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Study On Examination Of Documents Under Documentary Credits

Posted on:2005-11-27Degree:MasterType:Thesis
Country:ChinaCandidate:Q YaoFull Text:PDF
GTID:2156360125956706Subject:International Economic Law
Abstract/Summary:PDF Full Text Request
Document credit is one of the most popular methods of international transaction payment, which should be issued in accordance with trade contract. Once accepted by relevant parties, it becomes a covenant that must be complied with. In the operation of L/C, every relevant party shall check the conditions and terms in the documents to make sure if they are fulfill the requirements of L/C. During this procedure, 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. For examining the documents, UCP500 introduces the international standard banking practice, and ISBP demonstrates clearly the contents and requirements of the documents under the documentary credits, and concretely stipulates the standards that the documents shall follow. These standards have great significance in guiding people who engage in international trade and check the documents in banks. This thesis focuses on the examination of documents under documentary credits, and relevant questions.The thesis consists of introduction and text. The introduction is about meanings and importance of examination of documents, time limit and contents of the examination, and banks engaged in examination.Chapter 1 focuses on the application of principle of strict compliance. This chapter is divided into five sections. The first section introduces the concept and standards of strict compliance, and discusses the mirror standard, strict compliance standard with exceptions and reasonable checker standard. The second section enumerates and presents examples of the main discrepancies. The third sectiondiscusses the cognizance and handling of discrepancies according to UCP500. The fourth section discusses the application of the principle of documents compliance. This principle is very important, while the study on it is very limited. This section introduces some standards and discusses inter-documents cure. The fifth section emphasizes the change of examination standards of the electronic documents, and introduces the eUCP, especially the contents of examination of documents.The second chapter is divided into seven sections, which discuss the international standard banking practice for the examination of documents, especially the general principles and common problems in every kind of documents. The first section introduces the international standard banking practice. The second to seventh section discuss handling of non-document conditions and documents not stipulated in the L/C; ambiguous terms, original, copies and signatures; cognizance of unspecified issuers or contents of documents; allowance in credit amount, quantity and unit price; explanation of date of shipment and other requirements on dates; misspellings or typing errors.The third chapter is divided into five sections, discussing main documents, which include ocean/marine bill of lading, other transport documents, insurance documents, invoices, certificates of origin, and so on.The fourth chapter probes into examination of document and avoidance of fraud. Three sections of this chapter discuss deficiency of credit and fraud exception, liability of banks in fraud, legislation and practice of fraud exception.In the epilogue, I suggest legislation of credit law, according to international common practice, and referring to other countries' legislations. While the credit law shouldn't intervene in the practice of examining documents, banks should still set up there own practice rules under the guidan...
Keywords/Search Tags:examination of documents, strict compliance, international standard banking practice, documents
PDF Full Text Request
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