Research On Measures The Effective Use Of Letter Of Credit In The Trade In Goods

The letters of credit, honored as "the lifeblood of international business",is the most important method of settlement of the international trade in goods settlement,which has played a tremendous role in promoting the rapid development of international trade。However, in recent years, the percentage of utilization of the letter of credit in the world has somewhat dropped, especially in countries Europe and the United States. In October 2006 ,the meeting of International Chamber of Commerce formally adopted the Uniform Customs and Practice for Commercial Documentary Credit UCP600, and came into effect from July 1, 2007. The entry into force of the implementation of UCP600 has an important impact on the financial sector, the business community, the legal profession. I think that under the background of the decline in the global utilization of letters of credit and UCP600 coming into effect ,it is of important theoretical innovational significance to regard the letter of credit as a financial service products ,by a new study method,through the use of modern services productivity theory to analyze the effects that the new provisions of UCP600 make on the letter of credit services.It has been nearly 20 years since China's reform and opening, and especially after joining the WTO, China's trade in goods is developing rapidly. And the letter of credit has been the main method of settlement of China's international trade settlement,which makes a significant role for the development of China's international trade. However, in recent years, due to various reasons, the relative decline in the use of letters of credit can not service China's trade development well. Therefore, to analyze the use of letters of credit in China's trade in goods and to give suggestions on how to made effective use of the letter of credit, from the macro level, which is to optimize the environment of the use of letters of credit, and from the macro level, which is specific business operations under UCP600 by the persons of the letter of credit. Then the letters of credit can service the development of China's trade better and more efficiently, which has important practical value in guiding practices.This paper is divided into six parts, about fifty thousand characters,mainly use the methods of the materials research, theoretical analysis, data analysis, the reality inspection to do the paper-related research:The first part introduced the research background of the paper, the status quo and development trends of the research both at home and abroad, the problems to solve, the theoretical and practical value, the framework of the paper.The second part briefly introduces the basic contents of the letter of credit, Comments on the course of development of the UCP600 and its significance, to makes the foundation for the study below.The third part is from a new perspective to study the letter of credit, that is, to regard letter of credit as financial services provided by the banks, using modern service productivity theory to study the factors of services productivity of letter of credit, to assesses the effect of new provisions of UCP600 on the letter of credit services ,concluding that the UCP600 improve the internal efficiency of the letter of credit, production efficiency and external efficiency, and thereby organically increase productivity of credit services . This part of the article is some theoretical innovation.Part IV firstly use the data analysis method by specific and informative data from Qingdao Customs about the use of letters of credit of Shandong ports in recent years as well as data of a bank using letters of credit, to analyze the status the use of letters of credit in China's foreign trade, making important conclusions that the number of the use of letters of credit in the country's foreign trade is reducing. Then analyze the own internal reasons of letters of credit and international settlements changes in the external environment reasons.Part V is the new opinion of the author and is another innovation of the article. This part is about the need for the use of letters of credit for the promotion of China's trade in goods. they are:the current domestic and foreign enterprises have not completely established mutual trust and the country risk of emerging market is still high, the limitations of China's non-credit means of settlement can not meet the financing needs of China's large-scale trade at the present stage, the diversified forms of China's trade need a variety of specific types of letters of credit to match to use. Next is the feasibility of the effective use of letters of credit in China's trade in goodsPart VI is from the macro-level and micro-level. The macro aspects focuses mainly on the optimization of environment of the use of the letter of credit, the micro aspects focuses mainly on the important new provisions of UCP600, analyzing the specific operational recommendations of importers, exporters, banks in order to increase the productivity of letter of credit service. And this micro part of the paper innovatively use business flow chart so that readers understand more clearly. Most of the micro suggestion are put forward innovatively and deeply, which can do good for the specific operations under the new provisions of UCP600.The paper is written in the initial implementation and the entry into force of UCP600 .I hope that through the research and theoretical innovation of the letter of credit in this article and the proposed measures on the effective use of letters of credit in China's foreign trade, the legal sector, the financial sector, the business community can better grasp UCP600 and regulate the business operational practices in letter of credit, and enhance the services productivity of letters of credit in the country's trade in goods, so as to service China's international trade development better.