Our company imports a batch of goods and settles the payment by letter of credit

No, once a letter of credit is opened, it is independent of the contract, it is an independent document and is not subject to the contract of sale.

constraints. The bank only acts according to the provisions of the letter of credit, and guarantees the payment as long as the documents are consistent and consistent. Therefore, if it is found that the goods do not conform to the provisions of the contract, it can only be resolved through the dispute resolution stipulated in the contract, such as negotiation, mediation, arbitration, and litigation.

The letter of credit is a negotiation tool, and the bank examines the documents, not the goods or the quality of the goods, etc., so it cannot be rejected on the grounds of poor quality, but should start from the documents and refuse to pay due to inconsistencies. Please ask the bank to cooperate with you. At the same time, on the other hand, it negotiates with foreign businessmen according to the terms of the contract.

The revolving L/C must be shipped once, the document must be negotiated once, and the amount of the L/C must be used up, after which the amount of the L/C will automatically return to the original amount, and you can ship the goods again. This cycle continues until the end of the validity period of the letter of credit.

No, the bank only recognizes the documents, regardless of the goods.

If there is a problem with the goods, find insurance to trace the claim to the consignor.

The banks are doing the right thing. The L/C clause in this document changes the payment method for L/C.

The nature of the primary payment liability of the issuing bank makes the precondition for the payment of the issuing bank under this certificate not "consistent with the documents and consistent with the single certificate", but after the issuing applicant receives the documents that match the documents and accepts them, as long as the issuing applicant does not accept, the issuing bank will refuse to pay on this ground. Therefore, the bank's chargeback is justified. We made a mistake.

After receiving the letter of credit, the problem raised by our bank did not attract attention, and I believed too much in the credit of the old customer, which led to the occurrence of the problem.

1. There is no reason for the bank to refuse to pay - because the L/C is a separate document transaction between the issuing bank and the beneficiary, and the issuing bank is the person responsible for the payment of the L/C, as long as the beneficiary submits the documents that meet the provisions of the L/C, the issuing bank must pay, regardless of whether the applicant accepts the L/C.

2. There was no mistake on our side. If it must be said that there is, then the clause in the letter of credit that "once the issuer receives the documents that match the documents and accepts them, our bank will pay immediately" should be rejected. However, the issuing bank cannot use this clause to shirk its responsibility as the payer of the L/C, which is a conditional payment commitment by the issuing bank to the beneficiary, and this condition is that the beneficiary submits documents that meet the requirements of the L/C, and the documents are not related to the issuing applicant.

Extended information: 1. International economics and ** major.

Students should be trained to grasp the principles of economics more systematically.

and international economic and international theories, master international knowledge and skills, understand the development status of contemporary international economy, be familiar with the prevailing international rules and practices, as well as China's foreign policies and regulations, and understand major countries and regions.

The social and economic conditions of the senior professionals who can engage in actual business, management, research and publicity planning in foreign-related economic departments, foreign-funded enterprises and institutions.

II. Overview of International Settlement.

1. Definition of international settlement: the use of currency to settle international claims and debts.

acts. The main reasons for the occurrence of international claims and debts are tangible and intangible.

Kind. The international settlement caused by the tangible ** is the international ** settlement. The international settlement caused by the intangible ** is the international non-** state settlement.

2. The difference between international settlement and domestic settlement:

1) The scope of monetary activity is the same, domestic settlement is within the boundaries of a country, and international settlement is carried out across borders.

2) Different currencies are used, the same currency is used for domestic settlement, and different currencies are used for international settlement.

3) Different laws are followed, the former follow the same law, and the latter follow international practice or according to the arbitration law agreed in advance by the parties.

Summary. Case analysis of international settlement: a food import and export company in China exports a batch of fresh products to a certain country in Australia, and the two parties stipulate that the buyer shall open a letter of credit within the time specified in the contract with the letter of credit at sight

Once the issuer receives the documents that match the documents and accepts, our bank will pay immediately" when our bank reviews the letter of credit, put forward the problem, and ask the beneficiary to pay attention to the clause, international settlement case analysis: a food import and export company in China exports a batch of fresh products to a country in Australia, and the two sides stipulate that the letter of credit at sight is the payment method.

International settlement case analysis: a Chinese food export company exports a batch of fresh products to a certain country in Australia, and the two parties stipulate that the buyer will open a letter of credit within the time specified in the contract for the payment method of L/C, and the certificate stipulates: "Once the issuer receives the documents that match the document and accepts the document, our bank will pay immediately" When our bank reviewed the L/C, the problem was raised, and the beneficiary was required to pay attention to the clause, an international settlement case.

Summary. Hello dear. Since you are CIF exporting, the risk on the way is borne by your company, so the customer should claim compensation from you.

Then, because the insurance company underwrites, so you go to the insurance company to make a claim, this is also right, but the customer will not directly claim from the insurance company, because the CIF conditions, in transit is borne by the exporter, so the buyer must only find the seller to claim, whether the seller is responsible for his own or the insurance company, this is the seller's own operation.

My company exports certain goods to European A according to C+IF conditions, and the contract stipulates that the payment shall be made by letter of credit.

Thank you for the answers to these two questions.

Hello dear. You are CIF exporting, so the risk on the way is borne by your company, so the customer should claim from you. Then, because the insurance company underwrites it, so you go to the insurance company to make a claim, this is also right, but the customer will not directly claim from the insurance company, because the CIF conditions, in transit are borne by the exporter, so the buyer must only find the seller to claim, whether the seller is responsible for his own or the insurance company, this is the seller's own operation.

I'm a student, I'm taking an exam, just help me look at these two questions, I really can't.

Hello dear. Because of the CIF clause, the shipper should be responsible for all risk calls before arriving at the destination port. Payment should be made on the basis of the full set of documents provided by the seller - since the risk of the goods under CIF is transferred to the buyer as soon as they are loaded on the vessel at the port of shipment, the buyer should meet the payment obligation on the basis of the documents submitted by the seller, and then, on the basis of the policy contained in the documents, claim from the insurance company, i.e., the loss of the final goods will be borne by the insurance company.

What about the second question<>

Hello dear. 2. It is an actual total loss.

The practice of the issuing bank is not justified - because the name of the goods on the bill of lading allows the use of a general name, that is, the name of the goods on the bill of lading may not apply to the specific name specified in the letter of credit, and the use of the general name of such goods, as long as it does not contradict the name of the goods specified in the letter of credit, the name of such goods on the bill of lading is permissible and is also an international practice.

However, the issuing bank refuses to pay because it uses the general name of the goods on the bill of lading, which is contrary to the international practice of the letter of credit, and the beneficiary should severely refute it, and require the issuing bank to pay immediately and bear the interest on late payment.

It doesn't make sense.

Because according to the relevant provisions of UCP600, in addition to the commercial invoice, the description of goods, services or behaviors in other documents can be used collectively if required, but shall not contradict the description specified in the letter of credit.

The issuing bank's refusal to pay was unreasonable and required the submitting bank to submit a rebuttal.

Hope it helps.