Tiểu luận môn thanh toán quốc tế document in international payments

Types of documents in international paymentsTransport document Goods documents Insurance document... Goods documents Commercial invoice  Packing list  Certificate of origin... Goods d

Chapter 3

Documents in International Payments

Chapter 3

Documents in International Payments

Class: Banking Intake: 56 Group: 7

International Payments

 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 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

 UCP Article 17 : Original Documents and Copies

Types of documents in international payments

Transport document Goods documents

Insurance document

1 Transport document

 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

Definition

Bill of lading

1 Transport document

 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

Content

Bill of lading

Bill of lading

2 Goods documents

 Commercial invoice

 Packing list

 Certificate of origin

2 Goods document

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

Definition

INVOICE

2 Goods document

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.

Definition

PROFOMA INVOICE

• ETA: Estimated Time Arrival

• Product decription, amount, unit, price

• Information of bank to do the payment.

Content

PROFOMA INVOICE

2 Goods document

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

Definition

COMMERCIAL INVOICE

2 Goods document

 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

notes

COMMERCIAL INVOICE

3 Insurance

 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

Definition

3 Insurance

 Insurance policies

 Insurance certificate

Types

3 Insurance

 Insurance policies are documents issued by

insurance organizations, including the key provisions of the insurance contract, in order to formalize this agreement.

Definition

Insurance policies

3 Insurance

 The general conditions and regular nature, in which it

specifies the responsibility of the insurer and the insured. 

 The terms of the insured individual and the calculation

of premiums

Content

Insurance policies

3 Insurance

 Insurance certificate is a document issued to the insurer by the insured to confirm the goods have been insured under the contract conditions.

Definition

Insurance certificate

3 Insurance

 Certificate for a shipment was insured, contribute to

addressing the risks that may occur in the operating internationally.

 Solve somewhat damage occurred during sea operation

because insurance is a form of risk diversification principle

of community.

Function

Insurance certificate

3 Insurance

 The content of the certificate of insurance covers only

terms speak insured object, the details necessary for the calculation of premiums and insurance conditions

agreed

Content

Insurance certificate

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