国际结算report.docVIP

Report On The Use of D/A Report from : Li Long Sheng(李龙盛) International Business and Trade ,Class Four（08国贸四班） 08250601450 CASE The Use and risks of D/P In february, 20XX, Company A, from China, signed an export contract with Company B which is from UK, by means of D/P 120 days After Sight. However, after instructing Bank C from China to sent out the documents, Company A didnt receive the payment yet in August. Therefore, Bank C instructed Bank D, from UK, to withdraw all the documents by the instruction of Company A. Unfortunately, only after the calling back of Bank D did Company A know that all the documents have been released by the acceptance of Company B. Although with various efforts, Company B still didnt make the payment with all kind of reasons, ending with failing negotiation.Then Bank C stressed that its Bank D s fault that released the documents, which led to these losses , so its Bank D s responsibility to pay for the losses. However, Bank D refused to response to Bank C. On 25th ,October ,Bank D informed Bank C that the importer have went bankrupt with the notice of the court. Therefore, the exporter totally suffered a big loss. ANALYSIS D/P after sight ( Documents against payment after sight ) means that only after the importer pays the draft in the maturity can he get the documents. This kind of collection is one of the commonly used method of settlement. The process is that the collecting bank first presents a draft to the buyer for acceptance, then the accepted bill is kept at the collecting bank together with the documents up to maturity, and when the buyer pays the draft at maturity, the collecting bank releases the documents to the buyer who then takes the possession of the shipment. This method gives the buyer time to pay for the shipment but give the security that title to shipment will not be handle over until payment has been made. However, in practice, there are some countries do not recognize D/P, and always treati