International Settlements-What is the international settlement?
Overview of International Settlements,
For International Settlements (BIS) - definition: the behavior of the monetary settlement of international credit and debt. Mainly due to produce international credit and debt, visible and invisible trade class. The visible trade for International Settlements (BIS) for international trade settlement. For International Settlements (BIS) is caused by the invisible trade, international trade settlement.
For International Settlements (BIS) and domestic settlement of differences:
(1) the scope of activities of the currency is different from the domestic settlement within a country for International Settlements transnational.
(2) use different currency, the domestic balance sheet using the same currency, the international settlement using a different currency.
(3) follow the law, the former follow the same laws, which follow the international practice or prior agreement of the parties, the Arbitration Law.
International settlement system
Definition: International Settlements, the principles and norms of behavior.
According to the settlement currency is freely convertible, can be divided into the following three categories:
(1) freedom of multilateral international settlement system to use a freely convertible currency features.
(2) The bilateral international settlement system of the control characteristics can not freely convertible currency.
(3) internal multilateral settlement system of regional economic groupings.
The evolution of International Settlements (BIS)
Gone through three stages from the system side,
(1) cash settlement in the early trade.
(2) Non-bills clearing stage of development by the notes to the Notes documents settlement.
(3) banks and other financial structures involved in non-cash settlement.
Technology, international settlement means the continuous development of the main clearing and settlement systems: free collection and payment system of the BIS, BIS automatically receipt and payment system in the UK.
For International Settlements (BIS) of payment instruments
(A) the use of payment instruments, notes, bills issued by the drawer has unconditionally agreed to pay a certain amount or ask other people, can be transferred in writing to pay the endorsed certificate. The bills generally include bills of exchange, promissory notes, checks.
A bill of exchange is the main payment instruments for International Settlements (BIS) is one person to another person issued requiring him to pay a certain amount of unconditional payment order in writing, a person or bearer at sight or at a certain time in the future. The bill of exchange nature of the claims creditors to provide credit certificate. Its circulation after the vote, endorsement, tips, acceptance, payment and other statutory procedures have been dishonored, may exercise the right of recourse.
A bill may be divided into four categories:
(1) The drawer can be divided into bank bills and commercial bills. Bank drawer and the payer are banks, commercial bills of exchange issued by businesses or individuals.
(2) can be divided into the time of payment of a sight draft and time draft. Demand draft payable at sight or when prompted. The long-term bill is a bill payable by a specific deadline or specific date.
(3) whether the attached documents are divided into light ticket with a single bill. Light ticket is not attached to the documents attached to shipping documents with a single bill.
(4) according to the acceptor divided into bankers' acceptances and commercial acceptance bill, the former is a draft long-term acceptance by the Bank, which is a long-term bills of exchange for acceptance by businesses or individuals.
(2) the promissory note to guarantee issued by a person to another person in sight or at a certain time unconditional payment to the payee or the holder a written certificate of a certain balance. Parties as long as the drawer and the payee.
(3) A check is a depositor on the authorization issued by the bank at sight of a person or a nominated person or the holder of the spot unconditional payment of the balance of payment order in writing.
(B) the settlement documents, divided into the basic documents and ancillary documents
The basic documents refers to the export orientation of the importer to provide documents, commercial invoice, transport document, insurance document.
Two subsidiary documents the exporter to comply with government regulations of the importing Party or other long-term special documents.
