The Identification Standard Of L/C Fraud

In recent years,with the expansion of "One Belt And One Road" cooperation scope,the scale of China's foreign trade is also expanding.However,with the expansion of China's trade scale,the number of legal disputes caused by L/C Fraud is always high.Moreover,as the identification of L/C Fraud standard is not specific enough at present,relevant regulations are too abstract and broad.Therefore,China's courts encountered great difficulties in the application of the fraud exception principle of letter of credit when trying cases.Often,the same or similar facts will appear,and the judgment scale of different courts will lead to different conclusions.In the long run,it may affect the judicial authority of our country.Moreover,international trade conducted by letter of credit is faced with increasing risks,which is not conducive to maintaining the security of foreign trade.The main reasons for the above phenomenon are analyzed in two aspects.On the one hand,it is caused by the characteristics of the letter of credit(i.e.the principle of independence and abstraction).The legal contract effect between the subjects of the letter of credit is independent of the sales contract.On the other hand,due to the lack of relevant legislation,it is difficult for judges to directly invoke the existing L/C Fraud regulations in hearing cases.Article 8 of the provisions of the supreme people's court on several issues concerning the trial of L/C dispute cases(interpretation [2005] no.13,hereinafter referred to as the "provisions")has absorbed the relevant contents of the identification standards of L/C Fraud in the UK and the us,and simply stipulated the L/C Fraud However,as China is a statutory country,Britain and America are case law countries.In the process of hearing L/C Fraud cases in China,the only legal document that can be invoked is the judicial interpretation of "provisions".Meanwhile,the content of "provisions" is relatively abstract,which brings a lot of troubles to China's judicial practice.However,when the courts in the United States and the United States try cases,in addition to the relevant precedents in the United States,the united commercial code,the written code of the United States,also has the L/C Fraud to be invoked.Compared with China,British and American courts have better solved the problem of the identification standard of L/C Fraud in the judicial practice of L/C Fraud.This paper is intended to conduct in-depth research,analysis and comparison of relevant legal systems and practices related to L/C Fraud at home and abroad,so as to further promote the research results of previous scholars on the identification standards of L/C Fraud.This paper finds out the common problems between different legal systems,analyzes the advantages and disadvantages of legal systems and practices of L/C Fraud in various countries,and puts forward a clear and standard feasibility proposal for China's legislation on L/C Fraud.Improving the identification standard of L/C Fraud is of great significance to maintaining China's judicial credibility,improving China's legal system,promoting economic development and safeguarding foreign trade security.