Legal Issues Under The Credit Maritime Fraud

With the rapid development of international trade and international shipping,maritime fraud also became more and more intense. As the most important internationalsettlement method, letter of credit (L/C) promotes the development of international trade,but it also used by criminals to commit maritime fraud. Long history of maritime fraud,which in wide scope, involving large amount, seriously obstacles the development ofinternational trade in goods and international shipping. So it is necessary to do research inmaritime fraud. Maritime fraud can be described into many types, but this article discussthe maritime fraud under L/C only, which aims at seeking effective measures againstmaritime fraud under the credit to reduce the incidence of fraud and maintain the order ofinternational business and international shipping.In addition to the introduction and conclusion, the full text is divided into fivechapters, about28,000words.In the first chapter: overview of maritime fraud under L/C. First of all, the definitionof the related concept of maritime fraud and the analysis of features of internationalmaritime fraud under the credit, which involving international, complex and easily hidden;Secondly, the description of current status of legal issues research in maritime fraud underthe L/C at home and abroad.In the second chapter: the form and harm of maritime fraud under L/C. First of all,the bill of lading (B/L) fraud includes its causes, forms and harm. The causes include: thedefect of B/L legal system, poor laws, and inadequate protection; and the forms include:forged B/L, anti-dated B/L, advanced B/L, guarantee B/L, and release the goods withoutoriginal B/L. Secondly, L/C fraud, including its causes, forms and its harm. The causesinclude: the limitations of the L/C itself, the relatively low risk, no uniform format, and itsinadequate protection; and the forms include: beneficiary planed, applicant planed,applicant and issuing bank jointly planed, beneficiary and applicant jointly planed,beneficiary and the carrier jointly planned L/C.In the third chapter: the preventive measures of maritime fraud under L/C. First of all, the preventions of B/L fraud, include protection of carrier and both buyer and seller. Theformer include: resisting forged B/L, anti-dated B/L, advanced B/L, guarantee B/L, andstrictly controlling to release the goods without original B/L; and the latter: making use oflegal regulations and risk management organization to avoid risk, carefully selecting tradepartner, and seriously selecting well-known carrier. Secondly, the preventive measures ofL/C: protection of the bank and other financial institution and buyer and seller. The formerincludes: checking the documents carefully, having good communication with customers;and the latter includes: careful selection of trading partners, standardizing the use of L/Cterms, choosing reasonable international trade terms, following dynamic voyage of thegoods, authorizing the third party to supervise, and improving the quality of trader.In the fourth chapter: the relief measures of maritime fraud under L/C. Firstly, B/Lfraud remedies: evidence preservation before litigation, timely arresting the vessel andapplying for bank ban; Secondly, the relief measures of L/C fraud: putting forward theprinciple of L/C fraud exception as the theoretical basis to make up remedies by bankrelief and justice relief.In the fifth chapter: the improvement of legislation on maritime fraud under L/C.First of all, improvement of international legislation: stating the legislation to point out themain problems, that is, the question of jurisdiction and extradition, and givingrecommendations for it, that is, making the definition of maritime fraud under L/C clearly,settling the jurisdiction and extradition issues of letters of maritime fraud under L/C,playing a role of international organizations. Secondly, improvement of domesticlegislation: elaborating the current problems of domestic legislation, that is, lack of specialsubstantive and procedural laws against maritime fraud under L/C, improving domesticlegislative recommendations, that is, establishing special maritime fraud legislation,formulating special trial of maritime fraud laws, raising the level of legal practitioners inorder to promote judicial practice.