Study Of E-presentation For BHAB Company

From China Customs statistics, in the first quarter, China total import and export amount is USD859.4billions, import amount is USD429.4billions and export amount is USD430billions. What is the payment method for such a huge amount of foreign trade? According to the research, the main payment method for such a huge amount of foreign trade is under traditional Letter of Credit. Since the19th century, Letter of Credit becomes an important payment method during international trade. It provides financial proposal to the importer and exporter, which brings convenient to the international trade.However, with the expanding of Letter of Credit, there are some problems. Firstly, operation for the traditional Letter of Credit is:all physical paper documents have to be transferred from shipping line to seller, and then from seller to negotiation bank, then negotiation bank sends it to issuing bank, finally issuing bank sends it to buyer. It takes a very long time for physical paper documents from the shipping line to the buyer. Seller’s account receivable time through letter of credit is long as the total documents transmission time is too long. On the other hand, buyer has to wait for so long period to get the shipping documents and then arrange customs clearance, receive the cargo. Secondly, LC required documents need to be presented through negotiation bank to issuing bank via courier, during which period documents may be lost. Hence, more and more issues occur in recent years during using letter of credit.The purpose of this paper is to study the e-presentation, find a way:how to avoid above mentioned risks so that suppliers can receive payment timely.Here we introduce the difference between traditional document presentation and electronic presentation under Letter of Credit, study the possibility of E-presentation for BHAB company, it is also very significant for the other companies in the same industry to begin E-presentation. It’s much important for China companies in other industrials to handle document presentation as well. If it’s successful, it will be a good start in China in the E-presentation area. In future, with the development of technique and the coming of E-time, International trade will be transit to paperless trade, and all physical documents will be instead by E-documents. E-documents will be the trend in the future.