Foreign trade issues What is a letter of credit in domestic and international trade

There are domestic letters of credit, generally called local LC, which may be used more by companies in Hong Kong, and the same situation as you said: after the foreign customer confirms the order with Hong Kong company A, the foreign customer entrusts the local company B in Hong Kong to issue a letter of information to company A through a local bank in Hong Kong.

Not that you mentioned it"We are responsible for shipping the products to the port, not for loading, and receiving the goods at the port to complete the payment. "Pay attention to the detailed terms and conditions on the detailed LC when opening the LC.

It is determined that the bank of China in the mainland has a domestic letter of credit.

The difficulty of the problem is that:

How does the bank control the ownership of the goods, but the bank has no experience in inspecting the goods, no warehouse receipt and a series of problems.

In this way, the terms of the L/C are relatively strict and rigid, or they cannot be connected with the actual operation of foreign trade.

Another problem is that both the issuer and the beneficiary are required to be customers with good credit standing of BOC.

So, so far, it is not accepted and commonly used.

I haven't seen it, there is no letter of credit in China This is for sure.

Hopefully someone can solve the problem of teachable.

L/C refers to a written voucher issued by the bank to the exporter (seller) at the request of the importer (buyer) to guarantee the responsibility of paying the purchase price. In the L/C, the bank authorizes the exporter to issue a bill of exchange not exceeding the specified amount under the conditions specified in the L/C, with the bank or its designated bank as the payer, and to collect the payment for the goods at the designated place on time with the shipping documents attached to it as required.

In international activities, the buyer and the seller may not trust each other, and the buyer is worried that the seller will not deliver the goods according to the contract requirements after the advance payment; The seller is also concerned that the buyer will not pay after shipping the goods or submitting the shipping documents. Therefore, it is necessary for two banks to act as guarantors for both the buyer and the seller, to collect and submit documents on behalf of the buyer, and to replace commercial credit with bank credit. The instrument used by banks in this activity is the letter of credit.

Types of letters of credit in international**.

irrevocable credit;

Revocable Credit;

Confirmation letter of credit;

Non-confirmed letter of credit;

negotiable letters of credit;

Non-transferable letters of credit.

Extended information: International trade (international trade), also known as trade, refers to the transaction of goods and services across national borders, which is generally composed of imports and exports, so it can also be called import and export. International**also called the world**.

Import and export can regulate the utilization rate of domestic production factors, improve the international supply and demand relationship, adjust the economic structure, and increase fiscal revenue.

The international major belongs to the discipline of economics, mainly based on economic theory, including microeconomics, macroeconomics, international economics, econometrics, introduction to world economics, political economy, etc.

Professionally covered. Since the major of international economics and ** is economics, it is naturally inseparable from the study of mathematics, calculus, linear algebra and probability theory and mathematical statistics are essential, and the study of econometrics, international economics, statistics and other disciplines must have a relatively solid mathematical foundation. To engage in international **, English should be quite good, not only written English, such as foreign trade English correspondence, spoken English is also quite important.

After learning all of the above, it is also necessary to learn engineering knowledge, i.e., industry knowledge, as a supplement to professional knowledge to facilitate the entry into the workplace in the future. Although all walks of life have their own professional knowledge, after mastering the international first-class theoretical knowledge, it is more convenient to learn industry knowledge, and it is also handy to engage in full-time work.

To sum up, if you want to achieve good results and long-term development in the international field, you must learn English and economics knowledge, and understand the corresponding laws and regulations at home and abroad.

Study Preparation. Before learning these economics, it is necessary to master the corresponding basic knowledge, such as principles of accounting, statistics, public finance, money and banking, economic law, international business law, investment, financial management, management principles and other courses. After studying the above courses, you will have to come into contact with the core knowledge of the world, that is, the professional knowledge of all aspects of the world, namely:

International Theory, International Finance, International Settlement, Foreign Trade English Correspondence, Foreign Trade Speaking, Foreign Trade Writing, Foreign Trade Negotiation Skills, International Economic Cooperation, Theory and Practice of Multinational Corporations, etc., of course, the most important courses are International Practice, also known as Import and Export Practice, or Foreign Practice.

Summary. The shareholders of the company are judged to be the losing party in the course of the litigation, which may affect the company's creditworthiness and financial condition, which in turn will have an impact on the normal payment of the letter of credit. There are several factors to consider in your specific situation:

1.Terms of the letter of credit: The terms of the letter of credit may state that the bank may suspend the payment of the letter of credit if the applicant or beneficiary loses the legal proceedings.

2.Bank's policy: Different banks may have different policies and may have different ways to deal with the situation where the applicant or beneficiary loses the legal proceedings.

3.Terms of the contract: The terms of the contract may state that the performance of the contract may be affected if the applicant or beneficiary loses the legal proceedings.

Hello dear! I'm glad to answer for you. Yes, the first between the domestic chain reform can also open a letter of credit.

Letter of credit is a commonly used payment method in international **, and is usually used for import and export business in international **. In China, the opening of a letter of credit can also play a role in guaranteeing the receipt and payment, ensuring the rights and interests of both parties to the transaction and reducing the transaction risk.

Legal basis: According to Article 55 of the Contract Law of the People's Republic of China, L/C is a way to guarantee payment. When the buyer and the seller agree in the contract to adopt the letter of credit payment method, the letter of credit has contractual effect as a legal payment method.

According to Article 1 of the Negotiable Instruments Law of the People's Republic of China, a negotiable instrument is a written voucher for debiting, crediting, remitting and guaranteeing payment. As a written voucher to guarantee payment, the letter of credit can also be regarded as a holding note. Therefore, according to the above legal provisions, letters of credit can be opened between countries, and letters of credit have contractual effect and negotiable characteristics.

If the shareholders of the company have a lawsuit, will it affect the normal payment of the letter of credit?

The shareholders of the company are judged to be the losing party in the litigation process, which may affect the company's creditworthiness and financial condition, which in turn will affect the normal payment of the letter of credit. The following factors need to be considered in the specific situation:1

Terms of the letter of credit: The terms of the letter of credit may state that the bank may suspend the payment of the letter of credit if the applicant or beneficiary loses the legal proceedings. 2.

Banks' policy implications: Different banks may have different policies and may have different ways to deal with the situation where the applicant or beneficiary loses the case in the legal proceedings. 3.

Terms of the contract: The terms of the contract may state that the performance of the contract may be affected if the applicant or beneficiary loses the legal proceedings.

Summary. Good evening, dear<>

The letter of credit is an international** payment method, issued by the buyer's bank, which guarantees that the buyer's bank will pay the seller in accordance with the provisions of the letter of credit after the seller submits the documents in accordance with the terms of submission stipulated in the letter of credit. For specific provisions on L/C, please refer to the Uniform Practice of L/C in International Practice (UCP600) and the Regulations of China on <>Import and Export L/C and other relevant laws and regulations

Can I open a letter of credit between countries?

Good evening, dear<>

The first <> that can open a letter of credit between countries

The letter of credit is an international payment method, issued by the buyer's bank, which guarantees that after the seller submits the documents in accordance with the terms of submission stipulated in the letter of credit, the buyer's bank will delay the payment to the seller in accordance with the provisions of the letter of credit. For the specific provisions of L/C, please refer to the "Uniform Practice of L/C in International Practice (UCP600)" and the "Regulations of China on Import and Export L/C<>" and other relevant laws and regulations

According to the Tongqing Zhenzhi of the People's Bank of China on Further Regulating the Letter of Credit Business (Yin Fa 2012 No. 165), domestic enterprises can open domestic credit certificates, but they must comply with relevant laws and regulations. At the same time, banks should strengthen the management and supervision of L/C business to ensure the compliance and security of L/C business. In addition to L/C, other payment methods can also be used between countries**, such as telegraphic transfer, bill settlement, etc.

The choice of payment method should be determined according to the actual situation, and should take into account the creditworthiness of both parties to the transaction, the nature of the goods, the amount of the transaction and other factors. When using a letter of credit, you also need to pay attention to the relevant fees, such as handling fees, security deposits, etc., <>

Dear, is there anything else you don't understand? Tell me more about your situation and I'll answer for you. <>

If the actual controller of the company (not the company's shareholder) is a dishonest person, will it affect the confirmation of the company's letter of credit?

The actual controller of the company is a dishonest person, which will affect the <> of the company's letter of credit confirmation