Tiểu luận môn thanh toán quốc tế documents in international payment

Typically abbreviated as B/L or BoL, a bill of lading is a legal transport document issued by a carrier to a shipper.. Primarily, the document serves as a legally-binding agreement which

BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN

Group 7: Nguyễn Thành Lâm

Nguyễn Thị Thu Trang Đào Quang Minh

Lê Trọng Nghĩa Nguyễn Thanh Thảo

Đỗ Thị Mỹ Hạnh Bùi Thị Mỹ Linh

Ha Noi, 4/2017

I Overview

• A letter of credit is an undertalking between the issuing bank and the benefit o pay, accept

bill of exchange and make payment on maturity provided the beneficiary fulfills the

requirement under a credit

• Export and Import Documents lies at the heart of all international trade transactions In

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

• Export documents are more complex than those used for domestic sales due to the special

characteristics of international trade: geographical distance, different customs laws, different means of transport, greater risks, etc The documents required for each shipment will depend

on the conditions of sale (Incoterms) agreed between seller and buyer

- The Uniform Customs and Practice for Documentary Credits (UCP) is a set of rules on the issuance and use of letters of credit The UCP is utilized by bankers and commercial parties in more than 175 countries in trade finance Some 11-15% of international trade utilizes letters of credit, totaling over a trillion dollars (US) each year

Article 17 UCP: Original Documents and Copies

a At least one original of each document stipulated in the credit must be presented b A bank shall treat as an original any document bearing an apparently original signature, mark, stamp, orlabel 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

II Types of documents in international payments

I Transport document

• Bill of lading

• Airway bill

• Non-negotiable sea way bill

• Multimodal transport document

1 BILL OF LADING

A bill of lading is one of the most common – and important – documents in the shipping and logistics industry It’s been a key aspect of international trade for centuries, and because of its pervasiveness in the industry, it’s easy to overlook this type of document But to do so would open you up to a world of shipping troubles

-What is a Bill of Lading?

Typically abbreviated as B/L or BoL, a bill of lading is a legal transport document issued by a carrier to a shipper It plays three different roles:

1) Evidence of contract of carriage with details of the amount, type, and destination (and even sometimes the condition) of the shipped freight

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

3) Title of goods, which often requires the carrier to turn over the goods to the consignee

(receiving party) noted on the BoL

Historically, the word “lading” comes from an Old English term meaning “loading.” These bills have existed in some form or another since the Roman times, but they became a more commonpractice during the Medieval times

-BoLs are vital to the successful transportation of goods Primarily, the document serves as a legally-binding agreement which helps the carrier process the cargo according to the original contract terms set up by the carrier and shipper or freight owner This means the BoL can be used in litigation concerns, and inaccurate BoLs can expose carriers to anything from claims to criminal prosecution

Additionally, since most BoLs are considered a title of goods, these documents (much like the cargo they list) can be used in negotiations Because of this, some types of BoLs can be

endorsed and transferred to third parties while the cargo is in transit, ultimately giving control of

the cargo to different parties along the route This also means that if a carrier hasn’t been paid

in full for the transportation of the cargo, the carrier can keep the bill of lading and goods until terms of the sale are finalized

-Depending on the type of BoL (see below), various information should be listed on the

document, including:

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

Name of the consignee

Any special instructions for shipping

This information is just some of the items which may be required on a BoL A marine/ocean shipping BoL, for example, will also need the name of the ship written on the document

- There are several different kinds of BoLs, but only some of them are used on a regular basis:Straight: As the name indicates, this BoL is used when goods are already fully paid for and shipped directly to the consignee/customer Straight BoLs are non-negotiable

Shipper’s order: These BoLs are used when cargo is purchased on credit, and are handled through a bank Shipper’s order BoLs are negotiable documents and function like a title of goods A buyer usually needs the original or a copy of the BoL to take possession of cargo at destination

Air waybill: These BoLs are exclusively issued for goods transported by air, and are

non-negotiable

Originals: Some BoLs are issued in what’s known as “sets of originals,” and are used to help control the cargo when the consignee/buyer hasn’t yet fully paid the manufacturer of the goods Once the buyer presents the full set of original documents and pays the manufacturer, the goods can be released to the consignee

Inland: When cargo is only transported on land (such as over rail or roads), an inland BoL is issued

Multimodal/combined transport: This type of BoL is exactly what it sounds like: a document issued for a shipment which is using more than one mode of transportation (i.e ocean, air, land,etc.)

Through: A through BoL is similar to a multimodal/combined transport BoL, but it’s more

complex in that it accounts for different distribution centers as well as various modes of

transportation Through BoLs require both an ocean and inland BoL to be effective Despite the

existence of through BoLs, multimodals are still more commonly used across the shipping industry.

Switch: This type of BoL is commonly used during foreign-to-foreign shipments, where the shipper requires their suppliers information to be kept private During this shipment, there will betwo sets of bills “switched” to protect the suppliers information from the consignee and vice versa

- Bills of Lading used on a less frequent basis

Blank endorsed: This is a BoL which has been endorsed but doesn’t name an endorsee

Essentially, this means the holder of the BoL can claim possession of the goods, and as such this document is considered negotiable A buyer/shipper who holds the original BoL can claim the goods from the carrier at destination as long as the holder submits at least one original copy

On deck: An on deck BoL is used as proof of shipment and can be required for an exporter or manufacturer of the cargo to get paid

When ordering products, it’s important you speak to your logistics provider about which type of BoL will be required for your shipment They’ll be able to discuss the specifics of the BoL with you accordingly

Bills of lading may seem complicated at first, but you’re only ever going to be dealing with one BoL at a time per shipment This makes it easier for you to focus on the document and make sure it’s as accurate as possible during your logistics negotiations and process BoLs which are properly processed will ensure you receive your products as ordered and in working/good condition

2.'Air Waybill - AWB'

DEFINITION

A document that accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked The air waybill has multiple copies so that each party involved in the shipment can document it

As prescribed by IATA, the Air Waybill consists of 3 original copies, with a minimum of 6 and a maximum of 11 additional copies

FUNCTIONS OF THE AIR WAYBILL

 Proof of receipt of goods for shipment: when the shipper delivers his goods for

carriage, he expects to receive a receipt as proof that he has tendered the goods in a good order and condition Therefore, a copy of the Air Waybill duly signed by the Airline (or IATA Cargo Agent) is given to the shipper as evidence of acceptance of his goods Upon issue of a copy to the shipper (blue), the airline acknowledges that it has accepted the carriage the shipment described in the Air Waybill (in outwardly good condition, unless stated on the Air Waybill)

 Evidence of contract of carriage: the Air Waybill, once executed, serves as

documentary evidence of the conclusion of a contract of carriage, of which the airline company and the consignee (green and pink) receive one original copy each Before such a contract of carriage becomes valid, it must be signed by the shipper or his/ her representative and the airline or IATA Cargo Agent acting on its behalf Where the same person is acting on behalf of both, the shipper and the airline, he/ she must sign Air Waybill twice The conditions of the carriage agreement are printed on the reverse side

of the tree original copies The Air Waybill therefore contains all transport instructions (including route, means of payment, etc.), and the persons involved with the transport can identify the shipment by use of the Air Waybill By referring to this Waybill, the consignee can also check whether the contract of carriage has been fully complied with

 Proof of insurance: If the shipment is “insured on waybill” against transport risk, then

the Air Waybill also serves as a proof of insurance The Air Waybill must be completed appropriately

 Basis for air cargo rate calculation: as the Air Waybill shows all charges connected

with the transportation by air, the Air Waybill serves as a basis for the calculation of cargo rates and the settlement between the carrier and the shipper or consignee as well

as between the companies involved in the transport

TYPES OF AIR WAYBILLS

 The Neutral Air Waybills (NAWBs) as recommended by IATA

Neutral Air Waybills (NAWBs) are exclusively printed and obtained through IATA verification and clearance Once the cargo agent or shipper obtains the assigned Air Waybill number provided by the airline or the IATA air cargo agent that is entitled to issue House Air Waybill, theNAWBs are approved for computer printers and have the same validity as Master Air Waybills

or House Air Waybills

 Master Air Waybills (MAWBs)

Master Air Waybills (MAWBs) are the regular airline Bills of Lading issued by the originating airline when more than one airline is involved with a shipment, or when freight forwarders issue

House Air Waybills MAWBs are used for individual consignments As for the airlines, there is

no difference in MAWBs whether the consignment is a single shipment directly from the shipper

or forwarder, or a consolidated shipment from consolidators

 House Air Waybills (HAWBs)

If forwarders take on the function of a carrier and based on which, Air Waybills are issued in its own name, these Air Waybills are called Forwarder Bills of Lading or House Air Waybills

3 Non - negotiable sea way bill

Definition: Non-negotiable sea way bill (a straght bill of lading) is a transport

documents used in sea shipments It names the consignee which is entitled to take delivery of the cargo It is non-negotiable, which means that the consignee cannot endorse the bill and transfer it to another person to take delivery of the cargo.

Prescribed under UCP ariticle 21

Function:

Transport receipt

Transport contract between consignor and consignee

4 Multimodal transport document

UCP article 19

Transport Document Covering at Least Two Different Modes of Transport

a A transport document covering at least two different modes of transport (multimodal or

combined transport document), however named, must appear to:

i indicate the name of the carrier and be signed by:

• the carrier or a named agent for or on behalf of the carrier, or

• the master or a named agent for or on behalf of the master

Any signature by the carrier, master or agent must be identified as that of the carrier, aster or agent

Any signature by an agent must indicate whether the agent has signed for or on behalf of the carrier or for or on behalf of the master

ii indicate that the goods have been dispatched, taken in charge or shipped on board at the

place stated in the credit, by

iii indicate the place of dispatch, taking in charge or shipment and the place of final

destination stated in the credit, even if:

a the transport document states, in addition, a different place of dispatch, taking in

charge or shipment or place of final destination, or

b the transport document contains the indication "intended" or similar qualification in

relation to the vessel, port of loading or port of discharge

iv be the sole original transport document or, if issued in more than one original, be the full

set as indicated on the transport document

v contain terms and conditions of carriage or make reference to another source containing

the terms and conditions of carriage (short form or blank back transport document) Contents

of terms and conditions of carriage will not be examined

vi contain no indication that it is subject to a charter party.

For the purpose of this article, transhipment means unloading from one means of conveyance and reloading to another means of conveyance (whether or not in different modes

of transport) during the carriage from the place of dispatch, taking in charge or shipment to the place of final destination stated in the credit

i A transport document may indicate that the goods will or may be transshipped provided

that the entire carriage is covered by one and the same transport document

ii A transport document indicating that transhipment will or may take place is acceptable,

even if the credit prohibits transhipment.transportation

It Need not be titled as a ‘Multimodal’ or ‘Combined’ transport document even if it is named that way in the credit

It Is a negotiable document/document of title

II GOODS DOCUMNETS

• Seller: name, address, telephone of seller

• Buyer: name, address, telephone of buyer

• Number and date of PI

• Payment: Condition of payment Example: repayment 100% (By T/T, 100% advance) or deposit 30%, 70% remains after sending a copy document copy (By T/T, 30% advance, 70% against of copy shipping docs)…

• Port of Loading: (VD: Hai Phong port, Viet Nam; Ho Chi Minh port, Viet Nam…)

• Port of Destination: (VD: Incheon port, Korea; Oslo port, Norway…)

• ETA: Estimated Time Arrival

• Product decription, amount, unit, price

• Information of bank to do the payment

Here is an sample of PI In reality, there might exists other information or different content