Unit-9-International-Payment-and-Settlement

1Learning objectivesNecessity Three of the most commonly used methodsThe main instrumentsUnit 9 International Payment and Settlement2n Promissory noten.本票例：Bill guarantee system is a uniform legal system as a common nature for draft,promissory note,and cheque in the world.n Bill of exchangen.金融 汇票例：When a Bill of Exchange has been accepted by the drawee it becomes negotiable.drawee n.（支票、汇票等的）付款人，贸易 受票人Drawer n.出票人同义词：draft money order postal ordervNew Words,Phrases and Special Terms3n Payeen.领款人，收款人 例：The payee may take the check directly to the payor bank(the bank on which it was drawn)for payment.payor n.付款人，支付者n Usancen.票据期限；财产收益；惯例付款期 例:A usance bill is an indication that the seller has agreed to give the buyer some credit.同义词组：usance draft Time Bill 4n Presentationn.1.提供,显示 例：On presentation of the relevant identity documents you may collect your property.2.表现；外观，外貌例:The presentation of food can be as important as the taste.3.报告例：His presentation was clear and incisive.4.提交；授予；颁发 例:Every presentation of documents must indicate the credit number of the issuing bank.Sightn.1.视力;视觉 例：He had his sight tested by a doctor.52.看见,瞥见 例：The sight of the garden bears back the days when we lived in Paris.3.风景;名胜例：The sunset was a very beautiful sight.adj.见票即付的 短语：Sight draft 即期汇票 同义词组：on demandn Initiativen.主动权；首创精神 adj.主动的；自发的；起始的 短语：take the initiative；seize the initiative n Correspondentn.1.通讯员,记者 例：They said foreign correspondents who stayed too long in a place went blind.2.代理商行短语：Correspondent Bank 金融 通汇银行；代理银行 6n Principaln.校长；委托人，当事人；资本；主犯 adj.首要的；最重要的例1：He is the principal of this school.例2：There is a shortage of principal.例3：I must consult my principals.短语：Principalagent problem例1：The detachment of operating rights and ownership incurs so-called principal-agency problem.例2：The principle-agent problem of SOEs was solved unsuccessfully under the traditional planned economy system.n Titlen.冠军；标题；头衔；所有权所有权；字幕 vt.加标题于；赋予头衔 例：In China,farmers must be given reliable title to their land so that they can borrow money against it or sell it.7n Discretionn.1.慎重,谨慎 例1：You must show discretion in choosing your friend.2.自行决定的自由；自行决定权 例2：Bail is granted at the discretion of the court.n Undertakev.承担，保证；从事；同意 例1：Do not undertake a project unless you can implement it.例2：We cant undertake that you will make a profit.Undertakingn.1.（重大或艰巨的）任务，项目，事业；企业 例：He associated himself with his friend in a business undertaking.2.承诺；保证；许诺；答应 短语：give an undertaking not to take sides8n applicantn.开证申请人，申请者；请求者例1：Upon the request of the applicant,the Patent Administration Department Under the State Council publishes the application earlier.例2：If the name of the applicant is specifically required by the credit to appear in any document other than the invoice,such requirement must be reflected in the transferred credit.n Negotiating bankn.议付银行（注释：议付银行是指根据开证行的授权买入或贴现受益人开立和提交的符合信用证规定的汇票及/或单据的银行）例：The amount and date of each negotiation must be endorsed on the back hereof by the negotiating bank.n reimburse v.偿还；赔偿 例：I shall reimburse the expenses.9 NecessityHigh riskproblems and riskcomplicacy Compared with domestic trade,international trade are more complicated.Political risks:war,quotas,foreign exchange control,Commercial risks:Market changeExchange rate fluctuations,Language barriersExporter are hesitant to release their goods before receiving payment,while importers prefer to have control over the goods before making payments.10The main instrumentsDraftsPromissorynoteschecks11nDraftsn Definition:It is an unconditional order to a bank or a customer to pay a sum of money to someone on demand or at a fixed time in the future.n Basic concepts:Who is the drawer?The person who draws the draft,usually the exporter.Who is the drawee?The person to whom the draft is drawn is called the drawee.Who is the payee?The person receiving the payment,who and the drawer are generally but not necessarily the same person.12Question:How to explain“generally but not necessarily the same person”?13n Basic types:Sight draft(tenor draft):It calls for immediate payment on presentation to the drawee.tenor n.男高音；要旨，大意；票据的限期男高音；要旨，大意；票据的限期 adj.男高音的男高音的tenor draft 限期汇票限期汇票 on presentation见票即付见票即付,提示即付提示即付Usance draft(term draft):It is payable at a later date,e.g.30,45,60 or 90 days after sight or date.Clean draft(without documents)Documentary draft：the draft is accompanied by the relevant documents such as the bill of lading,the invoice,the insurance policy,etc.lading n.装船；装载；船货装船；装载；船货 v.装货；载满装货；载满14Three of the most commonly used methods RemittanceCollection Letter of credit15 Remittance:It means that the buyer remits money to the seller through a bank on his own initiative.The beneficiary(the seller)The remitter(the buyer)The remitting bankThe paying bankIt will then give instructions to the paying bank in the sellers country to make payment to the seller.He/She will go to the remitting bank and fill in an application form for remittance.It is always the branch bank or correspondent bank of the remitting bank.Remittance is of three types:mail transfer(M/T),telegraphic transfer(T/T),demand draft(D/D)16Collection17Type of collectionn Clean collectionn Documentary collectionThe exporter sends the draft and the shipping documents representing title to the goods to his bank,which forwards them to another bank in the importers country,which in turn contacts the customer.出口商把汇票和代表货物所有权的装运单据交给银行，银行再出口商把汇票和代表货物所有权的装运单据交给银行，银行再把汇票和单据转寄给进口商所在国家的银行，由其转而联系把汇票和单据转寄给进口商所在国家的银行，由其转而联系进口商。进口商。18 n Documentary collectionborrower-spenders Documents will not be released to the importer until payments is effected.Documents against acceptance(D/A)Documents are handed over to the importer upon his acceptance of the bill of exchange drawn by the exporter.Payment will not be made until a later date due.19Types of D/PD/P at sightIt requires immediate payment by the importer to get hold of the documents.Documents against payment(D/P)D/P after sightIt gives the importer a certain period after presentation of the documents,but documents are not released to him until he actually pays for the merchandise.即期付款交单要求进口商即期付款交单要求进口商(在银行通知后在银行通知后)立即付款以取得单据。立即付款以取得单据。20Question:Which payment method is more favorable based on the exporters interest?21Note:n Payment by collection should be accepted with discretion.n It is only used when:The financial standing of the importer is sound;The exporter wishes to push the sale of his goods;The transaction involves only a small quantity.22The letter of creditn A letter of credit,also called an L/C,is a written undertaking by the issuing bank given to the beneficiary(usually the seller),at the request of the applicant(usually the buyer),to pay at sight or at a future date a stated sum of money.n Question:Which is the most widely used form of letter of credit、n Answer:The documentary credit.Since the documentary credit created for the international settlement among banks not only provides a sense of security for the traders involved,but also a reliable source of finance for foreign trade where required.23Documentary creditn Step 1:The buyer and the seller may agree to have payments settled by means of a documentary credit arrangement after a sales contract is initiated.n Step 2:The applicant(importer)will first request his banker(issuing bank)to issue a documentary credit in favor of the beneficiary(exporter).n Step 3:The L/C is then passed to the advising bank(exporters bank)who represents the beneficiary in his country.The advertising bank is expected to advise the beneficiary on the terms,conditions and legal aspects of payment.24n Step 4:On receiving the letter of credit,the exporter should check the terms and conditions against the sales contract in order to make certain that everything agrees with the credit requirement.n Step 5:If there is no obvious problem,the exporter will then present the necessary documents to the advising bank for the release of goods and settlement of payments.Here the advising bank also acts as the negotiating bank.25n Step 6:The advising bank will check the documents against the terms and condition of the contract signed after receiving the documents from the exporter.If all are proper and in good order,the advising bank will settle the agreement with the exporter and immediately forward the documents to the issuing bank who will reimburse the advising bank.n Step 7:The issuing bank,having received the documents from the advising bank and having agreed on the settlement method,will forward the documents to its client(importer).n Step 8:The importer,in due course,will reimburse the issuing bank to get hold of shipping documents,and take delivery of the goods against the documents.