Lesson-12-The-Letter-of-Credit-(2).ppt

1、Lesson 12 The Letter of Credit(II),Business Knowledge:,(1)Major types of credits and their functions,forms and mechanismA.Clean credit and documentary creditB.Revocable credit and irrevocable creditC.Confirmed credit and unconfirmed creditD.Sight credit and usance creditE.Transferable credit and non

2、-transferable creditF.Non-draft creditG.Revolving credit(2)The limitations of the letter of creditA.Inability to provide absolute securityB.Being more expensive than other forms of payment,Letters of credit fall under several categories depending on their function,form and mechanism.Here are the maj

3、or types of credit:,fall under:be included in or classified as受到（影响等）；被归入他年轻时受到贝多芬的影响。In his youth he fell under the influence of Beethoven.这个男人掉到火车底下被辗死了。The man fell under a train and was killed.,Categories:a collection of things sharing a common attribute;a general concept that marks divisions or

4、 coordination in a conceptual schemen.种类，分类；数 范畴product category 产品类别；产品目录；积范畴first category 第一纲category theory 范畴论category management 品类管理；类别管理在这篇文章中，我将要讨论的是“内容”这个类别。In this post,I want to talk about the Content category.,Mechanism:the atomic process that occurs during a chemical reactionn.机制；原理，途径

5、；进程；机械装置；技巧market mechanism 市场机制；市场调节作用reaction mechanism 反应机理incentive mechanism 激励机制control mechanism 控制机构operating mechanism 操作机构；工作机构这些特征背后的机制是什么？Whats the mechanism behind these traits?,1.Clean credit and documentary credit:Credits that only require clean draft,i.e.draft not accompanied with sh

6、ipping documents,for payment are clean credit.They are generally used in non-trade settlement（非贸易结算）or in payment in advance by means of the L/C.Most of the credits used in international trade are documentary credits,i.e.credits that require shipping documents to be presented together with the draft

7、.,Clean credit光票信用证:The credits only require clean draft,Non-trade settlement非贸易结算:payment of an account not related to trade,2.Revocable credit and irrevocable credit:This classification is based on the certainty(确信)of the commitment(承诺)to pay on the part of the applicant and the issuing bank.The c

8、redit is a revocable one if such commitments can be altered（改变）or even canceled（取消）without consulting with the beneficiary.It is quite obvious that the exporter has little assurance(保证)to get payment,and therefore this type of credits are rarely used.,Revocable credit可撤消信用证:The credits can be altere

9、d or even canceled without consulting with the beneficiary Irrevocable credit不可撤消信用证:The credits can not be amended or revoked without the consent of all the parties concerned,Certainty:the state of being certain;something that is certainn.必然；确实；确实的事情with certainty 确定无疑地to a certainty 必定，肯定 certaint

10、y factor 可信度；确定性因素如果我们确实知道这些情况，我们又是如何得知的呢？If we know it for a certainty,how do we know it?,Commitment:the trait of sincere and steadfast fixity of purpose;the act of binding yourself(intellectually or emotionally)to a course of action;an engagement by contract involving financial obligationn.承诺，保证；委

11、托；承担义务；献身organizational commitment 组织承诺；组织认同感professional commitment 专业承诺make a commitment 承诺要做到这一点，我们必须获得政府最高层的承诺。To do this,we must have commitment at the highest level of government.,Alter:cause to change;make different;cause a transformation;make or become different in some particular way,withou

12、t permanently losing ones or its former characteristics or essenceV.改变，更改你改变主意了吗?Have you altered your mind?诡辩改变不了历史。Sophistry cannot alter history.,cancel:postpone indefinitely or annul something that was scheduled;make up for;declare null and void;make ineffectiveV.取消；删去;相互抵销cancel button 取消按钮canc

13、el out 取消；抵销cancel after verification 核销为什么不取消会议呢？Why not cancel the meeting?假如下雨的话，我们明天就得取消比赛。If it were to rain,we would have to cancel the match tomorrow.,consulting with:to exchange opinions,information,etc.with a person or people与.协商；磋商consult advise with 仔细商量consult with 商量consult with superio

14、r 高级咨询;具有超强的咨询如果碰到困难，你应当和群众商量。In case of any difficulty,you must consult with the masses.,Irrevocable credits are those that cannot be amended（revised修改）or revoked（取消）without the consent（同意）of all the parties concerned.Safe and reliable,this type is extensively（widely）used in world trade.It must be

15、noted that if there is no specific indication whether a credit is revocable or irrevocable,it should be regarded as irrevocable.,revoke:fail to follow suit when able and required to do so;annul by recalling or rescindingV.撤回，取消；废除他改变了以前作出的决定。He revoked his previous decision.如果你再次被发现违章超速驾驶，你的驾驶执照将被吊销

16、。Your driving license will be revoked if you get another speeding ticket.,Consent:n.permission to do something同意；（意见等的）一致；赞成informed consent 知情同意，知会同意；知后同意written consent 书面同意；同意书mutual consent 双方同意by common consent adv.大家都同意（公认）我本应该首先征得你的同意。I ought first to have asked your consent.他把她的沉默误认为是同意He mi

17、sinterpreted her silence as giving consent.,Extensively:adv.in a widespread way广阔地；广大地Study extensively 广泛的研究;实践中认真;查询准确;认真的思考extensively solicit 广泛征求extensively tested 经过长期试验信用证在商务活动中被广泛应用。The letter of credit is used extensively in business activities.,3.Confirmed credit and unconfirmed credit:If

18、a credit is confirmed by a bank other than（除之外）the issuing bank,it becomes a confirmed credit.The confirmation is undertaken(承担)either by the advising bank or by another leading bank.Under a confirmed credit,the beneficiary is given double assurance of payment(双重付款担保)since the confirming bank has ad

19、ded its own undertaking(承诺)to that(承担)of the opening bank.,Confirmed credit保兑信用证:The credit is confirmed by a bank other than the issuing bank,double assurance:assuring something twice;promise or insurance having two different qualities,uses or ways in which to be considered双重保险，双重保障这些年轻人的就业有了双重保障。T

20、he young people were given double assurance of their employment.,If the credit is not confirmed by another bank,it is an unconfirmed letter of credit.Though a confirmed credit is considered to be able to provide the greatest degree of security to the beneficiary,it involves additional cost as a resu

21、lt of the confirmation.Therefore if the establishing bank is a reliable prime bank,confirmation may not be necessary.Leading bank(Prime bank,First rate bank)主要银行,4.Sight credit and usance credit:A sight credit is one by which payment can be made upon presentation of the draft and impeccable document

22、s by the beneficiary to the bank.It gives the beneficiary better security and helps him speed up his capital turnover.(资金周转)Most of Chinas export contracts stipulate for sight credit in payment terms.Obviously,a sight credit calls for a sight draft.A usance credit,also referred to as term credit or

23、time credit,is one by which payment cannot be made until a specific date or a specific time after the date or after sight.,Sight credit即期信用证:The credit by which payment can be made upon presentation of the draft and impeccable documents by the beneficiary to the bank,Usance credit(Term credit,Time c

24、redit)远期信用证:The credit by which payment cannot be made until a specific date or a specific time after the date of after sight,The usance varies from 30,60,90 days to as long as 180 days even longer.It is also clear that this type of credit requires a usance draft.If the beneficiary wishes to get pay

25、ment before the maturity(到期)of the draft,he can ask the bank to discount(贴现)the acceptance,and immediately pay him the net proceeds(净收益)（net position 实际头寸）,i.e.the face value(面值)of the draft minus(减去)the discount charges(收费).,5.Transferable credit and non-transferable credit:If a credit can be trans

26、ferred by the original beneficiary to one or more parties,it is a transferable credit.The original beneficiary is called the first beneficiary and the party(or parties)the credit is transferred to is called the second beneficiary.,Transferable credit可转让信用证:The credit can be transferred by the origin

27、al beneficiary to one or more parties.Non-transferable credit不可转让信用证:The credit can not be transferred.,It is usually used when the first beneficiary is a middleman and does not supply the goods himself.A credit can be transferred only once.But transferring a credit to more than one party at the sam

28、e time is allowed provided partial shipments are permitted.If a credit does not specify whether it is transferable,it should be regarded as a non-transferable document according to the credit stipulation.,Middleman:the performer in the middle of a minstrel line who engages the others in talk;a perso

29、n who is in a position to give you special assistancen.中间人；经纪人；调解人人们不再需要一个中间人、一个非营利组织，来帮助达到他们想要的效果。People dont need a middleman,a nonprofit,to create the impact they want to see.我们直接和零售商打交道，不经过任何中间人。We approach the retailers directly,without any middleman.,6.Non-draft credit:There is a modern tenden

30、cy for payment to be made by presentation of the documents without the formality of drawing and presenting a draft.Such credits are non-draft credit.They mainly include payment credit and deferred payment credit which are respectively similar to sight credit and usance credit with the difference tha

31、t no draft is drawn and presented in the case of non-draft credit.,Non-draft credit无汇票信用证:The credit that payment of to be made by presentation of the documents without the formality of drawing and presenting a draft.,7.Revolving credit:If a credit stipulated that its amount can be renewed(更新)or rei

32、nstated(恢复)without specific amendment to the credit being made,it is then a revolving credit.It is particularly useful when the buyer and seller have regular trading relationship and deal in a specific quantity of goods each month or any particular period of time.,Revolving credit循环信用证:The credit st

33、ipulated that its amount can be renewed or reinstated without specific amendment to the credit being made,Renew:reestablish on a new,usually improved,basis or make new or like new;cause to appear in a new formV.使更新；续借；复兴；重申他们与其他进出口公司恢复了联系。They renewed contact with other import and export corporations.休息了一个小时后，他恢复了精力。Having had an hours rest,he renewed his strength.我们与西方国家已重建友好关系。We have renewed ou