Comparative characteristics of the forms of international settlements. Comparative characteristics of the features of international forms of settlements Forms of international settlements their comparative characteristics briefly

The most difficult part of the payment terms of the contract is the choice of the form of payment. The reconciliation of opposing interests of participants in foreign economic activity and the organization of their payment relations is implemented through the use of various forms of payment.

Forms of settlements in the system of international financial relations characterize the organizational side of the movement cash flows and goods (services): the procedure for conducting transactions, their documentation, the responsibility of the parties and banks, and others.

Banks carry out international settlements on behalf of their clients, enterprises and organizations participating in foreign economic activity in four main forms: advance payment, open account, collection, letter of credit.

At the same time, during the discussion of the monetary, financial and payment terms of contracts, and, consequently, the choice of forms of payment, the opposite of the interests of the exporter and the importer usually appears. The first is interested in minimizing the risk of payment, the importer, in turn, is interested in accelerating the receipt of the goods and deferring payment until the moment of its final sale (Fig. 6.1).

Figure 6.1. in

Among the factors that directly or indirectly affect the choice of payment forms, the following should be highlighted:

o type of goods;

o the possibilities of banks;

o the financial position of counterparties;

o political and economic stability of countries;

o traditions and customs in international trade in these goods;

o transaction amount.

The forms used in international settlements differ from the degree of banks 'participation in their conduct: the minimum share of banks' participation in a bank transfer (execution of a client's payment order), more significant - in case of collection (control over the transfer, forwarding of shipping documents and their issuance to the payer in accordance with instructions of the principal) and the maximum share of participation of banks with a letter of credit (provision of a payment obligation to the beneficiary, realized when the latter fulfills the main conditions contained in the letter of credit). Accordingly, the security of payment for the beneficiary increases; the minimum is for a bank transfer for the actually delivered goods, the maximum is for a letter of credit, which, in fact, is a monetary guarantee of payment for the shipped goods by the bank that opened the letter of credit.

Non-documentary forms of international settlements

Advance payment form

In international settlement practice, advance payments are the most advantageous form for an exporter. An advance is an amount of money or property value transferred by the buyer to the seller before the shipment of the goods in order to fulfill the obligations under the contract. Consequently, the advance can be in cash and commodity forms. The commodity form of the advance provides for the transfer by the importer to the exporter of raw materials or components necessary for the manufacture of the ordered equipment.

The cash advance provides for the payment by the buyer of the amount agreed upon under the contract against the payments due under the contract before the shipment of the goods (provision of the service), and sometimes even before the start of the execution of the contract.

In world settlement practice, advance payments are used if:

o the seller is not sure about the buyer's solvency;

o the economic and political situation in the buyer's country is unstable;

o when supplying expensive equipment (ships, aircraft), made to order;

o when supplying rare scarce goods, as well as strategic goods (nuclear fuel, weapons);

o in the case of sufficiently long terms of the contract.

Advance payment can be provided both in the amount full cost contract (order), and in the form of a share corresponding to a percentage of it. For the exporter, the most advantageous is an advance payment for the total amount of the contract or an advance payment. In this case, the exporter is sufficiently protected from the risk that the foreign buyer will refuse or be unable to pay for the goods that have already been shipped. An advance on the total amount of the contract also means that the exporter receives free funds at his disposal, which he can use to purchase raw materials, pay wages, technical equipment of the enterprise and the like. Moreover, prepayment relieves the supplier from the need to apply to the bank for a loan with payment of interest and other costs for using it.

On the other hand, an advance, even in the amount of an appropriate percentage of the contract amount, serves as a means of securing the obligations assumed by the buyer under the contract. In case of refusal to accept the ordered goods, the supplier has the right to use the advance received by him for compensation for losses.

The obvious disadvantages of this form of settlement include the complex risk of the importer: the risk that the exporter does not deliver the goods or does not deliver on time and of a completely different quality or specification. In addition, a violation of the fulfillment of the exporter's contractual obligations may occur in the form of non-compliance with the assortment of the supplied goods, as well as the conditions of packaging and transportation, which may lead to the recognition of the goods as substandard. In this case, the importer risks losing the advance (or returning it after a long time by a court decision) and material compensation. An advance payment also means that the importer credits the supply for an appropriate period before he physically receives the goods at his disposal.

An advance payment should be distinguished from a down payment and a compensation. The deposit, like the advance, is issued against the amount specified in the contract. In case of non-fulfillment of the terms of the contract by the counterparty that gave the deposit, he loses the full amount of the deposit. If the non-fulfillment of obligations under the contract turns out to be from the party that received the deposit, then this party is obliged to return it in double amount. Thus, the deposit does not release the party who did not fulfill the contract from damages to the other party.

Compensation is the amount stipulated in the contract, by paying which, the counterparty is released from its obligations under the contract without reimbursing additional losses to the other party. Thus, if the advance and the deposit induce the contractors to fulfill the contract on time, then the compensation, on the contrary, under the appropriate circumstances, can weaken the incentives to fulfill the contract.

An advance payment of the total contract value is used when:

o currency legislation and currency control authorities of the buyer's country allow advance payments in the amount of 100% of the contract value;

o there are no government restrictions or prohibitions on the import / export of goods;

o the importer has sufficient liquid resources to make the advance payment;

o the price of goods purchased using the advance payment form is relatively small in the total turnover of the importer's funds.

In international trade, settlements in the form of an advance on the total value of a contract are relatively rare, for three main reasons. First, due to increased competition among producers and filling the commodity market with a number of goods, a stable "buyer's market" has formed and exporters are forced to adapt to the interests of importers when paying for commodity deliveries. Secondly, exporters mostly do not deal directly with end users or large market operators, but with intermediaries, who generally do not have enough of their own resources for 100% prepayment. Thirdly, sellers themselves do not always agree to this form of settlement, since it conditions the provision of significant actual discounts to the importer. Statistics show that advance payments on foreign trade contracts can ultimately reduce the real price of goods by 5-7% due to the discount that buyers receive.

Unlike international practice, in Ukraine, when making payments for imports, the main requirement of a foreign partner is to receive an advance payment for the total value of the contract, which is associated with distrust of the state as a whole. At the same time, making an advance payment, the Ukrainian importer practically lends money to a foreign partner under the contract, in many cases not requiring a discount before selling the price of the goods for the loan provided. If the condition of the price discount is nevertheless included in the contract, then in reality it does not correspond at all to the losses incurred by Ukrainian enterprises with a 100% diversion of their working capital.

Advance payments that cover only a fraction of the contract amount are common enough in international trade. In this case, the seller receives the bulk of the payment after the shipment of the goods, using other forms of payment, payment and financial instruments. For example, 5-10% of the contract value is paid in the form of an advance, and the rest in the form of an open account or letter of credit. Sometimes advance payments are made directly under letters of credit (when using a letter of credit "with a red clause").

World practice shows that advance payments, as a rule, amount to 10-30% of the contract amount. In this case, part of the contract is advanced, depending on the purpose of the advance. So, if a deposit is issued against the amount specified in the contract, then it is usually equal to 10-15% of the contract amount. Importer's advance for a special order or replenishment working capital exporter reaches 30-50% of the contract value. At the same time, an advance payment as a form of settlement under contracts with a long-term partner or on the basis of interstate agreements can reach 100% of the contract amount. Sometimes the contract provides for the advance payment in several installments: for example, 10-20% of the order value - upon signing the contract and 15% - after the submission of technical documentation. This method is called milestone payments.

The advance is paid within the appropriate period from the date of signing the contract. When delivering complex types of machinery and equipment with a long production time, the contract comes into force after the buyer transfers the advance payment, which is paid within 30-90 days from the date of signing the contract. The contract also stipulates how long after the advance payment the goods will be delivered. As a rule, the advance is realized through a bank transfer (other checks are also used).

The amount of payment for receiving an advance is determined by the rate stipulated in the contract in percent per annum, while interest in favor of the buyer is calculated from the date of transfer of the advance until the date of actual delivery of the goods. However, more often the interest rate is not indicated in the contract, but is taken into account by the parties when agreeing on the price of the goods, that is, for reducing the price by the amount of expenses associated with the provision of an advance.

advance Redeemed by offset upon delivery of the goods. This condition must be timely recorded in the contract. When delivering goods in batches, the advance payment can be registered until the last delivery and be paid off at the final settlement. It is rational to repay the advance in an appropriate share from each delivery. In this case, two methods are possible: proportional, when with each delivery a part of the advance is repaid, corresponding to its part in the value of the goods, and progressive, when the percentage of repayment of the advance proportionally increases with each new delivery.

All other things being equal, it is more profitable for the importer to pay off the advance payment, which minimizes the actual term of the advance payment to the exporter. It is more profitable for the exporter if the advance is repaid when settling for the last shipment of the goods, since this method provides the longest use of the advance and fully insures against possible losses if the buyer refuses from subsequent consignments of goods.

Since an advance payment is associated with a significant risk for the buyer, when using it, it often requires a first-class bank guarantee (a guarantee of the return of an advance or a guarantee of the necessary performance of the contract).

In international practice, especially in Western European countries, advance payments, and even more so prepayment, are not widely popular. An increasing number of transactions are concluded on terms of payment by installments.

Unlike European countries, advance payments in Ukraine are used much more often. This is due to the following reasons:

o firstly, Ukrainian enterprises are just acquiring relevant experience in foreign trade, they are newcomers to world markets. There is little confidence in them from foreign firms and therefore firms require 100 percent advance payments;

o secondly, Ukrainian enterprises themselves are not legally protected enough, and this makes them reinsure themselves, demanding a 100 percent advance payment from their buyers. By insisting on an advance payment, they limit the number of potential partners, and also reduce their profits by lowering the price of the product. In addition, according to the Instruction of the State Tax Administration of Ukraine "On the Procedure for Deduction and Payment of Value Added Tax", advance payments received by Ukrainian enterprises from foreign and domestic entities on account of the forthcoming export of goods, works and services are subject to value added tax. The only exceptions are advance payments for goods that are not subject to VAT in accordance with the Law of Ukraine "On Value Added Tax".

This means that the exporting company must divert from the turnover and transfer to the budget part of the funds from the advances received until the actual shipment of products for export. On the other hand, in case of non-delivery of the goods, the exporter may experience difficulties in returning the received advance payment in full to the buyer through a delay or impossibility of returning the previously transferred funds from the budget.

Savostyanov V.A. Head of the Customer Relations Department of the Commercial Bank "Russian General Bank",
Zubenko V.A. Ph.D., Associate Professor, Institute of World Economy and Informatization

INTRODUCTION

IN modern conditions money is an essential attribute of economic life. Therefore, all transactions related to the supply of material values ​​and the provision of services are completed in cash. Settlements are a system for organizing and regulating payments for monetary claims and obligations. The main purpose of settlements is to service money turnover (payment turnover). Payments can take both cash and non-cash form. Cash and non-cash forms of monetary settlements of economic entities can function only in organic unity. Organization of cash settlements using non-cash money is much preferable to cash payments, since in the first case, significant savings on distribution costs are achieved. Wide application cashless payments contributes to the extensive network of banks, as well as the interest of the state in their development, both for the aforementioned reason, and for the purpose of studying and regulating macroeconomic processes.

The economic base of non-cash payments is material production. As a result, the predominant part of the payment turnover (approximately three quarters) falls on settlements for commodity transactions, i.e. for payments for goods shipped, work performed, services rendered.

The rest of the payment turnover (approximately one quarter) is settlements for non-commodity transactions, i.e. settlements of enterprises and organizations with the budget, state and social insurance bodies, credit institutions, governing bodies, courts, etc.

Funds, both own and borrowed, in accordance with the legislation are subject to mandatory storage in banks, with the exception of proceeds, the expenditure of which is permitted in accordance with the established procedure by the bank serving the economic entity.

In my opinion, the most important aspects analysis of monetary forms of circulation are: firstly, the general foundations of the organization of international non-cash settlements, and secondly, the features of interbank settlements and, of course, the forms of settlements used by participants in foreign trade.

1. CONCEPT AND TYPES OF FOREIGN TRADE TRANSACTIONS

Russian law does not contain the concept of a foreign economic transaction. Russian doctrine and practice refers to foreign economic transactions that have two essential features: firstly, the transaction involves persons (subjects) of different nationalities, and secondly, the circle of relations in the sphere of which such transactions are concluded (export-import operations goods, services, etc.). Foreign economic transactions include a work contract, an exchange agreement, contracts for the provision of various services for the provision of technical assistance in the construction of industrial facilities, as well as an agreement for foreign trade sale and purchase of goods.

Exist different kinds sales contracts.

A one-time supply contract is a one-time agreement that provides for the delivery of an agreed quantity of goods by a specific date, time, period of time. Delivery of goods is made one or more times within a specified period. Upon the fulfillment of the obligations assumed, the legal relations between the parties and the contract itself are terminated.

One-time contracts can be with short delivery times and long delivery times.

A contract with periodic delivery provides for the regular (periodic) supply of a certain quantity, batches of goods over a period established in the terms of the contract, which can be short-term (usually one year) and long-term (5-10 years, and sometimes more).

Contracts for the supply of complete equipment provide for the existence of links between the exporter and the buyer-importer of the equipment, as well as specialized forms involved in the completion of such a delivery. At the same time, the general supplier organizes and bears responsibility for the complete set and timeliness of delivery, as well as for quality.

Depending on the form of payment for the goods, contracts are distinguished with payment in cash and with payment in commodity form in whole or in part. Contracts with payment in cash provide for settlements in a certain currency agreed by the parties using the payment methods specified in the contract (cash payment, payment in advance and on credit) and payment forms (collection, letter of credit, check, bill of exchange).

Contracts with payment in a mixed form have become widespread in modern conditions, for example, during construction on a turnkey basis of targeted lending to an enterprise, payment of costs occurs partly in cash and partly in commodity form.

In our country, barter transactions are widespread - commodity exchange and compensation agreements, which provide for a simple exchange of agreed quantities of one product for another. These agreements either establish the number of mutually supplied goods, or stipulate the amount at which the parties undertake to deliver the goods.

A simple compensation agreement, like a commodity exchange agreement, provides for the mutual supply of goods at an equal value. However, unlike a commodity exchange, a compensation transaction provides for the parties to agree on the prices of mutually supplied goods. In such a transaction, usually not two goods appear, but a significant number of goods offered for exchange.

2. LEGAL REGULATION OF FOREIGN ECONOMIC TRANSACTIONS

In the legal regulation of foreign economic transactions, international treaties of a regional and universal nature play an important role. Of particular importance when concluding foreign economic contracts is the 1980 UN Convention on Contracts for the International Sale of Goods (Vienna Convention), to which (as the successor to the USSR) the Russian Federation, CH, is a party, containing general conditions and procedure for making payments. The USSR joined it on May 23, 1990, therefore its provisions, by virtue of succession, are binding on Russia. Vienna Convention 1980. Entered into force on the territory of Russia on September 1, 1994.

The Convention provides for the obligation of the buyer to pay the price for the goods, the place and term of payment, the consequences of non-payment for the goods, including the accrual of interest for late payment, compensation for losses, etc. are established.

"The procedure for payments under foreign economic contracts is provided for by other international agreements, in particular General conditions deliveries of goods between organizations of the CMEA member countries (OUP CMEA 1968/1998), General conditions for the supply of goods from the USSR to the People's Republic of China and from the People's Republic of China to the USSR, General conditions for the supply of goods between foreign trade organizations of the USSR and foreign trade organizations Democratic People's Republic of Korea ". It should be borne in mind that in accordance with the current legislation, international treaties (conventions) in which the Russian Federation participates are considered as part of the national legal system, which has a priority and binding character. This follows from paragraph 4 of Art. 15 of the Constitution Russian Federation, which enshrined the rule that: “the generally recognized principles and norms of international law and international treaties of the Russian Federation are part of the legal system. If an international treaty establishes rules other than those provided by law, then the rules of the international treaty are applied. "

There are also a number of international agreements of a universal level on the regulation of foreign economic transactions. These are, first of all, the Hague Conventions of 1964 "On the Uniform Law on the International Sale of Goods" and "On the Uniform Law on the Procedure for Concluding Contracts for the International Sale of Goods". Due to the limited number of countries that have signed these conventions, they are not widely used. The USSR (and, therefore, Russia) is not a party to these conventions. This convention is of a universal and compromise nature, since it takes into account the principles and institutions of various legal systems, and also takes into account the interests of developing countries in establishing a new international economic order. The 1964 Hague Conventions are essentially incorporated into the 1980 Vienna Convention.

States parties to the Hague Conventions of 1964 must declare their denunciation in the event of accession to the Vienna Convention of 1980 (Art. 99, Ch. 3) or its ratification. In connection with the special procedure for signing foreign economic transactions provided for in the legislation of Russia, provided for in the Resolution of the Council of Ministers of the USSR dated 02.14.1978, the Vienna Convention of 1980. It is valid on the territory of Russia with the clause of compliance with the written form of contracts for the international sale of goods, if one of the parties is a Russian enterprise.

The terms on payments under foreign trade contracts are also included in the document “Principles of International Commercial Contracts” adopted in 1994 by the International Institute for the Unification of Private Law (UNIDROIT), which can also be used in the conclusion of contracts.

“International customs play an important role in the conclusion and execution of foreign economic transactions, and especially international sale and purchase agreements. In order to avoid contradictions between trading partners in the understanding of trade customs, the International Chamber of Commerce developed and published collections of their interpretations - "Incoterms" - in 1953. Over time, "Incoterms" was reprinted several times, making additions and changes. From a legal point of view, "Incoterms" is a set of rules that have an optional character, which follows from the indication of paragraph 22 of the Introduction to the 1990 edition that merchants wishing to use these rules must provide that their contracts will be governed by the provisions of "Incoterms "1990" ...

The application of the basic conditions simplifies the drafting and negotiation of contracts, helps counterparties to find equitable ways of resolving disagreements that arise.

The main commercial document is the commercial invoice, or invoice. A commercial invoice is issued to the buyer and contains an indication of the amount to be paid. The commercial invoice contains the full and exact name of the goods; in other documents, the description of the goods can be given in general terms.

The transport document is the basis for issuing a commercial invoice. Transport documents include: bills of lading (sea and river), giving their holders the right of ownership of the goods; waybills (railway, road and air waybills); acceptance certificates, as well as postal receipts, safekeeping receipts and warehouse receipts.

Insurance policies or insurance certificates indicate the existence of a cargo insurance contract.

Other commercial documents include various types of certificates (origin, quality, weight, dimensions, etc.).

The terms of the contract must indicate the name of the documents to be submitted and by whom they must be issued, and if the submission of specific documents is required, their content.

3. FORMS
INTERNATIONAL SETTLEMENTS

In practice international trade of great importance is the form of payment for the delivered products, performed works or services. Taking into account the mutual interests of participants in foreign economic transactions, settlements are carried out in a variety of forms - in the form of advance payments, by way of collection or acceptance of a bill of exchange, checks, with a letter of credit, etc.

"When making non-cash settlements, settlements are allowed by payment orders, letters of credit, checks, cash collection settlements, as well as settlements in other forms provided for by law, banking rules established in accordance with it and business customs applied in banking practice" (Clause 1 of Art. . 862 of the Civil Code of the Russian Federation).

The form of settlement represents the methods of registration, transfer and payment of shipping and payment documents established in international commercial and banking practice. These forms of international settlements are used for payments, both in cash and on credit. At the same time, bank transfers are used in payments for cash, documentary letters of credit - in payments for cash and when providing a short-term commercial loan, collection form of settlements - for payments in cash, as well as in payments using a commercial loan.

The choice of a specific form of settlement, in which payments will be made under a foreign trade contract, is determined by agreement of the parties - partners in a foreign trade transaction.

The procedure for making settlements for exported and imported goods (services) is regulated by the legislation of the country, and is also subject to international rules for documenting and paying for payment documents.

The applied forms of international settlements differ in the share of participation of commercial banks in their implementation. The minimum participation of banks is assumed when making a bank transfer, i.e. execution of the client's payment order. A more significant share of banks' participation in the collection operation is control over the transfer, forwarding of shipping documents and their issuance to the payer in accordance with the terms of the principal. The maximum share of banks' participation is in settlements by letters of credit, which is expressed in the provision of a payment obligation to the recipient (beneficiary), which is realized subject to the conditions contained in the letter of credit.

3.1. Bank transfer

Bank transfer concept

"A bank transfer is a simple order of a bank to its correspondent bank to pay a certain amount of money at the request and at the expense of the originator to a foreign recipient (beneficiary), indicating the method of reimbursement of the paid amount to the paying bank."

Bank transfer is carried out by bank transfer from one bank to another. Sometimes transfers are made using bank checks or other payment documents. Commercial or shipping documents are sent in this form of payment from the exporter to the importer directly, i.e. bypassing the bank.

When making settlements by bank transfers, commercial banks execute payment orders of foreign banks or pay, in accordance with the terms of correspondent agreements, bank checks issued on them for monetary obligations of foreign importers, and also issue payment orders and bank checks to foreign banks for monetary obligations of Russian importers.

When performing a transfer transaction, the beneficiary's bank is guided by specific instructions contained in the payment order. For example, a payment order may contain a clause on the payment of the appropriate amount to the beneficiary against providing them with the commercial or financial documents specified in the payment order or against providing them with a receipt.

Rice. 1. Scheme of settlements by bank transfers

When performing a transfer transaction, banks take part in settlements by transferring only after the payer submits a payment order to the bank to pay for the contract. However, banks are not responsible for the payment. Banks do not control the fact of delivery of goods or transfer of documents to the importer, as well as the execution of payment under the contract. With this form of settlement, the bank is only responsible for transferring the payment from the account of the originator to the account of the recipient at the time of the submission of the payment order.

After the conclusion of the contract (1) between the importer and the exporter, the importer sends an application for transfer to the bank (2). The delivery of the goods (3) may precede or follow the payment, which is determined by the terms of the contract and the currency legislation of the countries.

The importer's bank, having accepted the payment order from the importer, sends on its own behalf the payment order (4) to the corresponding exporter's bank. Having received the payment order, the bank verifies its authenticity and performs an operation to credit money (5) to the exporter's account.

In international banking practice, bank transfers can be used to pay an advance under a contract if its terms contain a clause on the transfer of part of the contract value (15-30%) in advance, i.e. before the goods are shipped. The rest is paid for the actually delivered goods. The advance payment actually means hidden crediting of the exporter and is disadvantageous to the importer. In addition, the transfer of the advance creates the risk of losing money for the importer in the event that the exporter fails to fulfill the terms of the contract and does not deliver the goods.

In order to protect the importer from the risk of non-refund of the advance payment in case of non-delivery by the exporter of the goods, there are several ways of protection in international banking practice:

obtaining a bank guarantee for the return of the advance; in this case, prior to the transfer of the advance payment, a first-class bank guarantee is issued;

use of documentary or conditional translation; in this case, the exporter's bank makes the actual payment of the advance to his account, subject to the provision of transport documents to them within a certain period.

Legal features of transactions using bank transfers

Settlement by payment orders (bank transfer) is the most frequently used form of settlement in property turnover. In some legal relationships, the use of this form of payment has a priority. For example, in relations for the supply of goods, the buyer pays for the supplied goods in compliance with the procedure and form of settlements stipulated by the supply contract. If by agreement of the parties the procedure and forms of settlements are not determined, then settlements are carried out by payment orders (see article 516 of the Civil Code of the Russian Federation).

The use of this form of settlement means that the bank assumes the obligation, on behalf of the payer, at the expense of the funds in his account, to transfer a certain amount of money to the account of the person specified by the payer in this or another specified bank within the period provided for by law or established in accordance with it. if more short term is not provided for by the bank account agreement or is not determined by the customs of business turnover used in banking practice (clause 1 of article 863 of the Civil Code of the Russian Federation).

3.2.Incasso

Collection concept

One of the most balanced forms of settlements, both for the buyer and for the supplier, will be collection settlements. Collection is an order of the exporter to his bank to receive from the importer (directly or through another bank) a certain amount or confirmation (acceptance) that this amount will be paid in due time. Collection is used in settlements both under the terms of payment in cash and with the use of a commercial loan.

Often, problems in choosing the forms of settlements between Russian entrepreneurs and their foreign partners arise from elementary ignorance of the regulatory framework.

For collection operations, banks and their clients are governed by the Uniform Rules for Collection (Publication of the International Chamber of Commerce No. 522, entered into force in a new edition on January 1, 1996). Uniform collection rules are the main international normative document governing this form of payment.

The unified rules determine the types of collection, the procedure for submitting documents for payment and making payment, acceptance, the procedure for notification of payment, acceptance or non-payment (non-acceptance), determine the obligations and responsibilities of the parties, give a uniform interpretation of various terms and resolve other issues.

Rice. 2. Scheme of payments for collection

According to the Unified Rules, collection is an operation carried out by banks on the basis of instructions received with documents in order to:

• receiving acceptance and / or payment;
• issuance of commercial documents against acceptance and / or payment;
• issuance of documents on other terms.

Depending on the types of documents with which the collection operation is performed, there are two types of collection:

• net collection, i.e. collection of financial documents, which include checks, bills of exchange, payment receipts and other documents used to receive payment in cash;
• documentary collection, i.e. collection of commercial documents, which may or may not be accompanied by financial documents.

The participants in the collection operation are:

• principal - a client who entrusts a collection operation to his bank;
• remitting bank - a bank to which the principal entrusts a collection operation;
• collecting bank - any bank, which is not a remitting bank, participating in an operation to execute a collection order;
• presenting bank - a bank directly receiving payment or acceptance, submitting documents to the payer;
• payer - a person to whom documents must be submitted in accordance with a collection order.

Settlements in the form of collection are structured as follows (see diagram). After the conclusion of the contract (1), in which the parties stipulate through which banks the settlements will be made, the exporter ships the goods (2) in accordance with the terms of the concluded contract. Having received from the transport organization transport documents(3), the exporter prepares a set of documents, which includes commercial and also, possibly, financial documents, and submits it to his bank (remitting bank) with a collection order (4).

Having received the documents from the principal, the remitting bank checks them according to their external features, which are indicated in the collection order, and then acts in accordance with the instructions of the principal contained in this order and the Unified Rules.

The remitting bank sends the documents to the collecting bank (5), which is, as a rule, the bank of the importing country.

Legal features of the commission
transactions with collection

It should be remembered that a number of provisions of the Unified Rules differ significantly from the corresponding provisions of Russian law. When applying the Unified Rules in practice, one may come across concepts and concepts that are absent in Russian law, and sometimes are directly opposite to the content of legal norms that apply to settlements carried out in the domestic Russian market.

For a clearer and more complete picture of collection settlements used in foreign trade transactions, a comparative analysis of the norms of international law and Russian legislation governing these relations is required.

"... Any documents sent for collection must be accompanied by a collection order containing complete and accurate instructions" (Article 2 of the Rules).

Russian legislation is inconsistent in defining collection and the documents on the basis of which collection settlements are made.

Article 874. Civil Code of the Russian Federation states:

"one. When making payments for collection, the bank (issuing bank) undertakes, on behalf of the client, to carry out, at the client's expense, actions to receive the payment from the payer and (or) the acceptance of the payment.

The issuing bank, which received the client's order, has the right to involve another bank (the executing bank) for its execution.

The procedure for making payments for collection is governed by the law, the banking rules established in accordance with it and the customs of business used in banking practice ....

The legislator does not mention the documents (financial or commercial) required to carry out payments for collection, but refers us to others regulations regulating this type of cashless payments.

By-laws also do not clarify this issue. "In accordance with Article 283 of the Rules for Cashless Payments in the National Economy (Rules of the State Bank of the USSR No. 2 dated September 30, 1987), a collection order is applied only when funds are debited from the payer's account without acceptance on the basis of executive and equivalent documents."

On the territory of the Russian Federation, collection settlements in the sense of their definition of Article 2 of the Unified Rules “are made by payment orders-orders, which represent a supplier's requirement to the buyer to pay on the basis of settlement and shipping documents sent to the payer's servicing bank the cost of products delivered under the contract, work performed of services rendered ”. In this situation, the supplier engages a remitting bank to process the collection, which can involve the presenting bank for processing and sending these documents to the payer and receiving payment and (or) acceptance of payment. Moreover, the issuance of a payment request-order must be made only through the remitting bank. Otherwise, firstly, it will be a violation of the law, and, secondly, certain difficulties may arise with the execution and sending of financial and commercial documents.

Thus, collection operations, that is, the bank's actions on behalf of the client, aimed at receiving payment and (or) acceptance of payment, according to Russian law, are carried out using collection orders, payment requests-orders, payment requests.

Comparing the provisions of the Unified Rules with the provisions of Russian regulations, we can conclude that net collection is represented in our legislation by payment requests and collection orders, and documentary collection (financial documents accompanied by commercial documents) is carried out on the basis of a payment request-order issued to the payer's invoice.

Unfortunately, in banking practice, collection orders are often issued instead of payment orders, payment orders instead of payment orders-orders, etc. This confusion could have been avoided if the legislator had established a clear and uniform procedure for payments for collection, which would be carried out by the obligatory submission of a collection order in addition to the rest (in each case different) documents.

The most convenient type of collection settlement, both for the supplier and the buyer, is documentary collection.

To disclose the discrepancies between the norms of international law and Russian legislation, which in case of ignorance can lead to negative results, consider the following significant points.

First, in accordance with Article 1 of the Unified Rules, their application is optional. They will be applicable only if the parties to the foreign trade transaction agree to the subordination of a specific collection operation to these Rules and in the collection order itself “a special clause will be made” (paragraph “a” of Article 1). The Rules are binding for all parties, unless otherwise specifically agreed, which makes it possible, by direct exclusion of certain provisions of the Rules in a collection order or instructions to it, to limit their scope in relation to a particular transaction.

Therefore, in case of discrepancies between the norms of the Rules and the norms of national law applicable to settlements for collection, the provisions of the latter shall prevail (clause "a" of Article 1 of the Rules). This should be borne in mind, given that in some countries the Rules cannot be fully applied: for example, direct debiting of funds by issuing a collection order on the basis of an executive or equivalent document in our country is a legally enshrined practice, which cannot be said, for example , about American law.

Summing up, it should be noted that when carrying out foreign economic settlements, one should be guided by the provisions of the Rules, and it is also necessary that the party to the transaction, which is aware of the existence of any peremptory norms in its national law, notifies the other parties about it. Therefore, when concluding an agreement for the provision of goods, services, etc. the parties must agree not only on the form of non-cash payments, but also the restrictions that exist for this form in the national legislation of the payer's country.

Disadvantages of the collection form of payments

In conclusion, it should be noted that collection settlements carried out in accordance with the Unified Rules are beneficial both for banks and for the parties to the transaction. When executing customer orders, banks do not need to open an additional account or accumulate funds in another way (for example, a letter of credit). The buyer can be sure that after paying for the settlement documents, he will receive the right to the goods, as well as shipping and title documents. The supplier will be sure that until the money is received, his goods will be at his disposal.

Unfortunately, such a form of non-cash payments as collection is rarely used on the territory of our country, not to mention the use in settlements with foreign partners. Ignoring the obvious advantages of collection settlements occurs, in my opinion, due to the confusion and imperfection of the Russian legislation governing these relations, as well as the low legal culture of Russian entrepreneurs in the field of both international and Russian legislation.

3.3. Letter of credit

Letter of credit concept

Settlements under a letter of credit are one of the most frequently used forms of payment for goods (works, services) in foreign economic contracts. When making settlements under a letter of credit, a bank acting on behalf of the payer and in accordance with its instructions (issuing bank) undertakes to make payments to the recipient of funds or pay, accept or take into account a bill of exchange (clause 1 of article 867 of the Civil Code). For settlements under a letter of credit, it is characteristic that the withdrawal of money from the payer's account precedes the dispatch of goods to his address. This distinguishes the letter of credit from other forms of payment, in particular from collection payments. Payments are made by the bank of the payer (recipient of the goods) in accordance with his order and at the expense of his funds or the loan received by him against the documents named in the letter of credit and subject to other conditions of the order, which the bank notifies the party authorized to receive the payment. At the same time, the money on the letter of credit continues to belong to the recipient of the goods and is withdrawn from the letter of credit only after the seller sends the specified goods and submits the relevant documents to the bank.

The use of the letter of credit is most favorable for the seller of goods (payee). Settlements under a letter of credit are made at the place of its location, which brings the payment closer in time to the moment of shipment of goods, contributing to the acceleration of the turnover of the seller's funds. In turn, the untimely opening of the letter of credit by the payer allows him to delay the delivery or even refuse to fulfill the concluded contract, citing the insolvency of the counterparty. Opening a letter of credit gives him confidence that the delivered goods will be paid for. Calculations by letters of credit are carried out in accordance with the scheme shown in Fig. 3.

The exporter and the importer enter into a contract (1), in which they indicate that payments for the delivered goods will be made in the form of a documentary credit. The order of payment must be specified in the contract, i.e. the terms of the future letter of credit are clearly and fully formulated. The contract also specifies the bank in which the letter of credit will be opened, the type of the letter of credit, the name of the advising and executing bank, the terms of payment execution, the list of documents against which the payment will be made, the terms of the letter of credit, the procedure for paying the bank commission, etc. Terms of payment contained in contract, must be contained in the order of the importer to the bank to open a letter of credit.

After the conclusion of the contract, the exporter prepares the goods for shipment, and notifies the importer of this (2). After receiving the exporter's notification, the buyer sends his bank an application for opening a letter of credit, which specifies the terms of payment contained in the contract (3). After issuing the opening of the letter of credit, the issuing bank sends the letter of credit to the foreign bank, as a rule, to the bank serving the exporter (4) - the advising bank. The advising bank, having verified the authenticity of the received letter of credit, notifies the exporter of the opening and conditions of the letter of credit (5).

Rice. 3. Scheme of settlements by letters of credit

The exporter checks the compliance of the terms of the letter of credit with the payment terms of the concluded contract. In case of non-compliance, the exporter shall notify the advising bank of the non-acceptance of the terms of the letter of credit and the requirement to amend them. If the exporter accepts the terms of the letter of credit opened in his favor, he ships the goods within the terms established by the contract (6). Having received transport documents from the transport organization (7), the exporter submits them, along with other documents provided for by the terms of the letter of credit, to his bank (8).

The bank checks whether the submitted documents comply with the terms of the letter of credit, the completeness of the documents, the correctness of their preparation and execution, the consistency of the details contained in them. After checking the documents, the exporter's bank sends them to the exporting bank (9) for payment or acceptance. The cover letter specifies the procedure for crediting the proceeds to the exporter.

Having received the documents, the issuing bank carefully checks them, and then transfers the payment amount to the bank serving the exporter (10). The importer's account is debited for the payment amount (11). The exporter's bank credits the proceeds to the exporter's account.

The importer, having received commercial documents from the issuing bank (13), takes possession of the goods.

Varieties of letters of credit.

In international practice, a wide variety of types of letters of credit are used - transferable (transferable), reserve, renewable (revolving), "early opened", letters of credit with a "red clause", compensation letters of credit and pre-emptive letters of credit, etc.

An increasingly widespread use in international practice is finding a transferable (transferable) letter of credit. It allows you to make payments from it not only in favor of the beneficiary, but also third parties - second beneficiaries. Transfer of a letter of credit in favor of third parties is made at the request of the beneficiary in whole or in part. A transferable letter of credit is usually used if the beneficiary is not the supplier of the goods or the delivery is made through an intermediary.

The second beneficiary, having shipped the goods to the importer's address, submits to the bank commercial documents that meet the terms of the letter of credit in order to receive payment. The beneficiary, in favor of whom the transferable letter of credit was opened, was granted the right to replace the accounts (and drafts) provided by the second beneficiary with his own accounts (and drafts) and receive a possible difference between the amounts of these accounts. The scheme of settlements by transferable letters of credit is shown in Fig. 4.

Rice. 4. Scheme of settlements with a transferable letter of credit

In fig. 4. the following stages of calculations are indicated:

• 1 - the buyer's application for opening a letter of credit;
• 2 - notification of the seller's bank about the opening of a letter of credit;
• 3 - advising the seller about opening a letter of credit;
• 4 - order of the beneficiary to transfer the letter of credit in favor of the supplier;
• 5 - approval of the second beneficiary on the opening of the second letter of credit;
• 6 - shipment of goods to the buyer's address;
• 7 - submission to the bank of documents stipulated by the terms of the letter of credit;
• 8 - payment from a letter of credit in favor of the supplier;
• 9 - sending documents on behalf of the beneficiary to the issuing bank.

If the terms of the letter of credit do not provide for the possibility of its transfer, and the beneficiary under the letter of credit is not the supplier of the goods, a compensation letter of credit may be used in the calculations. It is opened by the beneficiary under the main, basic letter of credit as a counter letter of credit in favor of the manufacturer of the goods or subsupplier. Basic and back-to-back letters of credit are independent and are not legally related to each other. How settlements are made with a compensation letter of credit is shown in the diagram shown in Fig. five.

Rice. 5. Settlement scheme for compensation letter of credit

After opening the main letter of credit (1), the issuing bank notifies the seller's bank (2). This bank, acting as the advising and, as a rule, the confirming bank, notifies the seller about the opening of the letter of credit (3). The seller applies to the bank with an application for opening on the basis of the basic letter of credit a counter letter of credit in favor of the manufacturer of the goods or a subsupplier (4). The second issuing bank opens a letter of credit and notifies the bank serving the manufacturer of the goods (5), and the bank notifies the supplier (6). The supplier ships the goods to the buyer (7) and submits to the bank the documents stipulated by the terms of the letter of credit.

When opening a compensation letter of credit, it is necessary that the conditions of the compensation letter of credit comply with the conditions provided for by the basic letter of credit. This concerns, first of all, the terms of delivery of the goods and the requirements for the submitted documents. If the terms of the basic and back-to-back letters of credit are the same and the same documents must be submitted to receive payment under the letter of credit, then, after replacing the drafts, the documents submitted by the supplier under the back-up letter of credit can be used for payment under the basic letter of credit. If the conditions of the basic and compensatory letters of credit do not match, the seller must supplement the set of documents received from the supplier when selling the compensating letter of credit.

In order to secure payment under the compensation letter of credit, the period of its validity must exceed the period of validity of the basic letter of credit.

When delivering goods in equal lots, a revolving (renewable) letter of credit may be used in the calculations. A revolving letter of credit provides for the replenishment of the letter of credit by a certain amount (quota) or to the original value as it is used. When opening a revolving letter of credit, as a rule, the total amount of the letter of credit, the amount of one quota and the number of quotas, as well as the period of use of the quota are indicated.

To secure payment under a letter of credit, a letter of credit with foreign exchange coverage may be opened. When opening covered letters of credit, the issuing bank provides the foreign bank executing the letter of credit with foreign currency in the amount of the letter of credit to be opened for the period of its validity, subject to the use of these funds for payments under the letter of credit. Currency funds can be transferred by crediting the account of the nominated bank with the issuing bank or with a third bank; by granting the nominated bank the right to debit the account of the issuing bank opened with this bank by the amount of the letter of credit; by opening a deposit by the issuing bank with the nominated bank.

The provision of foreign exchange coverage when opening a letter of credit leads to the freezing of funds of the issuing bank for the duration of its validity. Therefore, in international practice, uncovered letters of credit are mainly used, which do not require the diversion of funds from the issuing bank at the time of opening a letter of credit.

In international practice, a “red clause” letter of credit is sometimes used, which provides for the issuance of advances by the executing bank to the exporter up to a certain amount. The advance is usually used by the beneficiary to purchase a product for export. In fact, part of the amount of the letter of credit is used to pay for the unshipped goods. Banks issue advances against the exporter's submission of a “shipment obligation” or other similar document.

By opening a letter of credit "with a red clause", the issuing bank undertakes to reimburse the performing bank for the amounts of advances paid, even if the goods were not shipped under this letter of credit.

In international practice, a reserve (guarantee) letter of credit is used as a way to fulfill obligations under a contract. It opens both for the benefit of the exporter and for the benefit of the importer under the contract. A standby letter of credit can be used similarly to a documentary one, as well as to provide additional security for payments in favor of the exporter when making settlements in the form of collection or bank transfer. At the same time, a standby letter of credit can be a security for the return of an advance paid by the importer or payment of fines and penalties in favor of the importer if the exporter does not properly fulfill the terms of the contract.

Payments under the standby letter of credit are made by banks based on the beneficiary's statements that the applicant for the standby letter of credit has not fulfilled its obligations. At the same time, banks do not check the accuracy of such a statement, i.e. make the payment unconditionally. Thus, a standby letter of credit can be viewed as a guarantee of security of payment in the event that the applicant for the standby letter of credit has not fulfilled its obligations under the contract.

Legal features of transactions using letters of credit

The procedure for settlements under a letter of credit in the legislation of the Russian Federation (RF) is currently determined by the Civil Code of the Russian Federation (Chapter 46 § 3 "Settlements under a letter of credit"). In the field of foreign trade, settlements under letters of credit are also carried out in accordance with the instruction of Vneshtorgbank of the USSR No. 1 dated December 25, 1985 on the procedure for conducting banking operations on international settlements.

In international trade, the Uniform Rules and Practices for Documentary Credit (1993 revision), International Chamber of Commerce (ICC) publication No. 500, have been developed and are widely used, which are the result of many years of efforts to systematize international trade and banking practices. These Rules represent a private (unofficial) codification and, to a certain extent, the unification of the customs of business practice that have developed in practice.

There are two main stages in the letter of credit form of settlements. At the first stage, the seller and the buyer of the goods in the purchase and sale agreement agree on payment and determine the form of payment for goods under the letter of credit. The second stage is associated with the opening of a letter of credit and the fulfillment by the bank of a monetary obligation on behalf of the buyer (ordering party) to pay the seller (beneficiary) for the goods, which belongs to the category of "banking transactions".

These stages are associated with the fulfillment of obligations related to various types of civil transactions. At the same time, the norms of domestic legislation (norms of "applicable law"), international treaties, rules and customs of business turnover prevailing in international trade, to which the relations of participants in a foreign economic transaction are subordinate, should be taken into account.

The unified rules provide for the use of reserve and transferable (transferable) letters of credit. Currently, they do not have special regulation of the use of a standby letter of credit and, as follows from Article 2, this type of letter of credit applies to general definition relating to any documentary credit, i.e. letter of credit under which payments are made against submission of documents.

The use of a transferable letter of credit means the transfer by the beneficiary of the rights and some obligations arising from the letter of credit to another person (usually its supplier) in such a way that that person becomes a party to the letter of credit. In Art. 48 of the Uniform Rules, a transferable letter of credit is characterized as “a letter of credit under which the beneficiary (first beneficiary) can ask the bank, authorized to make payment, that the letter of credit can be used in whole or in part by one or more beneficiaries (second beneficiaries)”. A transferable letter of credit has the advantage that several obligations can be settled under it. However, the transfer of rights and obligations under such a letter of credit requires the consent of the buyer who opened the letter of credit, as well as the issuing bank, which undertakes to make the payment.

The Uniform Rules provide guidance on the content of a letter of credit. Each letter of credit must clearly indicate whether it is revocable or irrevocable. In the absence of such an indication, the Uniform Rules proceed from the fact that the letter of credit is recognized as irrevocable. This provision is essential, given that the presumption of revocation of the letter of credit was established in the previously valid version of these rules.

The difference between these two types of letter of credit is that an irrevocable letter of credit cannot be changed or canceled without the prior consent of the beneficiary in whose favor it is open, while these changes are made to a revocable letter of credit without prior notice to the beneficiary. According to Art. 9d of the Uniform Rules, it is considered that the beneficiary has consented to the changes in the terms of the letter of credit advised to him, if he informed the advising bank about this or submitted documents corresponding to the changed conditions of the letter of credit, and from this moment the letter of credit is recognized as amended. In the event that changes are made to the revocable letter of credit, the payer can make the corresponding changes only through the issuing bank, which notifies the beneficiary's bank (nominated bank), and only the latter notifies the beneficiary.

The obligation of the issuing bank to the beneficiary to make the payment is due to the submission by the beneficiary (supplier) of the documents specified in the letter of credit, confirming the shipment, and compliance with the conditions for their presentation.

The peculiarity of the letter of credit is its strictly formal character. This means that all interested parties involved in operations under a letter of credit deal with documents, and not with goods, services and / or other types of performance of obligations to which the documents may relate.

The Unified Rules provide for the submission by the beneficiary in accordance with the letter of credit to the issuing bank (another authorized bank) of transport, insurance documents, commercial accounts. They also give a description of special types of transport and other documents and the basic requirements that must be met by the information contained in such documents. The absence of any of these requirements in a letter of credit does not make this letter of credit null and void, although it may slow down the settlement of it. So, according to Art. 20 of the said Rules, “to characterize the person who issued any document to be presented under the letter of credit, such terms as“ first-class ”,“ well-known ”,“ qualified ”,“ independent ”, etc. should not be used. " ... If such terms are included in the letter of credit, banks will accept the relevant document as presented, provided that it outwardly complies with other conditions of the letter of credit and was not issued by the beneficiary. A similar rule is also established by Art. 21, according to which, if the beneficiary is to submit other documents than transport, commercial and insurance, the letter of credit must provide the name of the person who issued the document, as well as instructions on its content. If this is not indicated in the letter of credit, then banks accept these documents in the form in which they are presented, unless their content contradicts any other of the submitted documents provided for by the letter of credit, etc.

"A. Banks should check all documents in a letter of credit with reasonable care to ensure that they appear to conform to the terms of the letter of credit. The compliance of these documents with the terms of the letter of credit based on their external features is determined by the accepted international banking practice, as reflected in these Rules. Documents that, by their external features, turn out to be contradictory to each other, will be considered as inconsistent by their external features of the letter of credit.

Documents not specified in the letter of credit will not be verified by banks. If banks receive such documents, they will return them to the person who submitted such documents, or transfer them without responsibility on their part.

b. The issuing bank, the confirming bank, if there is one, or the executing bank acting on its own behalf, must have a reasonable period, not exceeding seven banking days following the day of receipt of the documents, to verify the documents and decide on the acceptance of documents or refusal from them, and for the relevant communication to the party from which the documents were received.

c. If the letter of credit contains conditions, without specifying the documents that must be submitted in accordance with them, the banks will consider such conditions not specified and will not take them into account. "

It should be noted that the Unified Rules specified the deadline for checking documents by banks in comparison with the previously valid version.

Banks accept documents provided that they are presented by the beneficiary:

but) within the validity period of the letter of credit;

b) no later than within the period specified in the letter of credit after the shipment of the goods. In case of violation of these terms, payments under the letter of credit are not made.

The term of validity of the letter of credit is reflected by the provision in it of the expiry date provided for in the payment of Article 42:

"A. All letters of credit must specify the date of expiry and the place of presentation of documents for payment, acceptance or, with the exception of freely circulating letters of credit, the place of presentation of documents for negotiation. The expiration date provided for payment, aspect or negotiation should be interpreted as the expiration date for the submission of documents.

b. The documents must be submitted on the day of expiration or before the expiration of the period, except for the cases stipulated in art. 44a.

c. If the issuing bank indicates that the letter of credit is subject to use "within one month", "within six months", etc., but does not specifically indicate the date from which this period is calculated, then the date of issue of the letter of credit by the issuing bank will be considered the day from which this period will be calculated. Banks should recommend not to indicate the date of calculation of the term of the letter of credit in this way. "

Article 44a states:

“If the expiry date of the letter of credit and / or the deadline for the submission of documents specified in the letter of credit or provided for in Article 43 falls on the day on which the bank where the documents are to be submitted is closed for reasons other than those specified in Article 17, then the agreed date the expiration of the term and / or the last day of the term for submission of documents after the date of issue of the transport document must be extended until the first following business day of the bank. "

The letter of credit must provide for a period of time after the date of shipment during which documents must be submitted in accordance with the terms of the letter of credit. Given that this condition is not always included in the letter of credit, the Unified Rules, as amended in 1993, provided for a provision according to which, if such a period is not provided in the letter of credit, banks will not accept documents submitted by them later than 21 days after the date of shipment, but no later than the expiration of the letter of credit.

Sometimes, in practice, difficulties arise in connection with the determination of the conditions for using a letter of credit when shipping goods in parts (using a letter of credit in parts). In this matter, banks adhere to the rule according to which, if any part of the goods is not shipped within the established timeframe and / or the letter of credit is not partially used, the letter of credit becomes invalid both for this part and for subsequent parts, unless the letter of credit is provided other (Art. 41 of the Uniform Rules).

Of great practical importance is the question of the relationship between a foreign economic contract and a letter of credit opened by a buyer on its basis. The Unified Rules establish the principle of abstraction of a letter of credit.

Article 3 says:

“A) A letter of credit is by its nature a transaction separate from the sale and purchase agreement or other agreement (contract) on which it may be based, and banks cannot in any way be affected or bound by such contracts, even if any- or references to such contracts are included in the text of the letter of credit. Consequently, the bank's obligation to make payment, accept and pay drafts or negotiate and / or fulfill any other obligations under the letter of credit cannot be the subject of any claims of the applicant or claims against the latter arising from its contractual relationship with the issuing bank or beneficiary.

b) The beneficiary may in no case take advantage of the contractual relationship existing between the banks or the applicant and the issuing bank. "

Disadvantages of letter of credit settlement

The use of a letter of credit in calculations is most beneficial for the exporter, who receives an unconditional guarantee of payment before the start of shipment of the goods. At the same time, receipt of payment under the letter of credit (provided that the exporter fulfills the conditions of the letter of credit and submits the documents specified in it to the bank) is not associated with the buyer's consent to payment.

However, for exporters, a letter of credit is the most difficult form of settlement: receiving payment from a letter of credit is associated with the exact observance of its conditions, correct design and timely submission to the bank of the documents specified in the letter of credit. By monitoring compliance with the terms of the letter of credit and the submitted documents, banks protect the interests of the buyer, acting on the basis of his instructions.

The disadvantage of the letter of credit form of settlements is the complicated workflow and delays in the movement of documents associated with the control of documents in banks and their transfer between banks.

The Appendix contains an example of a memo for clients of one of the largest Russian banks, Guta-Bank, who use a letter of credit in their calculations. It becomes clear that the responsibility that participants in foreign trade take upon themselves when choosing a letter of credit.

Literature

1. Nesterova T.N. Bank operations. Part IV: Banking services for foreign economic activity. - M .: INFRA - M, 1996. - 96 p.

2. The Civil Code of the Russian Federation. Part II. - 2nd ed. - M .: "Os 89", 1997.-288 p.

3. Legal regulation of banking / Ed. prof. E.A. Sukhanova - M .: Training and Consulting Center "YurInfoR", 1997. - 448 p.

4. Zykin I.S. Foreign trade agreement. - M .: 1990.

5. Voloshin V.V., Bykov G.N. Contracts in foreign trade practice. - Kiev, 1988.

6. Banking. Edited by O.I. Lavrushin. - M .: "RoSTo" - 1992.

7. Usoskin V.M. Modern commercial bank: management and operations. - M .: "EVERYTHING FOR YOU" -1993.

8. "Guta Bank" website on the Internet www.guta.spb.ru

9. Rudakova O.S. Banking electronic services - M .: Banks and exchanges, UNITI, 1997.

10. International monetary and financial relations: Textbook. Ed. L.N. Krasavina. - M .: Finance and Statistics, 1994.

11. Unified rules and customs of the ICC for documentary letters of credit / Publication ICC No. 500 (UPO 500, 1993) / Reference and legal system "Garant".

12. Unified collection edition 1978 (translated from English) / Publication ICC No. 322 / Reference and legal system "Garant".

13. Blomshtein G.D., Summers B.D. Banking and payment system. - M .: - 1995.

14. Berezina MP, Krupnov Yu.S. Interbank settlements - M .: Finstatinform, - 1994.

15. Money and Credit, No. 2 - 1990.

16. Penrose P. Electronic money and money laundering - Banking Technologies, No. 1, 1996.

The purpose of this term paper to conduct research and analysis of operations on international settlements, their features, procedure for implementation, their advantages and disadvantages from the point of view of exporters and importers.

In accordance with the set goal, it is necessary to solve a number of interrelated tasks:
give the concept of international settlements and define their essence
consider government regulation of international settlements
analyze the forms of international settlements, the procedure for their application, advantages and disadvantages

INTRODUCTION …………………………. ……………………………. ………… .3

CHAPTER 1. The concept of international settlements and their essence. State regulation of international settlements …… .. ………… 5

CHAPTER 2. Forms of international settlements, application procedure, advantages and disadvantages ……… .. ……………………………………….… 8
Settlements on an open account ………………………………………….… .... 9
Bank transfer ………………………………………………… ..… 11
Collection in international trade ………………………………… ..… .14
Letter of credit settlement ……………………………………… ..… 17
Forms of international settlements used

RUE “SPA“ Khimvolokno ”…………………………………………. …… ..22

CHAPTER 3. Ways to improve the forms of international settlements used at RUE "SPO" Khimvolono ".....................

CONCLUSION… .. …………………………………………………………… 28

LIST OF USED SOURCES ……… .. …………. …… .31

APPENDIX A… .. ……………………………………………………… 32

APPENDIX B …… .. …………………………………………………… 33

Files: 1 file

INTRODUCTION …………………………. ……………………………. ………… .3

CHAPTER 1. The concept of international settlements and their essence. State regulation of international settlements …… .. ………… 5

CHAPTER 2. Forms of international settlements, application procedure, advantages and disadvantages ……… .. ……………………………………….… 8

1. Settlements on an open account ………………………………………….… .... 9
2. Bank Transfer ………………………………………………… ..… 11
3. Collection in international trade ………………………………… ..… .14
4. Letter of credit settlement ……………………………………… ..… 17
5. Forms of international settlements used

RUE “SPA“ Khimvolokno ”………………………………………. …… ..22

CHAPTER 3. Ways to improve the forms of international settlements used at RUE "SPO" Khimvolono ".....................

CONCLUSION… .. …………………………………………………………… 28

LIST OF USED SOURCES ……… .. …………. …… .31

APPENDIX A… .. ……………………………………………………… 32

APPENDIX B …… .. …………………………………………………… 33

INTRODUCTION

The creation of a settlement mechanism between the subjects of market relations, ensuring the continuity and continuity of payments is the most important condition for the functioning of a market economy.

The relevance of the chosen topic lies in the fact that in modern conditions the active participation of the Republic of Belarus in international trade is associated with significant advantages: it allows you to more efficiently use the resources available in the country, to join the world achievements of science and technology, and also to fully and variedly meet the needs of the population. In this regard, it is of considerable interest to study the forms of international settlements used in the export and import of goods, both their advantages and disadvantages. These issues are of particular importance for Belarus and other countries focused on active participation in international trade in goods. The emergence and further changes in international settlements are associated with the development and internationalization of commodity production and circulation. They reflect the relative isolation of the movement of money in international circulation due to the mismatch between the periods of production and sale of goods, the remoteness of sales markets. International settlements cover settlements for foreign trade in goods and services, as well as non-commercial transactions, loans and capital flows between countries.

The purpose of this course work is to conduct a study and analysis of operations on international settlements, their features, procedure for implementation, their advantages and disadvantages from the point of view of exporters and importers.

In accordance with the set goal, it is necessary to solve a number of interrelated tasks:

• give the concept of international settlements and define their essence
• consider government regulation of international settlements
• analyze the forms of international settlements, the procedure for their application, advantages and disadvantages

The object of the course work is international settlements carried out during the export and import of goods.

When writing a term paper, the following methods were used: comparative analysis, research, induction, logical, factor analysis, concretization, classification, synthesis, generalization.

This course work has the following structure:

introduction, main part, consisting of three sections, conclusion, bibliography and applications.

CHAPTER 1

CONCEPT OF INTERNATIONAL CALCULATIONS AND THEIR ESSENCE. STATE REGULATION OF INTERNATIONAL SETTLEMENTS.

A significant part of operations in foreign currency carried out by authorized banks is associated with servicing international commodity circulation, that is, with payments for goods and services.

Settlements are a legally regulated way of fulfilling monetary obligations, consisting in the transfer from the debtor to the creditor Money.

International settlements - regulation of payments for monetary claims and obligations arising in connection with economic, political, cultural relations between legal entities and individuals different countries. .

Calculations can be carried out during foreign trade operations, leasing operations and other types of foreign economic operations. Settlements mediate the performance of foreign economic transactions, and at the same time are an integral part of foreign exchange transactions. Therefore, settlements for foreign economic transactions (in foreign economic activity in general) are regulated, on the one hand, by regulatory documents related to currency regulation in general, and on the other hand, by regulatory documents regulating certain types foreign economic operations (in particular, foreign trade, credit, etc.).

Allocate cash and non-cash payments. The overwhelming majority of international settlements are carried out in a non-cash form, in which the storage and movement of funds occurs without the participation of cash, by crediting money to a bank account and transferring from the payer's account to the recipient's account. In the process of non-cash settlements, there is a concentration of funds in bank institutions, which makes it possible to use them as a lending resource, to exercise bank control over settlements. In this case, one should distinguish between the terms of payment for cash and on credit. In the first case, payment for goods and services is carried out immediately (the terms are specified in the legislation of the countries) after the sale, transfer or submission by the seller of documents for the receipt of these goods or services by the buyer. If payment is made before or after the sale, transfer or submission by the seller of documents for the receipt of goods or services, then the terms of payment on credit apply.

The procedure for making settlements for imported and exported goods is regulated by the legislation of the country, and is also subject to international rules for documentary registration and payment of payment documents. ...

International settlements are governed by international law:

• International rules for the interpretation of trade terms (INCOTERMS _ 90), the purpose of which is to develop a set of international rules for the interpretation of the most frequently used trade terms in foreign trade
• The Uniform Rules and Practices for Documentary Credit (UCP N 600) apply to all documentary credit (including standby letters of credit). They are binding on all interested parties unless expressly agreed otherwise.
• Uniform Collection Rules (International Chamber of Commerce publication No. 522, revised 1995) apply to all collections when a reference to these Rules is included in the text of the "collection instructions" and will be binding on all parties mentioned there, unless otherwise specified or unless otherwise contained in provisions of national, state or local law and / or regulation, which cannot be derogated from
• The Uniform Rules for First-Demand Guarantees (1992 edition, ICC Publication 458) apply to any bank guarantee or addendum to which the guarantor has undertaken to issue and which indicates that it has been drawn up in accordance with these rules (ICC Publication 458 ) and is obligatory for all parties in warranty obligation unless otherwise expressly stated in the warranty or supplement to it
• Geneva Uniform Checks Act
• Geneva Convention on the Uniform Law on Promissory Notes and Bills of Exchange

as well as internal legislation and regulations of the Republic of Belarus:

• Decree of the President of the Republic of Belarus of March 27, 2008 No. 178 "On the Procedure for Conducting and Controlling Foreign Trade Operations", the purpose of which is to ensure the implementation of a unified state currency policy, as well as to improve the procedure for carrying out foreign trade activities legal entities and individual entrepreneurs;
• Resolution of the Board of the National Bank of the Republic of Belarus dated March 29, 2001. No. 67 "On Approval of the Instruction on the Procedure for Conducting Bank Documentary Operations";
• Resolution of the Board of the National Bank of the Republic of Belarus dated November 11, 2008 No. 165 "On the procedure for making settlements under foreign trade agreements providing for imports"

CHAPTER 2

FORMS OF INTERNATIONAL PAYMENTS, PROCEDURE OF APPLICATION, ADVANTAGES AND DISADVANTAGES.

Methods of payment, transfer of goods and shipping documents are called the form of payment. The traditional forms of settlement used in international practice are:

• bank transfer;
• settlements on an open account;
• collection;
• letter of credit.

The forms of settlement differ in the degree of participation of banks in their conduct, as well as in the degree of reliability for the participating entities. For example, the participation of a bank in settlements in the form of a bank transfer can be characterized as minimal, since his duties include only the transfer of money from the originator to the receiver. The most significant share of the bank's participation is observed with a letter of credit.

Due to the fact that the buyer (importer) and the seller (exporter) have opposite goals (Fig. 1), different forms of payment are most beneficial for them.

Rice. 1. Distribution of interests of the seller and the buyer

In particular, when paying upon delivery, a bank transfer is unprofitable for the exporter, since there is a risk of non-payment, but a letter of credit is most beneficial, since if the exporter observes the terms of the letter of credit, the funds will be written off in his favor. It is beneficial for the importer to settle in the form of collection, since the payment for the actually delivered goods is carried out.

2.1. Open account settlements.

A special place is occupied by settlements on an open account. They represent such a form of settlement of mutual claims and obligations, in which banks are involved only in exceptional cases (when part of the supply remains uncovered by the counter volume of supply).

The essence of this form of payment is that the exporter ships the goods to the importer's address (or the seller's to the buyer's address) and sends the relevant documents. At the same time, both counterparties make the appropriate entries in their books: the exporter - on credit, and the importer - into the debit of open accounts, thus offsetting.

An open account is used for settlements between firms linked by traditional trade relations. Usually, open account settlements are used for regular deliveries, when trust is supported by a long-term business relationship, and the buyer is a reputable company. A feature of this form of payment is that the movement of goods is ahead of the movement of money. In this case, settlements are divorced from commodity supplies and are associated with commercial credit, and usually the exporter unilaterally credits the importer. If the supply of goods is carried out mutually with subsequent settlements on an open account, then there is bilateral lending to each of the parties and offset of mutual claims.

Settlements on an open account are most beneficial for the importer, since he makes the subsequent payment for the goods received, and the interest for the loan provided is not separately charged: there is no risk of payment for the undelivered or rejected goods. For the exporter, this form of settlement is the least profitable, since it does not contain a reliable guarantee of timely payment, slows down the turnover of his capital, and sometimes makes it necessary to resort to a bank loan. The risk of non-payment by the importer of the goods in case of unilateral use of this form of payment is similar to the risk of shortage of goods by the exporter in case of advance payments. In fact, this form of settlement is combined with lending to the importer and reflects the exporter's confidence in him. Therefore, this form of settlement is usually used only for counter deliveries, when the counterparties alternately act as a seller and a buyer and the importer's failure to fulfill obligations entails the suspension of commodity deliveries by the exporter. In case of unilateral deliveries, settlements on an open account are rarely used.

Work description

The purpose of the work is to study the basic forms of settlements used in the practice of payment for the supplied goods under foreign trade transactions.
Work tasks:
1. To study the essence, purpose, legal support and scheme of application of the main forms of international settlements.
2. Determine the directions of the comparative characteristics of settlement forms to justify the choice of one or another form of settlement, stipulated in a foreign trade contract.

INTRODUCTION ……………………………………………………………….
CHAPTER 1. PAYMENT FOR FOREIGN TRADE TRANSACTIONS: FORMS AND PRACTICE OF APPLICATION …………………………………………… ....
1.1. The concept of international settlements ………………………………….
1.2. Characteristics and types of settlements under the letter of credit …………………
1.3. Collection form of settlements ………………………………………….
1.4. Bank transfer ………………………………………………….
1.5. Other methods of international settlements ………………………… ..
CHAPTER 2. COMPARISON OF FORMS OF INTERNATIONAL PAYMENT ... ..
CONCLUSION ……………………………………………………………...

Files: 1 file

Unlike settlements on an open account, settlements in the form of an advance most often mean crediting the exporter by the importer. At the same time, on behalf of the exporter for the amount of the advance, the exporter's bank usually issues in favor of the importer a guarantee of the return of the advance received in case of non-fulfillment of the terms of the contract and non-delivery of the goods.

A check form of settlement, like a letter of credit, provides certain guarantees to exporters.

Thus, the most preferable for the exporter are letter of credit, collection, bank and advance transfers. For the importer, the most acceptable are collection with preliminary acceptance, subsequent transfer (payment after receipt of the goods).

Advantages and disadvantages of forms of international settlements. The advantage of the letter of credit form of payments - unlike other forms of non-cash payments, the letter of credit guarantees payment to the supplier either at the expense of own funds the buyer, or at the expense of his bank; as well as the presence of control over the fulfillment of the terms of delivery and the terms of the letter of credit by banks.

The disadvantages of the letter of credit form of settlements are - complicated document flow and high cost, since the buyer's funds in the amount of the letter of credit are diverted from his economic circulation for the duration of the letter of credit; the turnover is slowing down, since the supplier, before the notice of opening the letter of credit, cannot ship already finished products and incurs additional costs for its storage. In addition, in the case of letter of credit settlements, delays in the movement of documents occur due to the control of documents in banks and their transfer between banks.

The advantage of the collection form of settlements is that they are beneficial to the buyer - banks protect his rights to the goods until the payment of documents or acceptance. The documents received by the buyer for verification remain at the bank's disposal until the moment of payment (acceptance) and, in case of non-payment, are returned to the bank indicating the reasons for non-payment (non-acceptance).

However, along with the advantages, collection settlements also have a number of disadvantages. In particular:

1. Between the shipment of goods, the transfer of documents to the bank and the receipt of payment, there is a large gap in time, which slows down the turnover of the exporter's funds.

2. By the time the documents arrive at the importer's bank, he may refuse to pay for them or be insolvent.

3. Delivery of goods may precede the receipt of documents in the bank and receipt of shipping documents by the importer, which increases the risk of the exporter from non-payment of goods by the importer.

Such situations can be avoided by using a telegraph collection when:

Either the importer is notified by telegraph of the dispatch of documents containing the main details of the collection order;

Or the exporter's bank sends the documents to the foreign bank only upon receipt of a notification from him about the crediting of the funds that secure the payment.

The main advantage of settlements by checks is the guarantee of payment, the main disadvantage is the complication of document circulation, since funds are credited to the supplier (check holder) not at the time the checks are presented to their bank, but only after they are debited from the payer (drawer) account.

The lack of circulation of bills is associated with the ineffectiveness of the mechanism for collecting funds on bills and unresolved legal issues - the legal and regulatory framework is constantly expanding, there are no methods for banks when providing a loan in the form of a bill.

In addition, the type of goods - the object of the transaction, as well as the level of supply and demand for the goods - the object of the transaction, is of great importance.

The fundamental differences between the main forms of international settlements are summarized in Table 1.

Table 1

Comparative characteristics of the main forms of international settlements

The applied forms of international settlements differ in the share of participation of commercial banks in their implementation.

The minimum participation of banks is assumed when making a bank transfer. When making settlements by bank transfers, commercial banks execute payment orders of foreign banks or pay, in accordance with the terms of correspondent agreements, bank checks issued on them for monetary obligations of foreign importers, and also issue payment orders and bank checks to foreign banks for monetary obligations of Russian importers.

When performing a transfer operation, the beneficiary's bank is guided by specific instructions contained in the payment order. For example, a payment order may contain a clause on the payment of the appropriate amount to the beneficiary against providing them with the commercial or financial documents specified in the payment order or against providing them with a receipt.

When performing a transfer transaction, banks take part in settlements by transferring only after the payer submits a payment order to the bank to pay for the contract. However, banks are not responsible for the payment. Banks do not control the fact of delivery of goods or transfer of documents to the importer, as well as the execution of payment under the contract. With this form of settlement, the bank is only responsible for transferring the payment from the account of the originator to the account of the recipient at the time of the submission of the payment order.

The share of banks' participation in the collection operation is more significant. The use of payment orders (bank transfer) means that the bank assumes the obligation, on behalf of the payer, at the expense of the funds in his account, to transfer a certain amount of money to the account of the person indicated by the payer in this or another indicated bank within the time period prescribed by law or established in in accordance with it, if a shorter period is not provided for by the bank account agreement or is not determined by the customs of business practice used in banking practice.

The role of banks in making settlements between counterparties using letters of credit is maximum in comparison with other forms and consists in mediation, they only control the compliance of the submitted documents with the list of documents specified in the letter of credit. Banks are not responsible for the safety and transportation of goods, for the accuracy of registration, for the legality or reliability of the documents submitted to them. The bank - the issuer of the letter of credit cannot refuse to make the payment if the submitted documents comply with the terms of the letter of credit. Thus, banks are only responsible for the financial aspect of the transaction, without assuming any obligations regarding the goods listed in the sales contract.

A check is associated with the availability of funds in the account of the drawer and is used as a means of disposing of this account, a private obligation as a means of payment. The check holder's debt can be repaid only if the required amount is available on the check issuer's account. The bank is not liable to the drawer for the payment of a check issued to it. But the bank may have an agreement with its client that allows him to issue checks to his account that exceed a certain amount of the credit balance on the current account - overdraft.

Since international settlements are closely related to credit relations, the presence or absence of credit agreements (both at the interstate level and at the level of counterparties) also affects the choice of the form of settlement.

Since checks are not a lending instrument, but are a means of managing a current account, their validity periods are limited. According to the 1931 Geneva Convention on the Check, which regulates check circulation in international settlements, the period of its validity within one country is 8 days, and for payment in other countries - 20 - 70 days, including the time for payment and transfer of money to the exporter.

So, the choice of a specific form of settlement, in which payments will be made under a foreign trade contract, is negotiated in a foreign trade transaction and is determined by a number of factors - the specifics of the application, the degree of risk of exporters and importers, a list of advantages and disadvantages of the form of international settlements, the share of participation of commercial banks in settlements.

CONCLUSION

One of the most difficult problems in the commercial practice of companies is the issue of ensuring the break-even point of foreign trade, since the latter, from a calculation and financial point of view, is accompanied by an increased risk. The fulfillment of financial obligations by foreign counterparties, which are part of the terms of a foreign trade transaction, is largely determined by the form of selected settlements and the procedure for their execution, which are subject to international practice, and also depend on the nature of monetary and financial restrictions in the domestic market of the country.

The form of settlement represents the methods of registration, transfer and payment of shipping and payment documents established in international commercial and banking practice.

Taking into account the mutual interests of participants in foreign economic transactions, settlements are carried out in a variety of forms - in the form of advance payments, by way of collection or acceptance of a bill of exchange, checks, using a letter of credit, etc.

The choice of a specific form of settlement, in which payments will be made under a foreign trade contract, is negotiated in a foreign trade transaction and is determined by a number of factors - the specifics of the application, the degree of risk of exporters and importers, a list of advantages and disadvantages of the form of international settlements, the shares of participation of commercial banks in settlements.

The safest, often used, but organizationally complex form of settlements between the seller and the buyer is a letter of credit.

The simplest, easiest and most common form is bank transfer.

The most balanced form - collection, however, is not popular in Russia.

LIST OF USED SOURCES

1. Federal Law of the Russian Federation of 08.12.2003, No. 164-FZ "On the Foundations of State Regulation of Foreign Trade Activity" (as amended on 06.12.2011 No. 409-FZ) // ATP "Consultant" [ Electronic resource]. - Access mode: World Wide Web. URL: http://base.consultant.ru/ cons / cgi / online.cgi? Req = doc; base = law; n = 123030
2. Uniform Rules and Practices for Documentary Credit

(Publication of the International Chamber of Commerce No. 600 dated 1.07.2007) // ATP "Consultant" [Electronic resource]. - Access mode: World Wide Web. URL: http://base.consultant.ru/ cons / cgi / online.cgi? Req = doc; base = LAW; n = 132534

1. Unified rules for collection (Publication of the International Chamber of Commerce No. 522, rev. 1995, entered into force on 01.01.1996) // ATP "Consultant" [Electronic resource]. - Access mode: World Wide Web. URL: http://base.consultant.ru/ cons / cgi / online.cgi? Req = doc; base = INT; n = 15035
2. Arustamov E.A., Andreeva R.S. Foreign economic activity: textbook. - M .: Knorus, 2011 .-- 272 p.
3. Volkov G.A., Solodkov G.P. International trade. - M .: Phoenix, 2008 .-- 344 p.
4. Krakhmalev S.V. Modern banking practice for international payments. - M .: GrossMedia, ROSBUKH, 2009 .-- 255 p.
5. Kretov I.I., Sadchenko K.V. Foreign trade: textbook. allowance. - M .: Business and Service, 2010 .-- 368 p.
6. Remezova S. Banking settlements // Legal reference book of the head, 2010. - No. 9, pp. 12 - 22
7. Rostovsky Yu.A., Grechkov V.K. Foreign economic activity: textbook. - 2nd edition. - M .: Economist, 2009 .-- 589 p.

To coordinate the opposing interests of counterparties in international economic relations and the organization of their payment relations, various forms of payment are used.

The choice of payment forms is influenced by:

• a) type of goods;
• b) availability of a loan agreement;
• c) the solvency and reputation of counterparties in foreign economic transactions.

The contract stipulates the conditions and forms of payment.

1. Collection form of settlements - the client's order to the bank to receive payment from the importer for goods and services and the crediting of these funds to the exporter's bank account. Banks carry out collection operations using the instructions received from the exporter, in accordance with the Unified Collection Rules.

The exporter, after the shipment of the goods, sends the documents to his bank, which confirms not only the shipment, but also the transfer of ownership of the goods. At the same time, he instructs his bank to transfer these documents to the buyer through his bank against payment.

There are the following basic conditions for this type of payment:

transfer of documents to the buyer only against payment in cash or transfer;

the beneficiary's bank has the right to transfer the documents to the buyer, provided that he accepts the bill of exchange issued by the seller, which either remains with the buyer's bank until the day of payment, or is sent to the seller through his bank;

irrevocable commitment to make payment. Transfer of documents against irrevocable confirmation of the buyer, payment of the invoice on the appointed day;

collection without documents. If the goods are shipped by the seller and sent by air or land, then it is possible that it will arrive earlier than the documents sent by mail. In such cases, documents are sent along with the goods and to the address of the bank in the buyer's country. This bank receives orders and instructions from the bank in the seller's country by telex or through the SWIFT computer system.

These conditions are recommended to be used only in cases where the seller is confident in a good financial situation buyer. In some countries, primarily in non-European countries, there is not always a guarantee that the bank in the buyer's country will transfer documents to him only against payment. If such a practice exists between the buyer and the bank in his country, then it is possible that he will receive documents without payment.

2. Letter of credit form of settlement - an agreement on the obligation of the bank, upon the client's request, to pay for documents, accept or account (negotiate) a draft in favor of a third party (beneficiary) for whom the letter of credit is open. The procedure for carrying out this form of payment is governed by the Unified Rules and Customs for Documentary Credit. Letter of credit (especially irrevocable and confirmed), to a greater extent than collection, guarantees timely payment. At the same time, this is the most complicated and expensive form of payment; the importer is forced to reserve the amount of the letter of credit or use a bank loan.

The letter of credit guarantees the buyer's payment to the seller. The exporter receives an obligation from the bank that opened the letter of credit, according to which he will receive money if all documents comply with the terms of the contract.

It is extremely important for the seller that all documents comply with the terms of the letter of credit, since the bank checks them very carefully and at the same time bears full responsibility to the buyer.

If the documents do not meet the conditions, then the bank informs the buyer about this and requires additional instructions; without the buyer's consent, he cannot pay the amount of the letter of credit.

However, sometimes the seller's bank can still pay money to the buyer, but on condition that the buyer accepts the documents. If the buyer refuses to accept documents that do not meet the conditions of the letter of credit, then the seller is obliged to return the amount of the letter of credit to his bank.

It should be noted that in international practice, in almost 80% of cases, the documents of letters of credit do not fully comply with their conditions, therefore banks, due to increased responsibility to the buyer, check the documents very scrupulously.

Types of letters of credit:

open - the buyer has no right to withdraw it, since it does not give the seller any guarantee (it is used very rarely);

irrevocable - according to the generally accepted form, the buyer seeks to revoke the letter of credit. This letter of credit has subtypes:

• a) irrevocable confirmed letter of credit - the buyer instructs his bank to confirm the letter of credit through the seller's bank, that is, the seller's bank guarantees the fulfillment of the payment terms;
• b) irrevocable unconfirmed letter of credit - the seller's bank only informs him about the opening of the letter of credit, but does not confirm it himself, that is, guarantees payment (in this case, only the buyer's bank is responsible for fulfilling obligations).

Transferable - if the seller does not manufacture all the sold parts, but buys them from sub-suppliers, then it is advisable to agree with the buyer to open a transferable letter of credit. Then the seller has the opportunity to transfer part of the letter of credit (even with a change in the validity period) to his sub-suppliers.

In principle, the exporter should strive to obtain an irrevocable and confirmed letter of credit from the buyer, since only then his bank is also responsible for the payment, and not just the buyer's bank in another country.

If the seller's position during negotiations allows him to choose between letter of credit and collection, then it should be borne in mind that the higher the transaction amount, the more important it is to insure yourself against all kinds of risks. In a transaction involving a large amount, it is advisable to insist on the issuance of an irrevocable and confirmed letter of credit, if the client does not mind paying in advance or providing a bank guarantee. When a client supplies equipment, it is widely practiced to receive an advance payment in the amount of 1/3 of the transaction amount.

When calculating collection, it is necessary to find out in advance the possibility of selling the goods to another buyer. It happens that the goods have already been sent to the client, but during its transportation or collection it turns out that the client is not ready to fulfill his obligations.

Usually the buyer is responsible for the L / C costs. But if during negotiations the client is not ready to bear the costs associated with the opening of the letter of credit, then, apparently, it is wiser for the seller to undertake them in whole or in part, than to refuse the financial guarantee of the letter of credit.

3. Bank transfer - an order from one bank to another to pay the recipient (beneficiary) a certain amount. It involves:

debtor translator;

the bank that accepted the order;

the bank executing the order;

the recipient.

In international settlements, bank clients are often the translator. In the form of a transfer, collection payments, advance payments, and recalculations are made. Bank transfers are often combined with other forms of payment, as well as with bank guarantees.

The order shall indicate the method of reimbursement of the amount paid to the paying bank. The beneficiary's bank is guided by specific instructions contained in the payment order.

The importer brings the order to pay for the contract to his bank. It must contain the bank details of the recipient (account number, name of the exporter's bank and the exporter himself), the amount and currency of the transfer, the purpose of the payment.

Among Russian banks, the most common forms of transferring payment instructions to a foreign correspondent bank are SWIFT, telex message, Micko Cash Reqister.

Micko Cash Reqister - in addition to the current currency account, a transit account is opened for the bank's client, to which receipts in foreign currency are credited, i.e. export proceeds. After 14 days from this account, the enterprises carry out the obligatory sale of 50% of foreign exchange earnings from the export of goods (works, services) in the domestic foreign exchange market of the Russian Federation, with the exception of some cases when the earnings are credited in full to the current account.

• 4. Advance payment - payment of goods by the importer in advance before shipment, and sometimes before their production (for example, when importing expensive equipment, ships, aircraft). Unlike the world practice, where advance payments amount to 10 - 33% of the contract amount, in Russia they reach 100%. Thus, importers provide loans to foreign suppliers. The importer's consent to prepayment is due either to his interest or to pressure from the exporter.
• 5. Settlements on an open account - settlements that provide for periodic payments on time from the importer to the exporter for regular deliveries of goods on credit on this account. These calculations are most beneficial for the importer and are practiced with a trusting and long-term relationship with a foreign supplier.

The seller delivers the goods without guarantees of payment, the buyer transfers the money on the day of payment. The seller does not receive any guarantees from the buyer. Therefore, such terms of payment are possible only on the territory of one country or between firms that know each other well and rarely collide in foreign trade.

The peculiarity of this form of payment is that the movement of goods is ahead of the movement of money. Calculations are related to a commercial loan. In fact, this form of settlement is used for lending to the importer.

6. Settlements using bills of exchange, checks, bank cards - international settlements in which bills of exchange and ordinary bills are used. The acceptor (importer or bank) who has agreed to pay it is responsible for paying the bill. The Uniform Bill of Exchange Law (1930) regulates the form, details, conditions for issuing and paying bills.

For non-trading operations, travel (tourist) checks are used, issued by large banks in different currencies. A check is a monetary document of the established form containing an order to the bank to pay the currency indicated on it to its owner. The form and details of the check are regulated by national and international laws (Check Convention of 1931, etc.).

If payment is made using a check, then the debtor (buyer) either independently issues a check (client's check), or entrusts its statement to the bank (bank check).

Travel (tourist) check - a payment document, a monetary obligation (order) to pay the amount indicated on it to the owner of the check. It is issued by large banks in national and foreign currencies.

Eurocheck is a check in Eurocurrency, issued by the bank without the client's prior deposit of cash and for larger amounts against a bank loan for a period of up to 1 month. It is paid in any currency of the country that is a party to the agreement. Eurocheck has been operating since 1968.

Bank cards of mainly American origin (Visa, Mastercard, American Express) are actively used in international settlements. Since the end of the 80s. and especially in the 90s. Russian banks are actively issuing plastic cards, including international ones.

International settlements are carried out using computers, electronic signals in the form of records in the memory of bank computers, transmitted via remote communication channels. Information on interbank settlements is transmitted through SWIFT. Joint-Stock Company- The World Interbank Financial Telecommunications Network (since 1977) serves about 4 thousand banks and financial institutions almost 100 countries.

7. Currency clearing - settlements in the form of obligatory mutual offset of international claims and obligations on the basis of intergovernmental agreements.

Unlike internal interbank clearing, mutual settlements for currency clearing are not voluntary, but compulsory if there is an intergovernmental agreement.

For the first time currency clearing was introduced in 1931 during the world economic crisis. They became widespread on the eve and especially after the Second World War (from 74 in 1935 to 400 bilateral clearing in 1950). In 1950-1958. multilateral clearing - the European Payments Union (ENP) - covered 17 countries of Western Europe.

Thanks to clearing, international settlements of exporters and importers are carried out in national currency with clearing banks, which make the final offset of mutual claims and obligations. Exporters receive not foreign, but national currency. Importers deposit the national currency into the clearing bank.

Since 1985, multilateral clearing has been in place for transactions of private commercial banks in the ECU. Like the ENP, the Bank for International Settlements (Basel) is the clearing agent bank for ECU transactions.

Historically, the following features of the application of the main forms of international settlements have developed:

• 1. Importers and exporters, as well as their banks, enter into certain relations related to documents of title and payment.
• 2. International settlements are governed by regulatory legal acts, as well as banking rules.
• 3. International settlements - an object of unification and universalization of banking operations. In 1930 and 1931. adopted international Bill and Check Conventions (Geneva) aimed at unification of bill and check laws. The United Nations Commission on International Trade Law (UNISTRAL) continues to unify bill of exchange legislation. The International Chamber of Commerce, established in Paris at the beginning of the 20th century, develops Unified Rules and Practices for documentary letters of credit, collection and contract guarantees. For example, the first collection rules were developed in 1936, then revised in 1967 and 1968. Most banks in the world adhere to these rules.
• 4. International settlements are, as a rule, documentary in nature, i. E. are carried out against financial and commercial documents.

Financial documents include: bills of exchange (simple and transferable), checks, payment receipts.

Commercial documents include: invoices, shipping documents confirming the shipment or dispatch of goods (bills of lading, receipts, etc.); insurance documents of insurance companies; other documents (certificates, invoices, etc.).

The bank checks the content and completeness of these documents.