Letter Of Credit And Legal Issues Concemed

I have many years'experience in the international trade settlement in joint venture. There are a lot of puzzles in my work among which some are technical problems that are easy to solve by consulting or discussing with relative departments e.g. bank, The Administrative Bureau of Foreign Exchange and the Customs etc. And those involving legal issues are the most puzzling one.This article tries to probe those problems from the many years work experience in international trade settlement and 3 years study in the legal school with a conclusion and the solution to my puzzle.The most often method used in the international trade settlement is remittance, collection and letter of credit. Remittance and collection is built upon trust between buyer and seller. Although bank is involved it is only responsible for the transfer of proof, account and notice and so on. It is not responsible for the payment and the responsibility of guarantee. Therefore, the use of remittance and collection in the international trade is limited, mostly in small amount payment of samples, incidental fees (e.g. transportation, package, insurance etc) or partial advance payment, remaining payment etc. Collection mostly is used in small transactions between related companies or business partners with long history of cooperation.Letter of credit is mainly used in the international trade settlement. In China, 70% settlement in the international trade makes use of letter of credit. Major part of this article is related to the use of letter of credit because what above-said about the puzzle in my work is from this area.Because this article is about international trade settle from the perspective of the law, the first thought would be international law. Before we tackle the issue of letter of credit, we spend the first chapter the answer...