1 vifitutat; nig lixit\ntan methods of payment and letters of credits vifitutat; nig lixit\ntan...

$: 1 viFITUTat; nig lixit\NTan Methods of Payment and Letters of Credits viFITUTat; nig lixit\NTan Methods of Payment and Letters of Credits eKalbMng (Objectives)$
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viFITUTat; nig lixit\NTan

Methods of Payment and Letters of Credits

viFITUTat; nig lixit\NTan

Methods of Payment and Letters of Credits

eKalbMng (Objectives)

bnÞab;BIGanCMBUkenH nisSitGacmancMenHdwgBI³1-karerobcMÉksarelIkarTUTat;³ Preparing

documents for payment.

2-viFIsaRsþTUTat;³ Payment Methods.

3-karENnaMrebobGnuvtþni_lixit\NTan³ Practical guide for Letter of Credit.

4- RbePTlixit\NTan³ Types of Letter of Credit.

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1> karerobcMÉksarelIkarTUTat;

(Payment Documentation)

bc©úb,nñenH kareFVIBaNiC¢kmµGnþrCati kan;EtmanPaBgayRsYl nigeCOTukcitþKñakan;EtxøaMg rvagGñknaMecj nignaMcUledaysarmanRbB½n§FnaKarCYysMrYlenAkñúgkarTUTat;. ehtuenHGñk naMcUlk_manFnaKarrbs;xøÜnmYy ehIyGñknaMecjk_manFnaKarrbs;xøÜnmYyEdr.

karmanFnaKarCYypþl;esvakmµEpñkTUTat; )anCYykat;bnßyhaniP½ycMnYneRcInsMrab;kardwk CBa¢ÚnTMnij nigkarnaMecjnaMcUl edaymanPaBrlUn.

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GñknaMecjRtUvkarFnaKarrbs;Gñklk; (Advising Bank)

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GñknaMcUlRtUvkarFnaKarrbs;GñkTij (Issuing Bank)

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1> nItiviFIénkarerobcMÉksarnaMecj-naMcUl³ (Import-Export Procedure)



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EXPORT-IMPORT PROCEDURE (International Trade)EXPORT-IMPORT PROCEDURE (International Trade)

1 Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit).

2 Buyer applies to his issuing bank, usually in Buyer's country, for letter of credit in favor of Seller (beneficiary).

3 Issuing bank requests another bank, usually a correspondent bank in Seller's country, to advise, and usually to confirm, the credit.

4 Advising bank, usually in Seller's country, forwards letter of credit to Seller informing about the terms and conditions of credit.

5 If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.

6 Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.

7 Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate.

8 Bank, if other than the issuing bank, sends the documents and draft to the issuing bank.

9 Bank examines the documents and draft for compliance with credit terms. If complied with, Seller's draft is honored.

10 Documents release to Buyer after payment, or on other terms agreed between the bank and Buyer.

11 Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.



1> nItiviFIénkarerobcMÉksarnaMecj-naMcUl³ (Import-Export Procedure)

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2> ktþacMnayéføedIménkarnaMecj-naMcUlTMnij³ (Cost Factors of Export-Import Goods)



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1 • Materials, labor and overhead • Custom packaging • Inspection fees • Licensing fees • Royalties

2 • Buying agent's commissions • Trader's markups

3 • Bank charges and commissions • Overseas agent's commissions • Freight forwarder's charges • Documentation charges • Insurance premiums • Export license fees • Certification fees • Consular fees • Advertising

4 • Road freight (cartage, drayage) and/or rail freight • Routing costs (canal and inland waterway links) • Uninsured damages • Theft and pilferages • Handling charges • Demurrage




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5 • Brokerage fees • Export levies

6 • Insurance premiums • Air freight

7 • Theft and pilferages • Overtime charges • Handling charges • Warehousing • Loading fees • Demurrage • Wharfage

8 • Insurance premiums • Ocean freight • Lighterage

9 • Uninsured damages (e.g. war and acts of God) • Pilferages

10 • Lighterage




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12 • Import duties and taxes • Bank charges and commissions • Import license fees • Brokerage fees

11 • Theft and pilferages • Quarantine charges • Overtime charges • Handling charges • Unloading fees • Warehousing • Demurrage • Wharfage




13 • Road freight (cartage, drayage) and/or rail freight • Routing costs (canal and inland waterway links) • Theft and pilferages • Uninsured damages • Handling charges • Demurrage

14 • Warehousing • Interest charges • Advertising

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1> TUTat;tamkarbgðajvik½ybR½t³ Payment with invoice:

2> viFIsaRsþkarTUTat; (Payment Methods)

karTUTat;tamvik½ybR½t CakarTUTat;samBØa GaceFVIeLIgcMeBaHEtGaCIvkmµsamBØa ¬RTg; RTaytUctac brimaNtictYc TwkR)ak;tictYc¦. karTUTat;RbePTenH RbRBwtþeTA)ancMeBaHEt GaCIvkmµkñúgRsuk. dUcenHedIm,IeFVIkarTUTat;CalkçN³GnþrCati eyIgRtUveFVIkarTUTat;tamFnaKar bMerIesvakmµ. karTUTat;CalkçN³GnþrCatimanCaeRcInRbePTeTot. Payment by invoice is a simple payment applyng for the simple business (Small, less quantity and amount). This payment is committed for domestic businesses. Thus, the they should use the bank services for international payment. There are many

kinds of international payment.

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2> TUTat;tamkarbBa¢aTij³ (Payment with order)

karTUTat;tambBa¢aTij KWGñkTijTUTat;tamkic©snüabg;tamRbBn½§eGLicRtUnic nig TUrelx. karTUTat;rbebobenH GñkTijRtUvEtbg;R)ak;mundl;Gñklk;sin eTIbGñklk;RbKl;TMnij nigÉk sartameRkay. karTUTat;rebobenHmanGaTiPaBcMeBaHGñklk;.

- karepÞrtamTUrelx b¤rlkFatuGakas³ dUcCatamviTüú GaykUm TUrs½BÞ>>>.

- karepÞrtamRbB½n§eGLicRtUnic³ ma:sIunhaVk; GIuEml GIunFrENt>>>.

(Payment by order means that the buyers pay by TT or ET in contract. This payment, the buyers have to pay in advance, then the sellers deliver the goods. This is the priority for the sellers.)

- TT: Telegraphic Transfer: Radio, Icom, Telephone…- ET: Electronic Transfer: E-mail, Fax, Internet, E-commerce…


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Issuing Bank Trust Bank

Buyers

Carriers

Sellers

2Cash in advance

1Sales

Contract

3 Payment

4Payment

5Goods

6Waybill

7Document

8 Document

9Document

10Waybill

11Goods

KMnUstag³ Process:

2> TUTat;tamkarbBa¢aTij³ (Payment with order)


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3> TUTat;tamkarRbmUlÉksar³ (Payment with Documentary Collection)

karTUTat;tamkarRbmUlÉksar KWCakarTUTat;mYyEdlmanlkçN³Rbhak;RbEhlnwgkar TUTat;tamkarbBa¢aTijEdr bu:EnþvamanlkçN³xusKñaRtg;fa Gñklk;RtUvRbKl;Éksardl;GñkTij emIleXIjsin eTIbGñkTijTUTat;R)ak;tameRkay. karTUTat;enH eKehAfa karTUTat;Tl;nwgÉk sar. karTUTat;RbePTenHmanGaTiPaBsMrab;GñkTij.

Payment by documentary collection is similar to the payment by order, but it’s different that the sellers have to deliver the documents for the buyers check, then they pay. This payment is called the payment against document. This payment is priority for customers.


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Issuing Bank Advising Bank

Buyers

Carriers

Sellers

7Payment

1Sales

Contract

8 Payment

9Payment

2Goods

3Waybill

4Document

5 Document

6Document

10Waybill

11Goods

KMnUstag³ Process:


3> TUTat;tamkarRbmUlÉksar³ (Payment with Documentary Collection)

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4> TUTat;tamlixitÉksarén\NTan³ (Payment with Documentary Letter of Credit)

karTUTat;tamlixitÉksarén\NTan KWCakarTUTat;edaymankarFanaBIFnaKarrbs;Gñk Tij nigFnaKarrbs;Gñklk;. Gñklk;GacTTYl)ankarbg;R)ak; eRkayBITMnijRtUv)anepJIy:agRtwm RtUveTAeGayGñkTij enAeBlEdlFnaKarrbs;GñkTijTTYl)anÉksarBIFnaKarrbs;Gñklk; nig ÉksarénkarTTYl)anTMnijrbs;GñkTij. vapþl;nUvPaBkk;ekþATaMgsgxag.

Payment by documentary letter of credit is the payent garanteeed by the issuing bank and advising bank. The sellers can receive payement after the goods are delivered to customers, while the issuing bank receive the document for advising bank and receiving document of buyers. It is warm for both parties.

Note: the Credit Card is used commonly in the world.


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KMnUstag1³ Process of

Confirmed Letter of Credit:


Buyers

Carriers

Sellers

11Payment

1 Sales Contract

10 Payment

8Payment

5Goods

6Waybill

4Document

9 Document

12Document

13 Waybill

14 Goods

Confirmation of Credit 7

2 Credit Application

3 Credit Notification



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KMnUstag2³ Process of Unconfirmed Letter

of Credit:


Buyers

Carriers

Sellers

11Payment

1 Sales Contract

9 Payment

10Payment

5Goods

6Waybill

Document 4

8 Document

12Document

Waybill 13

14 Goods

Advice of Credit 7

2 Credit Application

3 Credit Notification



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etIlixit\NTandMeNIrkareTAedayrebobNa?

1-Gñklk; nigGñkTijcuHkic©snüaelIkarlk;CamYyKña.2-GñkTijsuMebIklixit\NTan L/C.

3-FnaKarrbs;GñkTijCUndMNwgGMBIkarebIlixit\NTan dl;FnaKarrbs;Gñklk;.4-FnaKarrbs;Gñklk;CUndMNwgbnþdl;Gñklk;.5-Gñklk;ykTMnijeGayGñkdwkCBa¢Ún6-GñkdwkCBa¢ÚnRbKl;ÉksardwkCBa¢ÚneGayGñklk;.7-Gñklk;bBa¢ÚnÉksarmkeGayFnaKarrbs;xøÜn.



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etIlixit\NTandMeNIrkareTAedayrebobNa? ¬t¦

8-FnaKarrbs;Gñklk;epJIÉksarmkeGayFnaKarrbs;GñkTij.

9-BinitüeXIjRtwmRtUvehIyFnaKarrbs;GñkTijTU

Tat;R)ak;CUnFnaKarrbs;Gñklk;.10-FnaKarrbs;Gñklk;

epÞrR)ak;cUlKNnIrbs;Gñklk;.11-GñkTijRbkas;sMercTUTat;biTlixit\

NTan L/C.

12-FnaKarrbs;GñkTijepJIÉksardl;GñkTij.13-GñkTijykÉksarbgðajGñkdwkCBa¢Ún.14-GñkdwkCBa¢ÚnRbKl;TMnij.



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1> lixit\NTan³ (Letter of Credit)

3> karENnaMBIkarGnuvtþlixit\NTan (Practical Guide of Letter of Credit)

niymn½y³ (Definition) sMrab;BaküFmµta lixit\NTanKWCakarTTYlykénkar TUTat;tamFnaKarBIkareFVIkic©snüaelIkarlk;. vaCameFüa)ayénkarkat;bnßyhaniP½y elIkarTUTat;CamYykarcl½tTMnij. In simple terms, a letter of credit is a bank undertaking of payment separate from the sales or other contracts on which it is based. It is a way of reducing the payment risks associated with the movement of goods. Expressed more fully, it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and in accordance with the buyer’s (applicant) instructions to effect payment — that is by making a payment, or by accepting or negotiating bills of exchange (drafts) — up to a stated amount, against stipulated documents and within a prescribed time limit.

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plRbeyaCn_énlixit\NTan³ (Benefits of Letter of Credit)

To The Exporter/Seller• Letters of credit open doors to international trade by providing a secure mechanism for payment

upon fulfilment of contractual obligations.• A bank is substituted for the buyer as the source of payment for goods or services exported.• The issuing bank undertakes to make payment, provided all the terms and conditions stipulated in

the letter of credit are complied with.• Financing opportunities, such as pre-shipment finance secured by a letter of credit and/or

discounting of accepted drafts drawn under letters of credit, are available in many countries.• Bank expertise is made available to help complete trade transactions successfully.• Payment for the goods shipped can be remitted to your own bank or a bank of your choice.

To the Importer/Buyer• Payment will only be made to the seller when the terms and conditions of the letter of credit are

complied with.• The importer can control the shipping dates for the goods being purchased.• Cash resources are not tied up.

1> lixit\NTan³ (Letter of Credit)

3> karENnaMBIkarGnuvtþlixit\NTan (Practical Guide of Letter of Credit)

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nisSitRtUveFVIkic©kardUcxageRkamedIm,IepÞógpÞat;cMenHdwgrbs;xøÜn³

1-etIeRkamkardwkCBa¢ÚnTMnijCalkçN³GnþrCati etIkarTUTat;TMnijeKeFVItamviFIsaRsþNaxøH? What methods of payment for international shipping (trade)?

2-cUrniyayBInItiviFIénkarerobcMÉksarnaMecj-naMcUl. Describe the import-export procedure.

3-cUrbriyayBIktþacMnayéføedIménkarnaMecj-naMcUl. Describe the cost factors of export-import goods.

4-cUrGñkBnül;BIviFIsaRsþTUTat;tamkarbBa¢aTij edaymanKUrrUbPaBbBa¢ak;. Explain the method of payment with order, drawing the figure.

5-cUrGñkBnül;BIviFIsaRsþTUTat;tam karRbmUlÉksar edaymanKUrrUbPaBbBa¢ak;. Explain the method of payment with documentary collection, drawing the figure.

sMnYrrMlwkemeronTI 6 (Review Questions of

Chapter 6)

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nisSitRtUveFVIkic©kardUcxageRkamedIm,IepÞógpÞat;cMenHdwgrbs;xøÜn³

6-cUrBnül;BIPaBxusKñarvagviFIsaRsþTUTat;tamlixit\NTan edaymankarFanaGHGag nig lixit\N- Tan edayKµankarFanaGHGag. edaymanKUrrUbPaBbBa¢ak;. Explain the difference between confirmed letter of credit and unconfirmed letter of credit, drawing the figure.

7-cUrGñkBnül;BIGtßRbeyaCn_énkarTUTat;dUcxageRkam³ Explain the benefits of payments: Payment with invoice, Payment with order, Payment with Documentary collection, and Payment with letter of credit

8-etIeRkamlkçx½NÐNaxøH EdleyIgKYreRCIserIskarTUTat;tamviFIlixit\NTan? cUrBnül;edayman elIk]TahrN_mkbBa¢ak;. What conditions can we choose the payment with letter of credit. Explain with examples.

9-etIGVICa Sight Letter of Credit and Term Letter of Credit?

10-cUrBnül;Gtßn½yrbs;³ Revocable Letter of Credit, Irrevocable Letter of Credit, Revolving Letter of Credit, Volving Letter of Credit, and Red Clause Letter of Credit.

sMnYrrMlwkemeronTI 6 (Review Questions of

Chapter 6)

1 vifitutat; nig lixit\ntan methods of payment and letters of credits vifitutat; nig lixit\ntan...

Documents

bank slide

issuing bank

bank charges

advising bank

correspondent bank

bank requests

bank willing

credit terms