Chapter 1　Introduction 1
　1.1　Definition and Contents of International Settlement 1
　1.2　Classification of International Settlement 3
　1.3　Emergence and Development of International Settlement 5
　1.4　Role of Banks in International Settlement 8
　1.5　Related International Customs and Practices 12
　1.6　The Banking Network in International Settlement 15
Chapter 2　Negotiable Instrument 22
　2.1　General Introduction of Negotiable Instrument 22
　2.2　Bill of Exchange 28
　2.3　Promissory Note 41
　2.4　Cheque 43
Chapter 3　Remittance 50
　3.1　Introduction of Remittance 50
　3.2　Basic Parties to Remittance 51
　3.3　Types of Remittance 53
　3.4　Reimbursement of Remittance 57
　3.5　Cancellation of Remittance 60
　3.6　Application of Remittance 60
Chapter 4　Collection 66
　4.1　An Overview of Collection 66
　4.2　Parties to Collection 68
　4.3　Types of Collection 71
　4.4　Responsibilities and Obligations under Collection 77
　4.5　Points for Attention under Collection 82
　4.6　International Customs and Practices for Collection—URC522 87
4.7 Electronical Uniform Rules for Collection 91
Chapter 5　Letter of Credit 97
　5.1　Definition of Letter of Credit 97
　5.2　Features of Letter of Credit 98
　5.3　Role of Banks under Letter of Credit 100
　5.4　Parties to Letter of Credit 101
　5.5　Application and Issuing of Letter of Credit 106
　5.6　Procedures of Documentary Letter of Credit 113
　5.7　Main Contents of Letter of Credit 115
　5.8　Checking and Examining of Letter of Credit 118
　5.9　Handing of Discrepant Documents under Letter of Credit 120
　5.10　Types of Letter of Credit 121
　5.11　Uniform Customs and Practice for Documentary Credit 133
5.12 Electronic Uniform Customs and Practice for Documentary Credit 138
Chapter 6　Standby Letter of Credit 145
　6.1　Overview and Definition of Standby Letter of Credit 145
　6.2　Characteristics of Standby Letter of Credit 147
　6.3　Parties to Standby Letter of Credit 148
　6.4　Main Contents of Standby Letter of Credit 149
　6.5　Procedures of Standby Letter of Credit 150
　6.6　Types of Standby Letter of Credit 151
　6.7　Differences between Standby Letter of Credit and Documentary Letter of Credit 157
　6.8　The International Customs and Practices for Standby L/C 158
Chapter 7　Letter of Guarantee 164
　7.1　Definition of Letter of Guarantee 164
　7.2　Characteristics and Function of Letter of Guarantee 165
　7.3　Parties to Letter of Guarantee 167
　7.4　Contents of Letter of Guarantee 168
　7.5　Basic Procedures of Letter of Guarantee 173
　7.6　Types of Letter of Guarantee 174
　7.7　Differences between Bank Guarantee and Documentary Letter of Credit 183
　7.8　International Customs and Practices for L/G 184
Chapter 8　International Factoring 188
　8.1　Origination and Development of Factoring 188
　8.2　Definition of Factoring 189
　8.3　Service Items of Factoring 190
　8.4　Main Factoring Behavior 192
　8.5　Main Features and Function of Factoring 192
　8.6　Basic Parties to Factoring 193
　8.7　Procedures of Factoring 194
　8.8　Types of Factoring 195
　8.9　Comparison of Factoring,L/C,D/A and O/A 196
　8.10　Puzzles When Using Factoring in International Trade 198
　8.11　The International Customs and Practices for Factoring 199
Chapter 9　Forfaiting 203
　9.1　Evolution and Development of Forfaiting 203
　9.2　Characteristics and Documentation of Forfaiting 205
　9.3　Costs of Forfaiting Business 207
　9.4　Parties to Forfaiting 209
　9.5　Procedures of Forfaiting 209
　9.6　Differences between Forfaiting and Other Trade Financing Methods 211
Chapter 10　Documents in International Settlement 214
　10.1　General Introduction 214
　10.2　Bill of Exchange 215
　10.3　Invoice 218
　10.4　Transport Documents 223
　10.5　Insurance Documents 231
　10.6　Certificates of Origin 238
　10.7　Other Documents 241
Chapter 11　Examination of Documents under Letter of Credit 246
　11.1　Principle and Method of Document Examination 246
　11.2　Checklist for Examination of Credit 251
　11.3　Handling of Documents by Banks 255
　11.4　Common Discrepancies of Main Documents 258
　11.5　International Standard Banking Practice 262
Chapter 12　Financing in International Settlement and Cross Border Payment 266
　12.1　Export Finance 266
　12.2　Import Finance 272
　12.3　Innovation in International Trade Finance 275
12.4 Definition of Cross Border Payment 278
12.5 Classification of Cross Border Payment 279
Chapter 13　Risks in International Settlement 283
　13.1　Types of Risks in International Settlement 283
　13.2　Risks and Risk Control in Instruments 284
　13.3　Risks and Risk Control in Remittance 286
　13.4　Risks and Risk Control in Collection 287
　13.5　Risks and Risk Control in Letter of Credit 290
　13.6　Risks and Risk Control in Other Payment Methods 293
Reference 297