Learning objectives 1.1 Background 1.2 Definition 1.3 Main Parties 1. 4 Procedure 1.5 Contents 1.6 Characteristics of l/c 1.7 Types 1.8 accomodation 1.9 limitations 经贸学觊国贸系 王学◎
经贸学院国贸系 王学惠 © Learning Objectives 1.1 Background 1.2 Definition 1.3 Main Parties 1.4 Procedure 1.5 Contents 1.6 Characteristics of L/C 1.7 Types 1.8 accomodation 1.9 limitations
1.1 Background Roles that banks may play in international trade Banks can act as a channel of communication keeping participants informed of the progress of a transaction and taking appropriate steps in case of problems(Clean and documentary collections) 经贸学觊国贸系 王学◎
经贸学院国贸系 王学惠 © 1.1 Background Roles that banks may play in international trade Banks can act as a channel of communication, keeping participants informed of the progress of a transaction and taking appropriate steps in case of problems. (Clean and documentary collections)
Net works of correspondent banking relationships simplify payment between traders Banks can maintain control over goods Documentary collections Banks can give their financial backing to transactions Letter of credit) Banks can apply international codes of practice(UCP500, URC522) 经贸学觊国贸系 王学◎
经贸学院国贸系 王学惠 © • Net works of correspondent banking relationships simplify payment between traders. • Banks can maintain control over goods (Documentary collections). • Banks can give their financial backing to transactions (Letter of credit). • Banks can apply international codes of practice (UCP500, URC522)
1.2 What is L/C? o a bank's written payment undertaking ● On behalf of a buver ● To pay a seller ● A given sum of money Upon presentation of documents representing the supply of specified goods aThese documents meeting the terms of the L/C OAnd being presented within a specified time And at a specified place 经贸学觊国贸系 王学◎
经贸学院国贸系 王学惠 © 1.2 What is L/C? l A bank’s written payment undertaking l On behalf of a buyer l To pay a seller l A given sum of money Upon presentation of documents representing the supply of specified goods LThese documents meeting the terms of the L/C LAnd being presented within a specified time And at a specified place
Briefly speaking, a documentary credit is a conditional bank written undertaking of payment 经贸学觊国贸系 王学◎
经贸学院国贸系 王学惠 © Briefly speaking, a documentary credit is a conditional bank written undertaking of payment