Abstract: International trade is the buying and selling of commodities between countries, but because the buyers and sellers are in different countries and regions, commodities and currencies cannot be simply equated.

Direct exchange, but documents must be used as exchange vouchers. Therefore, international trade is also called the sale of documents. "In the letter of credit business, the parties concerned

People only deal with documents, not with goods, services or other behaviors involved in documents. Banks must examine the terms of the letter of credit with reasonable care.

All documents to determine whether they are consistent with the surface of the letter of credit. If the documents are inconsistent with each other, they will be regarded as inconsistent with the surface terms of the letter of credit. "

If there are slight differences between the documents and the letter of credit, the issuing bank will not be responsible. Therefore, prepare all kinds of documents correctly to ensure that after delivery.

It is very important to recover the payment in time.

Keywords: document; Flaw; Countermeasures

Nowadays, foreign trade business is mainly based on documents, so it can also be called "document business". Whether it is a letter of credit

Settlement or collection, documents are an important basis for delivery and collection, and the risk of documents is also directly related to the smooth completion of the sale. stay out

In trade business, the risks of documents mainly come from two aspects: First, documents are flawed and cannot be made at will, and must conform to business habits.

And practical needs. In principle, the preparation of documents should be "correct, complete, timely and concise" to reduce or avoid the risk of document defects. document

Another risk comes from the essential characteristics and use process of documents. Among all the negotiation documents and customs declaration documents, the most risky and risky is

Letters of credit, bills of lading, bills of exchange and other important documents. Based on my years of experience in making documents, this paper introduces some common document defects and their prevention.

Countermeasures.

1 Several Common Document Defects

In actual export business, the contents of negotiation documents must be strictly consistent with the provisions of relevant letters of credit, which is a routine. However, sales

It is sometimes difficult for us to guarantee that every negotiation document is completely consistent with the contents of its related letter of credit. The main reasons for the defects are:

(1) Both parties are inexperienced, and when signing the contract, the buyer and the seller did not consider the practical problems that will be encountered in future performance. increase

Most of the current sales contracts are fixed formats printed by the seller in advance, and only a few major items are filled out according to a specific commodity.

Terms, and then signed by the buyer and the seller. The advantage of this signature method is simple and time-saving, but the disadvantage is that the format is fixed.

The blank left by the contract is very limited and unreasonable, and it is impossible to put some special features of a particular commodity between the buyer and the seller, especially the buyer.

Fill in all the requirements. When the buyer opens a letter of credit, in order to ensure his own interests, he has to attach some contracts to the letter of credit.

The term was not found in. Before adding terms, buyers often ignore the communication and discussion with sellers. The seller added some terms, because in advance.

I wasn't prepared. I didn't know that the original contract terms had changed until I received the letter of credit, but what is done is done. This situation makes the seller in a dilemma.

When the buyer opens a letter of credit through the bank, he must pay a certain mortgage guarantee to the bank, which means that he needs to occupy the letter of credit.

Party funds. Therefore, the time for the buyer to open the letter of credit is usually: the factory starts production from the date of opening the letter of credit, and it is just completed on the delivery date.

Only two weeks to thirty days at most, in case of delay. After the seller receives the letter of credit, all the preparations before export.

We must go all out to work without delay. We know that although the letter of credit essentially reflects the economic relationship between the buyer and the seller.

But in form and operation, it embodies the buying and selling relationship between the issuing bank and the beneficiary (seller) of the letter of credit. During operation,

There is no direct contact between the issuing bank and the beneficiary. They must notify the bank and the negotiating bank through their intermediaries (of course, both of them).

It can also be the same bank) and the buyer upload and publish. If the letter of credit needs to be amended, from the time when the seller requests the amendment to the time when he receives the letter of credit.

The amendment of the original certificate will not take less than ten days and a half months, even if all parties do their best to do things at the fastest speed. Amendment letter

Using this card, the bank will charge extra fees (change fee and notification fee). Foreign businessmen have a strong sense of money and time. Besides, this city

The market is also constantly changing. As buyers, they are unwilling to amend or extend the letter of credit (extending the shipment date and validity of the letter of credit,

It is also one of the categories of amending the letter of credit), which makes you bear more expenses and risks.

2 Coping with the defects in document production countermeasures

Can you find such a consistent method without replacing the certificate, so that the export goods can be settled safely and timely? practice

The answer is: in many cases, yes. The following author introduces several countermeasures according to practical experience for your reference only.

2. Some keywords in1L/C are misspelled or their meanings are not clear enough. What should the beneficiary do?

For such problems, exporters should treat them differently according to different situations. For example, there is a passage in the letter of credit: ... Letter of credit-

Negotiation is valid at the beneficiary's presentation.

The demand draft is drawn on your seller, and the amount is 100% ... of the net invoice value.

The L/C will accept a beneficiary's draft drawn on your bank (your advising bank) for 100% of the invoice value, which can be negotiated at any bank.

Time draft).