Bank Credit Payment Trial Of A Single Problem With International Practice

Document credit is one of the most popular methods of international transaction payment, which should be issued in accordance with trade contract. The examination of the documents is the most important and perplexing step. The key question of the examination of documents is which standards should be used to meet the terms of L/C. Strict documentary compliance is one of the basic standards in L/C operation. However, even using this standard, it is difficult to judge whether the documents meet the terms of L/C. This hard problem is often encountered in practice of L/C business, while we have no uniform and specific standard to judge the documentary compliance for a long time. Now UCP500 and ISBP are trying to build up an international banking practice standard for the examination of documentary credits. Chapter 1 focuses on the history of L/C and the decline of its application in the international trade practices. Chapter 2 introduces the concept and standards of strict compliance, substantial compliance and mirror standard, reasonable checker standard. Chapter 3 is divided into tow sections. Section one enumerate the most popular discrepancies in the practice and the section tow discusses the procedure of examination of documentary credit in the bank. Chapter 4 discusses several issues which related with the examination of documentary credit. In the chapter 5, I gave several suggestions to the companies which participate in the international trade.