Tài liệu An Introduction to Letters of Credit pptx

An Introduction to Letters of Credit Citigroup ® Global Transaction Services [...]... bank on both sides of the transaction 5 LETTERS OF CREDIT The Language C H 2 A P T E R This chapter will familiarize you with the language used in Letters of Credit This language has evolved over many years and some of the terms are unique to Letters of Credit This section will help you understand the words which may later become a standard part of your vocabulary 8 Types of Letters of Credit All Letters. .. presentation of documents to the Confirming Bank Recognizing Letters of Credit In addition to learning the formal language of Letters of Credit, it is equally important to recognize variations in the types of instruments used The illustrations that follow resemble the standard forms used by Citibank and illustrate the distinctions among Letters of Credit Straight Letters of Credit Irrevocable Letters of Credit, ... of Credit and a typical import Letter of Credit In international trade every Commercial Letter of Credit facilitates both an import and an export since it operates on both sides of the transaction In this chapter, for ease of illustration, an export Letter of Credit refers to a Letter of Credit covering the export of goods and/or services from the U.S (payable in U.S dollars) and an import Letter of. .. undertaking to that of the Issuing Bank If an overseas bank (buyer ’s bank) issues its Irrevocable Letter of Credit and requests that Citibank, New York, add its confirmation and advise the Beneficiary, then Citibank, as Advising and Confirming Bank, could use its own form of advice and confirmation An example of Advice and Confirmation of Correspondent Illustration 2 – Revocable Letter of Credit 9 Citibank,... its bank to issue the Letter of Credit in either a revocable or irrevocable form A Revocable Letter of Credit may be amended or canceled by the Issuing Bank at any time with or without prior notice to, or agreement of, the Beneficiary An Irrevocable Letter of Credit cannot be amended or canceled without the agreement of the Issuing Bank, the Confirming Bank (if the Letter of Credit is confirmed), and... working day of our being in a position to provide our formal advice The enclosed Letter of Credit, together with any subsequent amendments thereto, and Advice of Credit must accompany all presentations made under the Letter of Credit Our examination of the documents will be in accordance with the terms of the Letter of Credit and the appropriate provisions of UCP 500 In accordance with our service standards,... (seller) While both Applicants and Beneficiaries benefit from the unique characteristics of a Letter of Credit, it is important for Applicants and Beneficiaries to recognize what a Letter of Credit is not: 1 It is not an unconditional guarantee of payment to anyone A Letter of Credit assures payment to a Beneficiary only if its terms and conditions are fulfilled through the presentation of strictly complying... type of Letter of Credit meets a different need, it is important that all parties understand their needs with respect to their particular Letters of Credit The entire Letter of Credit not merely the introductory language—must be read and any incorporated practice rules must be considered to determine what banking obligations have been created and what rights have been provided to the Beneficiary and any... the Issuing Bank to pay, provided the Beneficiary complies strictly with the Letter of Credit The Letter of Credit cannot be amended or canceled without the consent of the Issuing Bank, the Confirming Bank (if the Letter of Credit is confirmed) and the Beneficiary Illustration 3 on page 10 depicts an Irrevocable Letter of Credit Citibank’s obligation to pay is set forth at the bottom of the undertaking... documents to, the Brazilian importer Import Letters of Credit Illustration 9 on page 26 illustrates an import transaction In this case Citibank in New York is the Issuing Bank, having issued the Letter of Credit for the account of the U.S importer Citibank’s Tokyo branch is the Advising Bank The Letter of Credit is freely negotiable The Japanese Beneficiary (exporter) of the Letter of Credit may have the . Letters of Credit 30 Advance Payment Letters of Credit 30 Red Clause Letters of Credit 31 Transferable and Back -to- Back Letters of Credit 31 Transferable Letters. Letters of Credit 31 Back -to- Back Letters of Credit 34 Assignment of Proceeds 35 Simplified Letters of Credit 35 Chapter 6 Letters of Credit Export Credit