You are here： >> Letters of credit are often in what went wrong? >> The body ofLetters of credit are often in what went wrong?
Sources of information：未知Release time:2017-02-24 11:40 Reading times：次I would like to comment
Letters of credit are often in what went wrong?
A) reimburse the bank fee question
In letter of credit transactions, banks play an important role. Starting from the issuing banks must take notice, examination,
D/a and a series of responsibilities, to provide buyers and sellers with bank credit.When the Bank provides these services, who should be
This cost of reimbursing Bank? in a number of international trade disputes, buyers and sellers dispute, it should be up to the
Pay. But I think, the bank charges shall be borne by the buyer. From three angles, the author of the following views:
(1) said. Open a letter of credit because the seller was not satisfied with the original intent of the buyer has the ability and willingness to pay
The issuing by the Bank as a way to eliminate any possibility of buyer fails to perform the payment. Bank letter of credit provided to beneficiaries
Bank credit, committed to beneficiaries is available by payment against credit documents. So the buyer to apply for issuing banks may
To be seen as acting as a seller's agent, buyer seller's request or authorize and arrange a payment way, from
Basically, is paid by buyer for the expansion of trade of a cost of doing business.
(2) consideration of said. Buyer's issuing bank charge is for the buyer to pay the seller responsibility consideration. By
That consideration, which means the cost of interests of the parties in order to obtain a contract, it is a common law concept. Under the common law rules
, Only on or about the time of the contract, is a legally valid contract, without consideration or about the contract is that you don't get
Guaranteed by law. So, about also called for prices or treats, and party to acceptconditions for an Act, coupled with the
Debts, give up a right or suffered some loss of the other party for compensation.
The issuing bank and the beneficiary relationship through letters of credit, letters of credit in favor of credit issued by exporters, the
Quality as an offer. Beneficiaries of the issuing document surfaces by bank check their payment cannot be paid nothing,
Buyer's deposit enough said on the grounds of the credit is no longer responsible. Bank Act was made, must be given to the corresponding filling
Claims, known as "about". Analysis to the above, was buyer interest to the beneficiary under the letter of credit opening application
Another contract this contract, then the previous margin money paid by the buyerof the contract also became a beneficiary and
The consideration of the contract between the issuing bank. About third party commitment, is recognized in many countries, the United States and United Kingdom
Trust strongly supports this view.
(3) the contract said. According to international practice, normally, of contracts for the international sale of goods to the buyer, according to the sale
Payment by the letter of credit in the same agreement, draw on its application fora bank letter of credit in favor of seller to settle
The purchase price. Sell when credit terms are stipulated in the contract, the buyerhas the timing, type and manner stipulated in the contract open to sellers
Obligations of the beneficiaries of letters of credit. Buyer as payer of the contract,and the applicant, according to the requirements of the contract to the
Bank submitted contracts, apply for issuing 1. Issuing applications constitute a unilateral declaration of the applicant, banks
Before deciding whether to accept, also taking into account its own interests, to investigate the credibility of the applicant, to determine whether or not required to pay
All or part of the deposit, within the limits accepted the request of the applicant. Ifthe Bank accepts the buyer's request, the parties
On the establishment of a credit contract, the issuing application becomes a binding contract between the parties, the parties rights
Basis of accounting. Application for issuing the issuing bank proxy and payment agent contract with the issuing bank. According to the
A contract, the issuing bank is paying agents, and the applicant is the payer. In General, the applicant will have to deliver to the issuing bank
Deposit of not less than 20% the issuing amount, providing mortgage, pledge orguarantee and financial institutions, in the Bill of lading before opening
Enough of the issuing bank to the issuing amount of money; the Bill of lading shall be paid to the issuing bank immediately after the funds paid by the issuing bank
Item.
In practice, most explicitly issuing the contract the applicant has an obligation to pay of the issuing bank under letter of credit
Paragraph. Therefore, in most cases, the issuing bank the right to reimbursement is a contractual right, if the issuing the contract does not
This type of clause, courts will generally be viewed as implied terms and will still support the issuing bank's contractual rights. The United States uniform commercialcode
5th ... Article 114, paragraph (3) provides that: "unless otherwise agreed, an issuer(opened letters of credit or any other person) in honour of Exchange or
After a payment order have the right to demand any payment for immediate compensation paid under the letter of credit.
Above has gone from three perspectives on the same issue are described in full, the buyer shall pay the bank charges is out of question.
As regards the applicant time to reimburse the issuing bank, the UCP was not specified. United States general practice is to:
Allow first agreed by the parties to request time to pay. Most of the issuing application format provides that the applicant shall, not later than
One business day before the maturity payment. Since this reimbursement occurs inadvance of the issuing bank to pay the beneficiary, and
Its said to be paid, rather than in advance. In advance of the issuing of such contract rights are applicable to the sight to
Drafts at sight. After acceptance, the sight, the due date is determined; and spot exchange case, the issuing bank is usually know
Payable when prompted, and the issuing bank has reasonable time to examine documents, the issuing bank refused the documents may, after receipt of the documents the third
Any time before the end of the banking business day. Therefore, the sight can bepostponed for a day or two of payment, you can
Time require the applicant to provide funding. Bank in the buyer has submitted tothe Bank to open a letter of credit application and in accordance with the bankingregulation
Complete the procedures (such as issuing deposit and charges in connection), l.
One thing needs to be clear is, of course, not all the credit-related costs shall be borne by the buyer, in strict accordance with the international
Cases, the cost of credit to the issuing bank in the territory of the host country, such as the issuing, modifying fees paid by the applicant and the issuing bank
In a country other than the fees are paid by the beneficiary.
(B) the trial evidence and change issues
As the letter of credit is opened by the buyer, can basically reflect their will, changes typically occur in the credit
The seller after the trial evidence. The trial evidence is the seller, a very importantpiece of work, whether it relates to payment for safe and rapid recovery. The seller
(Beneficiary) after receipt of the letter of credit, will conduct a detailed review.
Anyone who does not comply with the content of the contract of sale should in principle seek to amend the explanation is less comprehensive, because the letter of credit shall be
Contains some content that is not in a contract of sale. So the trial evidence shall be based on three: one is the contract; the other is receive
License policy Act three is the stocking and shipping schedules, such as the situation. Should be considered in conjunction of the three. Meanwhile, trial evidence to
Points can also be summarized in the following three aspects: first, political considerations, to permit content without violating a State Policy Act compliance
Place, if found, must demand change. Second, economic considerations, certificates without affecting seller's security collection
Or increase the seller's expenses. Species such as letter of credit validity period does not meet the requirements, the amount is not enough, missing, missing
Issuing bank guarantees payment of the sentence less; the latter without specifyingthe Optional fees, bank fees borne by the seller, all or most.
Trial evidence if you notice these problems, should be based on both sides of theagreement or practice require the change. Third, from the time of the
The reality, there are no sellers out of the place. For example wrong company name, for a quality certificate of analysis rather than seize
Certificates, provided shipment cannot, require special documents are not acceptable. The trial evidence if you notice these problems,
Should also be asking the change, paying particular attention to "trap" clause.
Trial evidence apart from the seller's obligations, advising bank will be responsiblefor the authenticity of a letter of credit. It confirmed by check the seal cipher
The relevant letters of credit is real, and referred it to the beneficiary only and vice versa, "such as the advising bank cannot determine the authenticity of the letter of credit,
It must without delay inform the directive received from its banks ". In this case, theadvising bank may not advise a credit.
"If the advising bank elects nonetheless to advise the credit, it must inform the beneficiary that he cannot check the authenticity of the letter of credit" (7th b
Paragraph). Therefore, when the seller is notified when transferred abroad by opening the letter of credit:
(A) if indicated on the card "printing bet line" or similar statements, namely credit requirements are in full compliance with the seller. The seller
In accordance with the stipulations in the contract stock, shipping and pay negotiable obligations;
(B) if indicated on the card "does not match the print charge", "printing charge has yet to be confirmed," or other similar statements, you can stock up but not
Shipping to avoid losses, must wait for further notice of receipt of the notification,confirmed the authenticity of the letter of credit in order to
Shipment and the documents for negotiation. Specifically, is divided into the following two circumstances:
1, if it is found that the credit contract inconsistent with where the seller has the right to require the buyer to modify the credit
Card. If the buyer does not amend the letter of credit, it means that the buyer's failure to comply with the contract, which constitutes a breach of, the seller is entitled to according to buyer
Extent of the breach to take relief measures, or cancellation of the contract or damages, or a letter of credit, but reserve the right to not
Break right to credit a claim;
2, if the credit seller and the contract was added, it is matters not covered in the contract, the buyer is
Whether default depends on the complement is an opening to add appropriate terms in principle 2. If the add is appropriate, that is
Clear buyer credit is reasonable and fair and does not contradict with the sale contract, the buyer does not amount to a breach of
Seller's objection is not; if the add is not in line with the appropriate provisions ofthe standard, the buyer constitute a breach;
(C) if the credit line with the contents of the contract of sale, the seller due to a change in circumstances (not by force majeure
) When it fails to do so, such as shipment, partial shipments are not allowed to issue, denial of transport problems, the seller can only be used with the buyer
Consultation and make amendments, if the buyer agreed to change, should be considered as both parties agreed to amend the contract of sale; but the buyer has the right to not
Agree to change.
(D) in contrast, the issuing bank if the seller opened does not comply with the contract of sale or to add objects to the credit is not installed
Transport of goods, and bank documents requested bank payment, acceptance ornegotiation, at this point, people often say that the seller has accepted buy
Party letter of credit. In the implementation of the credit, we commonly think of benotified to the beneficiary of the credit, benefit
People raised no objection when demand for credit and stock, prepare documents that create the intention of both parties sign.
But legally, should be regarded as buyers and sellers to reach agreement on contract changes, change the contents of the letter of credit on the sale contract
Modify or add parts.
In short, the buyer has the obligation to amend the letter of credit. Whether the seller or the buyer to change, both sides must be
Consultation on credit after the provisions contained in the agreement, the buyer accordingly amend the letter of credit. The applicant amend the letter of credit,
To the original l/c issuing bank to fill out the application for alteration of credit, anamendment by the applicant's undertaking, and beneficiary agree
Modify the written, explicitly modified content. If you want to increase the settlement amount of letters of credit, issuing guarantees to append.
(C) the shipment
In international trade, was a crucial stage of the loading. Whether the shipment of the goods, when shipped, how to ship
Problems are directly linked to the contract's actual performance, as well as the vital interests of both sides, when the mode of shipment and the shipment of the goods
(The shipment) becomes two hot seller disputes.
1, the mode of shipment.
Shipping refers to whether partial shipment. Partial shipment, UCP500 article 40thof a paragraph: "in addition to
Not otherwise stipulated in the credit, partial drawings and/or shipments are allowed. "H provides that:" the Department of transport documents indicating that the goods
Using the same means of transport and transport through the same route, even ifeach set of transport documents marked with the date of shipment and/or installed
Shipment, taking in charge different shipping, specify the same destination as long as transport document, or as a partial shipment. ”
41st article stipulates: "credit in the different stages within the time limit specified and/or shipment, if any one
Instalment is not/or the period stipulated in the credit, the credit for that period and the future periods are considered null and void, the letter of credit
Unless otherwise provided. ”
Several provisions on shipments above generally consists of the following meanings:
First, if a credit does not prohibit partial shipments, shall be understood as partialshipments are allowed, but actually transported or not, by a
Benefits to the people master of their own.
Second, the goods under the letters of credit, as long as they are using the samemeans of transport, by the same transport route, for the same
Destination, although more than two sets of transport documents, different sets ofdifferent ship date indicated on the transport document, and/or transportation
Indicated on the transport document the port of loading, place of taking in charge, shipping different nor as a partial shipment.
Third, if the credit is fixed in number of shipment of the goods, for example, "fromJuly 1995 to September 100 tonnes per month",
The beneficiary must be phased by the amount of time shipment and cannot be interrupted, if there is any failure in fashion, credit
Certificate for the period (batch) and subsequent phases (batches) are ineffective.This provision is more stringent, beneficiaries should pay special attention.
The United Nations Convention on contracts for the international sale of goods has been agreed on this issue, but not the same. Section 73rd
Fixed: "partial delivery of goods contract, if a party fails to perform any delivery obligation with respect to that instalment
Constitutes a fundamental breach of contract, the other party may have good reason to conclude that future instalments will be a fundamental breach
Against the contract, the other party may, within a reasonable time of avoidance of the contract is not valid in the future ... A buyer who declares the company for any
Delivery of the shipment to be futile, you can declare the contract has been delivered or of future deliveries of goods are null and void,
If the goods are interdependent and cannot be used for the purposes envisagedby the parties at the time of conclusion of the contract. "In accordance with the
The provisions requiring instalment contracts, if one of the parties breaches the obligations with respect to one, the other side
There are three types of treatment: Declaration of the goods is not valid; declare the goods on or after invalid; declare all goods is not valid.
Seen above, is also a partial shipment, UCP500 are inconsistent with the provisionsof the Convention. Root
According to UCP500, meaning if a credit does not specify whether partial shipment, is understood to be; the Convention on this no
Contract, and according to contract law, such as the contract does not specify whether partial shipment is not equal to the partial shipment. If
Collection
section navigation
Site recommended
About us | Contact us | Online submission | Using help | Site map | Set as homepage | Add to Favorites
Copyright 2012-2018. ALL RIGHTS RESERVED (International Trade Law)
Telephone：0086-13315171023 QQ:1215545143
Email：tradelawchina@hotmail.com Technical support：ZW0311
Copyright 2012-2018. ALL RIGHTS RESERVED (International Trade Law)
Telephone：0086-13315171023 QQ:1215545143
Email：tradelawchina@hotmail.com Technical support：ZW0311