【正文】 Chapter five Letter of credit ? The concept and characteristics of a L/C ? Contents of a L/C ? Parties to a L/C ? Procedures of a documentary credit operation ? Types of credit ? Examination of a L/C Importers and exporters could not enter into a contract on the basis of mercial credit when they contact for the first time and not know each other well. The buyers are worried that the seller might not deliver goods in terms of contract, . not deliver on schedule or the quality of goods might not ply with the specification of contract, while the sellers are worried that buyers might not make payment on schedule or refuse to pay. If so, both sides can enter into a deal with the help of banks， in which buyer’s bank could assure the seller with bank’s credit that so long as plied documents are submitted by seller, banks would pay and that banks would issue L/C in term of buyer’s requirements and examine the documents presented by seller. If documents do not ply with L/C’s requirements, bank would reject them. Otherwise, bank would pensate buyer. Buyers apply for issuing L/C at his bank, the contents of which include the description of goods, its quantity, specification, price and amount, packing, latest shipment and documents presentation and their categories and numbers, etc. To sum up, buyer can write all his concerns into L/C and ask bank to check on them. Sellers are to produce and make shipment when receiving the L/C issued by bank, for seller is certain that bank have to abide by his promise – banks live on credit, otherwise there would be run on banks. In L/C transaction, banks must keep both eyes open to avoid the involvement in the disputes between buyer and seller. Banks offer the service with pensation. L/C belongs to offbalance sheet business. 當(dāng)進(jìn)出口商首次接觸、相互不了解時，雙方無法根據(jù)對方的商業(yè) 信用成交 – 買方擔(dān)心賣方不按照合同要求交貨，例如不按時交貨 、貨物質(zhì)量不符合合同要求等等；賣方擔(dān)心買方不按時付款或不 付款。此時，雙方可借助銀行信用成交。買方銀行用自己的信用 向出口商保證；只要賣方提交的單據(jù)符合信用證的要求，銀行保 證付款。銀行還向買方保證按照買方要求開立銀行信用證，并認(rèn) 真審核賣方提交的單據(jù)，如果單據(jù)不符合信用證要求，銀行會拒 絕付款，否則銀行負(fù)責(zé)賠償買方。買方按照合同要求向銀行申請 開立信用證，其內(nèi)容包括商品名稱、數(shù)量、規(guī)格、價格、金額、 包裝、最遲交貨期、最遲交單日期、單據(jù)種類和份數(shù)等等。總 之，買方將自己的所有擔(dān)心全部寫入銀行信用證中，并要求銀行 為其把關(guān)。賣方收到買方銀行開來的信用證時就可放心備貨和裝 運貨物，因為賣方知道銀行必須遵守諾言 – 銀行靠信譽生存，否 則銀行就會出現(xiàn)擠兌。在銀行信用證業(yè)務(wù)中，銀行必須謹(jǐn)慎小心 ，避免卷入買賣雙方的糾紛。銀行提供有償服務(wù)。信用證業(yè)務(wù)屬 于表外業(yè)務(wù)。 Buyer Issuing bank Why use letter of credit？ Seller Your bank must guarantee the payment, otherwise no contract. , I will let my bank guarantee the payment against conditions I prescribe. I will undertake to you to pay immediately provided that the documents handed in by you conform to terms and conditions of letter of credit. Banker’s credit is better than trader’s credit 賣方 買方 開證行 為什么使用銀行信用證？ 1您的銀行必須為付款做擔(dān)保，否則沒有合同可簽！ 2好的，我將讓我的銀行根據(jù) 我規(guī)定的條件為付款做擔(dān)保。 3我向您承諾立即付款，條件是您 提交的單據(jù)必須符合信用證條款。 買賣雙方距離遙 遠(yuǎn)，相互不了解。 需要銀行做 付款擔(dān)保人 銀行信用高于商業(yè)信用 UCP600 Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honor a plying presentation. 信用證意指一項約定，無論其如何命名或描述，該約定不可撤銷并因此構(gòu)成開證行對于相符提示予以兌付的確定承諾。 The concept of L/C Honor means: to pay at sight if the credit is available by sight payment. to incur a deferred payment undertaking and pay at maturity if the credit is available by deferred payment. to accept a bill of exchange (“draft”) drawn by the beneficiary and pay at maturity if the credit is available by acceptance. The concept of L/C ? A L/c is a written promise by the issuing bank to the beneficiary, under which the bank will pay a sum certain in money to the beneficiary if the beneficiary of the L/C provides the bank with specified documents within a prescribed time period, which all ply with the terms and conditions of the credit. The concept of a L/C Benefits of credit Importer Exporter Long distance, hard to get to know each other Ask to guarantee payment to exporter Banker Guarantee payment against documents stipulated in LC Deliver goods Carrier Deliver goods Documents Pay against documents not goods. Banker does not care about goods, for bankers do not know about goods. 信用證的有利方面 進(jìn)口商 出口商 距離遠(yuǎn)，難以相互了解。 要求向出口 商擔(dān)保付款 銀行 擔(dān)保憑信用證規(guī) 定的單據(jù)付款。 交貨 承運人 交貨 單據(jù) 憑單據(jù)付款 不是憑貨物 銀行不關(guān)心貨物，因 為銀行不懂貨物。 Contents of a L/C ? Items on the credit itself ? Basic parties ? Items on draft ? Settlement conditions ? Items on goods,shipping documents , transport and insurance ? L/C amount and currency ? Additional conditions ? Reimbursement of the paying, accepting and negotiating bank ? The notation of the credit subject to UCP600 ? Primary Liability of the issuing bank to make payment ? Independent of the sales contract ? Exclusively dealing with documents ? High level of protection and security to both buyers and sellers ? Abide by UCP600 Characteristics of a L/C ? 開證申請人（ Applicant/buyer） ? Liable for payment to the issuing bank provided no discrepancy between documents and the credit。 ? right to examine the documents and refuse payment。 ? any requirement of the applicant should be satisfied by certain documents and clearly indicated when making credit application ? 開證行（ Issuing bank/the buyer’s bank） By issuing a credit the issuing bank undertakes full responsibility for payment Parties to a L/C 受益人（ Beneficiary/seller） The right to examine a credit upon receipt of it according to the sales contract。 whether be paid or not solely depends on the fulfillment of terms and conditions of the credit. applicant beneficiary issuing bank Sales contract applicant L/C 通知行（ Advising bank） Accurately transmit the terms of credit and check the apparent authenticity of the credit 保兌行（ Confirming bank） ?Undertake the sa