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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Presentation transcript:

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) bnÞab;BIGanCMBUkenH nisSitGacmancMenHdwgBI³ 1-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.

2 1> karerobcMÉksarelIkarTUTat; (Payment Documentation) bc©úb,nñenH kareFVIBaNiC¢kmµGnþrCati kan;EtmanPaBgayRsYl nigeCOTukcitþKñakan;EtxøaMg rvagGñknaMecj nignaMcUledaysarmanRbB½n§FnaKarCYysMrYl enAkñúgkarTUTat;. ehtuenHGñk naMcUlk_manFnaKarrbs;xøÜnmYy ehIyGñknaMecjk_manFnaKarrbs;xøÜnmYyEdr. karmanFnaKarCYypþl;esvakmµEpñkTUTat; )anCYykat;bnßyhaniP½ycMnYneRcInsMrab;kard wk CBa¢ÚnTMnij nigkarnaMecjnaMcUl edaymanPaBrlUn.  - GñknaMecjRtUvkarFnaKarrbs;Gñ klk; (Advising Bank)  - GñknaMcUlRtUvkarFnaKarrbs;Gñ kTij (Issuing Bank)

3 1> nItiviFIénkarerobcMÉksarnaMecj- naMcUl³ (Import-Export Procedure) 1> karerobcMÉksarelIkarTUTat; (Payment Documentation)

4 EXPORT-IMPORT PROCEDURE (International Trade) 1 Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit). 2Buyer applies to his issuing bank, usually in Buyer's country, for letter of credit in favor of Seller (beneficiary). 3Issuing bank requests another bank, usually a correspondent bank in Seller's country, to advise, and usually to confirm, the credit. 4Advising bank, usually in Seller's country, forwards letter of credit to Seller informing about the terms and conditions of credit. 5If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier. 6Seller 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. 7Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate. 8Bank, if other than the issuing bank, sends the documents and draft to the issuing bank. 9Bank examines the documents and draft for compliance with credit terms. If complied with, Seller's draft is honored. 10Documents release to Buyer after payment, or on other terms agreed between the bank and Buyer. 11Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order. 1> karerobcMÉksarelIkarTUTat; (Payment Documentation) 1> nItiviFIénkarerobcMÉksarnaMecj- naMcUl³ (Import-Export Procedure)

5 2> ktþacMnayéføedIménkarnaMecj- naMcUlTMnij³ (Cost Factors of Export-Import Goods) 1> karerobcMÉksarelIkarTUTat; (Payment Documentation)

6 2> ktþacMnayéføedIménkarnaMecj- naMcUlTMnij³ (Cost Factors of Export-Import Goods) 1> karerobcMÉksarelIkarTUTat; (Payment Documentation)

7 1Materials, labor and overhead Custom packaging Inspection fees Licensing fees Royalties 2Buying agent's commissions Trader's markups 3Bank charges and commissions Overseas agent's commissions Freight forwarder's charges Documentation charges Insurance premiums Export license fees Certification fees Consular fees Advertising 4Road freight (cartage, drayage) and/or rail freight Routing costs (canal and inland waterway links) Uninsured damages Theft and pilferages Handling charges Demurrage 2> ktþacMnayéføedIménkarnaMecj- naMcUlTMnij³ (Cost Factors of Export-Import Goods) 1> karerobcMÉksarelIkarTUTat; (Payment Documentation)

8 5Brokerage fees Export levies 6Insurance premiums Air freight 7Theft and pilferages Overtime charges Handling charges Warehousing Loading fees Demurrage Wharfage 8Insurance premiums Ocean freight Lighterage 9Uninsured damages (e.g. war and acts of God) Pilferages 10Lighterage 2> ktþacMnayéføedIménkarnaMecj- naMcUlTMnij³ (Cost Factors of Export-Import Goods) 1> karerobcMÉksarelIkarTUTat; (Payment Documentation)

9 12Import duties and taxes Bank charges and commissions Import license fees Brokerage fees 11Theft and pilferages Quarantine charges Overtime charges Handling charges Unloading fees Warehousing Demurrage Wharfage 2> ktþacMnayéføedIménkarnaMecj- naMcUlTMnij³ (Cost Factors of Export-Import Goods) 1> karerobcMÉksarelIkarTUTat; (Payment Documentation) 13Road freight (cartage, drayage) and/or rail freight Routing costs (canal and inland waterway links) Theft and pilferages Uninsured damages Handling charges Demurrage 14Warehousing Interest charges Advertising

10 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;CalkçN³GnþrCatimanCaeRcInRbePTe Tot. 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.

11 2> TUTat;tamkarbBa¢aTij³ (Payment with order) karTUTat;tambBa¢aTij KWGñkTijTUTat;tamkic©snüabg;tamRbBn½§eG LicRtUnic 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: , Fax, Internet, E-commerce… 2> viFIsaRsþkarTUTat; (Payment Methods)

12 Issuing Bank Trust Bank Buyers Carriers Sellers 2 Cash in advance 1 Sales Contract 3 Payment 4 Payment 5 Goods 6 Waybill 7 Document 8 Document 9 Document 10 Waybill 11 Goods KMnUsta g³ Process: 2> TUTat;tamkarbBa¢aTij³ (Payment with order) 2> viFIsaRsþkarTUTat; (Payment Methods)

13 3> TUTat;tamkarRbmUlÉksar³ (Payment with Documentary Collection) karTUTat;tamkarRbmUlÉksar KWCakarTUTat;mYyEdlmanlkçN³Rbhak;RbEhln wgkar 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. 2> viFIsaRsþkarTUTat; (Payment Methods)

14 Issuing Bank Advising Bank Buyers Carriers Sellers 7 Payment 1 Sales Contract 8 Payment 9 Payment 2 Goods 3 Waybill 4 Document 5 Document 6 Document 10 Waybill 11 Goods KMnUsta g³ Process: 2> viFIsaRsþkarTUTat; (Payment Methods) 3> TUTat;tamkarRbmUlÉksar³ (Payment with Documentary Collection)

15 4> TUTat;tamlixitÉksarén\NTan³ (Payment with Documentary Letter of Credit) karTUTat;tamlixitÉksarén\NTan KWCakarTUTat;edaymankarFanaBIFnaKarrbs;G ñk Tij nigFnaKarrbs;Gñklk;. Gñklk;GacTTYl)ankarbg;R)ak; eRkayBITMnijRtUv)anepJIy:agRtwm RtUveTAeGayGñkTij enAeBlEdlFnaKarrbs;GñkTijTTYl)anÉksarBIFna Karrbs;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. 2> viFIsaRsþkarTUTat; (Payment Methods)

16 KMnUstag1³ Process of Confirmed Letter of Credit: Issuing Bank Advising Bank Buyers Carriers Sellers 11 Payment 1 Sales Contract 10 Payment 8 Payment 5 Goods 6 Waybill 4 Document 9 Document 12 Document 13 Waybill 14 Goods Confirmation of Credit 7 2 Credit Application 3 Credit Notification 4> TUTat;tamlixitÉksarén\NTan³ (Payment with Documentary Letter of Credit) 2> viFIsaRsþkarTUTat; (Payment Methods)

17 KMnUstag2³ Process of Unconfirmed Letter of Credit: Issuing Bank Advising Bank Buyers Carriers Sellers 11 Payment 1 Sales Contract 9 Payment 10 Payment 5 Goods 6 Waybill Document 4 8 Document 12 Document Waybill Goods Advice of Credit 7 2 Credit Application 3 Credit Notification 4> TUTat;tamlixitÉksarén\NTan³ (Payment with Documentary Letter of Credit) 2> viFIsaRsþkarTUTat; (Payment Methods)

18 etIlixit\NTandMeNIrkareTAedayrebobNa? 1-Gñklk; nigGñkTijcuHkic©snüaelIkarlk;CamYyKña. 2-GñkTijsuMebIklixit\NTan L/C. 3- FnaKarrbs;GñkTijCUndMNwgGMBIkarebIli xit\NTan dl;FnaKarrbs;Gñklk;. 4- FnaKarrbs;Gñklk;CUndMNwgbnþdl;Gñklk;. 5-Gñklk;ykTMnijeGayGñkdwkCBa¢Ún 6- GñkdwkCBa¢ÚnRbKl;ÉksardwkCBa¢Úne GayGñklk;. 7- Gñklk;bBa¢ÚnÉksarmkeGayFnaKarrbs;xø Ün. 4> TUTat;tamlixitÉksarén\NTan³ (Payment with Documentary Letter of Credit) 2> viFIsaRsþkarTUTat; (Payment Methods)

19 etIlixit\NTandMeNIrkareTAedayrebobNa? ¬t¦ 8- FnaKarrbs;Gñklk;epJIÉksarmkeGayFnaKarrbs;Gñ kTij. 9- BinitüeXIjRtwmRtUvehIyFnaKarrbs;GñkTijTUTat;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. 4> TUTat;tamlixitÉksarén\NTan³ (Payment with Documentary Letter of Credit) 2> viFIsaRsþkarTUTat; (Payment Methods)

20 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.

21 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)

22 nisSitRtUveFVIkic©kardUcxageRkamedIm,Iep ÞógpÞat;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)

23 nisSitRtUveFVIkic©kardUcxageRkamedIm,Iep ÞógpÞat;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;dUcxage Rkam³ 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)