Copies needed
⑫ Common expressions for       DOCS
7.Special/ additional conditions
8.Instructions to Banks
9.The undertaking clause of the
  Issuing Bank
10. Test key or hand signature
Exercises: read carefully the given
 L/C and then list the name of
 DOCS & number of copies needed
 for presentation(for original & copy
 respectively)
ZCZC BSDDF1 0002090643
                                 银行代码
P3 SDAAOC
SWIFT BSDDF1 0002090643
99 E N 701 99 S

                                                         开证行
BASIC HEADER F 01 BKCHCNBJA500 9690 630741
APPL. HEADER O 700 1747000208 TDOMCATTBMTL 4242 982370 0002090647 N
                              + TORONTO DOMINION BANK MONTREAL
                              +QUEBEC CANADA
       (BANK NO: 8020006)     +MONTREAL, CANADA             表示共有两
                                                            页,此为第一
           条款代码
:MT: 701       ----------ISSUE OF A DOCUMENTARY CREDIT     ----------页
                                                         信用证是否可撤销
SEQUENCE OF TOTAL                : 27 :   1/2
FORM OF DOCUMENTARY CREDIT       : 40A:   IRREVOCABLE
                                                               信用证号码
Documentary Credit Number        :20 :    I1757119
DATE OF ISSUE                    :31C:    000208
DATE AND PLACE OF EXPIRY         :31D:    000415NEG BANK       开证日期

                  到期日和到期地
                                                     开证申请人

APPLICANT                       :50C:   C AND G LINGERIE (1998) INC.,
                                         MONTREAL, QUEBEC H2S 3L5
                    受益人
BENEFICIARY                     :59 :    SHANDONG GARMENTS IMP. AND
                                         EXP. CORP.
                                         70 SICHUAN ROAD, QINGDAO
               信用证金额
                                         THE PEOPLES REP OF CHINA 266002
CURRENCY CODE, AMOUNT           :32B:   CAD32453.60
AVAILABLE WITH…BY…              :41D:   AVAILABLE WITH       汇票是即期还
                                         ANY BANK                是远期
          信用证的兑付                         BY NEGOTIATION
DRAFTS AT…
            方式                  :42C:   DRAFTS AT SIGHT
DRAWEE      受票人是谁               :42D:   OURSELVES
PARTIAL SHIPMENT                :43P:   PARTIAL SHIPMENTS ALLOWED
TRANSSHIPMENT                   :43T:   TRANSHIPMENTS ALLOWED
Loading/Dispatch/Taking/From    :44A:
   THE PEOPLE‟S REP. OF CHINA                              是否允许转船
FOR TRANSPORTATION TO…          :44B:                       和分运
   MONTREAL, QUE., CANADA
LATEST DATE OF SHIPMENT         :44C:   000331


                                                       装运期
                                                     所需单据
DOCUMETNS REQUIRED                    :46A:
   DOCUMENTS
   COMMERCIAL INVOICE IN TRIPLICATE
   CANADA     CUSTOMS       INVOICE        OF   DEPARTMENT      OF   NATIONAL
   REVENUE/CUSTOMS AND EXCISE IN TRIPLICATE
   PACKING LIST IN TRIPLICATE
   FULL SET OF CLEAN ON BOARD MARINE/OCEAN BILLS OF LADING TO ORDER
   BLANK ENDORSED MARDED FREIGHT PREPAID NOTIFY
   C AND G LINGERIE (1998) INC. AND DATED LATEST MARCH 31/2000.
   EXPORT LICENSE
   INSURANCE POLICY OR CERTIFICATE COVERING MARINE RISKS, ALL RISKS,
   FOR 110 PERCENT OF THE INVOICE VALUE
CHARGES                          :71B: ALL BANKING CHARGES
                                          OUTSIDE CANADA ARE FOR
                                          APPLICANT‟S ACCOUNT
PERIOD FOR PRESENTATIONS        :48 :      DOCUMENTS TO BE PRESENTED
                                          WITHIN 15 DAYS AFTER DATE OF
                                          SHIPMENT BUT WITHIN
          交单日期                            CREDIT VALIDITY
                                              是否需要保兑
CONFIRMATION INSTRUCTION :49 :     WITHOUT
INSTRUCTION TO BANK         :78 :
   NEGOTIATING BANK TO AIRMAIL (1) DRAFT(S) AND COMPLETE SET OF
   DOCUMENTS (2) REMAINING DOCUMENTS BY NEXT MAIL TO US
   ON RECEIPT OF DOCUMENTS IN ORDER AT OUR COUNTER WE SHALL PAY A
   DEPOSITORY OF NEGOTIATING BANK‟S CHOOSING

TRAILER
          MAC: 4678C676   CHK:982922E807BA

NNNN



       表示第一页结束
ZCZC BSDDF1 0002090643
P3 SDAAOC
SWIFT BSDDF1 0002090643
99 E N 701 99 S

BASIC HEADER F 01 BKCHCNBJA500 9690 630741
APPL. HEADER O 700 1747000208 TDOMCATTBMTL 4242 982370 0002090647 N
                              + TORONTO DOMINION BANK MONTREAL
                              +QUEBEC CANADA
       (BANK NO: 8020006)     +MONTREAL, CANADA

:MT: 701         ----------ISSUE OF A DOCUMENTARY CREDIT   ----------

SEQUENCE OF TOTAL                  :27 :   2/2
Documentary Credit Number          :20 :   I175119         表示共有两
                                                           页,此为第二
                                                             页
                                                   货物描述
DESCRPT OF GOODS/SERVICES           :45B:
    16/84 PCT COTTON/POLYESTER WOVEN SATIN FLEECE, LADIES SLEEPWEAR,
    S/C 20SGC5102
   1020 PCS PYJAMA STYLE 1539 AT CAD8.90 PER PC.
    240 PCS NIGHT SHIRT STYLE 1540 AT CAD5.40 PER PC.
    600 PCS HOUSECOAT STYLE 1541 AT CAD8.90 PER PC.
    964 PCS PYJAMA STYLE 1542 AT CAD8.90 PER PC.
    420 PCS NIGHT SHIRT STYLE 1543 AT CAD6.40 PER PC.
    240 PCS NIGHT SHIRT STYLE 1544 AT CAD5.00 PER PC.
    480 PCS HOUSECOAT STYLE 1545 AT CAD8.90 PER PC.   特殊条款
   C.I.F. MONTREAL
ADDITIONAL CONDITIONS               :47B:
   SPECIAL CONDITIONS
   CONTAINER SHIPMENT ALLOWED
   INSURANCE TO BE COVERED BY SHIPPER
   SHIPMENT ONLY ON ANY ONE OF THE FOLLOWING FOUR SHIPPING LINES IS
   ACCEPTABLE     1. MITSUI O.S.K.,    2. SEALAND,  3. AMERICAN PRESIDENT
   4. KASE SHIPPING ENTERPRISE LTD.
   BENEFICIARY‟S CERTIFICATE ADDRESED TO ISSUING BK CONFIRMING THEIR
   ACCEPTANCE AND/OR NON-ACCEPTANCE OF ALL AMENDMENTS MADE UNDER
   THIS LC QUOTING THE RELEVANT AMENDMENT NO.,
   IF THIS LC IS NOT AMENDED SUCH STATEMENT IS NOT REQUIRED.
   ALL DOCUMENTS CALLED FOR UNDER THIS CERDIT, EXCEPT THOSE WHICH
   THE CREDIT SPECIFICALLY STATES CAN BE „COPIES‟, MUST BE CLEARLY
   MARKED ON THEIR FACE AS „ORIGINAL‟.
   A DISCREPANCY HANDLING FEE OF
   CAD45.00
   IS PAYABLE BY THE BENEFICIARY ON EACH DRAWING PRESENTED WHICH
   DOES NOT STRICTLY COMPLY WITH THE TERMS AND CONDITIONS OF THIS
   VREDIT AND HAS TO BE REFERRED TO THE APPLICANT.

TRAILER                                                特殊条款
             MAC:233E646C   CHK: 50198DC6F8D2

NNNN                                               信用证结束
  Ⅳ. Classification of the L/C
⒈ACDG TO whether SHPG DOCS attached:
①Clean L/C         ②Documentary Credit
⒉ACDG TO whether revocable or not:
①Revocable L/C    ② Irrevocable L/C
⒊ACDG TO whether confirmed or not:
①Confirmed L/C   ②Unconfirmed L/C
⒋ACDG TO the tenor for payment:
①Sight L/C       ② Usance L/C
⒌ACDG TO the way of payment:
①Sight payment L/C      ② Deferred Payment L/C
③Acceptance L/C        ④Negotiation L/C
⒍Revolving L/C
⒎Anticipatory L/C (red clause L/C)
⒏Reciprocal credit

Opener of   Issuing BK of   Advising BK      BENE of
1st L/C &     1st L/C &      of 1st L/C &   1st L/C &
 BENE of    Advising BK     Issuing BK of   Opener of
 2nd L/C      of 2nd L/C       2nd L/C       2nd L/C
 ⒐Transferable L/C
                                             h

  Importer              Middleman            a       Actual supplier
               a
  Applicant            1st beneficiary       ‟       2nd beneficiary

           p              d                                g      i
     q                        e   m      l
  b                c                         f
               n        Advising bank/           j      Advising bank/
 Issuing
                       confirming bank       k         negotiating bank
  bank             o
                       transferring bank

 The 2nd BENE will not actually receive payment until the
issuing BK pays for the DOCS presented by the 1st BENE
unless the transferring BK has confirmed the transferable
L/C.
 ⒑Back to back L/C:

 Supplier (2nd    a        Exporter (1st BENE,       a      Importer
 BENE)            ‟           2nd opener)                      (1st
          g                                                  opener)
   h                            e      l         d               o   b
                  f         k                             c
  2nd advising/                    1st advising/
 confirming BK     i   2nd issuing confirming BK         m 1st issuing
                  j    BK                                n BK

        Back to back L/C                   Original L/C

Since the 2nd issuing bank has independent obligation to
pay, it might ask for additional margin besides the original
L/C as the security from the 2nd opener.
   Ⅴ. L/C in Combination with
     Remittance/ Collection
Main proceeds by L/C + the balance by
Remittance
Down payment by Remittance + Main
proceeds by L/C
Part by clean sight L/C + part by D/P
Proceeds by D/P + guaranteed by L/G or
standby L/C
By CWO + guaranteed by L/G or standby L/C
By O/A + guaranteed by L/G or standby L/C
               Ⅵ. UCP 600
Uniform Customs & Practice for Documentary
Credit, International Chamber of Commerce,
Publication No. 600
A.General provisions and Definitions
B.Form and Notification of Credits
C.Liabilities and Responsibilities
D.Documents
E.Miscellaneous Provisions
F.Transferable Credit
G.Assignment of Proceeds
EXERCISES FOR UNDERSTANDING UCP600
        Ⅶ. L/C EXAMINATIONS
1.Discrepancies between S/C and L/C;
2.Unacceptable terms:
①difficult to comply with;
② impossible to comply with;
③ with unreasonable request;
④ with high risks;
⑤Soft clause – a clause which can make the L/C
  inoperative.             Trap clause
  Except for the terms impossible to comply with,
  BENE should decide whether the L/C should be
  amended or not, which depends on whether he
  can master the situations.
     Ⅷ. General procedures of L/C
              operation
 The FLWG is an example of L/C operation under
 sight L/C available by negotiation
                           a
    Opener (buyer)     j           e   Beneficiary (seller)
                                            d     f
      i       b
                           c
Paying BK Opening BK           Advising BK Negotiating BK
                           g
                               h
  CHAPTER FI VE

Standby Letter of Credit
5.1 What is a Standby L/C


  In general, a standby letter of credit
  represents an undertaking by a bank to
  pay a third party (the beneficiary) upon
  the failure of the bank’s customer (the
  applicant) to perform specified
  obligations.
5.2 Differences between a
    standby L/C and a
     commercial L/C
The major difference between the two
kinds of L/Cs lies in the obligations of the
beneficiary.

UCP 500 vs. ISP 98
5.3 Characteristics of a
     standby L/C
Clean L/C
Financial obligation
Non-financial obligation
Irrevocable form
Duration and amount
Payment procedures
5.4 Types of Standby
        L/Cs
Performance standby
Advance payment standby
Bid bond/tender bond standby
Counter standby
Financial standby
Direct pay standby
Insurance standby
Commercial standby
CHAPTER SIX

Banker‟s Letter of
Guarantee (L/G)
   6.1 What is a letter of
        guarantee?
A letter of guarantee is an irrevocable
undertaking by which the issuer holds itself
financially liable for the consequences of non-
performance of the obligations by a third party
towards the beneficiary . The applicable rules
for guarantees are the Uniform Rules for
Demand Guarantees (ICC Publication No.458)
and the Uniform Rules for Contract
Guarantees (ICC Publication No.325).
6.2 Basic parties to a bank
        guarantee

 Applicable/principal
 Beneficiary
 Guarantor
 Advising or transmitting bank
 6.3 Direct and indirect
      guarantees
A direct guarantee is issued by the issuing
bank directly to the beneficiary and may be
advised through a local bank but without any
responsibility on the part of the local bank.
Indirect guarantees are used when local laws
prohibit or restrict the issuance of guarantees
to beneficiaries that are not financial
institutions, such as in the United States, or
in case the beneficiary requires a guarantee
issued by a local bank .
6.4 Types of guarantees

 Tender guarantee/bid bond
 Performance guarantee
 Payment guarantee
 Advance payment guarantee
 Maintenance guarantee
 Retention money guarantee
 Counter guarantee
6.5 Contents of a bank
      guarantee
Basic contents of a bank guarantee
 The name and address of the beneficiary
 The name and address of the applicant

 The name, nationality and detailed address of
  the guarantor bank
 The type and purpose of the guarantee

 The relative contract number, agreement
  number, tender number and/or the name of
  the project.
 The value and currency of the guarantee
 The duration or expiry date of the
  guarantee
 The undertaking clause, i.e. , the specific
  conditions under which the guarantor
  undertakes to pay
Basic contents of a counter guarantee
In practice, the contents of a counter
guarantee are not as detailed as those
of a guarantee. A counter guarantee
mainly contains two clauses: the
authorization instruction clause and the
reimbursement clause.
Additional clauses of a bank guarantee
   The validity clause
   The reduction of the value clause
   Authentication clause
   Legal clause
   Automatic extension clause
   No change or addition clause
   The joint and several liability clause
   Interest clause
 Return clause
 Non-negotiable clause
 Assignment of proceeds clause
 Unconditional to pay clause
 No deduction clause
 Primary obligor clause
 6.6 Procedures of a bank
    guarantee operation
Step 1: The applicant applies for the opening of an
L/G.
Step 2: The guarantor bank issues an L/G.
Step 3: The issuing bank notifies the L/G or reissue
the L/G through its correspondent bank.
Step 4: The beneficiary claims for payment from the
guarantor.
Step 5: The guarantor bank claims for reimbursement
from the applicant.
Step 6: The L/G is cancelled after the payment.
     CHAPTER SEVEN
         BANKER’S LETTER OF
          GUARANTEE (L/G)


A banker‟s guarantee is an undertaking
which will be brought into effect by the
guarantor, i.e. the bank, only if the principal
fails to meet his commitment. BENE‟s written
statement to this effect should be presented.
1. Nature of demand guarantee
2. Parties involved in L/G
⑪ Beneficiary              ⑫ Principal
⑬ Guarantor                ⑭ Instructing party
3. Common contents of an L/G
⑪ Parties concerned
⑫ The underlying transaction
⑬ The amount of the guarantee
⑭ The expiry date or event
⑮ The terms for demanding payment
⑯ Other terms
4. Types of guarantee
⑪ Direct guarantee
                 Underlying transaction
   principal                                    beneficiary

 Bank (guarantor)                guarantee

⑫ Indirect guarantee
                    Underlying transaction
  principal                                     beneficiary

                                                    guarantee
 Bank          Counter guarantee
                                             Guaranteeing bank
CHAPTER EIGHT


International Factoring
7.1 what is factoring?

A factoring contact means a contract
pursuant to which a supplier may or will
assign accounts receivable to a factor for
ledgering receivables, collecting proceeds
and/or protecting against bed debts.
      7.2 Basic Parties

The   supplier
The   debtor
The   export factor
The   import factor
7.3 types of factoring

Maturity factoring and financed factoring
 Disclosed factoring and undisclosed
factoring
 Single factoring and co-factoring.
7.4 services provided to the
    exporter by a factor

  credit investigation
     Approval of a line of credit
     Approval of specific invoices
     Declination
     Limited approval
 Collection of proceeds
 Maintenance of the sales ledger
 Risk protection
 Payment on account
 Legal framework for factoring
transaction
 The role of factoring in international
trade
 Factoring and its prospects in China
CHAPTER NINE

   Forfeiting
8.1 the evolution of forfaiting Forfaiting
                                       1


     Exporter                                              Importer
                                 4                   1
2       6                                  5                           3
                 7                                   0
                         8
    Forfaitor                                      Guaranteeing Bank
                             9
                                                                      Case 1
1.Commercial contract;               6. Delivery of documents         forfaitin
                                                                          g
2. Forfaiting contract                7. Payment without recourse
3. Request for guarantee/ Aval 8. Presentation for payment
4.Delivery of executed guarantee 9. Payment of matured bills
5. Shipment of goods                           10. Collection of payment
                           1a                               Case 2
  Exporter                      2                          forfaiting

             5
        4
   1b                       3                   Importer
 Forfaitor                          6
                                        7

1a. Commercial contract;     1b. Forfaiting contract;
2. Shipment of goods// usance draft; 3. return of the accepted draft;
4. Delivery of documents(dully endorsed);
5. Payment without recourse;
6. Presentation of draft for payment; 7. Payment at maturity.
   8.2 what is forfaiting?

The meaning of forfeiting
Forfaiting is the purchase of a series of
credit instruments such as bills of
exchange, promissory notes, or other
freely negotiable instruments on a non-
recourse basis.
Parties to a forfaiting finance transaction
  Forfaiter

  Exporter

  Importer

  Guarantor
Characteristics and documentation of
forfaiting
  Evidences of debts

  Evidences of the commercial
  transaction
  Guarantee
Costs of forfaiting finance

   Commitment fee
   Option fee
   Discount interest
   Days of grace fee
    8.3 The procedures of a
     forfaiting transaction
Step1:The exporter requests for forfaiting
quotation from a forfaiter
 Step2:The forfaiter provides a forfaiting proposal
 Step3:The forfaiter and exporter conclude a
forfaiting agreement, by which the forfaiter
provides a firm offer to the exporter
 Step4:The exporter presents required documents
to the forfaiter for delivery
 Step5:The forfaiter examines the documents and
makes payment to the exporter
8.4        Forfaiting vs. other methods

         Forfaiting vs. officially supported export
          credits

         Forfaiting vs. factoring

         Forfaiting vs. invoice discounting
CHAPTER TEN


 DOCUMENTS
               Documentation for International Trade

 Documentation for        DOCS for Customs           DOCS for
  application, etc.        declaration, etc          settlement

Financial      Commercial               Public             Other
 DOCS            DOCS                 Certificates         DOCS

  B/E            Comm. INV                           C/O          PCKG
                                                                  list
  Cheque          Other INVS                                  SHPG
                                        B/L          E/L      ADV
  Promissory      Transport DOCS
                                        AWB          I/C      Other
     Note
                  Insurance DOCS                              Cert.
                                        C/R            …
                                        …                         …
Ⅰ. General Requirements
   for Documentations
 1. Correctness
 2. Completeness
 3. Promptness
 4. Tidiness
                Ⅱ. Draft
  In international settlements, commercial draft
  issued by the seller to demand payment
  from the buyer/ or bank is widely used.
1. Draft for settlement under L/C:
① Drawing clause, which could be “drawn
  under xx (opening BK) L/C No. xx dated xx”;
② Drawee. If no drawee is nominated, take
  opening Bk as drawee.
③Drawer. GNRLY, the BENE is the drawer .
④ Payee. For NEGOBL L/C, take NEGO BK or
 BENE (and then with ENDRSMT) as payee;
  for CFMD L/C or ACPTC L/C, if CFMG BK/
 ACPTG BK and the BENE are in the same
 place, take BENE as payee(direct present-
 ation)
⑤Tenor. GNRLY, type three „*’, or „x‟ or „-‟
 for sight draft; type the specified period for
 usance draft payable after sight.
⑥ Draft No. Take invoice No. for easy sorting.
⑦ Draft amount.
 ⅰ Draft AMT ≤ L/C AMT
 ⅱ better to use “SAY …ONLY” for AMT
 in words;
 ⅲ express the fractional currency
 correctly.
⑧ Issuing date. Take the presenting
 date,i.e.within the validity of the L/C and
 within the period for presentation; and
 after the date of SHPT)
2.Drafts for settlements by collection
① to draw the draft ACDG TO S/C terms.
② The drawing clause could be “ Drawn
  under S/C No. xx dated xx for Collection”;
③ The drawee should be the buyer; and the
  drawer the seller;
④Take remitting bank as payee;
⑤Type the condition for surrendering DOCS
  (D/P or D/A) before the tenor;
⑥For other entries, PLS refer to those for
  draft under L/C.
3. Some common points:
  Commercial drafts are generally drawn in
  two originals so that they can be sent by
  separate post;
  Marking notation might be necessary if
  L/C or S/C (in the case of collection)
  specifies so;
  Draft amount can not exceed that
  permitted in L/C or S/C( under collection).
             Ⅲ. Invoice
1.Commercial invoice
⑪Name & ADD. of the issuer:
  UOS, under collection, take those of the
  Seller of the S/C;
  under L/C, take those of the BENE.
⑫Name of the invoice
  Do conform to that required by the L/C.
⑬ Addressee
 UOS, under collection, take the buyer of
 the S/C; or
 under L/C, take the applicant.
⑭ Invoice number
 Set ACDG TO company‟s own rules.
⑮Issuing date
⑯S/C No.
⑰L/C No. & Issuing BK. (UOS, optional)
⑱ Route & mode of transportation
 (optional)
⑲ Marks & Numbers
ⅰ.If L/C has stipulated, strictly follow L/C;
ⅱ. If not stipulated, design ACDG TO U.N.
 suggestions;
ⅲ. For goods in bulk or garments shipped
 in hanging containers,type NO MARKS or
 N/M.
⑳ Description of goods
 Under collection FLW S/C;
 under L/C FLW L/C strictly.
⑴ QNTY, UNIT PRICE & AMT
 Actually shipped QNTY; be sure whether
 allowance is given;
 Price terms, figures, units & calculations
 must be correct.
⑵ Notation (not always requested)
⑶ Signature,UOS, is not necessary;
 signed≠handsigned
2. Other types of invoices
 Customs invoice
 It is requested under the Customs regulations of
 some African, American and Oceania countries.
 Proforma invoice
 It is used when the seller sends a quotation at the
 buyer‟s request ; or when the seller demands
 payment before he dispatches the goods; or when
 goods are sent on approval.
 Certified invoice
 It is an ordinary commercial invoice, on which sth. is
 requested to be certified. It can be certified by the
 seller or by the nominated party as requested.
 Consular Invoice
 It is a DOC requested for customs
declarations by the authorities of some
countries, e.g. some Middle East, South
American & African countries.
Manufacturer’s invoice
It, sometimes, is requested by some import
countries to check whether dumping is
involved.
  Ⅳ.Insurance policy or
       certificate

For transactions concluded on the basis
of CIF or CIP, the exporter is liable to
arrange insurance before SHPT and
submit insurance policy or insurance
certificate as requested.
Basic Elements of an Insurance Policy
⑪ The insurer. If nominated, it must be the
 same.
⑫ The insured.
 ①If it is not specified in L/C (or in S/C),
 under collection, take the seller and under
 L/C, take the BENE;
 ② If it is otherwise specified in L/C (or in
 S/C), and if exporter accepts the L/C, do as
 requested.
⑬ Invoice number
⑭ SHPG marks. UOS, type “as per
 Invoice No. …”.
⑮ QNTY. For packed goods, type the
 kind & number of packages; for goods
 in bulk, type gross weight followed by
 “in bulk”.
⑯ Description of goods. The goods
 may be described in general terms.
⑰ The amount insured. UOS, CIF or CIP
 value plus 10%. The fractional parts are
 GNRLY rounded up.
⑱ Premium or rate. UOS, no need to type the
 exact value, and GNRLY “as arranged”
 already printed.
⑲ Conveyance. Type the name and voyage of
 the carrying vessel. If TRSHPT is involved,
 type VSL name of 1st voy./ VSL name of 2nd
 voy OR if the latter is unknown, VSL name of
 1st voy. and/or steamer.
⑳ Sailing date & route of transportation
Type “AS PER B/L” OR ACDG TO sailing
date in B/L.
⑴ Conditions.
The risks requested to be covered must
exactly appear here.
⑵ The insurer’s agent to entertain claim.
⑶ Place where indemnification is to be
 made & currency to be paid in.
 type as requested. e.g. claim payable at
 Hamburg in US Dollars. If no special
 request, just type the name of the
 destination.
⑷ Issuing date.
 It can not be later than the date of SHPT
 unless notation is given of “this cover is
 effective latest at the date of loading on
 board” or alike.
⑸ Signature.
Ⅴ.Transport Documents

Transport DOCS may differ from each
other with the different mode of
transportation. Some of them are DOC
of title but some not. In present course,
only B/L will be discussed in detail.
1.Function: Bill of Lading is a receipt of the goods;
an evidence of the transport contract; and a
document of title.
2.Type of B/L
① Shipped B/L ; Received for shipment B/L
② Straight B/L; bearer B/L; order B/L
③ Clean (unclaused) B/L; unclean (claused) B/L
④ Original B/L; N/N copy of B/L
⑤ Long form B/L; Short form B/L
⑥ Liner B/L; charter party B/L
⑦ others:Direct B/L; TRSHPT B/L; through B/L; CT B/L
3. Basic Elements in a B/L:
a.Shipper: UOS, banks ACPT a B/L with a
  third party as the shipper.
b.Consignee:
  Straight B/L might cause the shipper to lose
  control of goods.
  Most common cases:
  a)To Order (or To Shipper‟s Order) + blank
  endorsement by the shipper. It is a commonly
  used way for B/L under collection.
  b) To Order of (opening BK under L/C, or
  collecting BK under collection if the bank
  agrees)
c.Notifying party
①For straight B/L, it is not necessary; or,
②Under L/C:
a) If nominated, type ACDG TO L/C, with
   Name, ADD & TEL No. if given.
b) If not nominated, type the Name, ADD &
   TEL of the opener in this box on the
   copy to SHPG CO. (not the copy to BK)
③Under collection: type the name & ADD of
   the buyer.
d.Vessel Name:
①Type ACDG TO S/O;
② If the VSL‟s name is marked with „intended‟,
  the actual VSL name should be given in the On
  Board Notation.
e.Port of loading
① Type the actual one, not „China Port‟ as
  specified in some L/C.
② If it is marked with „intended‟, give the actual
  one in the On Board Notation.
f. Port of discharge
①Type the actual one;
②Mark the name of the country if necessary;
③If it is optional, type “Port1/Port2… option”.
④If L/C stipulates “from…to…in transit to …”, type
 “in transit to…” in the blank space in the box of
 Description of Goods.
⑤ If TRSHPT would occur,& if the B/L is not a
 TRSHPT B/L, type “W/T (or via) xx” in the blank
 space in the box of Description of Goods.
⑥ If L/C stipulates for “xx(port of discharge) OCP
 xxx”, type “OCP xxx” in the blank space in the
 box of Description of Goods.
g. Pre-carriage by, Place of receipt &
Place of delivery.
These three entries can be found in CT
B/L, through B/L,etc., but not in direct B/L.
h.Shipping Marks
①Type in conformity with that in INV.
②If shipped with container, indicate the
container No. and the seal No.
i. Number & kind of packages
①If goods are in bulk, type “in bulk”;
②If packed goods are involved, type the
number and the name of the outer
packing.
i. Number & kind of packages
If goods are in bulk, type “in bulk”.
j. Description of goods
Goods can be described in general terms.
k. Gross weight & measurement
①Most SHPG COs. use metric system;
therefore,
② type Gross Weight in the unit of KGs
with figures rounded into integer;
③Measurement in CUM with figures
calculated to 3 decimal places;
l. Freight & charges
UOS, detailed freight is no need to be
given on B/L.
m.Issuing date & Place
The issuing date of a RCVD for SHPT B/L is the
date on which goods are received. On Board
Notation,then, is necessary to give the actual
date of SHPT.

n. Signature of the issuer
o. Number of Originals
p. Bill of Lading Number. Type ACDG
TO S/O.
q. Special marking. Type in the spare
space under Description of Goods.
r. Endorsement
①If the consignee is made out as TO
ORDER, endorse in blank when presenting
DOCS, or if L/C stipulates how to do ,
endorse ACDG TO L/C.
②If the consignee is made out as TO sb‟s
ORDER, only this person can make
endorsement.
Ⅵ. Certificate of Origin (C/O)


 It is a DOC giving evidence that the
 goods exported are originated from a
 particular country so that the Customs
 of the import country can deal with the
 goods ACDG TO the policy of their
 government.
①General C/O , which is issued by AQSIQ
 (state General Administration of the
 People‟s Republic of China for Quality
 Supervision and Inspection and
 Quarantine) or CCPIT ( China Council for
 the Promotion of International Trade) for
 ordinary goods.
②GSP C/O (FORM A) , which is issued by
 AQSIQ for goods treated under General
 System of Preference.
③C/O Textile Products , which is issued
 by Ministry of Foreign Trade and
 Economic Co-operations (MOFTEC) for
 textiles to be exported to E.U. under
 textile quote arrangement.
④Exporter’s C/O , which is issued by the
 exporter if government regulations or
 Ls/C do not call for the A/M particular
 C/O.
Ⅶ.Export Licence (E/L)
 It is a DOC issued by MOFTEC giving the
 evidence that the goods were approved to be
 exported.It is used for goods under export
 quota control.
Ⅷ. Packing List
 It is used for packed goods to give the details
 in each package. Neutral Packing List is the
 packing list without showing the exporter‟s
 name & his country. For some goods Weight
 Memo may be used.
IX. Inspection Certificate (I/C)
X. Beneficiary’s Certificate or
  Certificate issued by a nominated
  unit or person
XI. Post Receipt or Courier’s Receipt
XII. Shipping Advice & Insurance
  Declaration
XIII. Receipt
XI.Checking DOCS
• Before presenting, BENE must carefully
  check DOCS to ensure prompt settlement
  and avoid being rejected by banks.
• Points for attention:
①Checking must be complete, DOC against
  DOC; DOC against L/C; DOC against goods
  & packages.
②Checking must be prompt to leave enough
  time to find remedy if something wrong.
  General ways in checking DOCS:
①Check all DOCS against L/C, and then
 check all DOCS against INV.
② Each DOC is checked by the competent
 DEPT; and then whole DOCS are checked
 by a person specializing in checking
 documents.

				
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