Study On Letter Of Credits Soft Clause & Change Of Payment

The letter of credit is one universal payment method in the international trade, it replace the commercial credit by the bank credit to undertake the payment responsibility to the seller and is one safer payment. But letter of credit abstract principle and relevant legislation deficient independently, make L/C have various risks in the course to use, the soft clause is typical one among them. The existence of soft clause has greatly weaken this kind of bank credit function, makes trade both parties'rights and obligations in extremely uneven status, has bring the beneficiary some unnecessary risks and losses, has damage the beneficiary's interests, has threatened the letter of credit as the superiority of means of payment. Because of more in-house transaction among multinational corporation, enhancement of trust in both parties, decline of profits, high L/C fee, complex formalities, discrepancies which make L/C being rejected and soft clause, the L/C's utilization is declining dramatically. Especially after the 1990s, the emergence of more soft clause makes enterprise use other forms of payment instead of L/C. Thus, the mode of payment in international trade present diversified trends.The gentle definition from the soft clause of the letter of credit, production reason are set about, has done all-side analysis and explained to the soft clause question, and on putting the type, identification, risk analysis of the soft clause and the options of change payment. The final goal in research of this text is to make the trade companies realize the dangers of the soft clause and have a certain understanding, and provide effective preventive measures for the trade companies and bank, at the same time, in order to offer more new, effective payments,thus ensuring the safety of export enterprises'exchange earnings.Gentle in research of the soft clause of letter of credit, various theories and views that it is relatively domestics and international that synthesize, use comparative, case analysis, combine commercial practice to carry on a fuller elaboration. First, introduce the definition, nature, main causes of the soft clause and influence of UCP600 on the soft clause; Second, make a summary of risk and type of the soft clause, combining cases to present various types and identification, and on put analyzing the risks of the soft clause; Third, from exporters and exporters'local bank' angle, proposing some preventive measures; Finally, expatiate the background and status of changing payment, make comparative analysis on new types of payment, and put forward different forms of combinational payment for different trading partners.