Tiểu luận môn thanh toán quốc tế document in international payments

International Payments

Chapter 3

Documents in
International Payments
Class: Banking
Intake: 56
Group: 7


Group members

 Đỗ Mỹ Hạnh
 Nguyễn Thành Lâm
 Bùi Mỹ Linh
 Đào Quang Minh
 Lê Trọng Nghĩa
 Nguyễn Thanh Thảo
 Nguyễn Thu Trang

Jr


I. OVERVIEW



A letter of credit is an undertaking between the issuing bank and the beneficiary to pay, accept bill of exchange and make payment on maturity
provided the beneficiary fulfills the requirement under a credit.



Function: provides exporters and importers with an accounting record; shipping and logistics companies with instructions of what to do with freight
information; and banks with instructions and accounting tools for collecting payments.



More complex than those used for domestic sales due to the special characteristics of international trade.


I. OVERVIEW



The Uniform Customs and Practice for Documentary Credits (UCP) is a set of
rules on the issuance and use of letters of credit.




b.

UCP Article 17 : Original Documents and Copies

A bank shall treat as an original any document bearing an apparently original
signature, mark, stamp, or label of the issuer of the document, unless the document
itself indicates that it is not an original.

c.

Unless a document indicates otherwise, a bank will also accept a document
as original if it:
i.

appears to be written, typed, perforated or stamped by the document
issuer’s hand; or

ii. appears to be on the document issuer’s original stationery; or
iii. states that it is original, unless the statement appears not to apply to
the document presented.
d.

If a credit requires presentation of copies of documents, presentation of
either originals or copies is permitted.


Types of documents in international payments

Transport document

Goods documents

Insurance document


1. Transport document



Bill of lading



Airway bill



Non-negotiable sea way bill



Multimodal transport document

 

 


1. Transport document

Bill of lading
Definition



It’s a transport document signed by the carrier, or
captain (sea) or agent of the carrier after goods have
been received and waiting shipment.

1. Transport document

Bill of lading
Function



Evidence of contract of carriage with details of the amount, type, and destination of the shipped
freight



Receipt that the goods have been properly loaded onto the transporting vessel



Title of goods


1. Transport document

Bill of lading
Content



Carrier name and a signature from the carrier, the ship’s master, or a legal representative of either of
these parties



Date and indication of goods being loaded onto a vessel



Notation of the port of loading and the port of destination



Terms and conditions of carriage or a reference to these conditions listed in another document



Detailed description of the goods being shipped (value, count, weight, size, markings/numbers, etc.)



Name of the consignee



Any special instructions for shipping



1. Transport document

Bill of lading
Types

Straight
Shipper’s order
Air waybill
Originals
Inland
Multimodal/combined transport


1. Transport document

Bill of lading
Basis

Blank endorsed
Clean
Claused
On board
On deck


2. Goods documents

 Commercial invoice
 Packing list
 Certificate of origin


2. Goods document

INVOICE

Definition

An invoice is a document sent to a buyer that specifies the amount
and cost of products or services that have been provided by a
seller


2. Goods document

INVOICE
Types

1.

Proforma invoice

2.

Commercial Invoice


2. Goods document

PROFOMA INVOICE
Definition

After the buyer sends the purchase order to the seller, the buyer will
send proforma invoice to the buyer basing on the purchase of order
to make the payment.

2. Goods document

PROFOMA INVOICE
Content
• Seller
• Buyer
• Number and date
• Payment
• Port of Loading
• Port of Destination
• ETA: Estimated Time Arrival
• Product decription, amount, unit, price.
• Information of bank to do the payment.



2. Goods document

COMMERCIAL INVOICE
Definition

The CI is the key accounting document describing the commercial
transaction between the buyer and the seller..


2. Goods document

COMMERCIAL INVOICE
notes



. In letter of credit transaction, CI must show the content strictly and word by word exactly,
even dot and comma as prediscribed in letter of credit.



CI is saved in file of each purchase of order and contract, it also is the basis for comparing
payments of customer.




3. Insurance
Definition



Insurance document is a contract representing an agreement whereby the insurer undertakes to indemnify the insured , in the manner and to the extent agreed , in terms of
space-time and risk clauses subject to the principle of proximate clause, for insureable property lost or damaged by perils, incidental to adventure.



The contract can be assigned by endorsement and delivery to the other party.


3. Insurance
Types

 Insurance policies
 Insurance certificate