Which documents under the letter of credit are given to the bank by the forwarder and which are given to the bank by the exporter?

There are three payment methods commonly used in foreign trade:

1. There are many types of L/C;

Two. Remittance mainly includes telegraphic transfer, letter transfer and sight draft.

3. Collection mainly includes D/P and D/A. ..

D/P means D/P. After delivery, we will prepare our negotiation documents and send them to the customer's bank through our bank. The customer's bank will remind the customer that the documents have arrived, and the customer will deliver the documents after payment.

D/A is D/A, and D/A is also delivered to the customer's bank through our bank. The difference is that customers can only take the original documents when they accept our documents, and then pay them when they are due.

T/T is telegraphic transfer (documents are usually mailed directly to customers by us without going through the bank). If we use T/T payment method with our customers, the general practice is that the customers will give us 30% advance payment, and the remaining 70% general insurance method is that the customers will pay with the original bill of lading faxed by us after the goods are shipped, and then mail the full set of original documents to the customers after receiving the payment.

D/P for collection and payment, D/A for acceptance

Importers can pick up the bill of lading after payment XX days after accepting payment. If they fail to pay within the time limit, the bank will not be responsible.

D/P Documents with payment is a way to deliver documents under documentary collection, which means that the exporter's documents are paid by the importer, that is, the importer can only collect documents from the collecting bank after paying. D/P at sight means that the exporter draws a draft at sight, and the collecting bank reminds the importer that the importer must pay after seeing the bill. After payment, the importer gets the shipping documents.

D/P after sight or date refers to the time draft drawn by the exporter and presented to the importer by the collecting bank. After being accepted by the importer, the importer pays the redemption bill on or before the maturity date of the bill.

D/A is a way for exporters (or collecting banks) to deliver documents to importers on the condition of acceptance under documentary collection.

The so-called "acceptance" refers to the payer's (importer's) approval of the draft when the collecting bank presents it. The procedure of acceptance is that the payer signs the bill, indicating the word "acceptance" and the date, and returns the bill to the holder. No matter how many times the bill is transferred, the drawee should pay by the bill on the maturity date. 6T)V+y.p5A+c9D)E

All the above can be done except D/P at sight. There are also risks (relative to L/C), but there are also customers who do not pay the redemption bills because of market prices and other issues. If they want to do it, they can only be old customers with good reputation and long-term contact.

D/P Documents with payment is a way to deliver documents under documentary collection, which means that the exporter's documents are paid by the importer, that is, the importer can only collect documents from the collecting bank after paying.

D/P at sight means that the exporter draws a draft at sight, and the collecting bank reminds the importer that the importer must pay after seeing the bill. After payment, the importer gets the shipping documents.

D/P after sight or date refers to the time draft drawn by the exporter and presented to the importer by the collecting bank. After being accepted by the importer, the importer pays the redemption bill on or before the maturity date of the bill.

D/A is a way for exporters (or collecting banks) to deliver documents to importers on the condition of acceptance under documentary collection.

The so-called "acceptance" refers to the payer's (importer's) approval of the draft when the collecting bank presents it. The procedure of acceptance is that the payer signs the bill, indicating the word "acceptance" and the date, and returns the bill to the holder. No matter how many times the bill is transferred, the drawee should pay by the bill on the maturity date.

All the above are acceptable except D/P at sight. Others are risky (relative to L/C), but some customers don't pay the redemption order because of market price and other problems. If they want to do it, they can only be old customers with good reputation and long-term contact.

D/P payment and D/A payment are rarely used. Mainly because these two payment methods belong to commercial credit, that is, whether the export company can receive the payment depends entirely on the importer's credit. Whether the importer can receive the goods on time, in good quality and in good quantity depends on the credit of the exporter. For importers with good credit, there is generally no phenomenon of non-payment for goods, while importers with poor credit often default or refuse to pay for goods. Therefore, these two payment methods are mostly used by reputable importers and exporters.

D/P is risky, but it is a very good delivery method if it is combined with telegraphic transfer. Because in some countries, some companies like to pay by D/P. Then, for example, 30% T/T in advance, 40% after shipment, and D/P for the balance. This is safer than wire transfer afterwards.

O/A: Trade on credit (O/A), where the buyer and the seller agree that the seller will deliver the goods to the buyer first, and the buyer will pay within the agreed time. This is a payment method of trade credit, which depends entirely on the credit of buyers and sellers. It is mainly used to pay margin, mantissa, commission and handling fee, and the risk of foreign exchange collection is very high. It is the most risky of all kinds of foreign exchange settlement methods.

Payment by telegraphic transfer

T/T (Telegraphic Transfer) Telegraphic transfer refers to the remittance method in which the remitter sends a charge telegram, telex or SWIFT to the branches or correspondent banks in other countries at the request of the remitter, instructing the remitter to pay a certain amount.

(1) Under T/T mode, importers do not need to apply to the bank for opening a letter of credit, and can omit the procedures related to the letter of credit.

(2) After completing the customs declaration formalities, the exporter will no longer deliver the documents to the bank in the form of "documentary draft", but send the documents directly to the importer on the "Document List" page. 0v s/y 1L # r & amp； c . W & ampH

(3) The importer can go through the relevant formalities directly after receiving the documents, and then pay the importer after the goods are sold to recover the funds.

(4) After the importer pays, the bank can notify the exporter to settle the foreign exchange.

TT is telegraphic transfer, and letter of credit is a letter of credit (revocable and irrevocable), which can be divided into forward and near term.

TT usually charges a certain percentage of deposit, such as 30%. This can help enterprises have a start-up fund for a project. However, in the case of LC, the collection of foreign exchange is generally after delivery, and all documents have been obtained. When they are ready, they will go to the bank to pay documents to suppress foreign exchange.

T/T is a remittance settlement method in which the remitting bank sends a tested telegram/telex at the application of the remitter, or instructs the overseas remitting bank to remit a certain amount to the payee through SWIFT.

Telegraph and telex are safe, fast and expensive as settlement tools. Because the transmission direction of telegrams and telex is the same as the flow of funds, telegraphic transfer belongs to downstream remittance.

Telegraphic transfer is a widely used remittance method at present. Its business process is as follows: first, the remitter applies for wire transfer and pays the remittance to the remitting bank, then the remitting bank sends a telegram or telegram to the remitting bank, and the remitting bank sends a remittance notice to the payee. After receiving the notice, the payee pays at the bank, and the bank cancels the payment. After the payment is completed, the remittance bank sends a deduction notice to the remittance bank, and at the same time, the remittance bank sends a remittance receipt to the remitter.

When telegraphic transfer, the remitter should fill in the remittance application form, and indicate the telegraphic transfer method in the application form. At the same time, the remittance and the required expenses will be remitted to obtain a wire transfer receipt. After receiving the remittance application, the remittance bank should carefully examine the application and contact the remitter in time if there are any mistakes.

When handling telegraphic transfer, the remitting bank sends remittance instructions to the remitting bank by telegram or telex according to the contents of the remittance application. The contents of the message mainly include: remittance amount and currency, payee's name, address or account number, remitter's name, address, postscript, position allocation method, remitter's name or SWIFT address, etc. In order for the remitting bank to confirm that the contents of the message are indeed sent by the remitting bank, the remitting bank should add the mutually agreed Testkey before the text.

After receiving the telegram or telex, the remitting bank should check whether the password is consistent. If it is not, it should immediately draw up a telegram to inquire with the remitting bank. If so, a wire transfer notice will be prepared immediately to inform the payee to withdraw money. The payee draws money from the remittance bank with the notice in duplicate. After the payee signs for it, the remittance bank pays the remittance accordingly. In practice, if the payee has an account in the remittance bank, the remittance bank often does not prepare remittance notice, but only receives the money into the payee's account by telegram, and then gives the payee a receipt notice, and the payee does not need to sign the receipt. Finally, the remittance bank sends the debit notice to the remittance bank.

The telegraphic transfer expenses in telegraphic transfer shall be borne by the remitter, and banks generally handle telegraphic transfer business on the same day, which does not occupy the remittance funds in the postal process. Therefore, telegraphic transfer is often used for large remittance or remittance through SWIFT or inter-bank transfer.

Although TT has certain risks, its cost is low and it is very popular in international foreign trade payment.

* * * There are several ways.

TT is before 1. 100%, which is very rare. If your guest gives you 100% TT when placing an order, then you are lucky. This guest should be an old guest or a small amount.

2. TT after100%, which is risky. Unless you are an old guest, you will be too passive. We may be out of money at any time, and whether we pay or not depends on the credit of our guests.

3.30% TT (as deposit) and 70% TT, see bill of lading for payment, which is the most common.

letter of credit (L/C)

A letter of credit (L/C for short) is a written guarantee that the issuing bank will open a certain amount to the beneficiary (exporter) according to the requirements and applications of the applicant (importer) and pay at the designated place with the draft and export documents within a certain period of time. Letter of credit is a payment promise made by the issuing bank to the beneficiary to ensure that the beneficiary receives the payment, so it is a favorable payment method for the beneficiary. However, the beneficiary can only get the payment if he presents the documents required by the letter of credit according to the provisions of the letter of credit. Therefore, the letter of credit is a conditional payment commitment of the bank. Letters of credit are divided into clean letters of credit and documentary letters of credit. Documentary letter of credit refers to a letter of credit with specified documents, and a letter of credit without any documents is called a clean letter of credit. Simply put, a letter of credit is a guarantee document to ensure that the exporter can recover the payment. Please note that the shipment period of export goods should be within the validity period of the letter of credit, and the period of presentation in the letter of credit must be later than the validity period of the letter of credit.

Opening a letter of credit generally requires the following links:

(1) The buyer and the seller sign a formal sales contract for the traded goods, and indicate in the contract that the settlement will be made by letter of credit;

(2) The importer shall fill in the Application Form for Opening a Letter of Credit as required by the contract, submit it to the local designated foreign exchange bank together with the copy of the contract and the Record Form for Payment of Import Foreign Exchange (if necessary), and deposit the full amount of foreign payment under the letter of credit into the bank margin account to apply to the bank for opening a letter of credit;

(3) If you can only deposit part of the deposit, you can apply for a standby loan from the bank for the insufficient part; Sign a standby loan contract with the bank;

(4) The issuing bank shall open a formal letter of credit according to the contents of the application, notify the exporter of the original letter of credit through a suitable foreign correspondent bank, and hand over a copy of the letter of credit to the importer;

(5) The bank charges the applicant a certain percentage of handling fee according to the amount and duration of the letter of credit.

Although letter of credit is a major payment method in international trade, it has no uniform format. However, its main contents are basically the same, including:

1. Description of the letter of credit itself: the type, nature, serial number, amount, date of issuance, period of validity and place of expiration, name and address of the parties, whether the right to use this letter of credit can be transferred, etc.

2. The drawer, payer, term and terms of the bill of exchange;

3. Name, quality, specification, quantity, package, mark, number and unit price of the goods;

4. Transportation requirements: time limit for shipment, port of shipment, port of destination, mode of transportation, whether prepaid freight is required, whether partial shipment and transshipment are possible, etc.

5. Requirements for documents: type, name, content and number of copies of documents;

6. Special terms: different provisions can be made according to the changes in the political, economic and trade situation of the importing country or the needs of various specific businesses;

7. The responsibility of the issuing bank to guarantee payment to the beneficiary and the holder of the draft.

Bank Guarantee

Bank guarantee (L/G), also known as bank guarantee, bank guarantee or letter of guarantee, refers to the written certificate issued by the bank to the beneficiary at the request of the customer to ensure that the applicant performs the contract according to the regulations, otherwise the bank will be responsible for repayment.

Foreign trade collection

Foreign trade collection is related to the normal conduct of foreign trade transactions and the flexibility of foreign trade capital flow. Some foreign trade customers have chosen the right ones, and the funds for foreign trade collection are very smooth; Some of them made reasonable plans.

The delay in payment for foreign trade transactions affects the turnover of its own funds. The advantages and disadvantages of various foreign trade payment methods have been debated in major foreign trade forums. Here I just talk about the experiences of many of my clients.

On the selection method of small foreign trade collection platform.

1. Identify the target customer base.

It is most important to choose the appropriate payment method according to the current customer group. For example, some payease customers' foreign trade customers in clothing, watches, jewelry and other foreign trade industries are mainly concentrated in some countries in Europe, America and the Middle East.

Economic development is relatively developed, people's overall living standards are relatively high, their ideology is relatively avant-garde, and they are easy to accept new things, so they generally advocate a fast, convenient, efficient and fashionable lifestyle. At the same time, their Guoxin

Credit card issuance is relatively high, and almost everyone has an international credit card with VISA or Master written on it. To treat such a target customer group, we must choose a lifestyle that is beneficial to them, such as credit card foreign trade.

Collection is a popular payment method at present.

Second, check your transaction amount.

Generally speaking, if the foreign trade transaction amount exceeds 1500 USD, T/T and L/C are selected.

More suitable for waiting for payment; If your transaction amount is several hundred dollars, credit card collection,

Paypal and Western Union are your ideal choices. Mainly due to the high cost of letters of credit, the operation is more troublesome, and

For a simple foreign trade merchant, it is not affordable, and it is also relatively long in the whole collection time.

It is not conducive to shortening the payment time. At the same time, foreign customers, or buyers, are generally reluctant to spend hundreds of dollars.

Yuan payment, and it took him a lot of time and financial resources.

3. Choose a familiar payment method.

Foreign trade collection is related to one's own vital interests. If we take this link lightly, it will be the same in the whole foreign trade transaction.

In this process, all previous efforts will be in vain. Therefore, choose your familiar collection method to ensure that foreign trade collection can be realized.

Effective reflux time. On the Fubu Forum, we saw many people who were not familiar with Paypal's foreign trade collection.

There are many problems in registration, withdrawal and thawing, which lead to the extension of foreign trade collection time, and some even

No foreign trade receipt was received. The main reason for this is that paypal has too many rules and regulations, so if

Everyone who knows thinks he is an expert.

Generally, the principle of "easy operation, good collection and low cost" is followed in selecting the collection platform.

",and credit card is one of the most ideal ways of micropayment, like Dangdang @ @ credit card payment.

Credit card payment services launched by large platforms such as micropayment launched by Alibaba and online payment launched by Dunhuang Network.

Service, also just shows that small credit card collection has great development potential.

4. Reasonable dispersion of collection costs

With the change of global economy, the foreign trade demand environment has also changed greatly. Many small and medium-sized foreign trade enterprises

The industry has always depended on big orders to survive before, but the change of environment has brought about the change of order quantity, and big orders have become small orders.

Single has become the status quo faced by enterprises, but many enterprises have failed to change foreign trade receipts in time and effectively.

Therefore, the product price is very competitive. Therefore, the traditional collection cost is appropriately and flexibly transferred.

Changing and reducing the cost is also a feasible way. Suitable for small orders of foreign trade payment methods, such as credit card payment,

Paypal collection, Western Union collection, etc. I once came into contact with a foreign trade customer who made handicrafts. At that time, we

When chatting, he told me that a single payment was only a few hundred dollars, and then I asked him how to collect the money. He told me that it was by letter.

With the certificate, it is really wrong to make such a choice. So don't blindly put the collection risks in the same basket, no.

The cost will increase greatly.

We can use the above options comprehensively, and each payment method has its own advantages and disadvantages.

As long as it is a practical method, speed up the time of foreign trade collection and reduce the cost of foreign trade collection, and finally give up.

The problem of difficult trade collection will not arise.

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