(Signature)
3. On 18, March 2009, Bank of China, Guangzhou Branch received a mail transfer payment order from Bank of China Hong Kong. Please complete the forms. BANK OF CHINA, HONG KONG BRANCH DATE, HONG KONG Please advise and effect the following payment less your charges if any. In cover, we have credited your account with us. TO BANK OF CHINA, GUANGZHOU No. of Mail Transfer MTXXXX To Be Paid To Ruiqi Garment Co. Ltd, Guangzhou No. XXXX Amount in words: H.K Dollars Message: Being Proceeds under Two Hundred Thousand S/C No. XXX By Order Of Universal Garment Imp. & Exp. Co. Hong Kong Band of China, Hong Kong Remitting Bank: Payee: Paying Bank: Remitter: Amount HKD200,000.00 The proceeds is used for: Currency and Amount: Cover Instruction:
4. QUESTION: A draft N0.426898 for USD100, 000.00 is drawn by The American
Exporter Co. 17 Main Street Tampa, Florida, U.S.D on The French Issuing Bank, 38 rue
Francois ler, Paris, France payable at 60 days sight to the order of ourselves dated 25 March, 2000 marked “Drawn under The French Issuing Bank, Paris, France L/C N0.12345 dated 25 Feb., 2000”.
Bill of exchange
1_______ ________○2__________ No.______○
3_________ Exchange for __________○
At ____4○__ Sight of this first of exchange（SECOND BEING UNPAID）
5_________ Pay to（the order of）________○
6__________________________________ The sum of _______________________________○7________________ Drawn Under ____________○8__________ Date _________○9___________ L/C NO._________○ （signature） 0_____________ __________11________ To ____________1○○ 6
1426898 ○225 March, 2000 Tampa, Florida ○3$100,000 ○460 days ○5The American Exporter Co. A：○
6US Dollars one hundred thousand only ○7The French Issuing Bank, Paris ○812345 ○925 Feb, Inc. ○2000 10The French Issuing Bank 11The American Exporter Co. ○○
38 rue Francois ler 75008 Paris, France 17 Main Street Tampa, Florida
5. QUESTION: Please draw a demand draft to make remittance by D/D Draft: No.20060613
Amount: HKD32, 150.00
Place and date of draft: Tianjin, 8May, 2009 Paying bank: Bank of China, Hong Kong
Payee: the order of United Trading Company, Hong Kong Pay against this draft to the debit of our account. Remitting bank: Bank of China, Tianjin
Remitter: China National Light Industrial Products Imp. & Exp. Corp., Tianjin Branch, Tianjin
BANK OF CHINA
Not Negotiable
NO._______ 1○_______
Account Payee
2_______ AMOUNT _______○
3__________ This draft is valid for one year from date of issue ___________○4_______________ To: ___________○
5____________ Pay to _____________○
6____________________ THE SUM OF _________________○
PAY AGAINST DRAFT TO THE DEBIT OF OUR __________ACCOUNT
For BANK OF CHINA, TIANJIN
Signature
120060613 ○2HKD 32,150.00 ○3Tianjin, 8 May, 2009 ○4Bank of China, Hong Kong ○5The order of A：○
6Hong Kong Dollar Thirty-Two thousands one hundred and United Trading Company, Hong Kong ○
fifty only
案例分析
CASE 1：
Chinese company A concluded a purchase contract with a Belgium company for some goods. The contract require that the goods should be Grade M or above and that the exporter should surrender certificate which verify that the goods has reached Grade M. But A didn’t request certificate of Grade M in the L/C opened by him.
After delivery, A took the delivered goods before paying. Then A found that the goods didn’t reach Grade M and asked the local quarantine to give a testification. A held the testification to demand the opening bank to dishonor. QUESTION:
1.Should the opening bank dishonor the L/C？ 2. Please statement the reason.
ANSWER:
1. The issuing bank should not dishonor.
2. Though the bank knows the fact that the seller fail to implement all the conditions of the
contract wholly, the bank must make payment.
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3. According to the principle that L/C is an independent contractual document and the
operation of L/C is based on documents, the bank must make payment as long as the seller surrenders the accordant documents.
CASE 2：
One of Japanese company opened an irrevocable L/C on the request of its customer. The exporter was in Guangzhou. The L/C stipulates that the negotiating bank can be repaid by the opening bank’s New York branch. One bank in Guangzhou negotiated the draft, forwarded the documents to the opening bank and get payment from the reimbursing bank.
nd
On the 4 day, the opening bank said that there were discrepancies between the documents and L/C and asks for the repaid amount. The negotiating bank confirmed the discrepancies but the beneficiary said that the opener had taken the goods without the bills of lading.
QUESTION:
Can the negotiating bank refuse to pay the money back to the opening bank? Why? ANSWER:
1. The negotiating bank can’t refuse to pay back the money.
2. L/C is based on document. The parties concerned deal with documents rather than goods
or facts. If the document presented is not in conformity with the L/C, the beneficiary can’t get payment.
CASE 3：
One of our companies exported 5000 tons of rice. The L/C stipulated that 1000 tons was shipped every month from January to May. The seller shipped 1000 tons separately during January and February but there was no shipment in March because of lacking of goods. Then the exporter shipped 2000 tons and 1000 tons separately in April and May.
When the exporter negotiated the shipping documents, the bank refused to pay the 3000 tons shipped in April and May because the shipment in March was not in accordance with the stipulations of the L/C.
Question:
Was the bank correct? Why? ANSWER:
1. The bank was right.
2. Because according to the Uniform Customs and Practice of Documentary Letter of Credit, if
partial shipments stipulate definitely the number of lots, time and quantity of every lot,
the seller should exactly conform to the stipulation. If the seller doesn’t conform to the stipulation in a certain period, the period together with the following will be invalid automatically.
选择题
1. To the exporter, the fastest and safest method of settlement is cash in advance. 2. To the importer, the fastest and safest method of settlement is open account. 3. Under a letter of credit, the exporter can receive the payment only when the documents presented comply with the credit terms. 4. Which of the following is based on commercial credit? Collection(托收) 5. There are four main methods of securing payment in international trade:④ payment in
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advance;① payment under documentary credit;③ collection;② open account .From an exporter’s point of view, the order of preference is ④①③②.
6. The documentary collection provides the seller with a greater degree of protection than
shipping on open account (赊账交易)。
7. Foreign trade can be conducted on the following terms except for public bonds. 8. Cash settlement is effected by shipping precious metals(贵金属)taking the form of coins,
bars or bullions. 9. International cash settlement has the following disadvantages except safe.(即包括
expensive\\risky\\time-consuming) 10. If a bill is payable “60 days after date”, the date of payment is decided according to the date of the bill. 11. A term bill may be accepted by the drawee. 12. The party to whom the bill is addressed is called the drawee. 13. The maker of a promissory note has prime liability while the other parties have secondary liability.
14. A (n) bill of exchange is a financial document. 15. Demand draft(即期汇票) is often used when the client wants to transfer the funds to his
beneficiary himself.
16. If the paying bank opens a current account with the remitting bank, the reimbursement may be effected by crediting vostro account of the paying bank(主动贷记) 17. If a London bank makes a payment to a correspondent abroad, the foreign bank’s vostro account will be credited.(贷记) 18. If Barclay Bank instructs Citibank to pay a sun of USD2,000,000 to Midland, its nostro account
should be debited(借记). 19. Suppose that a UK firm which is to pay a debt to a West German supplier in Deutschmarks.
The firm will give a written instruction to its bank in the UK to issue a mail transfer. Then the UK bank debit the UK firm’s account as authorized. 20. The principal is generally the customer of a bank who prepares documentation and submits
them to the remitting （托收）bank with a application for payment from the buyer (drawee). 21. Which type of collection offers the greatest security to the exporter? Documents against payment.即期付款交单 22. Which of the following is not a risk that the exporter assumes on documentary collection
basis? B. harm to the reputation due to dishonor
PS: t a risk that the exporter assumes on documentary collection basis: A. non-acceptance of merchandise C. exchange restrictions D. non-payment of trade acceptance 23. The remitting bank is the bank of which the principle has entrusted the collection. 24. The importance of the distinction between financial documents and commercial documents lies in that it helps decide whether it is clean collection or documentary collection. 25. Letter of credit is a conditional undertaking to make payment. 26. With an unconfirmed irrevocable letter of credit, the advising bank transmits detail without commitment to the beneficiary. 27. A confirmed irrevocable letter of credit creates the highest level of security against sovereign risk政治风险. 28. Confirmation of a credit may be given by the advising bank at the request of the issuing bank.
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29. The sum of the transferred credit is will not be more than in the credit before transfer. 30. In addition to stipulating an expiry date for presentation of documents, every credit should
also stipulate a specified period of time after the date of shipment during which presentation must be made. If no such period of time is stipulated, banks will not accept documents presented to them later then 21days after the date of shipment. 31. If a credit stipulating total amount available is about USD100, 000.00, then bank will refuse
the invoice that bears the amount of C. PS:若没有“about则默认为15%的增减幅度。 A. USD100, 000.00 B. USD100, 500.00 C. USD120, 000.00 D. USD99, 900.00
32. The advising bank informs the beneficiary another bank has issued a credit in his favor
without adding its own engagement.
33. In a letter of credit, the bank pays the seller for documents which agree with the credit. 34. J.A. Smith applies to his bank for a letter of credit. The bank issued the credit and mails it to C. Thomas. Mr. Smith is the application. 35. Which of the following transport document is negotiable可流通转让? Marine bill of lading 36. The bill of lading is evidence of ownership. it thus functions as a title document（物权凭证）. 37. A commercial invoice is a statement describing the merchandise, its cost and shipping charges. 38. The minimum amount of the insurance cover under the letter of credit must be 110% of CIF value.
填空题
1. Settlement on commercial credit usually includes payment in advance, open account, remittance and collection. 2. Settlements on bank credit include letter of credit and bank guarantee. 3. Before the sixth century B.C., goods were exchange between traders in different countries on a barter basis. 4. The shipment of gold or silver across national boundaries was both expensive and risky. 5. If the paying bank maintains the remitting bank’s account, the reimbursement may be
effected by debiting remitting bank’s nostro account.
6. Under documents against acceptance, the buyer gains possession of the goods before payment and is able to dispose of the goods as he wishes. 7. Under D/P at sight, the seller issues a draft. The collecting bank presents the draft to the
buyer. When the buyer see it he must pay the money at once, then he can get the shipping document.(即期付款交单) 课堂老师附加练习
ChP 3 Answer following questions:
1.What is clean bill? P48
It is a bill without shipping documents attached thereto. 3. What are the parties involved in international trade? P2
They are the buyer who purchases the goods, the seller who provides the goods and banks that facilitate the payment of the transaction.
4. According to the tenor, write down types of bill. P47
Sight bill and Time bill or usance bill.
5. Please state which of the following can be used in a bill and give the reasons:
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