Research On The Optimization Management Of Letter Of Credit Settlement Of Chinese Import Enterprises

Letter of Credit is one of the most important international settlement methods,however,Letter of Credit is a very complicated tool,risks could happen in any step,causing serious damages to related participants,especially the applicant of Letter of Credit,i.e.the importer.Thus the study on management of Letter of Credit settlement is helpful for importers to reduce risk and promote international trade.This thesis first analyses the status of Letter of Credit and finds it mature,safe and professional;then this thesis analyses the 316 cases collected from daily work and concludes that there are mainly three types of risks for importers using Letter of Credit,namely soft clauses in the LCs,third party risks and fraud of exporters.This thesis further uses Peking University Law Database and China Foreign-related Commercial And Maritime Trial to select four typical cases and makes detailed analysis of the respective risks.This thesis finally suggests that the importer may enhance article vetting,specify article requirements,record counterparty credit files,establish corporate settlement regulations and train own experts on Letter of Credits to reduce the risks involved in international trade and settlement.