You may know more or less the letter of credit payment, but what is the specific meaning, may only deal with foreign trade people know。So, what does payment by letter of credit really mean？What should I pay attention to when using this payment method？
1、Letter of credit付款
In fact, the meaning of payment by L/C is not difficult to understand。This is a payment method similar to what we usually do when shopping online。When we make a purchase, the money does not go directly into the seller's account, but is collected by the online shopping platform。When we receive the goods and click Confirm, the money will enter the seller's account through the online shopping platform。The online shopping platform acts as an intermediary。
The same goes for payment by letter of credit。The difference is that the latter is international trade, and the intermediary platform has become two。The specific operation is that after the buyer (importer) signs the sales contract with the seller (exporter), the exporter's bank advances the exporter's money first, and then the import bank pays the exporter's bank。The importer can only get the redemption order after paying the importer's bank, and then the order can be paid and the goods can be picked up。
Simply put, it is a way for a bank to pay an exporter for an importer。Its biggest advantage is the use of bank credit as a guarantee payment, but the fee will be more than other payment methods。Exporters only need to submit various documents in accordance with the requirements of the letter of credit to obtain payment from the bank。
Because in the operation process of this payment method, the bank advances, so that exporters avoid the risk of advance payment, importers avoid the risk of not receiving the goods after payment。Therefore, the letter of credit payment method to a large extent solves the contradiction between the import and export parties in payment and delivery。
Payment by L/C does have many advantages, but what else should we pay attention to？How can you ensure that your profits are not lost？
2. Authenticity of documents
As long as the documents submitted by the exporter ostensibly meet the requirements of the credit, the issuing bank of the credit shall pay。The issuing bank is under no obligation to examine whether these documents truly reflect the transactions agreed upon in the underlying contract。Therefore, it is necessary to master letter of credit fraud and related legal systems, pay attention to letter of credit fraud。
3. Exporters should pay attention to the following points。
The first problem is inconsistency。Inconsistency means that in the process of foreign trade, the bank issues a letter of credit to the buyer, but the seller does not issue the document content according to the requirements of the letter of credit. Once the seller's document is inconsistent with the letter of credit, even if the letter or punctuation is inconsistent with the letter of credit, it will be recorded as inconsistent。
Therefore, the consignee's address on the invoice, the money order, the invoice and the monetary value name of the insurance policy should be consistent。Unavoidable inconsistencies in the list require communication with the client or asking the client bank to confirm the inconsistencies and share the risk。
The contents of the shipping packing list should also be detailed, indicating the number of pieces, the number of boxes, the number of boxes, the net gross weight and volume。When the bills and letters of credit are confirmed, if the goods need to be issued in batches, you need to know the customer in advance, provide consistent documentation to obtain the customer's approval, and each batch shipment will incur costs。
The report should also show the currency of compensation, and the content of delivery and delivery should be complete。At the same time, you should also pay attention to keep the freight forwarder list to avoid the freight forwarder can not find the container temporarily, you can quickly give the information to another freight forwarder。Special goods must be packed in a special way。