商务英语Unit 7 Money Matters(2)

5 Negotiating bank (议付行)is the bank who buys an exporter’s draft submitted to it under a letter of credit and then forwards the draft and documents to the opening bank for reimbursement(偿付). Usually the advising bank is also the negotiating bank. 6 Paying bank (偿付行)is the bank that makes payment to the beneficiary against presentation of stipulated documents. It is usually the opening bank but can also be a third designated bank.

7 Frequently, an advising bank is requested to add

its own commitment(义务) to the letter of credit. In this case, it is called the confirming bank(保兑/承兑行).

4. Process of using LC

1 Importer and exporter agree a sales contract and the terms of the Documentary Credit. 2 Importer asks their bank to open a Documentary Credit in the exporter’s favor. 3 The importer’s bank (the issuing bank) sends a Letter of Credit to a bank in the exporter’s country (the advising bank). 4 The exporter presents the shipping documents to the advising bank as proof that the shipment has been dispatched. If everything is in order, they are paid. 5 The negotiating bank sends the documents to the issuing/paying bank. 6 The paying bank sends the documents to the importer, who uses them to obtain delivery of the goods.