The Letter of Credit课件课件课件.pptVIP

§5.3 The Process of A Documentary Credit How many parties are there in a documentary credit? Generally speaking, there are three kinds of parties. Who are they? Stop quarrelling! I’ll solve the problem. Bank Exporter Importer Give me your money firstly,then I will give you my goods. Give me your goods firstly,then I will give you my money. How can the bank help the importer and the exporter? Let’s see the process of a documentary credit … 微课视频 Summary of Procedure 1. The Exporter and Importer conclude a sales contract providing for payment by a Documentary Credit. 2. The Importer instructs his bank – the Issuing Bank to issue a Documentary Credit in favor of the Exporter(Beneficiary). 3. The Issuing Bank issues the Documentary Credit and asks another bank(the Advising Bank), usually in the country of the Exporter, to advise or confirm the Documentary Credit. 4. The Advising Bank informs the Exporter that the Documentary Credit has been issued. 5. As soon as the Exporter receives the Documentary Credit and is satisfied that it meets the terms of the sales contract and that he can meet the Documentary Credit terms and conditions, he is in a position to effect shipment. 6. Exporter then sends the required documents to the bank where the Documentary Credit is made available. 7. The bank examines the documents against the Documentary Credit. If they meet the requirements of the Documentary Credit, the bank will pay, accept, or negotiate, according to the terms of the Documentary Credit. 8. The bank which takes up the documents sends the documents to the Issuing Bank. 9. The Issuing Bank examines the documents and, if the documents meet the Documentary Credit requirements, reimburses in the pre-agreed manner the Confirming Bank or any other Nominated Bank that has paid, accepted, or negotiated under the Documentary Credit. 10. When the Issuing Bank examine the documents and fi