About us | Add to Favorites | Chinese
Position:Fireworks Marketing

How to avoid L/C by bank refuse payment

From;    Author:Stand originally

Documentary letter of credit---The form of this kind of service that international bank group offers, promoted the development of international trade. The development of documentary letter of credit weakened the risk of consignor, its basic function is to be able to make sure the bargainor gets payment for goods, buyer gets goods. However, need L/C involves each---Bank, buyer, bargainor must honest and authentic.
The operation flow of documentary letter of credit is simple, import goods from abroad when buyer when, to native bank application is opened to the bargainor (or of L/C be benefited square) payment action card, bargainor basis sells the carriage kind of contract provision, aux will be able to proves goods has given movement quite and the file that accords with L/C requirement is handed in discuss with the bank pay. The main bill that proves goods gives movement is bill of lading, still have the bill that a few both sides agree besides, if proof of country of origin, commerce sends mark, insurance policy,wait.

So, what effect does the bank have in system of documentary letter of credit? After travel opening card receives complete set to accord with the file of the requirement, guild opening card pays a bargainor conventional payment for goods (or beneficiary beneficiary) . Normally, bargainor of demand of travel opening card gives the receipt its native bank, this bank serves as discuss Fu Hang. Discuss Fu Hang to send card to go the receipt mail with whole complete set, open card soon these file pass on give the buying party (applicant opening card) .

To make movement of system of credit following sheet favorable, weaken the risk of bargainor and buyer, the bargainor offers the file of the bank to must have dependability and authenticity, and the carrier of executive commerce contract must be worth reliance. Of course, the reliability of bank itself also is a main factor. Be in usually, if the bargainor is offerred the requirement that the file accords with documentary letter of credit, the bank is fulfilled pay compulsory. But the bank does not assure the authenticity of the file and dependability. If the bank discovers an invoice,not agree with or file invalidation, at this moment documentary letter of credit with respect to invalidation. When the validity of receipt of bank examine and verify special discretion, between the receipt content whether conform to, receipt and L/C whether conform to, this is the bank is accepted discuss pay or refuse payment or reject to view paid prime cause.

Below system of documentary letter of credit, what the bank operates is a receipt is not goods. For example, when the bank handles country of origin to prove, did not consider the actual condition of goods, the bank considers file content to whether accord with L/C requirement only. But, some files bank does not grant to consider, if presswork the clause in the reverse side of bill of lading, the criterion of bank processing receipt is international chamber of commerce 500 publication " documentary letter of credit integrates an usual practice " .
Previous12 Next

About us | Legal Notices | Sitemap | links | Partner