【文章內(nèi)容簡介】 Home Office who has a/c relationship with reimbursing bank. USA Reimbursing Bank 1 LC denominated in USD 2Authorize to debit its USD a/c 3Claim on US reimbursing bank according to LC, asking for credit of its USD a/c. Contract Term of payment: Importer Applicant Exporter Beneficiary Basic documentary credit procedure (1) 1. Documentary Credit 2. Naming an advising bank at seller’s domicile 3. Listing the required example, if buyer worries about quality of goods, he can demand Inspection Certificate issued by the required authority to be handed in by seller. The contents of the certificate could also be specified, . impurity not more than %, depending on the attributes of goods. Buyer can fix delivery time (in LC, “not later than”) if he wants goods to be delivered in specified period of time, etc. Apply。 clear, correct,precise ,free from too much details amp。 tech. terms. Applicant Issuing Bank Applicant must obtain application forms from Issuing Bank, filling in, sign and stamp them and then hand them to issuing bank for opening LC. Applicant must hand in to issuing bank: mission for issuing LC deposit to be paid under LC by Issuing Bank Issuing Bank guarantees payment with applicant’s deposit(money), not with Issuing Bank’s money. Issuing Bank signs and stamps the application forms filled in by applicant and returns one to applicant as formal contract between applicant and Issuing Bank who must follow it. Basic documentary credit procedure (2) 1Apply Importer Applicant Issuing Bank 2Documentary credit Advising Bank 3Advise Exporter Beneficiary 3LC must be informed to beneficiary through Advising Bank, which is correspondent of issuing bank and is not a major party in LC transaction. 3Advising bank must examine apparent authenticity of LC, whose service is for charge paid by beneficiary. If mailed, Advising Bank checks signature amp。 seal of correspondent bank. If telegraphed ,check test key. Basic documentary credit procedure (3) 1Apply Importer Applicant Issuing Bank 2Documentary credit Advising Bank 3Advise Exporter Beneficiary Basic documentary credit procedure (4) If he finds in LC any terms and conditions contradictory to mercial contract, he can return (or not) the LC and demand amendment. 4Demand revision 4Return LC 4Return LC 5Apply for amendment and hand in fees 6Amendment notification 7Amendment notification Exporter Beneficiary 1Dispatch goods 3Hand in docs. within validity of LC nominated bank Carrier 2B/L Basic documentary credit procedure(5) 2The issuing date of B/L must not be later than the latest date in LC. 3Exporter must deliver the goods to carrier before or on the latest date stipulated in LC. 3Exporter must prepare other documents stipulated in LC. For example, Commodity Inspection Bureau, for Inspection Certificate Insurance pany, for insurance policy, etc. Embassy of importing country for consular invoice Health quarantine station for Health Certificate etc. Exporter Beneficiary 1docs nominated bank 2Pay / Accept / Negotiate 3Forward docs to and claim on Issuing Bank Basic documentary credit procedure(6) 2Nominated bank would examine the documents against LC on behalf of Issuing Bank. If documents ply with LC, nominated bank would pay/accept /negotiate the documents according to the type of LC. 3Then, nominated bank sends documents to Issuing Bank Issuing bank would examine the documents against LC. If they ply with LC, Issuing Bank would reimburse Nominated 4If not ply, returns the documents to nominated bank. 4Return documents 5recourse Importer Applicant Issuing Bank Nominated bank Exporter Beneficiary Basic documentary credit procedure(7) 1Doc. 2Pay pliant documents 3Forward documents amp。 claim on 4Reimburse for pliant docs. with importer’s deposit 5,6 Sometimes, applicant does not render deposit with consent of Issuing Bank which provides finance to importer. Then, importer must pay for documents. 6pay 5documents Although applicant examines documents, the final decision should be made by issuing bank. Because it is the undertaking of issuing bank to pay beneficiary, not applicant. Types of LC: Revocable LC 1Promote sticker 2Demand LC settlement 3Very little margin in the market 4Require Revocable LC 5Apply for Revocable LC Issuing Bank 6Revocable LC: We undertake to honor your drafts drawn amp。 negotiated in conformity with LC provided such negotiation has been made prior to your receipt of notice of cancellation . (In fact, there is no payment undertaking of Issuing Bank revocable LC). Advising amp。 Negotiating Bank 7Adv. Exporter beneficiary Importer Applicant 8Dispatch goods as quickly as he can before Issuing Bank’s cancellation Carrier 9Docs. 10If nominated bank decides that documents ply with LC before receipt of cancellation , Issuing Bank can not cancel LC any more. 8Applicant can revoke LC at any time, if market is unfavorable. 1Contract Term of payment: Irrevocable Documentary Credit 2Apply Importer Applicant Issuing Bank 3Irrevocable Documentary credit: It can not be revised or cancelled without consents of all the major parties. Confirmation Instruction: Without( with)your confirmation) () Advising Bank 4Advise Exporter Beneficiary Types of LC: Irrevocable Unconfirmed LC This kind of LC has expressly undertaking of Issuing Bank and most widely used in the world at present. 3Apply for Confirmed LC Issuing Bank 5Advise confirmed LC Type of LC: Confirmed Credit (1) 2Contract, Term o