A Study On The Prevention And Relief Of Fraud To Exporters In Letter Of Credit

Abstract:International trade is vital important in economic activities, and foreign trade plays a Irreplaceable role in pulling the China’s economy. Documentary letter of credit as a important method of international payment is universally applied in modern international trade, so is in China. Most Chinese exporters prefer using letter of credit as their first choice. Under the situation of China’s fast growth of foreign trade, the letter of credit fraud frequently affects the China’s exporters,because of the imperfection of Laws and regulations, the flaws of credit itself, the professional quality of foreign trade personnel and other reasons. From the exporter’s perspective, the paper, with letter of credit legal issues as the main line, put forward the definition of letter of credit fraud, summarizes the types and the characteristics of letter of credit fraud to the exports. On the basis of the independent abstract principles of the letter of credit、the principles of the documents must strictly in line with the surface of L/C and the examination of the relevant provisions of UCP600, the paper analyzes the cause and effect of letter of credit fraud to exporters. Finally, in the discussion of the letter of credit risk prevention and relief,the paper gives suggestions from three prospectives--the country, bank,exports, combined with juridical practice, and then raises the views of jurisdiction and applicable law on cases of letter of credit fraud to the exports.