East Asian Journal of Business Economics (EAJBE) (동아시아경상학회지)

East Asia Business Economics Association (동아시아경상학회)
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A Study on Documentary Letter of Credit Transaction based on Import & Export Procedure

  • LEE, Jae-Sung (International Trade Department, Dong-Eui University)
  • Received : 2021.05.03
  • Accepted : 2021.08.02
  • Published : 2021.09.30
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Abstract

Purpose -In the credit transaction, the issuing bank must examine the documents to pay the credit amount. In order to smoothly execute the credit transaction, document review is a key element, so the 5th revised credit unification rule specifically defines the document review procedure. Research design, data, and methodology - The document review procedure specified in the UCP Rules can be largely divided into the document review period and the rejection procedure for inconsistent documents. First of all, confusion was caused by the ambiguous regulation.. Result - With regard to the document review period, in the actual credit transaction, the issuing bank often negotiates with the issuing client about the waiver of the document inconsistency. Next, in the process of notifying the rejection of inconsistent documents, the issuing bank shall send the rejection notice. Conclusion - This study suggests that the requirement to list all inconsistencies makes it impossible for the issuing bank to further notify the refusal, thereby limiting the right to defend against inconsistencies not listed in the first refusal notice and consequently having the effect of matching them. In addition, the issuing bank's rejection notice is closely related to the beneficiary's exercise of the right to replenish documents.

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