Study On Legal Problems Of Inward Documentary Bills

As a very important tool of trade financing, inward documentary bills under L/C develops so rapidly in recent years in China that most domestic commercial banks carry out such business at present. But import bill discount develops much faster in trade practice than in law, and little legal research has been put onto, which causes many risks in trade practice. Focus on the controversy of legal nature and the practical flaws occurring in the operation of civil banks, beginning with introducing concepts, business procedure, the thesis analyzes various legal relations and the causes of risks in import bill discount business, then tries to give some advices on preventing the risks, with the purpose of indicating how to construct the legal system of China's inward documentary bills business to avoid legal risks. Hope the thesis could be helpful to the promotion of relative legislation and the improvement of judicial practice.This article comprises five chapters as follows: The first chapter is the overview of import bill discount system, including brief introduction on the concept and the procedure of bank operation, and particular analysis on the legal characteristics and legal relations among concerned parties. The second chapter, by quoting a typical case, compares the different opinions on the legal nature of import bill discount, which is the key of the controversy on legislation. In the third chapter, there firstly is the introduction on the research of trust receipt and assignment security which belong to two main legal systems respectively, then the comparison of two different legal expressions and legal solutions mentioned above demonstrates two different legal systems sharing a common understanding: trust receipt and assignment security are both a sort of entrustment, through which the droit or the security interest of the goods is transferred to the applicant or the assignee, while by contract way, the transportation bills of document or the goods itself is set as the obligation guaranty of the assignor. The fourth chapter analyzes the reasons of risks in the legal and business practice, suggests some legal elusion of the law and risk prevention measure for the banks in the practice of important bill discount. The fifth chapter as the summary of the full text, in response to the question mentioned above in the basic analysis, puts forward some solution on the problems encountered by domestic commercial banks and an immature conception of legal construction of inward documentary bills of China.