LetterofCredit

2020/3/8Chapter3UrgingEstablishmentofL/C2020/3/8DocumentaryLetterofCredit(L/C)AdocumentaryL/Cisanagreementwithbanks,madebyanimporter,topayanexporter,providedcertainconditionsarefulfilled.TheimportersapplytooneoftheirbankerstoissuetheL/Cinfavoroftheirsuppliersthroughabankinthesuppliers’country.2020/3/8KeytermsdocumentaryL/C跟单信用证Theimporteravoidsriskoftheseller’sdefaulttodelivergoods,becausethepaymentismadetotheselleronlyafterdocumentscertifyinggoodsdeliveryareproduced.2020/3/82020/3/82020/3/8FurtherOperationofanL/C5.Theseller,aftergettingtheL/C,effectsshipmentoftheorderedgoods,andthengoestoanegotiatingbank(议付行)forhisproceeds(货款)bypresentingthenecessaryshippingdocuments.(Sometimestheadvisingbankcanactasthenegotiatingbank.)2020/3/8FurtherOperationofanL/CFurtherOperationofanL/C6.Aftermakingpayment,thenegotiatingbanksendtheshippingdocumentstotheissuingbankandatthesametimeasksforthereimbursement(付还)ofthemoneyithaspaidtothesellerasproceeds.2020/3/8FurtherOperationofanL/C7.Thebuyerreimbursesthepaymentbytheissuingbankandgetsfromittheshippingdocuments.8.Thebuyerfinallytakesdeliverywiththeshippingdocuments.2020/3/8IftheimporterswishtoguaranteepaymentoftheL/C,theywillasktheirbankertoissueanirrevocable（不可撤销的）one.AnirrevocableL/Cisonewhichtheissuingbankcannotrevokewithoutconsentfromtheexporter.Thismeansthecreditcannotbeexchangedwithouttheexporters’andbankers’agreement.irrevocableL/C2020/3/8DocumentaryLetterofCreditthebeneficiaryshouldattachallshippingdocumentsrequired.2020/3/8DocumentaryLetterofCreditIf,inaddition,theimporterswanttheadvisingbankinthesellers’countrytoguaranteetheL/C,theywillrequestconfirmationbytheadvisingbank.TheL/CthenbecomesaconfirmedirrevocableL/C(保兑的不可撤消的信用证).2020/3/8Confrimingbank(保兑银行)WhenanL/Cisconfirmedbyanotherbankinadditiontotheissuingbank,boththetwobanksareresponsibleforthepaymenttothebeneficiary.Thisdouble-guranteeL/Cisthesafestprotectionoftheexporter’sinterest.Inusualpracticetheconfirmingbankisthadvisingbankorabankwithveryhighreputation.2020/3/8DocumentaryLetterofCreditUseofdocumentarycreditsissubjecttoUniformCustomsandPractice(UCP)fordocumentarycredits(跟单信用证统一惯例),brochureoftheI.C.C.（InternationalChamberofCommerce国际商会）.Mostbanksworldwideadheretotheserules.2020/3/8Alllettersofcreditcontaintheseelements:apaymentundertakinggivenbyabank(issuingbank)onbehalfofabuyer(applicant)topayaseller(beneficiary)agivenamountofmoneyonpresentationofspecifieddocumentsrepresentingthesupplyofgoodswithinspecifiedtimelimitsthesedocumentsconformingtotermsandconditionssetoutintheletterofcreditdocumentstobepresentedataspecifiedplace2020/3/8SampleLetterofCredit2020/3/8Buyer’sobligationWhenatransactionisconcluded,thebuyerasaruleisunderobligationtoestablish/open(开立)aletterofcreditwhithisbankwithinthetimestipulatedinthesalescontractorsalesconfirmation.2020/3/8Buyer’sobligationItistheusualpracticeinourexporttradethattheletterofcreditistobeestablishedandtoreachtheselleronemonthpriortothedateofshipmenttogivethesellerampletimetomakepreparationsforshipment,suchasmakingthegoodsreadyandbookingshippingspace.2020/3/8TheneedtourgeestablishmentofL/CIfthebuyerfailstoestablishtheletterofcredit,ortheletterofcreditdoesnotreachthesellerintime,aletterorafax,hastobesenttothebuyertourgethemtoexpeditetheL/Cortoascertainitswhereabouts.Messagesurgingestablishmentofletterofcreditmustbewrittenwithtact.Theiraimistopersuadethebuyertocooperatemorecloselyandinfacttofulfillhisobligations2020/3/8DifficultWordsexpedite:tospeeduptheprogressof加速e.g.Thebuilderspromisedtoexpeditetherepairs.建筑商答应加速修理。ascertain:todiscoverwithcertainty,asthroughexaminationorexperimentation.查明，弄清：e.g.Wemustascertaintheusualcustomsofthelocalpeopleandarrangeaccordingly.我们必须了解当地人民的风俗习惯,作出相应安排。whereabouts:approximatelocation大概所在地e.g.Herwhereaboutsarestillunknown.她在什么地方还没人知道2020/3/8PatternsandSubstitutions1.Withreferencetothe4,000dozenshirtsunderourSalesConfirmationNo.TE151,wewishtoinformyouthatthedateofdeliveryisapproachingbutuptothepresentwehavenotreceivedthecoveringL/C.关于第TE151号销售确认书项下的4000打衬衫，我们希望通知你方，交货日期迫近，但是到目前我们仍没有收到有关的信用证。2020/3/8PatternsandSubstitutions2.ThegoodsunderS/CNo.3697havebeenreadyforquitesometime.PleasehavetheLetterofCreditopenedwiththeleastpossibledelay.第3697号合同项下的货物早已备妥，请尽快开立信用证。2020/3/8PatternsandSubstitutions3.WithreferencetoourSalesConfirmationNo.7904ofMarch12,2005,weregrettosaythatyourletterofcredithasnotyetreachedustothetimeofwriting.关于我方2005年3月12日第7904号销售确认书，我们很遗憾地告知你方，直到写这封信时信用证还未收到。2020/3/8PatternsandSubstitutions4.PleasedoyourutmosttoexpeditetheestablishmentoftheL/Csothatwemayexecutetheorderwithintheprescribedtime.请尽快开出信用证以便我们能在规定的期间内执行订单。2020/3/8PatternsandSubstitutions5.WearesorrythatwecouldnotshipthegoodsbyaMayvesselonlybecauseofthedelayofyourL/C.PleaseopenthesaidL/Cassoonaspossible.我们很遗憾，因为你方信用证耽误，我们的货不能装5月份的船。请尽快开立上述信用证。2020/3/8PatternsandSubstitutions6.YourdelayinopeningtheL/ChascausedusmuchinconvenienceaswehavealreadymadepreparationsforshipmentaccordingtothestipulationsofthesaidSalesConfirmati