Unit 7 Payment and Settlement of accounts 1. Terms of payment (1) Remittance T/T(Telegraphic Transfer) ---M/T(Mail Transfer) D/D Demand Draft)
Unit 7 Payment and Settlement of accounts 1. Terms of payment (1) Remittance ◼ ---T/T (Telegraphic Transfer) ◼ ---M/T (Mail Transfer) ◼ ---D/D (Demand Draft)
(2) Collection D/P Document against Payment) D/A Document against Acceptance) (3) Letter of Credit What is L/c? Types of L/C Documentary L/C, Irrevocable L/C, Confirmed Sight/USance; Transferable Revolving Reciprocal; Back to Back; anticipatory; Standby
(2) Collection ◼ ----D/P (Document against Payment) ◼ ----D/A (Document against Acceptance) (3) Letter of Credit ----What is L/C? ----Types of L/C Documentary L/C; Irrevocable L/C; Confirmed; Sight/Usance; Transferable; Revolving; Reciprocal; Back to Back; anticipatory; Standby;
Parties in the l/c applicant contract beneficiary 5.shipment 46 Issuing bank advising bank /negotiating Paying bank 7
----Parties in the L/C 1.contract 5.shipment 2 8 4 6 3 7 applicant Issuing bank advising bank /negotiating beneficiary Paying bank
2. Procedure of the L/c ■ Application Form; a Advising the beneficiary Examination of the L/c ■( Amendment of l/C) a Complementing the contract Presenting the documents under the L/C a Negotiating or Paying for the L/C
2.Procedure of the L/C ◼ Application Form; ◼ Advising the beneficiary; ◼ Examination of the L/C; ◼ (Amendment of L/C) ◼ Complementing the contract; ◼ Presenting the documents under the L/C; ◼ Negotiating or Paying for the L/C;
3. Objectives in L/C business (eXporter urges importer to open a L/C (2)Importer notices seller for the L/C ()Amendment ofL/C (4 Dispute arise in dealing with the L/C
3. Objectives in L/C business (1)Exporter urges importer to open a L/C; (2)Importer notices seller for the L/C; (3)Amendment of L/C; (4)Dispute arise in dealing with the L/C;