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.
Showing posts with label Letter of Credit. Show all posts
Showing posts with label Letter of Credit. Show all posts
Friday, April 20, 2012
Sunday, January 29, 2012
International Payment
International payment-About International payment:
What is the international payments?
International payment - the concept of
International payment is in international economic activities of the parties to a certain payment instruments and methods, for various economic activities, settlement of international claims and liabilities arising from the behavior. International payment is usually in place in international trade, by the obligation to pay money to perform an act of the parties to fulfill their obligations.
International import and export of goods and payments associated with the occurrence, but its development has in turn promoted the development of international economic activity; the same time, along with the development of international economic activity, is also expanding its range of applications. In a free capitalist period before the import and export of goods between countries is usually paid in cash, gold or silver to transfer the methods debt. However, the risk of transporting cash to pay not only large, occupancy and backlog of capital, and inventory of inconvenience, in addition also identify the authenticity of the count. Therefore, only a small amount of the transaction, a cash payment in order to cope. 16-17 century, some European cities have been widely used business by the end of feudal society developed bills to be paid. Non-cash payment method - notes instead of money, money bills, so that pay is very rapid, simple, and cost savings of cash and negotiable. Bills of payment methods to further promote the development of international trade. To the late 19th early 20th century, international trade, the buyer voucher payment method is already quite complete.
The buyer's payment voucher payment, required documents for the mortgage banks to finance to exporters, so the introduction of bank credit in the ordinary business of international payments. Merchant banks to increase trade financing, the bank itself to expansion, the two complement each other, forming a combination of trade payments and finance and is characterized as the central bank's international payments system.
International payment - features
First, the causes of international payments is due to international economic activity and debt payment. International trade and economic activities, including non-trade activities. International trade refers to the international trade of goods between the different parties, the exchange of technology or service, such as the purchase price, transportation costs, all kinds of commissions, insurance, technology fee. Non-international trade is the international trade activities in addition to other types of behavior, such as international investment, international loans, international and other types of cultural and artistic activities.
Secondly, the international payments is the main international economic activities of the parties. International economic activities based on the parties to the meaning of different activities may be. If the sale of goods, the parties refer to both business people located in different countries, and a bank involved.
Again, international payments are paid a certain tool. Tool for international payments and currency notes generally. On the one hand, due to international cross-border payments between the parties is usually a natural person, legal person. The currency used in different countries, this involves the currency of choice, the use of foreign exchange and foreign currency related to this issue of exchange rate risks; the other hand, in order to avoid the direct delivery of a large number of risks arising from currency and inconvenience, it relates to the use of paper associated with this bill is the transfer of relevant national series of complex legal issues.
Finally, the international payment based on a certain way to carry out. In international trade, buyers and sellers usually distrust them from their own interests, always strive to get a larger loan and payment terms of security, try to avoid suffering the loss of money, the two air cargo, and would like to cash flow in some sort of facility. This relates to how different situations, the use of long-established international remittance, collection, credit and international factoring different methods of payment, to handle payment security and payment of the issue of financial intermediation.
International payment - way
International economic activities use more of the payment in two ways: direct and indirect methods of payment payment. Direct payment is only by the parties to international economic activities that trade relations between the two sides with a bank payment. Commonly used in practice are: remittance, collection, letters of credit. Exchange remittance is a smooth way, ie by the buyer (debtor) to exchange money through their bank to pay the seller (creditor). Collection and payment is a credit against the exchange, that is by the seller (creditor) initiative by banks to the buyer (debtor) obtain money. Indirect payment is paid in addition to parties to the transaction with the bank act, there are other ways to participate in the main body. Practice more and more use of international factoring is an indirect payment.
A remittance (remittance)Remittance sender refers to the initiative will be paid to the bank by bank transfer instructions under a sink to the recipient of payment. Remittance is a commercial credit, payment depends on whether the importer (buyer) or the service recipient, the payment is not guaranteed. In this manner, the parties to international economic activities in terms of both risks. Thus, unless there is some relationship between buyers and sellers or small amount of pay, seldom use the remittance
In international payments business, remittance payments directly from the importer, its can be divided into: mail transfer, telegraphic transfer, ticket exchange.
1 mail transfer (Mail Transfer, M / T). Mail transfer refers to the sender to pay the local banks will be paid by the bank issued payment orders sent through the post office where the payee's bank. Mail transfer fees low, but slow.
(2) Wire Transfer (Telegraphic Transfer, T / T). Wire is the sender asked local banks to entrust telegram or telex to the payee bank for payment where the recipient. As telecommunications technology, banks have established a direct communication, wire transfer, low cost, low error rate.
3 ticket exchange (Demand Transfer, D / T). Ticket exchange is remitted remitter's bank should apply, on behalf of the sender to open its branch or agency in the conduct of foreign lines of sight draft payment, to pay a certain amount to the payee of a remittance.
And mail transfer, telegraphic transfer is different in the ticket exchange, the sender will pay the payee remittance certificate, remitting bank and receiving bank between the instructions made by money order. The bill is bank draft, the benefits of using this approach is transferable settlement bill.
Second, the collection (Collection)
Collection is entrusted to the creditor to the debtor bank notes received loans with a payment. Collection in general practice: the creditor (the seller) the amount of the invoice, the buyer open to a draft drawn to the creditor to apply to banks, commissioned by the bank through its branches in debt to banks or other contacts, on behalf of the buyer receive payment. The most common type of collection is clean collection and with a single collection.
Third, the letter of credit (Letter of Credit, L / C)
Banks are issuing letters of credit (the issuing bank) issued by the issuing of the applicant's application, the conditions required to meet the letter of credit, letter of credit documents with payment to the beneficiary of a written certificate.
Payment by letter of credit is determined by the issuing bank's own credit payment for the seller to provide a written guarantee certificate. Typically, a written letter of credit as long as the exporters to submit documents required conditions, the bank must be unconditional payment of the purchase price so the seller will get reliable protection. And importers can meet the letter of credit payment terms to guarantee access to all shipping documents.
Fourth, international factoring (International Factoring)
International factoring, international factoring business that is widely used in developed countries as a short-term financing of foreign trade to receive payment of the way. It has certain advantages for importers and exporters. As the modern international financial factoring business of modern information technology and international financial business in one, so the volume of business developed very rapidly in international trade has become an effective means of competition payments.
Since World War II, as modern science and technology to international payment services and payment of applicable international treaties and international practice of international development and improvement of international payments to achieve a fast, safe completion of international payment, to adapt a highly developed economy, the world needs; and payment systems from international sale of goods to the international technology trade, service trade and other areas of expansion.
International payment - way
International economic activities use more of the payment in two ways: direct and indirect methods of payment payment. Direct payment is only by the parties to international economic activities that trade relations between the two sides with a bank payment. Commonly used in practice are: remittance, collection, letters of credit. Exchange remittance is a smooth way, ie by the buyer (debtor) to exchange money through their bank to pay the seller (creditor). Collection and payment is a credit against the exchange, that is by the seller (creditor) initiative by banks to the buyer (debtor) obtain money. Indirect payment is paid in addition to parties to the transaction with the bank act, there are other ways to participate in the main body. Practice more and more use of international factoring is an indirect payment.
A remittance (remittance)Remittance sender refers to the initiative will be paid to the bank by bank transfer instructions under a sink to the recipient of payment. Remittance is a commercial credit, payment depends on whether the importer (buyer) or the service recipient, the payment is not guaranteed. In this manner, the parties to international economic activities in terms of both risks. Thus, unless there is some relationship between buyers and sellers or small amount of pay, seldom use the remittance
In international payments business, remittance payments directly from the importer, its can be divided into: mail transfer, telegraphic transfer, ticket exchange.
1 mail transfer (Mail Transfer, M / T). Mail transfer refers to the sender to pay the local banks will be paid by the bank issued payment orders sent through the post office where the payee's bank. Mail transfer fees low, but slow.
(2) Wire Transfer (Telegraphic Transfer, T / T). Wire is the sender asked local banks to entrust telegram or telex to the payee bank for payment where the recipient. As telecommunications technology, banks have established a direct communication, wire transfer, low cost, low error rate.
3 ticket exchange (Demand Transfer, D / T). Ticket exchange is remitted remitter's bank should apply, on behalf of the sender to open its branch or agency in the conduct of foreign lines of sight draft payment, to pay a certain amount to the payee of a remittance.
And mail transfer, telegraphic transfer is different in the ticket exchange, the sender will pay the payee remittance certificate, remitting bank and receiving bank between the instructions made by money order. The bill is bank draft, the benefits of using this approach is transferable settlement bill.
Second, the collection (Collection)Collection is entrusted to the creditor to the debtor bank notes received loans with a payment. Collection in general practice: the creditor (the seller) the amount of the invoice, the buyer open to a draft drawn to the creditor to apply to banks, commissioned by the bank through its branches in debt to banks or other contacts, on behalf of the buyer receive payment. The most common type of collection is clean collection and with a single collection.
Third, the letter of credit (Letter of Credit, L / C)Banks are issuing letters of credit (the issuing bank) issued by the issuing of the applicant's application, the conditions required to meet the letter of credit, letter of credit documents with payment to the beneficiary of a written certificate.
Payment by letter of credit is determined by the issuing bank's own credit payment for the seller to provide a written guarantee certificate. Typically, a written letter of credit as long as the exporters to submit documents required conditions, the bank must be unconditional payment of the purchase price so the seller will get reliable protection. And importers can meet the letter of credit payment terms to guarantee access to all shipping documents.
Fourth, international factoring (International Factoring)International factoring, international factoring business that is widely used in developed countries as a short-term financing of foreign trade to receive payment of the way. International factoring has certain advantages for importers and exporters. As the modern international financial factoring business of modern information technology and international financial business in one, so the volume of international factoring business developed very rapidly in international trade has become an effective means of competition payments.
What is the international payments?
International payment - the concept of
International payment is in international economic activities of the parties to a certain payment instruments and methods, for various economic activities, settlement of international claims and liabilities arising from the behavior. International payment is usually in place in international trade, by the obligation to pay money to perform an act of the parties to fulfill their obligations.
International import and export of goods and payments associated with the occurrence, but its development has in turn promoted the development of international economic activity; the same time, along with the development of international economic activity, is also expanding its range of applications. In a free capitalist period before the import and export of goods between countries is usually paid in cash, gold or silver to transfer the methods debt. However, the risk of transporting cash to pay not only large, occupancy and backlog of capital, and inventory of inconvenience, in addition also identify the authenticity of the count. Therefore, only a small amount of the transaction, a cash payment in order to cope. 16-17 century, some European cities have been widely used business by the end of feudal society developed bills to be paid. Non-cash payment method - notes instead of money, money bills, so that pay is very rapid, simple, and cost savings of cash and negotiable. Bills of payment methods to further promote the development of international trade. To the late 19th early 20th century, international trade, the buyer voucher payment method is already quite complete.
The buyer's payment voucher payment, required documents for the mortgage banks to finance to exporters, so the introduction of bank credit in the ordinary business of international payments. Merchant banks to increase trade financing, the bank itself to expansion, the two complement each other, forming a combination of trade payments and finance and is characterized as the central bank's international payments system.
International payment - features
First, the causes of international payments is due to international economic activity and debt payment. International trade and economic activities, including non-trade activities. International trade refers to the international trade of goods between the different parties, the exchange of technology or service, such as the purchase price, transportation costs, all kinds of commissions, insurance, technology fee. Non-international trade is the international trade activities in addition to other types of behavior, such as international investment, international loans, international and other types of cultural and artistic activities.
Secondly, the international payments is the main international economic activities of the parties. International economic activities based on the parties to the meaning of different activities may be. If the sale of goods, the parties refer to both business people located in different countries, and a bank involved.
Again, international payments are paid a certain tool. Tool for international payments and currency notes generally. On the one hand, due to international cross-border payments between the parties is usually a natural person, legal person. The currency used in different countries, this involves the currency of choice, the use of foreign exchange and foreign currency related to this issue of exchange rate risks; the other hand, in order to avoid the direct delivery of a large number of risks arising from currency and inconvenience, it relates to the use of paper associated with this bill is the transfer of relevant national series of complex legal issues.
Finally, the international payment based on a certain way to carry out. In international trade, buyers and sellers usually distrust them from their own interests, always strive to get a larger loan and payment terms of security, try to avoid suffering the loss of money, the two air cargo, and would like to cash flow in some sort of facility. This relates to how different situations, the use of long-established international remittance, collection, credit and international factoring different methods of payment, to handle payment security and payment of the issue of financial intermediation.
International payment - way
International economic activities use more of the payment in two ways: direct and indirect methods of payment payment. Direct payment is only by the parties to international economic activities that trade relations between the two sides with a bank payment. Commonly used in practice are: remittance, collection, letters of credit. Exchange remittance is a smooth way, ie by the buyer (debtor) to exchange money through their bank to pay the seller (creditor). Collection and payment is a credit against the exchange, that is by the seller (creditor) initiative by banks to the buyer (debtor) obtain money. Indirect payment is paid in addition to parties to the transaction with the bank act, there are other ways to participate in the main body. Practice more and more use of international factoring is an indirect payment.
A remittance (remittance)Remittance sender refers to the initiative will be paid to the bank by bank transfer instructions under a sink to the recipient of payment. Remittance is a commercial credit, payment depends on whether the importer (buyer) or the service recipient, the payment is not guaranteed. In this manner, the parties to international economic activities in terms of both risks. Thus, unless there is some relationship between buyers and sellers or small amount of pay, seldom use the remittance
In international payments business, remittance payments directly from the importer, its can be divided into: mail transfer, telegraphic transfer, ticket exchange.
1 mail transfer (Mail Transfer, M / T). Mail transfer refers to the sender to pay the local banks will be paid by the bank issued payment orders sent through the post office where the payee's bank. Mail transfer fees low, but slow.
(2) Wire Transfer (Telegraphic Transfer, T / T). Wire is the sender asked local banks to entrust telegram or telex to the payee bank for payment where the recipient. As telecommunications technology, banks have established a direct communication, wire transfer, low cost, low error rate.
3 ticket exchange (Demand Transfer, D / T). Ticket exchange is remitted remitter's bank should apply, on behalf of the sender to open its branch or agency in the conduct of foreign lines of sight draft payment, to pay a certain amount to the payee of a remittance.
And mail transfer, telegraphic transfer is different in the ticket exchange, the sender will pay the payee remittance certificate, remitting bank and receiving bank between the instructions made by money order. The bill is bank draft, the benefits of using this approach is transferable settlement bill.
Second, the collection (Collection)
Collection is entrusted to the creditor to the debtor bank notes received loans with a payment. Collection in general practice: the creditor (the seller) the amount of the invoice, the buyer open to a draft drawn to the creditor to apply to banks, commissioned by the bank through its branches in debt to banks or other contacts, on behalf of the buyer receive payment. The most common type of collection is clean collection and with a single collection.
Third, the letter of credit (Letter of Credit, L / C)
Banks are issuing letters of credit (the issuing bank) issued by the issuing of the applicant's application, the conditions required to meet the letter of credit, letter of credit documents with payment to the beneficiary of a written certificate.
Payment by letter of credit is determined by the issuing bank's own credit payment for the seller to provide a written guarantee certificate. Typically, a written letter of credit as long as the exporters to submit documents required conditions, the bank must be unconditional payment of the purchase price so the seller will get reliable protection. And importers can meet the letter of credit payment terms to guarantee access to all shipping documents.
Fourth, international factoring (International Factoring)
International factoring, international factoring business that is widely used in developed countries as a short-term financing of foreign trade to receive payment of the way. It has certain advantages for importers and exporters. As the modern international financial factoring business of modern information technology and international financial business in one, so the volume of business developed very rapidly in international trade has become an effective means of competition payments.
Since World War II, as modern science and technology to international payment services and payment of applicable international treaties and international practice of international development and improvement of international payments to achieve a fast, safe completion of international payment, to adapt a highly developed economy, the world needs; and payment systems from international sale of goods to the international technology trade, service trade and other areas of expansion.
International payment - way
International economic activities use more of the payment in two ways: direct and indirect methods of payment payment. Direct payment is only by the parties to international economic activities that trade relations between the two sides with a bank payment. Commonly used in practice are: remittance, collection, letters of credit. Exchange remittance is a smooth way, ie by the buyer (debtor) to exchange money through their bank to pay the seller (creditor). Collection and payment is a credit against the exchange, that is by the seller (creditor) initiative by banks to the buyer (debtor) obtain money. Indirect payment is paid in addition to parties to the transaction with the bank act, there are other ways to participate in the main body. Practice more and more use of international factoring is an indirect payment.
A remittance (remittance)Remittance sender refers to the initiative will be paid to the bank by bank transfer instructions under a sink to the recipient of payment. Remittance is a commercial credit, payment depends on whether the importer (buyer) or the service recipient, the payment is not guaranteed. In this manner, the parties to international economic activities in terms of both risks. Thus, unless there is some relationship between buyers and sellers or small amount of pay, seldom use the remittance
In international payments business, remittance payments directly from the importer, its can be divided into: mail transfer, telegraphic transfer, ticket exchange.
1 mail transfer (Mail Transfer, M / T). Mail transfer refers to the sender to pay the local banks will be paid by the bank issued payment orders sent through the post office where the payee's bank. Mail transfer fees low, but slow.
(2) Wire Transfer (Telegraphic Transfer, T / T). Wire is the sender asked local banks to entrust telegram or telex to the payee bank for payment where the recipient. As telecommunications technology, banks have established a direct communication, wire transfer, low cost, low error rate.
3 ticket exchange (Demand Transfer, D / T). Ticket exchange is remitted remitter's bank should apply, on behalf of the sender to open its branch or agency in the conduct of foreign lines of sight draft payment, to pay a certain amount to the payee of a remittance.
And mail transfer, telegraphic transfer is different in the ticket exchange, the sender will pay the payee remittance certificate, remitting bank and receiving bank between the instructions made by money order. The bill is bank draft, the benefits of using this approach is transferable settlement bill.
Second, the collection (Collection)Collection is entrusted to the creditor to the debtor bank notes received loans with a payment. Collection in general practice: the creditor (the seller) the amount of the invoice, the buyer open to a draft drawn to the creditor to apply to banks, commissioned by the bank through its branches in debt to banks or other contacts, on behalf of the buyer receive payment. The most common type of collection is clean collection and with a single collection.
Third, the letter of credit (Letter of Credit, L / C)Banks are issuing letters of credit (the issuing bank) issued by the issuing of the applicant's application, the conditions required to meet the letter of credit, letter of credit documents with payment to the beneficiary of a written certificate.
Payment by letter of credit is determined by the issuing bank's own credit payment for the seller to provide a written guarantee certificate. Typically, a written letter of credit as long as the exporters to submit documents required conditions, the bank must be unconditional payment of the purchase price so the seller will get reliable protection. And importers can meet the letter of credit payment terms to guarantee access to all shipping documents.
Fourth, international factoring (International Factoring)International factoring, international factoring business that is widely used in developed countries as a short-term financing of foreign trade to receive payment of the way. International factoring has certain advantages for importers and exporters. As the modern international financial factoring business of modern information technology and international financial business in one, so the volume of international factoring business developed very rapidly in international trade has become an effective means of competition payments.
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