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TRƯỜNG ĐẠI HỌC

TÀI CHÍNH - MARKETING
MẪU PHIẾU LÀM BÀI TẬP NHÓM

HỌC PHẦN THANH TOÁN QUỐC TẾ

Ngày kiểm tra: 11/8/2021-17/8/2021

Mã lớp học phần: 2031702009103

Tỷ lệ % tham gia
MSSV Họ và Tên Công việc cụ thể đã đóng góp đóng góp trên toàn
tiểu luận
1921005864 Bùi Gia Bảo Question 1:
Question 1:
- 1.1: 100%

- 1.1 - 1.2: 50%

- 1.4: 100%
- 1.2 - 1.5: 70%
Question 2:
- 1.4
- 2.1. Case 1:
- 1.5 + a: 60%
+ b: 100%
Question 2:
- 2.2. Case 2:
- 2.1. Case 1: + a: 60%

+a

+b

- 2.2. Case 2

+a
1921005885 Nguyễn Hoàng - 2.2. Case 2: - 2.2. Case 2:
Dũng +b + b: 10%
+c + c: 70%
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1921005907 Đặng Nhật Hoài Question 1: Question 1:

- 1.2 - 1.2: 50%
- 1.5 - 1.5: 30%
Question 2: Question 2:
- 2.1. Case 1 - 2.1. Case 1:
+a + a: 40%

1921006018 Nguyễn Quốc Question 1:

Question 1:
Quang - 1.3: 100%

- 1.3 Question 2:

Question 2: - 2.2. Case 2:

- 2.1. Case 1: + a: 40%

+a + b: 90%

+b + c: 30%

- 2.2. Case 2
+a
+b
+c

Bài làm gồm: 18 trang

Điểm CB chấm thi

Bằng số Bằng chữ (Ký, ghi rõ họ tên)
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BÀI LÀM:

Table of contents
Question 1: Actual L/C ................................................................................................................... 4
1.1. Please collect an actual L/C and paste it to MS Word (1.0 mark) ....................................... 4
1.2. Use the specific contents of your collected L/C to draw the flow chart and present steps of
the payment process of the collected L/C. (1.5 marks) ............................................................... 8
1.3. Identify the form of your L/C based on the following criteria, then analyse the ............... 12
drawbacks (if any) of that form of L/C. (1.5 marks) ................................................................. 12
1.4. Based on the collected L/C, please name kinds of documents; number of originals, copies;
issuer of each kind; and contents need to be noted for each document required in this L/C
which the beneficiary must present for payment. (2.0 marks) .................................................. 13
1.5. What is the popular feature of Bill of lading used in L/C payment method? Why? .......... 15
Question 2: Case study (3.0 marks) .............................................................................................. 15
2.1. Case 1 (1 mark) .................................................................................................................. 15
a. How does the principal set up documents? (0.5 marks) .................................................... 15
b. On which conditions does the collecting bank release documents? (0.5 marks) .............. 16
2.2. Case 2 (2 marks) ................................................................................................................. 16
a. Who bears the above risk? Why? (0.5 marks) ................................................................... 16
b. Please suggest solutions to protect Applicant’s benefit in future. (0.5 marks) ................. 16
c. Another shipment (2 containers) which is also paid by at sight L/C sent by Champland
will arrive HaiPhong Port in 2 more days, ABC bank is about to examine the documents. In
position of ABC bank, what would you do to protect the importer’s benefit? (1.0 mark) ... 17
References ..................................................................................................................................... 18
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Question 1: Actual L/C

1.1. Please collect an actual L/C and paste it to MS Word (1.0 mark)
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1.2. Use the specific contents of your collected L/C to draw the flow chart and
present steps of the payment process of the collected L/C. (1.5 marks)

Importer: TAN CUONG SERVERVICE TRADING (4) Exporter: COLOURTEX

CO.,LTD (ASIA PACIFIC) LTD

(1) (8) (3) (9) (5)

(2)
Advising bank: DBS BANK
Issuing bank: ASIA COMMERCIAL (6)
(HONG KONG) LIMITED
BANK
(7)

Figure 1 Payment process of L/C method

(1) TAN CUONG SERVERVICE TRADING CO., LTD requests ASIA

COMMERCIAL BANK to issue the L/C to COLOURTEX (ASIA PACIFIC) LTD.

Basing on the sales contract signed between COLOURTEX (ASIA PACIFIC) LTD and
TAN CUONG SERVERVICE TRADING CO., LTD (or proforma invoice), TAN
CUONG SERVERVICE TRADING CO., LTD writes and sends an application for a
credit to ASIA COMMERCIAL BANK to request a credit for COLOURTEX (ASIA
PACIFIC) LTD.

TAN CUONG SERVERVICE TRADING CO., LTD needs to write on the right

form of ASIA COMMERCIAL BANK, at least 2 copies, and:

• Must base on the conditions stated in the contract signed by two parties, but in some

necessary cases, can change some contents in the contract.

• Must give consideration to conditions that: COLOURTEX (ASIA PACIFIC) LTD can
fulfil all and his benefits are guaranteed.

After signing and stamping on the applications for a credit, ASIA COMMERCIAL
BANK will send back to TAN CUONG SERVERVICE TRADING CO., LTD 01 copy.
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Two copies have the same legal value in resolving disputes (if any) between TAN
CUONG SERVERVICE TRADING CO., LTD and ASIA COMMERCIAL BANK and
they are the basis for the bank to issue the credit.

Together with an application for a credit, the importer needs to submit following
documents:

• Business license.

• Import permit or Import quota.

• Sales contract.

• Financial statements.

• Business plan.

(2) ASIA COMMERCIAL BANK transfers the L/C to DBS BANK (HONG KONG)
LIMITED and asks TAN CUONG SERVERVICE TRADING CO., LTD for a
deposit.

After receipt of the application for a credit, ASIA COMMERCIAL BANK will check
carefully all its conditions and related documents, then requires TAN CUONG
SERVERVICE TRADING CO., LTD to make a deposit.

A deposit for the credit is to guarantee the solvency of TAN CUONG SERVERVICE
TRADING CO., LTD. However, the amount on deposit depends on the relationship and
trust between ASIA COMMERCIAL BANK and TAN CUONG SERVERVICE
TRADING CO., LTD.

Upon deposit, TAN CUONG SERVERVICE TRADING CO., LTD needs to make an
application for a deposit or states the amount on deposit on an application for a credit (for
close clients) and explains the fund origin (own capital or loan) in order that ASIA
COMMERCIAL BANK can control the importer’s solvency. Finally, ASIA
COMMERCIAL BANK will issue a credit and sends it to COLOURTEX (ASIA
PACIFIC) LTD through DBS BANK (HONG KONG) LIMITED.

(3) DBS BANK (HONG KONG) LIMITED transfers the L/C to COLOURTEX
(ASIA PACIFIC) LTD.
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After receiving the receipt of the L/C issued by SWIFT, DBS BANK (HONG KONG)
LIMITED will have an automatic decryption system to evaluate its superficial veracity.

According to Article 49 of the collected L/C: “Confirmation Instructions” is “WITHOUT

“. DBS BANK (HONG KONG) LIMITED only advises and sends the original one to
COLOURTEX (ASIA PACIFIC) LTD. DBS BANK (HONG KONG) LIMITED does
not have any responsibilities except one advising bank.

(4) COLOURTEX (ASIA PACIFIC) LTD examines all the contents and delivers the
goods.

COLOURTEX (ASIA PACIFIC) LTD delivers the goods to the delivery point and no
later than “Latest Date of Shipment” according to Article 44C in the collected L/C I
09/11/2020 if he agrees on the credit’s contents. Or else, COLOURTEX (ASIA
PACIFIC) LTD asks TAN CUONG SERVERVICE TRADING CO., LTD to work with
issuing bank to correct that content.

The bases for COLOURTEX (ASIA PACIFIC) LTD to check the credit are the foreign
trade contract, the credit itself, UCP 600, together with some national laws, international
practices ...

In terms of the credit’s contents, they must be consistent, if not, COLOURTEX (ASIA
PACIFIC) LTD can request amendment.

In terms of the credit’s form, COLOURTEX (ASIA PACIFIC) LTD must check its
language, figures, superficial veracity. If there is something equivocal COLOURTEX
(ASIA PACIFIC) LTD can request amendment.

(5) COLOURTEX (ASIA PACIFIC) LTD will make and present a set of payment
documents under the credit to the nominated bank.

A Set of payment documents under the L/C is sent by COLOURTEX (ASIA PACIFIC)
LTD to the nominated bank. According to 41D: “Available with any bank by
negotiation”, COLOURTEX (ASIA PACIFIC) LTD can get advance funds, if he does
not want to wait “60 days after B/L Date” to get payment by negotiating with the
nominated bank. However, COLOURTEX (ASIA PACIFIC) LTD has to pay the loan
interest.
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Normally, the beneficiary will present payment documents to the advising bank and wait
for payment from the issuing bank, the payment documents include:

1. Signed commercial invoice in 03 originals and 03 copies.

2. Full set (3/3) of original clean shipped on board ocean Bill of Lading covering port to
port shipment, made out to order of Asia Commercial bank, Van Lang branch, marked
'freight prepaid' and notify applicant with full name and address, showing name, address,
telephone of agent of carrier in Vietnam.

3. Insurance policy or insurance certificate in full set for not less than the cif value plus
10pct, blank endorsed, showing claim payable at destination by an agent (with full name
and address in vietnam), covering risks under institute cargo clauses (a), showing number
of original(s) issued.

4. Detailed packing list in 03 originals issued and signed by beneficiary.

5. Certificate of origin in 03 originals and 02 copies issued by competent authority.

(6) DBS BANK (HONG KONG) LIMITED forwards the documents to ASIA
COMMERCIAL BANK.

DBS BANK (HONG KONG) LIMITED will examine the documents’ face carefully and
reasonably. The principles for examination are as follows:

Firstly: examine the consistency of the documents, which means all contents of all
documents must not be contradictory and must be in accordance with the credit contents.

Secondly: examine the sufficiency of the documents in type and quantity under the credit.

Thirdly: examine the superficial veracity of the documents including signature, stamp,
document issuing offices ...

After examination, DBS BANK (HONG KONG) LIMITED can request the export to
amend or supplement the documents if they are not suitable or forward the documents to
ASIA COMMERCIAL BANK if they are in compliance with the credit.

(7) ASIA COMMERCIAL BANK examines the document and honors to DBS
BANK (HONG KONG) LIMITED.

ASIA COMMERCIAL BANK examines a presentation to determine, on the basis of the

documents alone, whether or not the documents appear on their face to constitute a
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complying presentation. If a presentation is complying, it must honor, or else it may

refuse to honor and return the documents to COLOURTEX (ASIA PACIFIC) LTD.

(8) ASIA COMMERCIAL BANK forwards the documents to TAN CUONG

SERVERVICE TRADING CO., LTD

ASIA COMMERCIAL BANK sends scanned documents, not originals, to TAN CUONG
SERVERVICE TRADING CO., LTD. Then, he will check the documents, if deemed
appropriate, make the payment; if the L/C content is not consistent, he has the right to
refuse payment.

(9) DBS BANK (HONG KONG) LIMITED credits COLOURTEX (ASIA

PACIFIC) LTD’s account or gives notice of refusal.

DBS BANK (HONG KONG) LIMITED credits COLOURTEX (ASIA PACIFIC) LTD’s
account or tranfers the accepted bill of exchange at the maturity date (60 days after B/L
date) or gives notice of refusal if the documents are not complying.

1.3. Identify the form of your L/C based on the following criteria, then analyse the
drawbacks (if any) of that form of L/C. (1.5 marks)
- Based on the cancellation feature of L/C:
+ Form of L/C: Irrevocable letter of credit
40A: Form Of Documentary Credit IRREVOCABLE
• Drawback: This type of L/C basically has no restrictions, in addition, it also has the
advantage that the seller is more assured and cannot arbitrarily modify the L/C.
- Based on payment time:
+ Form of L/C: Deferred letter of credit

42C: Drafts at…

60 DAYS AFTER B/L DATE FOR 100PCT

OF INVOICE VALUE

• Drawback:
➢ If non-confirmation is used, the exporter risks not being paid if unfavorable events
occur in the country where the issuing bank is located or the issuing bank is
located. difficulty in solvency;
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➢ The exporter must bear the financial costs (loan interest, if any) during the delayed
payment period;
➢ Compared with book-and-collection payment methods, the costs associated with
deferred payment L/C methods are higher.
- Based on confirmation of L/C:
+ Form of L/C: Transferable letter of credit

41D: Available with… by… - Name & Add

ANY BANK

BY NEGOTIATION

Drawback: This type of L/C normally has no restrictions, has several advantages in terms
of: amount (usually less), unit price (lower), validity period (shorter), time limit for
presentation of documents ( sooner), the shipment term (possibly earlier), in addition, the
name of the first beneficiary may substitute for the name of the person requesting the
opening of the L/C.

1.4. Based on the collected L/C, please name kinds of documents; number of
originals, copies; issuer of each kind; and contents need to be noted for each
document required in this L/C which the beneficiary must present for payment. (2.0
marks)
1. Signed commercial invoice in 03 originals and 03 copies, issued by COLOURTEX
(ASIA PACIFIC) LTD.

2. Full set (3/3) of original clean shipped on board ocean Bill of Lading covering port to
port shipment, made out to order of Asia Commercial bank, Van Lang branch, marked
'freight prepaid' and notify applicant with full name and address, showing name, address,
telephone of agent of carrier in Vietnam, issued by YANG MING SHIPPING (VIET
NAM) CO., LTD.

3. Insurance policy or insurance certificate in full set for not less than the cif value plus
10pct, blank endorsed, showing claim payable at destination by an agent (with full name
and address in Vietnam), covering risks under institute cargo clauses (a), showing
number of original(s), issued by TOKIO MARINE INSURANCE (VIETNAM) CO.,
LTD.
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4. Detailed packing list in 03 originals, issued and signed by COLOURTEX (ASIA

PACIFIC) LTD.

5. Certificate of origin in 03 originals and 02 copies issued by competent authority of the

exporting country.

Contents need to be noted for each document required in this L/C

+ All documents including drafts must indicate L/C number.

+ Unless otherwise stated in this credit, all documents and drafts must be issued in
English including the name of a person or entity, any stamps, legalization, endorsements
or similar, and the pre-printed shown on a document, such as, but not limited to, field
headings.

+ All documents including drafts must be titled as required by the credit.

+ Draft(s) and all doc(s) must be presented to the issuing bank through a bank only. In
case, the issuing bank receive the presentation directly from the beneficiary or other
party, they will disregard and return the above mentioned doc(s) to the presenter. The
cost arising from returning doc(s) will be born by the presenter.

+ If partial shipment effected, for each shipment, draft(s) and required documents must
be issued and presented separately.

+ The issuing bank has no obligations to process transactions relating to specific

sanctions and regulations imposed and enforced against certain jurisdictions, individuals
or entities by the UN, US, EU, Vietnam or other governmental authorities. Thus, any
such presentation made under this letter of credit therefore shall be returned by issuing
bank to the presenter without any risk and responsibility and the issuing bank are not
liable for disclosing information, any loss, damages, costs, charges, expenses, delay
arising in this respect.

+ One extra copy of docs to be presented for issuing bank’s files. If not, usd10 will be
deducted from the proceeds upon payment.

+ Documents must be presented within 21 days of the shipment date, but within the
credit's validity period (from date of issue: 30/09/2020 to date of expiry: 30/11/2020).
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1.5. What is the popular feature of Bill of lading used in L/C payment method?
Why?
The common feature of the Bill of Lading in L/C is a document of title for goods. This is
the important feature, because whoever has a bill of lading in hand, he or she has the right
to own the goods written on it, so the Bill of Lading is taken as a pledge in case the
importer does not have enough capital to import goods or buy and sell them. For
example: Issuing banks usually allow importers to deposit less than 100%. But in some
cases, they may lose what the importer owes when they receive the goods. Therefore, to
avoid such cases, the bank will have a way to control risks by being the consignee in the
bill of lading. Thus, the bank will have the right to own the shipment; if the importer
cannot pay the balance, the bank will find another customer to sell to make up for the lost
money.

Question 2: Case study (3.0 marks)

2.1. Case 1 (1 mark)
a. How does the principal set up documents? (0.5 marks)
The principal will make collection documents including a collection instruction, bills of
exchange and commercial documents:

- For the collection instruction, the exporter needs to write all the contents listed by
clause 3b of Article 4, URC 522 and write 2 collection instruction for D/A condition and
D/P condition.

- For bill of exchange, the exporter needs to write all the contents specified in Article 16
of Law on negotiable instruments, Article 1 ULB 1930, Article 3 BEA 1882. Besides,
they need to prepare 4 bills of exchange, 1 original and 1 copy for D/A condition; 1
original and 1 copy for D/P condition. Originals and copies shall be numbered
(first/second) and have the same legal value.

- For commercial documents, it should include the commercial invoice shows 100% of
the collection value.
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b. On which conditions does the collecting bank release documents? (0.5 marks)
The collecting bank will release documents when the importer has made immediate
payment of 50% of the order value and has signed to accept a bill of exchange for 50% of
the value of the invoice.

2.2. Case 2 (2 marks)

a. Who bears the above risk? Why? (0.5 marks)
At first, ABC bank (issuing bank) checked the document and found it compliant in
this case. Thus, according to clause a of Article 15, UCP 600: “When an issuing
bank determines that a presentation is complying, it must honour”. It is correct for
ACB bank to debit Phuc Anh's account and send money.

After that, the importer found goods are wrong and not the same as in the
documents and contracts, according to Article 34, UCP 600: “nor does it assume
any liability or responsibility for the description, quantity, weight, quality,
condition, packing, delivery, value or existence of the goods, services or other
performance represented by any document, or for the good faith or acts or
omissions, solvency, performance or standing of the consignor, the carrier, the
forwarder, the consignee or the insurer of the goods or any other person.”. As a
result, ABC bank didn’t have any responsibility for the wrong order of the buyer’s
goods. ABC bank had transferred money to the beneficiary on Friday 11th June
2021. Therefore, the bearer of this risk is Phuc Anh Co., Ltd.

b. Please suggest solutions to protect Applicant’s benefit in future. (0.5 marks)

Solutions to protect applicant's benefit in the future:

- Conducting surveys, selecting reputable export partners.

- Specifying the terms and conditions for the exporter to comply with.

- Requesting to present third party inspection and inspection documents before delivery.

- Assign staff to supervise the packaging and shipping processes.

- Buying cargo insurance and clearly agreeing which party will buy cargo insurance.

- Applying forward rate when paying L/C.

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- Requesting to prepare more banking tools such as: Standby Letter of Credit,
Performance bond, Bank guarantee...

c. Another shipment (2 containers) which is also paid by at sight L/C sent by

Champland will arrive HaiPhong Port in 2 more days, ABC bank is about to
examine the documents. In position of ABC bank, what would you do to protect the
importer’s benefit? (1.0 mark)
According to Article 14a, UCP 600: "A nominated bank acting on its nomination, a
confirming bank, if any, and the issuing bank must examine a presentation to determine,
on the basis of the documents alone, whether or not the documents appear on their face to
constitute a complying presentation". As a result, bank’s obligation is examine the relevant
documents and transfer the money if the documents are appropriate. Bank shall each have
a maximum of five banking days following the day of presentation to determine if a
presentation is complying. According to the provisions of article 15, UCP 600, the issuing
bank must pay if a presentation is complying. In addition, the bank has no obligation or
right to decide on matters related to the quality of goods, breach of contract, etc…
Therefore, to protect the benefits of the importer, ABC Bank can do the following:
- Check customer information, goods. Check the credit of the beneficiary.
- Goods must be purchased with insurance, if not purchased, importers are encouraged to
buy insurance for the shipment.
- It is required in the set of documents to present all 3 original bills of lading, delivery
according to the order and blank endorsement.
- Request to own and control the goods.
- Warning and providing legal support to the importer if the importer wants to sue.
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References
Bich Hanh. (2020). Rủi Ro Trong Phương Thức Thanh Toán L/C Cần Biết Để Không Mất Tiền
Oan. Được truy lục từ vinatrain: https://vinatrain.edu.vn/rui-ro-trong-phuong-thuc-thanh-
toan-l-c/
Đoàn Thúy. (2018, January 26). Tổng hợp các loaị BIll of Lading và ý nghĩa của chúng.
Retrieved from tuhocxuatnhapkhau: http://tuhocxuatnhapkhau.com/news-detail/tong-
hop-cac-loai-bill-of-lading-va-y-nghia-cua-chung
Manaadiar, H. (2020, June 1). What is a letter of credit, how it works and who needs it..
Retrieved from shippingandfreightresource:
https://www.shippingandfreightresource.com/letter-of-credit/
Nong Thi Nhu Mai. (2020). Lecture: International settlement. Ho Chi Minh city: University of
Finance and Marketing.
Tarver, E. (2021, May 19). Bill of Lading. Retrieved from Investopedia:
https://www.investopedia.com/terms/b/billoflading.asp