2012-2-2 11:15:56 版主
Payment in foreign trade is often complicated.
[00:06.22]It plays an important role in the process of trade.
[00:10.37]All activities mean nothing without gurantee of payment.
[00:15.12]The method of payment to be used is matter arreanged by the parties concerned.
[00:20.30]Various ways of payment are un use in the import and expore trade.
[00:24.50]Among them,payment by the letter of credit is most essentially a method of collecting money on the shipping documents.
[00:33.62]It can ensure that the exporter can get paid as soon as he has fulfilled his part of the sales contract and has shipped the goods even if the buyer has not received the oggds ,
[00:46.76]and insure that the importer is assured of title to the goods before he pays for them.
[00:52.95]Otherwise,the exporter is unwilling to deliver the goods without receiving payment,while the importer is reluctant to pay his money without actually controlling the goods.
[01:02.93]The problem of both the exporter and the importer is solved through the intervention of the third party-- a bank.
[01:12.39]The main stages a commercial letter of credit goes through as follow .
[01:17.06](1)A contract is made between the exporter and the overseas buyer stipulating payment by the letter or credit.
[01:27.20](2)The overseas buyer instructs the bank at the residence of the buyer (also called the originating bank).
[01:36.00]to open L/C in favor of the exporter on the terms agreed upon in the contract of sale.
[01:45.53](3)An L/C is opened and forwarded to the bank at the residence of the exporter (also called the advising bank )by the originating bank.
[01:56.58](4)The advising bank delivers the L/C to the exporter and advises the exporter to arrange for the delivery of the goods,according to the terms of delivery stipulated in the contrast,
[02:10.80]prepare the necessary documents and make the draft.
[02:15.05](5)On shipment ,the exporter presents the shipping documents to his advising bank(or the negotiating bank)with the request for payment in accordance with the payment terms.
[02:29.32](6)The advising bank(or the negotiating bank )checks the documents and then forward the documents to the issuing bank for reimbursement.
[02:39.95]The exporter must take care in scrutinizing the documentary letter of credit to make sure whether all the terms and condition in the credit can be complied with.
[02:50.55]If not,the L/C should be rejected immediately and require amendments,which must be made in advance of shipment of the goods,