Study On The Legal Issues Of International Trade Finance Under Letter Of Credit

Under the letter of credit(L/C),international trade finance appears some new commercial situations,including complicated transaction subject and links,huge amount of trade finance,and fast updating of finance products.There is also a legal environment where international conventions in this field are not universally concluded or participated,international practices are in conflict with domestic legislation,there exists absence,conflict and ambiguity among domestic legislation to a certain degree,and different judging standards of international arbitration,domestic arbitration and judicial adjudication.There are lots of commercial and legal Issues derived from practice,the commercial risks cannot be avoided while the latter one,legal Issues,can be reduced.With the development of the pattern of " the integration of regional economy and the globalization of economy" and the steady development of China's international strategies such as "the Belt and Road Initiatives","free trade area","going out" and "internationalization of RMB",the research on legal Issues existed in L/C trade finance provided by the commercial banks is urgent to be conducted.This article starts with the newest L/C international trade finance cases.Based on the newest research on the international and domestic legislation and judiciary,this article pointed out deep-seated causes of legal Issues in respect of the commercial banks in this field,those are,misconduct,process design and legal environment.For what mentioned above,solution mechanism is proposed at final.Except to introduction and conclusion,the main body can be divided into five chapters,the main content of each chapter is as following:The second chapter defines legal risk of international trade finance of L/C from the concept and the characterization method,and proposes to do research in this field by means of legal relationship analysis and legal liability inverted.The third chapter analyzes the legal risks&issues of import bill advance under the L/C.Starting from the connotation and legal nature of import bill advance under the L/C and basing on our current legal system,this chapter addresses two issues,firstly,legal risks&issues in the practice and secondly,the insurmountable legal risks&issues of import bill advance under the L/C in China.This chapter deals with two issues above by analyzing the advantages and legal risks&issues of mortgage,pledge and trust receipts in import bill advance under the L/C,and by learning from foreign legislation and judicial practice of credit receipts.Finally to put forward suggestions for the subsequent improvement of China's relevant legal system.The fourth chapter analyzes the legal risks&issues of export bill advance under the L/C.Starting from the connotation and legal nature of export bill advance under the L/C,this chapter analyzes legal risks&issues in this field and discusses the difference and connection between export bill advance and negotiation under L/C.To analyze legal risks and problems in the practice of Chinese banks,from the perspective of China 's current legal system and UCP600 international practice and to provide suggestions for the subsequent improvement of China's relevant legal system.The fifth chapter pays attention to the legal risks&issues of secured transaction under the L/C in international trad finance.Starting from the bill of lading and warehouse receipts and focusing on the nature and function of the bill of lading and warehouse receipts,this chapter analyzes and discusses the legal risks and problems faced by the bill of lading and the warehouse receipt as pledge guarantee and floating mortgage guarantee in the finance of the L/C and to provide suggestions at final.The sixth chapter,on the basis of summarizing the above four chapters,researches on the legal environment of the international trade finance of L/C.Firstly,this chapter points out the lack of domestic legal provisions,vague domestic legal provisions and conflicting domestic legal provision.Secondly,this chapter put forward the construction of legal risk settlement mechanism in the field of international trade finance.At last,this chapter proposes to modify the legal provisions referring to the legal risk prevention of international trade finance of L/C,and put forward to legislative proposals of the "People's Republic of China Trade Finance Law".The topic of this paper is a cross-subject among law,finance and risk management.In this article,social problems in financial and risk area are tried to be addressed through legal thinking.The main line in this paper is to find legal risks&issues in L/C international trade finance,to research legal risks&issues and to solve legal risks&issues.This article identifies legal risks&issues by legal relationship analytical method and overturn-legal responsibility method,to research L/C international trade finance legal risks&issues from three aspects,that is,misconduct legal,business process design and development of legal system,and put forward a comprehensive and specific legal risk solving mechanism form the system and operational level.