Thuyết trình môn thanh toán quốc tế term of international payment

TERM OF international payment • • • • • • • Nguyễn Văn Quý Nguyễn Bá Hùng Trần Thị Minh Ngọc Đỗ Hương Giang Nguyễn Thị Huyền Trang Đặng Hải Linh Phan Hà Anh Main contents Currency of payments Time of payment Place of payment Methods of payment The payment currency can be any one of the following currencies: USD - US dollars AUD - Australian Dollars CAD - Canadian Dollars NZD - New Zealand Dollars GBP - British Pound EUR - Euro SGD - Singaporean Dollars… This will depend on which currency the client used to pay for the project; whichever currency was used will be displayed on the project's brief page i Currency of payments  Based on use place  World currency  International currency  National currency  Based on transference  Free convertible currency  Transferable currency  Clearing currency  Based on use purpose  Payment currency  Account currency i Currency of payments  Based on survive form  Credit currency  Cash MAIN FACTORS EFFECT TO USING KINDS OF CURRENCY IN INTERNATIONAL PAYMENT     Currency the client used to pay for the project Position of currency in international finance market Term and policy Business sector currency is used Kinds of currency iI time of payments This is the form of payment immediately after signing the contract or after exporter accepts the order of the importer, importer pays part or all of the contract amount Payment before delivery  Importer pays exporter in advance X days from the date of signing the contract, or after the effective date of the contract • Meaning : Importer provides credit, advances payment to exporter that facilitae to get enough capital to export their goods • Time of advance credit for export is calculated from the date of advance payment to the date exporter refunds the advance The amount of advance payments depends on the demand of exporter and the ability of providing credit • Price of contract in advance payments is lower than price of contract in payment delivery This difference is the interest arising on the advance amount that the seller will have to reduce the price for the buyer iI time of payments Payment before delivery  Importer pays exporter in advance X days from the date of signing the contract, or after the effective date of the contract Formula to calculate Pe = 𝑃𝑢[ 1+𝑅 𝑁 −1] 𝑄 Pe : Discount Price Pu : Deposit Value R : Interest of credit period ( year, month) N : Time to provide credit to exporter from importer Q : Quatity of contract goods EX: A contract valued at 500.000 USD with 1000 ton, a payment of 20% contract value will be made by buyer before months, interest is 5% Calculate the price discount the buyer can get at ton iI time of payments Solution: Pu = 500.000 x 20% = 100.000 R = 5% N = months Q = 1000 ton 100000[ 1+5% −1] => Pe = = 34$ 1000 Payment before delivery iI time of payments  Importer pays exporter X days before delivery date • Meaning: Ensure the performance of the contract of the importer • Delivery date is the first delivery date specified in the contract • Short-term for payment : 10-15 days Exporter will only delivery goods upon receipt of the notice of advance payment • No interest applied Payment before delivery  Importer pays exporter X days before delivery date In case 1: The amount depends on higher than normal contract price Formula to calculate Pu = Q(PH – PT) Pu : Payment in Advance Q : Quality of good PH : Higher contract price PT : Normal price EX: ABC company signs a contract to sell 2000 HP laptops at USD 1500 per PC whereas the normal market price for similar products is USD 1230 per PC iI time of payments Solution: Pu = cccc R = ccc N = cccc Q = cccc => Pu = 2000(1500 – 1230) = 540000$ Payment before delivery  Importer pays exporter X days before delivery date In case 2: Buyer's creditworthiness Seller don’t believe in avaiable payment of buyer and require buyer advance payment related to banking iI time of payments Formula to calculate Pu = THĐ [ (1+R)N -1] + Tr Pu : Payment in Advance THĐ : Total contract amount N : Duration Tr : Penalty in case of nonperformance Payment before delivery  Buyer pay money on shipment : iI time of payments The buyer pays the seller immediately after fulfillment of the delivery obligation According to Incoterm 2000 of ICC: EXW : Seller completely delivery in their place: warehouse, factory,… FAS : Seller completely delivery when the goods placed alongside ship but didn’t pick up in ship DAF : Seller completely delivery at frontier FCA : Seller completely delivery when the goods deliveried for carrier Payment at sight  After successfully delivery on transport : The buyer pays the seller immediately upon fulfillment of the delivery obligation on the means of delivery of the place of delivery of the goods Ex : FOB : on board FOD: At the seaport  Payment on Documents : The buyer pays immediately to the seller immediately after receipt of payment documents from the seller There are ways: - At sight - Pay within to days of seeing the vouchers  Payment on Receip The buyer pays to the seller immediately upon receipt of the goods at the designated place or port of destination iI time of payments Payment at sight After a certain of time exporter has obligations to delivery good as they agreed in the contract, then importer will pay : iI time of payments  Buyer pays after certain number of days, from the date of receipt be informed, seller has obligations to delivery to the specified place  The payment was made after a certain number of days since the date of importer gets document  The buyer pays after certain number of days from finished receiving goods  Helps removing the risk in buying After receiving the goods importer should check it before actually paying => Paying After Delivery is only available for number of specified transactions at a time Payment after sight • L/Cs are normally payable at both the issuing or the advising bank • When a documentary collection is used as a method of payment: the bank transfer the payment according to the instructions originating from the seller • when payment by cheque is agreed upon, it must be made clear whether the seller will accept a commercial cheque or a bank cheque • In the case of bank transfer, the place of payment must be decided by the parties involved • The question of where the buyer fulfills their payment obligations in connection agreement is payment terms is always a matter for the parties to agree iII place of payments iV methods of payments Payment can be devided into two main categories • Clean payment is the buyer must pay according to the contract after receiving the seller’s invoice specifying the payment date • The documentary payments are divided into documentary collections, when the buyer has to pay or accept a bill of exchange in order to obtain access to the documents for collection, or LCs where the seller also is guaranteed payment if the documents presented are in accordance with the terms of the LC What is different between COD and Payment After Delivery ? The same COD and Payment After Delivery are both pay when customers receive goods With Payment After Delivery, customers only have to pay when they satisfy with goods and have time to change their decision in few days without charge, different from COD, once they get goods, they have to pay immediately No correct answer Questions How long term for payment to ensure the performance of the contract of the importer? 5-10 days 10-15 days 15-20 days Questions Which of the following is not a feature used to classify currency? Based on transference Based on use purpose Based on policy Based on use place Questions ...Main contents Currency of payments Time of payment Place of payment Methods of payment The payment currency can be any one of the following currencies: USD - US dollars... the project Position of currency in international finance market Term and policy Business sector currency is used Kinds of currency iI time of payments This is the form of payment immediately... from the date of advance payment to the date exporter refunds the advance The amount of advance payments depends on the demand of exporter and the ability of providing credit • Price of contract