Under The Credit Import Bill Advance The Legal Issues,

Inward Documentary Bills under Letter of Credit(L/C) is a short-term international trade finance business provided by the commercial banks for the importers, which originated from Britain and the U.S. of many years of business practices and L/C practices. Although it has already been applied extensively in the practical operation of domestic banks, there is currently no relevant domestic laws, regulations, rules or judicial interpretation of its norms, and the Supreme Court has not released any guiding precedent. The current legal framework can not define and resolve the legal characterization and conflict of laws of the legal issues related to Inward Documentary Bills. Lack of uniform legislation and scientific definition, the banks operate practices vary, and there is conceptual confusion and contradictory phenomenon. In judicial practice level, there exists phenomenon of different understanding and unexpected verdict in the relevant cases that the courts have concluded. Although theorists have different opinions and no agreement reached, it seems none of convincing arguments.This paper attempts to explain the difference of opinions on the relevant legal issues under Inward Documentary Bills. On the basis of a comprehensive survey and assessment of the extraterritorial application of the relevant legal system by the comparative analysis, the author uses the case analysis method to comment on the typical cases of domestic and in combination with China's Inward Documentary Bills practices and legal obstacles, and then brings forward her opinion in order to discover the crux of the problem in the internal mechanism of the system itself, which clarifies the nature and characteristics of the security mechanism of Inward Documentary Bills. And finally the author provides reasonable suggestions and ideas for the construction of the Inward Documentary Bills legal system, and hope to promote the healthy operation of Inward Documentary Bills operations and the development of international trade and prosperity.This paper is divided into four chapters on the legal issues of discussing Inward Documentary Bills:The first chapter is an overview of Inward Documentary Bills business under L/C. First, the author introduces the origin of the definition of Inward Documentary Bills into the topic, citing the various definitions of Banks and Academia on Inward Documentary Bills, further analyzes the legal characteristics and the advantages and disadvantages of value function of Inward Documentary Bills, and then describes and comments on various legal issues related to the Inward Documentary Bills business, those are the various views on the legal nature of Bill of Lading, the nature of bank documents and their representatives on the rights of the goods and the legal nature of Trust Receipt, and finally the author puts forward her own opinion.The second chapter is from the perspective of comparative law, focusing on study and analysis of the British system of Trust Receipt, the U.S. system of Movable Property Secured Transactions; the German and Japanese system of Transferring Guarantee in Civil Law countries, and the Taiwanese system of Possession of Trust. From guarantee mechanisms under different legal systems, the author tries to explore construction and improvement on the legal system of Inward Documentary Bills in China for useful reference.The third chapter is around the business and judicial practice of Import bill, analyzing the obstacles and difficulties in practical operation of domestic banks under the current legal framework of Security law and Trust Law, and focusing on a typical case with detailed analysis as the basis, in combination with the rulings of other relevant cases, from which summarizes the problems in judicial practice and explores and analyzes the deeper cause and crux.The fourth chapter is the conclusion. On basis of the analysis in the results of previous research conducted, the author tries to bring forward her shallow opinion on construction and improvement on the legal system of Chinese Inward Documentary Bills. It should learn the real essence of the trust from the inherent principle of Trust Law and boldly absorb the function philosophy and legislative technology represented by the Uniform Commercial Code-Article 9 or the distinctive legislative experience in Taiwan. In short term, the judicial interpretation of Inward Documentary Bills should be formulated by the Supreme Court in order to build the Trust Receipt as the center of legal systems of Inward Documentary Bills. In long term, with the legislative conditions maturing, the Inward Documentary Bills system should be brought into the single unified system of Movable Property Security Legislation to adapt to the field of international trade financing trends in business practices and legislative requirements.