International Trade Settlement

      國際貿易經常發生貨款結算，以結清買賣之間的債權債務關系，這種結算稱為國際貿易結算。國際貿易結算是以物品交易、貨錢兩清為基礎的有形貿易結算。 

The types of notes used in international trade include bills of exchange, promissory notes and cheques, which are mainly drawn on bills of exchange.

A bill of exchange is a written unconditional payment order issued by one person to another, requiring the other person (the person accepting the order) to pay a certain amount to a person or a nominee or a bearer at a time or at a fixed time.

Bills of exchange can be divided into the following categories:

Bank draft and commercial draft according to the drawer's difference

Bank draft (banker 1; s draft) is a bank draft drawn by the drawer and the drawee.

Commercial draft is a bill of exchange which is issued by an enterprise, a company, a firm or an individual, and a payment is made by other firms, individuals or banks.

Whether there are any subsidiary documents -- clean draft, documentary draft.

Clena bill is not accompanied by shipping documents. Bank bills are mostly clean.

Documentary bill, also known as a credit draft and a bill of exchange, is a remittance bill which needs to be accompanied by bills of lading, warehouse receipt, insurance policy, packing list, commercial invoice and so on. Commercial drafts are mostly documentary bills of exchange, which are frequently used in international trade.

Payment on time -- sight draft and time draft

Sight bill (demand bill) refers to the immediate payment by the holder of the bill to the drawee, or the draft payable at sight.

Time bill (usance bill) is payable on or after a specified date.

In a time draft, it is recorded that a certain date is the maturity date, and the time of payment on the maturity date is a time draft, which is payable in a certain period after the date of issue. It is a time draft. If the payment is recorded within a certain period after the ticket is payable, it will be the time draft. The amount of the face amount should be divided into several parts, and the instalments shall be payable on instalments.

According to acceptor -- trade acceptance bill, bank acceptance bill

Commercial acceptance bill is a time draft which is a acceptor or a bank other than a bank.

Bank acceptance bill (banker 1; s acceptance bill) acceptor is a bank's time draft.

According to circulation area domestic draft and international bill of exchange.

A promissory note is a note issued by one person to another to ensure that a certain amount of money paid to the bearer is unconditionally or at an expected time in the future.

Promissory notes can also be divided into commercial promissory notes and bank cashier's notes.

A commercial promissory note is a promissory note issued by a business enterprise or an individual, also known as a general promissory note.

Commercial promissory notes can be divided into spot and forward commercial promissory notes which generally do not have rediscount conditions, especially for long dated promissory notes issued by small and medium-sized enterprises or individuals. Because of their low credit guarantee, it is difficult to circulate.

Bank cashier is available at sight.

Promissory notes used in international trade settlement are mostly bank notes.

A cheque is a sight draft drawn by a bank for the drawee.

Specifically, the drawer (the bank depositor) issues the bills payable to the bank (drawee) for immediate payment when the bank sees the ticket.

When issuing a cheque, the drawer shall have deposits in the paying bank which are not equal to the face value.

If a deposit is insufficient, the holder will refuse to pay. The check is called a blank check.

The drawer who makes a false check is liable.

Cheque can be divided into:

A cheque payable to a drawer is marked in the payee's column, "pay someone", "pay to someone or his nominee".

When a cheque is pferred, it must be endorsed by the bearer. When it is withdrawed, it must be signed by the payee on the back.

A blank check is also known as a blank cheque. The column is marked "payable to the bearer".

Such a cheque can be pferred without endorsement and without signature on the back.

Crossed cheque draws two parallel horizontal lines on the face of a cheque. The holder of such a check can not withdraw cash, and can only entrust a bank to receive the account.

In order to avoid issuing cheque by the drawee, the payee or the holder can ask the paying bank to sign the check on the cheque so as to ensure that the bank will pay the bill at that time.

The pfer cheque, the drawer or the bearer, on the ordinary cheque, specifies "pfer payment" to limit payment to the paying bank.

Mode of settlement: the combination of letter of credit settlement, remittance and collection settlement, bank guarantee letter and various settlement methods.

A, letter of credit settlement method

Letter of credit (L/C) is the product of bank credit intervention in the settlement of international sale and purchase price.

It not only solves the contradiction of mutual distrust between buyers and sellers to a certain extent, but also enables the two sides to get the convenience of bank financing in the process of using the letter of credit to settle the loan, thus promoting the development of international trade.

Therefore, it is widely used in international trade and has become a major way of settlement in international trade today.

A letter of credit is a conditional promise of payment made by a bank, that is, a written document issued by a bank to the beneficiary according to the request and instructions of the applicant, with a certain amount, and within a specified period of time, on the basis of the stipulated documents.

Belonging to bank credit, the converse method is adopted.

B, remittance and collection settlement

Remittance and collection are commonly used in international trade.

A, remittance

Remittance, also known as remittance, is a settlement method for the payer to remit the loan to the payee through various means of settlement through the bank.

It belongs to commercial credit.

There are four parties involved in the remittance business: the payer (remittance remmitter), the payee (payee or beneficiary), the remittance trip (remittingbank) and the remittance line (payingbank).

Among them, the payer (usually the importer) has a contractual relationship with the remittance trip (the bank entrusted to remit the remittance), and there is a contractual relationship between the remittance and the remittance agency.

When handling remittance business, it is necessary to fill in the remittance application to the remittance by the remitter. The remittance is obligated to issue the payment letter to the remittance bank according to the instructions of the remittance application. After receiving the accounting instruction, the remittance bank has the obligation to solve the payment to the payee (usually the exporter).

However, remittance and remittance are not responsible for any loss caused by their own negligence (such as loss of payment or delay in the postal order, etc., which causes the payee not to receive the payment in due course or late).

B, collection (Collection)

A collection is a bill of exchange (with or without shipping documents) issued by the exporter after the shipment is made to the importer as a drawee. The Bank of the exporter is entrusted to the importer to collect the payment by means of its branch or agency in the place of import.

It belongs to commercial credit, and the converse method is adopted.

The parties to the collection method include principals, collection banks, collecting banks and payers.

The principal (principal), that is, the person who draws the bill to entrust the bank to collect foreign funds from foreign payers, also known as the drawer (drawer), is usually the exporter; the remitting bank is the export bank that accepts the entrustment of the exporter; the collecting (bank) is the importing bank that receives the entrusted payment from the entrusted payer; the drawee (payer or drawee), the drawee on the bill of exchange, the payer of the collection, usually the importer.

Among the above parties, the principal and the collection bank, the collection bank and the collecting bank are all principal agent relations. There is no legal relationship between the drawee and the collecting bank, and the drawee pays the contract according to the sales contract.

Therefore, whether the trustor can receive the payment depends entirely on the reputation of the importer, and neither the collecting bank nor the collecting bank is liable.

When handling the collection business, the trustor should submit a letter of collection to the collection bank, in which all instructions are issued, and the collecting bank and the collecting bank collect money from the drawee in accordance with the instructions of the entrustment.

C, bank guarantee letter

Bank guarantee letter (banker, 1; s letter of guarantee), also referred to as L/G, is also known as bank guarantee, bank guarantee, or short letter of guarantee. It means a written certificate issued by the bank to the beneficiary by the application of the principal to ensure that the applicant performs the contract in accordance with the relevant provisions, otherwise the bank is responsible for paying the debts.

D, the combination of various settlement methods.

In international trade business, the settlement of a paction can only be settled by one settlement method (usually), and it can also be used in combination with two or more ways of settlement according to needs, such as different trading commodities, different trading objects and different trading practices, or is conducive to facilitating pactions, or is conducive to safety and timely collection of foreign exchange, or is conducive to properly handling the payment of foreign exchange.

Common forms of settlement include: letter of credit combined with remittance, letter of credit and collection, remittance and bank guarantee or letter of credit.

A, L / C and remittance combination

This means that the payment for a paction is partly made by L / C and the balance is settled by remittance.

This form of settlement is commonly used in pactions where certain quantities of certain primary products are allowed to be delivered.

In this regard, with the consent of both parties, the L / C stipulates that the amount of the invoice should be paid in advance according to the shipping documents or the amount of advance payment before the goods are dispatched. The balance will be paid after the arrival of the goods to the destination (port) or the actual quantity of the re inspection.

To use this combination form, we must first specify what kind of letter of credit and what kind of remittance is adopted and the proportion of payment by letter of credit.

Combination of B, L / C and collection

This means that the payment for a paction is partly made by L / C and the balance is settled by collection.

The specific practice of this form of combination is usually: the letter of Credit stipulates that the beneficiary (exporter) opens two bills of exchange, which is part of the credit under the letter of credit, which is paid by a clean draft, while the balance is enclosed on the bill of collection under the bill of collection, which is collected by sight or forward payment.

This practice is safer for the exporters to receive foreign exchange, and the importers can reduce their gold deposits, which is easy for both sides to accept.

However, a letter of credit must specify the type and amount of the letter of credit, as well as the type of collection, and also stipulate the terms "after the full payment of the invoice value".

C, remittance and bank guarantee or letter of credit combination.

The combination of the remittance with the bank letter or the letter of credit is often used in the settlement of a complete set of equipment, large machinery and large pportation tools (aircraft, ships, etc.).

This kind of product, with large paction amount and large production cycle, often requires the buyer to prepay a portion of the money or deposit by the way of remittance, and the rest of the goods are paid by the buyer in installment or late by letter of credit.

In addition, there are combinations of remittance and collection, collection and standby letters of credit or bank guarantee bonds and so on.

When we carry out foreign economic and trade business, we can choose which combination form we can choose.

Bill risk and Precaution

As an important payment voucher in international settlement, bills are widely used internationally.

Because of the wide variety and different nature of the bill, plus the fact that most domestic residents rarely have access to foreign bills and lack of universal identification capability, there are also many risks in the use of bills.

　　一、票據風險

A, in regard to the risk prevention of negotiable instruments, we should pay attention to the following points:

1, before the trade is concluded, we must understand the credit of our clients, so that we can have a good idea and take precautionary measures.

Especially for those new clients whose credit standing is unknown, and those with tight foreign exchange, backward areas and unstable state customers.

2, the negotiable instruments submitted by merchants must be entrustment to the banks to check them externally, so as to ensure the safe receipt of foreign exchange.

3, before trade is concluded, buyers and sellers must sign a safe, equal and mutually beneficial sales contract.

4, before the bank has collected the tickets, it can not deliver the goods early, so as not to make the goods two empty.

5, even if you receive the cheque from the best bank in the world, it will not necessarily mean that you will receive payment in the future.

In recent years, foreign fraudulent traders have used fraudulent bills and remittance certificates to deceive domestic cases, and the number of cases has been on the rise.

　　B、匯票的風險與防范

In the course of the use of bills of exchange, in addition to paying attention to the above, we should also pay attention to the principles that must be observed in issuing, accepting and using bills of exchange.

1. The unit that uses the draft must be a legal person who opens an account in the bank.

2, the issuance of bills of exchange must be based on legitimate commodity pactions and prohibit the issuance of bills without commodity pactions.

3. After acceptance of the bill, the acceptor or the drawee has the duty to pay the bill unconditionally.

4, in addition to discounting the bank, it is not allowed to circulate.

(Note: this rule has been broken through by the subsequent bank settlement method).

　　C、如何識別真假本票

1, the real promissory note system uses special paper printing, paper quality is good, there are certain anti-counterfeiting measures, and the fake promissory note can only be printed on the ordinary paper on the market, the paper quality is poor, generally is thinner and softer than the real promissory note paper.

2, the ink formula of printed genuine promissory note is confidential, and fraudsters are hard to get. Therefore, it can only be printed in similar color ink, so the fake promissory note has a certain discrepancy in its face color.

3, the number of genuine promissory note and the font are neat and tidy, while some fake promissory note numbers and font arrangement are uneven, and the spacing is uneven.

　　4、由于是非法印刷，假本票上簽字也必然會假冒簽字，與銀行掌握的預留簽字不符。