tailieunhanh - Understanding and Using Letters of Credit

Thư tín dụng thực hiện mục đích của họ bằng cách thay thế tín dụng của ngân hàng cho khách hàng, với mục đích tạo điều kiện thuận lợi cho thương mại. Về cơ bản có hai loại: thương mại và chế độ chờ. Bức thư tín dụng thương mại là cơ chế thanh toán chính cho một giao dịch, trong khi các bức thư tín dụng dự phòng là một cơ chế thanh toán trung học. | Understanding and Using Letters of Credit Part I Source http Letters of credit accomplish their purpose by substituting the credit of the bank for that of the customer for the purpose of facilitating trade. There are basically two types commercial and standby. The commercial letter of credit is the primary payment mechanism for a transaction whereas the standby letter of credit is a secondary payment mechanism. Commercial Letter of Credit Commercial letters of credit have been used for centuries to facilitate payment in international trade. Their use will continue to increase as the global economy evolves. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits. The general provisions and definitions of the International Chamber of Commerce are binding on all parties. Domestic collections in the United States are governed by the Uniform Commercial Code. A commercial letter of credit is a contractual agreement between a bank known as the issuing bank on behalf of one of its customers authorizing another bank known as the advising or confirming bank to make payment to the beneficiary. The issuing bank on the request of its customer opens the letter of credit. The issuing bank makes a commitment to honor drawings made under the credit. The beneficiary is normally the provider of goods and or services. Essentially the issuing bank replaces the bank s customer as the payee. Elements of a Letter of Credit A payment undertaking given by a bank issuing bank On behalf of a buyer applicant To pay a seller beneficiary for a given amount of money On presentation of specified documents representing the supply of goods Within specified time limits Documents must conform to terms and conditions set out in the letter of credit Documents to be presented at a specified place Beneficiary The beneficiary is entitled to payment as long as he can provide the .