Study On The Legal Problem Of L/C Fraud Under UCP600

letter of credit (L/C) has substituted bank credit for commercial credit, which has become a great beginning of the payment of international trade. After coming out in 19th century, L/C has spread to all over the world and has become the most leading and common mode of payment, which contributed to the development of international trade. L/C is regarded as wise crystallize of the businessman and has been compared to: "the life blood of international commerce" from many British judges. According to the statistics,90% of the volume of world trade is settled by letter of credit, while in china, the figure is 80%.The most important characteristic and merits of the L/C is that it bases on the bank credit, by the means of separation from the fundamental contract and payment relying on eligibility written documents to make L/C the facile payment during international trade which guarantees of the interests for both sides. However, L/C abstract independent principle gives rise to the chances to illegal merchants, and there exists the complexity of international in addition. In this way, L/C fraud is becoming increasingly popular. The exist of L/C fraud shacked the buyers' and sellers' confidence and caused tremendous damage of international trade activities, meanwhile our country has become the principal victim because of L/C fraud.Therefore, profoundly studying on the related legal issues of L/C fraud, strengthening the prevention consciousness and measures of all the parties in the L/C trade, and meanwhile establishing and improving the related legal system of L/C, Strengthening the legislation, enforcement and the use of it, by means of the continuous efforts of the international chamber of commerce are of great significance to both the world and the trade of our country.This article has illustrated the subject in the following four aspects. the first part explains formation and types of L/C fraud which the concept and the types of the L/C fraud are including. And during the concept of the L/C, the Credit swindling exception principles are discussed in order to under the content much better. Part two explains the causes of L/C fraud through detailed illustration of five different parts. Part three illustrates the L/C fraud during the new circumstances after the implementation of UCP600 since 2007 which explains the L/C fraud during the new condition and restraint of the L/C fraud comparing to the UCP500. The fourth part shows the current legislation and the consummation of L/C fraud in China. The last part is closing words, illustrates the great significance of the studying of L/C fraud.Based on the combining method of theory and practice, and legal study on L/C fraud at the core, this article studies the fundamental theory of L/C, the prevention and the relief measures of L/C fraud etc. In my opinion, measures in advance and relief of measures afterwards etc. In my opinion, only by recognizing the legislative status of L/C fraud and existing problems in china, studying the experience of the statute law and the case law overseas, perfecting the legislation of L/C, enhancing the anti-fraud consciousness and ability owned by the parties involved, can we protect legal rights and interests of the parties, completely suppress the occurrence of L/C fraud in order to promote the development of the international trade of our country.