Thuyết trình môn thanh toán quốc tế term of international payment

TERM OF international payment
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Nguyễn Văn Quý
Nguyễn Bá Hùng
Trần Thị Minh Ngọc
Đỗ Hương Giang
Nguyễn Thị Huyền Trang
Đặng Hải Linh
Phan Hà Anh


Main contents
1
Currency of
payments

2
Time of payment

3
Place of payment

4
Methods of payment

The payment currency can be any one of
the following currencies:
USD - US dollars
AUD - Australian Dollars
CAD - Canadian Dollars
NZD - New Zealand Dollars
GBP - British Pound
EUR - Euro
SGD - Singaporean Dollars…

This will depend on which currency the
client used to pay for the project;
whichever currency was used will be
displayed on the project's brief page.

i.
Currency of
payments


 Based on use place
 World currency
 International currency
 National currency
 Based on transference
 Free convertible currency
 Transferable currency
 Clearing currency

 Based on use purpose
 Payment currency
 Account currency

i.
Currency of
payments

 Based on survive form
 Credit currency
 Cash

MAIN FACTORS EFFECT TO USING KINDS OF
CURRENCY IN INTERNATIONAL PAYMENT





Currency the client used to pay for the project
Position of currency in international finance market
Term and policy
Business sector currency is used

Kinds of currency


iI.
time of

payments

This is the form of payment immediately after signing the
contract or after exporter accepts the order of the importer,
importer pays part or all of the contract amount.
Payment before delivery


 Importer pays exporter in advance X days from the
date of signing the contract, or after the effective date
of the contract
• Meaning : Importer provides credit, advances payment
to exporter that facilitae to get enough capital to export
their goods.
• Time of advance credit for export is calculated from the
date of advance payment to the date exporter refunds
the advance. The amount of advance payments
depends on the demand of exporter and the ability of
providing credit.
• Price of contract in advance payments is lower than
price of contract in payment delivery. This difference is
the interest arising on the advance amount that the
seller will have to reduce the price for the buyer

iI.
time of
payments

Payment before delivery

 Importer pays exporter in advance X days from the date of signing the
contract, or after the effective date of the contract

Formula to calculate

Pe =

𝑃𝑢[ 1+𝑅 𝑁 −1]
𝑄

Pe : Discount Price
Pu : Deposit Value
R : Interest of credit period ( year, month)
N : Time to provide credit to exporter from importer
Q : Quatity of contract goods

EX: A contract valued at 500.000 USD with
1000 ton, a payment of 20% contract value
will be made by buyer before 6 months,
interest is 5% . Calculate the price discount
the buyer can get at 1 ton.

iI.
time of
payments

Solution:
Pu = 500.000 x 20% = 100.000
R = 5%

N = 6 months
Q = 1000 ton
100000[ 1+5% 6 −1]
=> Pe =
= 34$
1000

Payment before delivery


iI.
time of
payments
 Importer pays exporter X days before delivery date
• Meaning: Ensure the performance of the contract of the
importer
• Delivery date is the first delivery date specified in the contract.
• Short-term for payment : 10-15 days .Exporter will only
delivery goods upon receipt of the notice of advance payment
• No interest applied

Payment before delivery


 Importer pays exporter X days before delivery date
In case 1: The amount depends on higher than normal contract price

Formula to calculate

Pu = Q(PH – PT)

Pu : Payment in Advance
Q : Quality of good
PH : Higher contract price
PT : Normal price

EX: ABC company signs a contract to sell
2000 HP laptops at USD 1500 per PC
whereas the normal market price for similar
products is USD 1230 per PC

iI.
time of
payments

Solution:
Pu = cccc
R = ccc
N = cccc
Q = cccc
=> Pu = 2000(1500 – 1230) = 540000$

Payment before delivery


 Importer pays exporter X days before delivery date
In case 2: Buyer's creditworthiness
Seller don’t believe in avaiable payment of buyer and
require buyer advance payment related to banking

iI.

time of
payments

Formula to calculate

Pu = THĐ [ (1+R)N -1] + Tr
Pu : Payment in Advance
THĐ : Total contract amount
N : Duration
Tr : Penalty in case of nonperformance

Payment before delivery


 Buyer pay money on shipment :

iI.
time of
payments

The buyer pays the seller immediately after fulfillment of
the delivery obligation.
According to Incoterm 2000 of ICC:
EXW : Seller completely delivery in their place:
warehouse, factory,…
FAS : Seller completely delivery when the goods placed
alongside ship but didn’t pick up in ship.
DAF : Seller completely delivery at frontier
FCA : Seller completely delivery when the goods
deliveried for carrier

Payment at sight


 After successfully delivery on transport :
The buyer pays the seller immediately upon fulfillment of the delivery
obligation on the means of delivery of the place of delivery of the goods
Ex : FOB : on board
FOD: At the seaport

Payment on Documents :
The buyer pays immediately to the seller immediately after receipt of
payment documents from the seller
There are 2 ways:
- At sight
- Pay within 5 to 7 days of seeing the vouchers
 Payment on Receip
The buyer pays to the seller immediately upon receipt of the goods at
the designated place or
port of destination.

iI.
time of
payments

Payment at sight


After a certain of time exporter has obligations to delivery good
as they agreed in the contract, then importer will pay :

iI.
time of
payments

 Buyer pays after certain number of days, from the date of
receipt be informed, seller has obligations to delivery to the
specified place.
 The payment was made after a certain number of days since
the date of importer gets document.
 The buyer pays after certain number of days from finished
receiving goods.

 Helps removing the risk in buying. After receiving the
goods importer should check it before actually paying.
=> Paying After Delivery is only available for number of
specified transactions at a time

Payment after sight


•

L/Cs are normally payable at both the issuing or the advising bank.

•

When a documentary collection is used as a method of payment:
the bank transfer the payment according to the instructions
originating from the seller.

•

when payment by cheque is agreed upon, it must be made clear
whether the seller will accept a commercial cheque or a bank cheque

• In the case of bank transfer, the place of payment must be decided
by the parties involved.
•

The question of where the buyer fulfills their payment obligations in
connection agreement is payment terms is always a matter for the
parties to agree.

iII.
place of
payments


iV.
methods of
payments
Payment can be devided into two main categories.

• Clean payment is the buyer must pay according to the contract
after receiving the seller’s invoice specifying the payment date.
• The documentary payments are divided into documentary
collections, when the buyer has to pay or accept a bill of exchange
in order to obtain access to the documents for collection, or LCs
where the seller also is guaranteed payment if the documents

presented are in accordance with the terms of the LC


What is different between COD
and Payment After Delivery ?
1
2

3

The same. COD and Payment After Delivery are both pay when
customers receive goods
With Payment After Delivery, customers only have to pay when
they satisfy with goods and have time to change their decision in
few days without charge, different from COD, once they get
goods, they have to pay immediately
No correct answer.

Questions


How long term for payment to ensure the
performance of the contract of the importer?

1

5-10 days

2

10-15 days

3

15-20 days

Questions


Which of the following is not a
feature used to classify currency?

1
2

3
4

Based on transference
Based on use purpose
Based on policy
Based on use place

Questions