国际贸易实务(英文版)(第二版)ppt周瑞琪7.International Payment

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The content of a B/E (Specimen 7.1-7.4)
The words of “Bill of Exchange” or “Draft” The date and place of issuance of draft A specific sum which shall be exactly the same with that indicated on export invoice The tenor, that is, the period of credit
The party to whom B/E is addressed If sight draft, make payment If time draft, accept the draft and pay when the amount is due Under L/C – the bank Under collection – the importer
C: The payee/beneficiary
The party who is supposed to receive the payment usually the exporter or the bank at which the drawer has his account Present B/E to the payer for payment or acceptance
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Three parties concerned
A: The drawer Normally the exporter
Fill in the content of a bill of exchange and sign his name
B: The drawee / payer
Dishonor 拒付
The refusal of the drawee or payer to make payment or acceptance of a duly presented draft Holder can recourse the drawer for payment To exercise his right of recourse, the bill holder needs to present a Certificate of Protest (拒付证明）from a notary public Draft with the word “without recourse” can hardly be discounted
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7.2 Paying Instrument :
Draft / Bill of Exchange 汇票
Definition: A draft is an unconditional written order addressed by one person to another, singed by the person giving it, requiring the addressed person to pay at sight or at a fixed future time the sum of money clearly specified, to the payee or to his order.
证
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International Payment
Differences between payment instruments and payment terms
payment instruments --- Financial documents which can be used in different manners serving specific paying purpose payment terms --- A series of activities or operations facilitating the movement of funds from one destination to the other
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Procedure of a B/E practice
Acceptance 承兑 --- Draft honored by acceptance
The act of the payer making acceptance by crosssigning on the face of the bill and promising to pay on or before the expiry date of a time/usance draft An accepted bill shall be returned to the presenting party
Endorsement 背书
The act of the transferor in transferring a draft to the transferee by making a signature on the back of the draft
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Procedure of a B/E practice
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Clean Draft vs. Documentary Draft
Clean Draft is the one which is used without the company of any commercial documents Eg. Banker’s Draft Documentary Draft is the one that calls for the attachment of relevant commercial documents.
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International Payment
Credit instruments
Bill of Exchange/ Draft 汇票 Promissory Note 本票 Check 支票
Terms of payment
Remittance源自文库汇付 Collection 托收 Letter of Credit 信用
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Procedure of a B/E practice
Issuance 出票
The act of the drawer issuing a draft to the drawee
Presentation 示票
The act of the payee or the bearer presenting the draft to the payer for payment or acceptance Two results: being honored or dishonored
Chapter Seven
International Payments
Learning objectives
After learning this chapter you will be able to:
identify the key issues in handling international payments understand the use of paying instruments, especially the bill of exchange2 define the three basic terms of payment compare and contrast the characteristics of terms of payment identify the major parties involved in different payment methods state the stages involved in using a letter of credit explain the variations of documentary credit establish a basic understanding of export financing
If not stipulated, regarded as Sight draft
The name of the drawee The name and signature of the drawer The name of the payee or order or bearer The endorsement of the payee when applicable
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Determinant Factors of Payment
Nature of merchandise Industry norms/practices Distance between buyer and seller Potential currency fluctuation Political & economic stability Relationship between buyer and seller
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Three parties concerned
Drawer (Exporter) Bill of exchange
Drawee/Payer (Importer/ Importer’s bank)
Payee (Exporter/ Exporter’s bank)
Money
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Procedure of a B/E practice
Payment 付款--- Draft honored by payment
For sight draft, the payer pays to the payee a specified sum of money indicated on the draft at presentation.
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Types of draft
Clean draft vs. documentary draft 光票与跟单汇票 Banker’s Draft vs. Commercial draft 银行汇票与商业汇票 Sight draft vs. time draft 即期汇票与远期汇票
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7.1 Issues In Concern
Who will bear the credit risk? In what currency the payment would be made? What are the costs of each method of payment? What might be the political or legal risks?
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Procedure of a B/E practice
Discount 贴现
An accepted draft is negotiable If the holder wants to get money before mature date, the draft can be discounted by a discounting bank at the prevailing discount rate It is the sale of an accepted time bill for less than its face value before its maturity date.