Letter Of Credit Settlement In Foreign Trade
with Letter of credit Settlement,
As for the discrepancy of documents, there are two ways to deal with them: 1) when there are discrepancies in the negotiating bank's presentation, any discrepancies will be available and can be modified directly, so that the discrepancies will be directly corrected so as to ensure that they are in line with the letter of credit so as to ensure normal negotiation of payment.
2) there was discrepancies in the negotiating bank's presentation, but it was time to change, or
Bill
When the issuing bank finds that there is discrepancy, and is unable to amend it, it can notify the applicant (importer) to explain the discrepancies of the documents, ask him to confirm the acceptance of the discrepancy, and find the issuing bank to accept the discrepancy of the documents, so that he can still recover the payment.
But there is a premise that only the documents do not conform to the stipulate of the letter of credit, and the quality of the goods is not in conformity with the problem. Otherwise, the importer may not accept the quality of the goods.
The above (2) receipt of foreign exchange in fact has already become the nature of collection by the nature of the letter of credit, that is, the status of the first payment obligation of the original letter of credit, which has been refunded as the position of the collecting bank.
This change is caused by discrepancies of documents.
So the risk has increased.
3) therefore, the most important problem in the settlement of letter of credit is to ensure that the documents tally with each other and only meet the requirements. Only in this way can we ensure the safe collection of foreign exchange. This is the primary problem that must be paid attention to by the letter of credit clearing house.
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