InternationalSettlement1234LearningObjective:5understandtheevolvementoftheinternationalsettlementunderstandthekeyinternationalsettlementmethodsunderstandtheinternationalsettlementtoolsunderstandtheinternationalsettlementriskmanagementunderstandthekeyinternationalsettlementdcoumentsChIIntroductionLearningObjectivesTounderstandtheconcept，characteristicsandtheevolvementofinternationalsettlementTounderstandthegeneralcontentsofthecourseofinternationalsettlementTounderstandthefundclearingsystemsinmajorinternationalfinancialcenters1.1ConceptandCharacteristicsofInternationalSettlementConceptofInternationalSettlementSettlement:thoseactivitiesofthemonetarypaymentsandtheliquidationofcreditor'srightsanddebtsoriginatefromthetradeofcommodities,thesupplyofthelabor,themobilityandallocationofthefunds.Internationalsettlement:thefinancialactivitiesconductedamongthepartieswhoarelocatedindifferentcountries/regions,inwhichpaymentsareeffectedorfundsaretransferredfromonecountrytoanotherinordertosettleaccounts,debtsorclaimsemergedinthecourseofpolitical,economic,culturalanddiplomaticandmilitaryexchangesandcommunicationamongthestates.

twotypes:-Internationaltradesettlement-Internationalnon-tradesettlement.1.2CharacteristicsofInternationalSettlement010203Differentsphereofthecurrencyactivities-theinternationalsettlementiscarriedoutacrossnationalbordersDifferentcurrenciesareused-theforeignexchangeraterisk,especiallythetransactionrisk.Differentlegalsystemsandlaws1.3Contents(1) InternationalSettlementSystemThecontemporaryinternationalsettlementisrealizedthroughtheinterbankfund-transfer.Inordertoproceedbusinessformalitiesconcernedwiththeinternationalsettlementsafely,quicklyandeffectively,oneofthemostimportanttasksistoestablishtherelationshipbetweenthebranches,agentsandtheaccountbanksamongthebanksconcernedandthenchoosethemostconvenientroutesandprocedurefromtheclusterofthebanksbusinessnetworkbasedontheneedsoftheactualbusinessactivities.(2)InternationalSettlementToolsCashNon-cashsettlement-Bills-draft-promissorynote-check(3) InternationalSettlementMethodsRemittanceCollectionLetterofcreditBankguaranteeInternationalfactoringForfeiting(4)InternationalSettlementCustomsandLaws1)UniformLawforBillsofExchangeandPromissoryNotessingedatGeneva,19302)UniformLawforChequesingedatGeneva,19313)UniformRulesforCollection,ICCPublicationNo.5224)UniformCustomsandPracticeforDocumentaryCredit,ICCPublicationNo.6005)UCPSupplementforElectronicPresentation（V.1.1)6)InternationalStandardBankingPracticeforexaminationofdocumentsunderdocumentarycredits,ICCPublicationNo.6817)UniformRulesforBank-to-BankReimbursements,ICCPublicationNo.7258)InternationalStandbyPractice989)UniformRulesforDemandGuarantees,ICCPublicationNo.75810)UKBillsofExchangeActof188211)USUniformCommercialCodeof1952(3)InternationalSettlementDocumentsIncoterms2010onlydefines11rules.Fourrulesofthe2000version("DeliveredatFrontier";DAF,"DeliveredExShip";DES,"DeliveredExQuay";DEQ,"DeliveredDutyUnpaid";DDU)wereremoved,andarereplacedbytwonewrules("DeliveredatTerminal";DAT,"DeliveredatPlace";DAP)inthe2010rules.(6)InternationalSettlementRisksManagement

Differentpartiesmayhavedifferentrisksanddifferentriskmanagement1.2TheEvolutionofInternationalSettlement1.2.1GeneralInformationforCIFCategories1.2.1CashSettlement1.2.2Non-cashSettlement1.2.3ElectronicSettlement(1) CHIPSClearingHouseInterbankPaymentSystem——thelargestprivate-sectorU.S.-dollarfunds-transfersystemintheworld,clearingandsettlinganaverageofUS$1.5trillionincross-borderanddomesticpaymentsdaily.”foundedin1853,andistheoldest,mostinnovativebankassociationandpaymentsprocessorintheUnitedStatesEstablishedtosimplifythedailycheckexchangesinNewYorkCitylaterbecameapioneerintheemergingfieldofelectronicfundstransfersandcontinuestobealeaderinthepaymentsarenaareal-timesystemfortransmittingandsettlinghigh-valueU.S.-dollarpaymentsamongitsparticipatingbanks(2) CHAPSClearingHouseAutomatedPaymentSystem(CHAPS)

-theUK'ssamedayhighvalue

paymentsystem-Launchedon9February1984,theCHAPSsystem

guaranteessamedaysettlementfinalityforpaymentsofanyvalue.Since1996,CHAPShasusedanenhancedRealTimeGrossSettlement(RTGS)systemwhereeachindividualpaymentissettledinreal

timeacrossitsDirectParticipants’settlementaccountsattheBankofEngland.-over5,000

financialinstitutionsalsomakeCHAPSpaymentsandsettlethroughagencyarrangementswiththeDirectParticipants.

(3)SWIFTSocietyforWorldwideInterbankFinancialTelecommunication-non-profitandcooperativeorganizationwhichwasestablishedinBrusselsin1973,ledbyCEOCarlReuterskioldandgainedsupportform239banksfrom15countries.TheSWIFTprovidesanetworkthatenablesfinancialinstitutionsworldwidetosendandreceiveinformationaboutfinancialtransactionsinasecure,standardizedandreliableenvironment.SWIFTalsosellssoftwareandservicestofinancialinstitutions,muchofitforuseontheSWIFTNetwork.AsofSeptember2010,SWIFTlinkedmorethan9,000financialinstitutionsin209countriesandterritories,whowereexchanginganaverageofover15millionmessagesperday.SWIFTisheadquarteredinBrussels,Belgium.IthasestablishedthreeoperationcentersinBelgium,theNetherlandsandtheUnitedStatesandhasbranchesinitsmembercountries.Itisahigh-speedtelecommunicationsnetworkbetweenBanksintheworld.1.3Banksfortheinternationalsettlement1.3.1Banker’sCreditandInternationalSettlementConvenientSafeEconomicalStandardSpeedy1.3.2FunctionsoftheBanksinInternationalSettlementInternationalExchangeCreditGuaranteeFinancingReducingForeignExchangeRisk1.3.3CorrespondentBanks(1)Overseasbranches(2)ForeignSubsidiaries(3)Affiliates(4)OverseasOffice(5)AssociatedBank(6)Agent

Ch2Negotiableinstrument

Grasptheconcept,characteristicsandthecirculationprocedureofthebillsUnderstandthelegalsystemsrelatedthebillsGrasptheessentialelementsbillofexchange,promissorynoteandchequeLearningObjectives

2.1OverviewofNegotiableInstruments2.2CharacteristicsofNegotiableInstruments2.3FunctionsofNegotiableInstruments2.4PartiestoNegotiableInstruments2.1OverviewofNegotiableInstruments2.1.1DefinitionofNegotiableInstrumentsakindofdocumentinwhichthemakerhimselfmakesapromiseorentrustthepayertopayacertainamountondemandorinthespecifieddate.Itisthemaintoolininternationalsettlement.2.1.2CharacteristicsRight-setting設(shè)權(quán)性RequisiteinForm要式性Negotiability流通轉(zhuǎn)讓性Non-causativenature無因性Monetary金錢性Thepresentation提示性Thereturn-ability返還性recourse追索性

2.1.3FunctionsSettlement結(jié)算功能Credit信用功能Circulation流通功能2.1.4Parties1Drawer出票人2Drawee受票人3Payee收款人4Acceptor承兌人5Endorser背書人6Endorsee背背書人

7Acceptorforhonor參加承兌人8Guarantor保證人9Holder持票人10Holderforvalue支付過對(duì)價(jià)的持票人11Holderinduecourse正當(dāng)持票人2.2BillofexchangeClassificationofbillsofexchangeContentsofabillofexchangePartiestoabillofexchange

Definitionofabillofexchange

Actsofbillsofexchange

anunconditionalorderinwriting,addressedbyonepersontoanother,signedbythepersongivingit,requiringthepersontowhomitisaddressedtopayondemand,oratafixedordeterminablefuturetime,asumcertaininmoney,to,ortotheorderofaspecifiedperson,ortobearer.

Definition匯票是由一個(gè)人（drawer）向另一個(gè)人簽發(fā)的(drawee)/受票人無條件的unconditonal書面命令orderinwriting要求其在見票時(shí)或在未來某一規(guī)定的或可以確定的時(shí)間(tenor)將一定金額的款項(xiàng)支付給某一特定的人或指定的人，或持票人(payee)2.2.2EssentialContentsofBillofExchangeNegotiableInstrumentsLawofChina·markof“exchange”·unconditionalorderforpaying·aspecificamount·nameofthepayer·nameofthepayee·dateofissuance·signatureofthedrawerThebillofexchangewillbeinvalidwhenithasnotspecifiedoneoftheabove-mentioned.Besides,Article23specifies:“Thedateofpayment,placeofpayment,placeofissueshouldbeclearanddefinite.”2.2.3Rights,obligationsandResponsibilitiesTable2.1TheRights,ObligationsandResponsibilitiesofthePartiesConcernedwiththeBillofExchangePartiesconcernedConceptRightsobligationsandResponsibilitiesDrawerThepartywhodrawthedraft.Theprincipalcreditorwhenthebillofexchangeisdrawn.TopayoracceptwhenitwaspresentedbythepayeeortheformalholderandistheprincipaldebtorPayeeThepartywhoreceivesthepayment.Themaincreditor.-thefirstendorserwhenitwasendorsedandwillbeartheresponsibilitiesthatthedraftwillbepaidoracceptedjustthesameasthedrawee;andhewillpaybacktothebona-fideholderwhenitwasdishonoredDraweeThepartywhoisorderedtomakepayment.-Assumeliabilitytobepaid,howeverassumesnoobligationthatthedraftwillbesurelypaidBillofexchange(匯票)Restrictivepayee限制性抬頭abillpayabletoaspecifiedpersononlyortoaspecifiedpersonnotnegotiable/transferable

Suchas“payABCCo.Ltd.only”or“payABCCo.Ltd.,notnegotiable”(不準(zhǔn)流通)Cannotbenegotiatedortransferredtoanotherparty.(不能流通轉(zhuǎn)讓)Billofexchange(匯票)Toorder指示性抬頭abillpayabletoaspecifiedpersonorsomeotherpersondesignatedbyhim

Suchas“payABCCo.Ltd.orOrder”or“paytotheorderofABCCo.Ltd.”Canbenegotiatedortransferredtoanotherpartyafterendorsementbythepayeeortheamountmaybecollectedbythepayeehimself.Billofexchange(匯票)Tobearer持票人或來人抬頭anypersonholdingabearerordercanrequestpayment

Suchas“paytobearer”or“paytoABCCo.Ltd.orbearer”Doesnotneedthe

endorsementbyanotherpartyandcanbenegotiatedortransferredmerelybydelivery.無須由持票人背書，僅憑交付匯票即可轉(zhuǎn)讓。

我國《票據(jù)法》不允許做成“來人抬頭”的匯票匯票的其他記載項(xiàng)目1.擔(dān)當(dāng)付款人（PersonDesignatedPayer）

2.預(yù)備人（RefereeinCaseofNeed）

3.出票地點(diǎn)

4.付款地點(diǎn)5.付款貨幣、利息、利率及匯率

6.必須提示承兌及提示期限、不得提示承兌

7.免作拒絕證書和拒付通知

8.免于追索（WithoutRecourse）

9.付一不付二托收項(xiàng)下匯票跟單信用證項(xiàng)下的匯票2.2.4Categories（1）Drawer商業(yè)匯票（CommercialBill）銀行匯票（Banker`sBill）（2）PayeeBillwithrestrictedpayeeBearer’sDraftOrderDraft指示抬頭匯票(3)TheTenor即期匯票（SightDraft）遠(yuǎn)期匯票（TimeDraft(4)WhetherShippingDocumentsfollowed.DocumentaryDraft跟單匯票CleanBill光票’sAcceptanceBill)（5）Acceptor

Trader'sAcceptanceBill

Banker'sAcceptanceBill(6)TheCurrencyusedLocalcurrencybillForeignexchangebill（1）出票（todraw）（2）提示（topresent)（3）承兌（toaccept)（4）付款（topay）（5）背書（toendorse）（6）拒付（dodishonor）（7）追索（torecourse）（8）貼現(xiàn)（dodiscount)（9）保證（toguaranteeoraval）

2.2.5Actsrelatingtoabillofexchange（1）Todraw

-Drawadraftandsignonit

-Deliveradrafttothepayee

(2)ToPresent-presentationforpayment——sightdraft即期匯票一經(jīng)提示，付款人就要付款。

-presentationforacceptance——timedraft已經(jīng)承兌的遠(yuǎn)期匯票一經(jīng)提示，付款人就要付款。遠(yuǎn)期匯票一經(jīng)提示，付款人就要承兌。

提示必須在規(guī)定的時(shí)限或規(guī)定的地點(diǎn)辦理，若逾期未作提示，則出票人和全體背書人解除對(duì)持票人的責(zé)任。

(4)EndorsementBlankEndorsement(空白背書、不記名背書)我國票據(jù)法不允許空白背書，但國際上很盛行Specialendorsement(特別背書、記名背書）

Restrictiveendorsement(限制性背書）ConditionalEndorsement（附有條件的背書）EndorsementforCollection（委托收款背書）(5)Toacceptance（承兌）

Theacceptorbearsprimaryliabilityforpaymentafteracceptance-GeneralAcceptance（普通承兌）ACCEPTED(date)tomature(date)Fornameofdrawee

signature

⑵QualifiedAcceptance（限制性承兌）

A.ConditionalAcceptance（有條件的承兌）ACCEPTED15Jan，2019PayableondeliveryofBillsofLadingForXYZBankLtd.London

signature

B.PartialAcceptance

（部分承兌）ACCEPTED3June，2019PayableforamountofGBP1,600.00only.ForABCBankLtd.London

signature

C.LocalAcceptance

ACCEPTEDSept.12，2019

PayableatHSBCShanghaiBranchandthereonly

ForABCBankLtd，LondonsignatureD.QualifiedAcceptanceAsToTime

ACCEPTED19July2018

Payableat6monthafterdateForABCBankLtd，London

signature出票后3個(gè)月付款的匯票，承兌時(shí)寫明6個(gè)月付款我國《票據(jù)法》規(guī)定：付款人承兌匯票，不得附有條件，承兌附有條件的，視為拒絕承兌。中國《票據(jù)法》規(guī)定：承兌期為3日。法國、瑞典、意大利等國為24小時(shí)。西班牙為提示承兌當(dāng)日?！度諆?nèi)瓦統(tǒng)一票據(jù)法》和《美國商法典》規(guī)定第一次提示時(shí)，付款人可以不作承兌而要求他于翌日作第二次提示，但面對(duì)第二次提示就必須做出是否承兌的決定。(6)ToDishonor（拒付）

⑴ThereasonsofdishonorNoticeofdishonor1.持票人應(yīng)在退票后的一個(gè)營業(yè)日內(nèi)，將退票事實(shí)通知其前手背書人。依次通知，直至通知到出票人。2.持票人將退票事實(shí)通知全體前手。如未及時(shí)通知，則喪失追索權(quán)。

Protest

(拒絕證書)Definition:拒絕證書是由公證機(jī)關(guān)或其他有公證權(quán)的機(jī)構(gòu)或當(dāng)事人出具的證明退票事實(shí)的法律文件。TheNotaryPublicwillpresentthedraftagainforacceptanceorforpayment,asitisdishonoredagain,theNotaryPublicthendrawsupaprotest.It’sanofficialcertificateevidencingtheactofdishonor.Torecourse(追索權(quán)）Definition:追索權(quán)是指匯票遭到拒付，持票人對(duì)其前手或出票人有請(qǐng)求其償還匯票金額及費(fèi)用的權(quán)利。

Theamountofrecourse:Theamountofbill;Interest;chargesfornoticeofdishonorandprotest.Conditionsfortherecourse：A.必須在法定期限內(nèi)提示匯票B.必須在法定期限內(nèi)發(fā)出退票通知C.外國匯票遭退票，必須在法定期限內(nèi)作成拒絕證書行使追索權(quán)的時(shí)限：Limitedperiod:(AccordingtoULB-UniformLawonBillsofExchangeandPromissoryNotes,1930)

Theholdermayrecoursefromhispriorendorserordrawerwithin1year,andthepriorendorsershalldosowithin6months.《日內(nèi)瓦票據(jù)法》規(guī)定，持票人對(duì)前一背書人或出票人行使追索權(quán)的期限為1年，背書人對(duì)其前手背書人則為6個(gè)月。AccordingtotheBritishBillsofExchangeAct,therecoursetimeissixyears.《英國票據(jù)法》（BillofExchangeAct，1882）規(guī)定，保留追索權(quán)的期限為6年。Guarantee(保證）非債務(wù)人作為保證人，對(duì)匯票金額全部付款加以保證?？稍趨R票上做出，也可在粘單上做出。保證人可向被保證人收取一定的押金或擔(dān)保品。

Howtocalculatethenetproceeds?SupposeanacceptedbillforUSD20,000.00fallsdueonSep.20,2018.TheexportertakesittoadiscountbankonJune152018.Thediscountrateis8%.DI=(F*T*Dr)/360DI=discountinterestF=facevalueofthebill(USD10000.00)T=tenor(time)(95days)Dr=discountrate(8%)DI=(USD20000*95days*8%)/360=USD416.43Netproceeds=USD20000-USD416.43=USD19583.57一般情況下，英鎊按一年365天作為基本天數(shù)，而美元、歐元?jiǎng)t按360天作為基本天數(shù)2.3PromissoryNote2.3.1DefinitionofapromissorynoteUKBillsofExchangeActof1882,Article83

Apromissorynoteisanunconditionalpromiseinwritingmadebyonepersontoanother,signedbythemaker,engagingtopayondemandoratafixedordeterminablefuturetimeasumcertaininmoneytoortotheorderofaspecifiedpersonortobearer.

本票是出票人做成的一項(xiàng)無條件的書面自我支付承諾

2.3.2PartiesConcerned(1)Maker-theprincipaldebtorEngagingtopaythepromissorynotewhenondue.(2)PayeeNote:Apromissorynotecanbeendorsedinthesamewayasabillofexchangeorcheque.Theendorserisliabletopaythepromissorynoteorcompensatetheholderfornon-paymentprovidedthatthenecessaryproceedingsindishonorhavebeentaken.2.3.3Contentsofapromissorynote★Theword“promissorynote”★Anunconditionalpromisetopay★Payeeorhisorder★Signatureofthemaker★Placeanddateofissue★Periodofpayment★Asumcertaininmoney★Placeofpayment——我國票據(jù)法規(guī)定，本票自出票日起，付款期限最長不得超過2個(gè)月。2.3.4ClassificationofPromissoryNote-ThetenorSight/Termpromissorynote-Accordingtothemakercommercial/banker’spromissorynote

2.3.5DifferencesbetweenadraftandapromissorynoteBillsofexchangePromissorynotesAnordertopay.Apromisetopay.Akindofthree-partyinstrument.Akindoftwo-partyinstrument.Wherepayableafterdate,abillisgenerallyaccepted.Nevertobeaccepted.④Canbeacceptedforhonor.④Nevertobeaccepted.⑤Shouldbedrawninduplicateingeneral.⑤Onlyonecopyisneeded.⑥Foreignbillsneedprotestingondishonortoretaintheliabilityofpriorparties.⑥Protestisneverneeded.2.4Check/ChequeAcheckisanunconditionalorderinwriting,signedbythepersongivingit,requiringthebanktowhomitisaddressedtopayondemandasumcertaininmoneyto,ortotheorderof,aspecifiedpersonortobearer.出票人簽發(fā)的，委托辦理支票存款業(yè)務(wù)的銀行或其他金融機(jī)構(gòu)在見票時(shí)無條件支付確定金額給持票人或收款人的票據(jù)。

2.4.1Definitionofacheck2.4.2ContentsofaCheck

(1)Theword“check”(2)Unconditional(3)Thenameandaddressofthepayingbank(4)Drawer’sSignature(5)Placeanddateofissue.(6)Theword"atsight".(7)Acertainsumofmoney.(8)Payeeorhisorder.2.4.3Partiestoacheck(1)ThedrawerThepersonwhomakesoutthecheckandkeepsanaccountcurrentinthepayingbank.(2)ThedraweeThebankeronwhomthecheckisdrawnandtowhomtheordertopayisgiven.Heisthebankerwithwhichthedrawermaintainsanaccount.(3)ThecollectingbankThepayee’sbankwhichcollects/obtainspaymentforitscustomerfromthepayingbank—thedrawer’sbank.(4)Thepayingbank-wherethedrawerhasanaccount(5)Thepayee2.4.4CategoriesoftheCheckUncrossedCheckCrossedCheckCertifiedcheck-（保付支票）Acheckiscertifiedbythedraweebank.Onceacheckiscertifiedbythedraweebank,allotherobligorsonthecheckwillbedischargedoftheliabilityofthepayment.

2.4.5TheprocessCheckClearing-Thepayeeshoulddepositthecheckintohisbankbeforehecanobtainpaymentsexpressedinthecheck.Thisprocessfromdepositingachecktoobtainingpaymentsisknownascheckclearing.Collectingbank

PayingbankProcessofCheckClearing

2.4.6DishonorofChecksWhenthereisnotenoughmoneydepositedinthedrawer’saccount.Whenthecheckdoesnobearadateorispost-datedoroutofdate.Whenthesignaturesonthecheckisnotinstrictconformitywithwhichkeptinpayingbank.Whencheckismutilatedandtorn.2.4.7DifferencebetweenadraftandacheckChequesBillsofexchangeThedraweristhecustomerofthedraweebank.Nospecificrequirement,i.e.,thedrawercanbeatraderorabank.Thedraweemustbethebankwithwhichthedraweropensacheckingaccount.Nospecificrequirement,i.e.,thedraweecanbeatraderorabank.Apaymentcanbecertified.Bothapaymentinstrumentandacreditinstrument.inthecaseofacertifiedcheque,thebankthathascertifiedthechequebecomestheprincipalobligorandallotherpartiesaredischargedofliability.Inthecaseofasightbill,orausancebillbeforeacceptance,thedraweristheprincipalobligor;inthecaseofanacceptedbill,theacceptoristheprincipalobligor.Achequecanbecertified.Abillcanbeaccepted,guaranteedoracceptedforhonour.Achequecanbecancelledbeforepayment.Afteracceptance,thepaymentisirrevocable.Achequeispayableondemand.Abillispayableondemandoratadeterminablefuturetime.Ch3RemittanceAccordingtowhethertheflowdirectionofthecapitalandthenegotiableinstrumentareinthesamedirectionornot,wecanclassifytheinternationalpaymentmethodsintotwogroups:-theForwardTransfer–thesamedirection——theremittance-theBackwardTransfer——collectionandtheL/CLearningObjectives:Afterthestudy,youwillbeableto:UnderstandtheconceptofforwardandbackwardtransferGraspthedefinition,generalproceduresofdifferentremittanceUnderstandthesituationwhentheremittanceisutilized3.1DefinitionandPartiesConcerned3.1.1Definition-thetransferringoffundsviaabank．Itisoneofthemostsimple,convenientandcommontermsofpaymentininternationalsettlement,whichisbasedoncommercialcredit.3.1.2PartiesConcernedTheremitter,alsoknownas(akahereafter)thepayerGenerally,theremitteristheimporters.Remittanceapplication：evidencethecontractbetweentheremitterandtheremittingbankwhenthelatterhasaccepted,isnecessaryfortheremittance.3.1.2Remitter

Thepayeeisthepartywhoisaddressedtoreceivethefundsbyremittance.Generally,itistheexporter.3.1.2PayeeRemittingbankisthebankthattransfersthefundsattherequestofaremittertoitscorrespondentoritsbranchinanothercountryandinstructingthelattertopaytoacertainamountofmoneytothepayeeorbeneficiary.3.1.3RemittingBankPayingbank,akathereceivingbank,isthebankthatisentrustedbytheremittingbanktopayacertainsumofmoneytothepayeeorbeneficiarynamedintheremittanceadvice.8.2.1(4)

PayingBankCategories

UnderMailtransfer(M/Tinshort),theremittingbank,attherequestoftheremitter,transfersthefundsbymailingapaymentorder(P.O)oradvicetoitscorrespondentbank,authorizingthelattertopaytothepayeeorbeneficiary.thepaymentorderissentbymail：mailtransfer.(seeFigure8.1)3.2MailTransferUndertelegraphictransfer(T/Tinshort),thePOwillbesentbycable,telexorSWIFT.8.2.2(2)

TelegraphicTransferComparedwithM/TandT/T,Demanddraft(D/Dinshort)isalittlespecial.UnderD/D,theremittingbankwilldrawasightdraftonitscorrespondentbankinthecountrywherethepayeeorbeneficiarylocates,orderhimtopaytothepayeeatsightuponpresentation.8.2.2(3)

DemandDraft

3.3CirculationofRemittance

1.

TheremitterfillsouttheM/Tapplicationform,presentstheproceedsandpaythecommissionforremittancetotheremittingbank;

2.

Uponreceiptoftheapplicationform,theproceeds,andthecommission,theremittingbankoffersareceipttotheremitter;

3.

Theremittingbanksendsapaymentorderoradvicetothepayingbankbymail,entrustingthelattertopaytothepayeeorbeneficiary;4.

UponreceiptofthePOandauthenticatingthesignature,thepayingbanknotifiesthepayeeinthePO;5.

Thepayeeissuesareceipttothepayingbank;6.

Thepayingbankmakespaymenttothepayee;7.

Thepayingbanksendsthedebitadviceandthepaymentreceiptfromthepayeetotheremittingbank.8.2.2(1)

MailTransfer

Figure3.1GeneralProceduresforM/T8.2.2(1)

MailTransferRemitterContractPayeePayingBankbbanBankbank匯入行RemittingBank匯出行（1）（3）（6）

（7）（5）（4）（2）Itsgeneralpaymentproceduresareasfollows(pleaseseeFigure8.1):1.

TheremitterfillsouttheD/Dapplicationform,presentstheproceedsandpaythecommissionforremittancetotheremittingbank;2.

Uponreceiptoftheform,theproceeds,andthecommission,theremittingbankdrawsademanddraftandgivesittotheremitter;3.

Theremittersendsthedemanddraftdirectlytothepayingbank;4.

Theremittingbanksendsanadviceofdrawingtothepayingbank;5.

Uponpresentationofthedemanddraftbythebeneficiary,thepayingbankwillmakepaymentafterhehasmadesuretheauthenticityofthedraft;6.

Thepayingbanksendsthedebitadvicetotheremittingbank.8.2.2(3)

DemandDraft

Figure3.2GeneralProceduresforD/D8.2.2(3)

DemandDraft

Remitter(3)PayeePayingBankbbanBankbank匯入行RemittingBank匯出行（1）（4）（6）

（7）（5）（2）ApplicationofRemittanceinInternationalTrade

①

PayinAdvancePaymentinadvance,akacashinadvance,underwhich,theimporterpayspartorevenalltheproceedsbeforethedeliveryorpriortotheshipmentofthegoods.Astotheimporter,itmeanstopayinadvance.②PaywithOrder3.3(1)CollectFirstwhileDeliverLater(2)DeliverFirstwhileCollectLater①

OpenAccountTrade②

CashonDelivery

8.2.3(2)

ComparedwithO/Atrade,thebuyerwillmakepaymenttotheexporterupontakingdeliveryofthegoods.

UnderO/Atradeandcashondelivery,theexporterwilldeliverfirstwhilegettingthepaymentfromtheimportlater.Thus,itistheexporterwhoshoulduseitcautiouslyandcarefully.

That’sallfortheremittance.

Thanksforyourcooperation!8.2.3(2)

CashonDeliveryCh4CollectionLearningObjectives:·Understandthedefinitionofcollectionandthepartiesconcerned·Graspthegeneralprocedurefordifferentcollectionmethods·UnderstandthegeneralinformationontheURC522DefinitionofCollectionandPartiesconcerned

Astothecollection,theICChasenactedtherelevantcustoms:UniformRulesforCollection(URCinshort).Nowadays,thelatesteditionwhichwasrevisedin1995.Becauseitwasjustthe522ndpublicationoftheICC,itisnamedURC522inshort.

Itdefinesthatthecollectionmeansthehandlingbybanksofdocumentsinaccordancereceived,inorderto:obtainpaymentand/oracceptance,orII.deliverdocumentsagainstpaymentand/oragainstacceptance,orIII.deliverdocumentsonothertermsandconditions.4.1(1)Definition①

Principal-referstothepartywhoentrustsabanktohandlethecollection.Inthepracticeofinternationaltrade,itistheexporterwhoentrustsabanktocollectthepaymentfromtheimporter.Whentheprincipalfillsinthecollectionapplication,hemaytakethefollowingrequirementsinURC522intoconsideration.1.

TheconditionofDeliveryoftheDocument2.

AddressofthePayer3.

TimeforPresentation4.

DeliveryMethodsoftheDocument8.3.1(2)

(2)Partiesconcerned

-thebankwhichwasentrustedbytheprincipaltohandleacollection.

However,eventhoughthisbankwasentrustedbytheprincipaltocollectthepayment,itcannotfinishthetaskbecauseitislocatedintheexportingcountry.Itwillsendtherelevantdocumentstothecollectingbank.Inpractice,theremittingbankshouldalsoconductthecollectionstrictlyaccordingtoboththecollectionapplicationandURC522,cannotactoverconfidently,otherwise,itwillbeartheresponsibility.8.3.1(3)

(2)RemittingBank

Itisanybank,otherthantheremittingbank,involvedinprocessingthecollection.Inpractice,itisabankentrustedbytheremittingbanktopresentthedocumentstothedraweeandcollectpayme