terms-of-payment--國(guó)際貿(mào)易支付方式

1、Chapter 11 International Trade PaymentLearning objectivesnTo learn the basic three instruments of payment bill of exchange, promissory note and cheque. nTo learn the modes of payment in intl trade remittance, collection, letter of credit.nTo be aware of the payment process under different payment me

2、thods.nTo learn the payment clause in a sales contract. Terms of PaymentnTerms of payment define the conditions under which the seller and buyer agree to settle the financial amount of the sales contract. It includes:n Method of payment; n Amount; n Place and date of payment; n Cost relating to the

3、payment. Financial instrumentsnIn intl trade, currencies and bills are two major means of payment. nIt is difficult for the buyer to pay and the seller to deliver the goods face to face. nThey use documents to fulfill their respective obligations, i.e., the seller delivers the goods and is paid agai

4、nst the documents, meanwhile the buyer makes payment and get the goods against the documents. Banks are intermediaries, and bills are instruments of payment. Instruments of Intl Settlement 國(guó)際結(jié)算工具國(guó)際結(jié)算工具Bill 票據(jù)票據(jù) Cheque 支票支票P(pán)romissory Note 本票本票Draft 匯票匯票Currency 貨幣貨幣 Instruments of payment1. Bill of e

5、xchange/draft 匯票nBill of Exchange 匯票匯票nA written, dated, and signed three-party instrument containing an unconditional order by a drawer（出票人） that directs a drawee（受票人/付款人） to pay a definite sum of money to or to order of a specified party (payee)（受款人） at a specified future date. Also known as a dra

6、ft.n是出票人簽發(fā)的，委托付款人在見(jiàn)票時(shí)或者在將來(lái)可以是出票人簽發(fā)的，委托付款人在見(jiàn)票時(shí)或者在將來(lái)可以確定的時(shí)間或固定時(shí)間無(wú)條件支付確定的金額給收款人確定的時(shí)間或固定時(shí)間無(wú)條件支付確定的金額給收款人或者持票人的票據(jù)?；蛘叱制比说钠睋?jù)。 Parties of the bill of exchangenDrawer - The party who writes the order and gives directions to another person to make a specific payment of money. He is usually the exporter. nDraw

7、ee/payer - The party to whom the order is addressed and who is to pay the money. He is usually the importer. - He may honor or dishonor the bill. nPayee - The party who is to receive the payment. - If the bill is transferred, he is called the original holder/transferor.Examples of Sight Draft見(jiàn)票即付的匯票

8、格式見(jiàn)票即付的匯票格式Bill of ExchangeNo CZFR-00127 Date 03, July, 1995 , GuangzhouExchange for USD 100,000 D/P At sight pay this first bill of exchange (second exchange being unpaid) to the order of Bank of China Guangzhou Branch the sum of USD one hundred thousand only .To buyer/importer For seller/exporterU

9、nited Kingdom authorized signature Procedure of using bills of exchangenIssue（出票）（出票）: it comprises two acts: (1) to draw a draft and sign it; (2) to deliver it to the payee nPresentment/Presentation（提示）（提示）: the act of taking the bill to the drawee and demanding that he makes the payment or accepts

10、 the bill.nAcceptance（承兌）（承兌）: the act that the drawee writes down the word “accepted”, marks the date and signs his name across the face of the bill. nPayment（付款）（付款）: made when the bill is presented to the drawee and payment of a time bill is made at maturity. A bill is discharged only when paymen

11、t is made in due course.Procedure of using bills of exchangenEndorsement（背書(shū)）（背書(shū)）: an act of negotiation to sign on the back of a draft to transfer rights in the draft to another. nDemonstrative endorsement: the one which specifies the person to whom, or to whose order, the bill is to be payable, suc

12、h as “pay or to order of”.nRestrictive endorsement: the one which limits the bill for further negotiation, such as “pay only” or “pay non-transfer”. nBlank endorsement: the one which makes the bill payable to bearer and to make delivery and without additional endorsement. Procedure of using bills of

13、 exchangenDishonor and recourse（拒付和追索）（拒付和追索）: a failure or refusal to make acceptance or payment of a bill of exchange when presented to the drawee. When a bill is dishonored either by non-acceptance or by non-payment, the holder may exercise his right of recourse against his prior endorsers and dr

14、awer for payment. Procedure of using bills of exchangeEg. pay to xx Co. only; pay xx Co. or pay to the order of xx Co. Draft bearer (持票人）持票人） asks for payment or acceptanceDrawee (付款人付款人) receives the time draft & is unconditionally obliged to pay at maturity (到期）到期）.Drawee will pay the sight dr

15、aft on presentation and will pay the time draft at maturity on presentation.It is a signature on the back of the draft by which the person to whom the note is payable, transfers it to the bearer or to a specific person. The draft bearer encounters dishonor by non-acceptance (拒絕承兌）拒絕承兌） or non-paymen

16、t（拒絕付款）（拒絕付款）.Draw/Issue( 出票出票)Presentation( 提示提示)Payment （付款）（付款）Endorsement(背書(shū)背書(shū))Dishonor& recourse( 拒付和追索拒付和追索)Acceptance( 承兌承兌) payee issue presentdrawer payer/drawee accept, payProcedure of using bill of exchangeTypes of bill of exchangenAccording to the date of payment, draft can be classi

17、fied into:nSight Bill or Demand Draft or Draft at sight (即期匯票)nTime Bill or Usance Bill or Draft after sight (遠(yuǎn)期匯票) nAccording to different drawer（出票人），（出票人），it can be classified into:nBankers Draft/Bill（銀行匯票）: issued by a banker on another bank. nTrade Draft/Bill（商業(yè)匯票）: issued by a trader on anothe

18、r trader or on a bank.Types of bill of exchangenAccording to attaching shipping document or not, it can be classified into: nDocumentary Bill（跟單匯票）: accompanied by shipping documents.nClean Bill（光票）: without shipping documents attached.nAccording to different acceptor（承兌人）, it can be classified into

19、: nTraders Acceptance Bill（商業(yè)承兌匯票）: drawn on and accepted by a tradernBankers Acceptance Bill（銀行承兌匯票）: drawn on and accepted by a banker 2. Promissory Note 本票本票nPromissory note: nA promissory note makes an unconditional promise in writing to pay a sum of money to the other, either at a fixed or dete

20、rminable future time or on demand of the payee, under specific terms. The party who promises to pay is called the maker; the party who is to be paid is the payee. n出票人本人簽發(fā)給受款人的、保證在見(jiàn)票時(shí)或在指定的或可確定的將來(lái)某一時(shí)間無(wú)條件支付一定金額的書(shū)面承諾。3. Cheque/check 支票支票nChequenA written order by the drawer or maker, directing a bank t

21、o pay a sum of money at sight unconditionally to the specific person or the check holder.nThree parties: The drawer: the one who draws the cheque, and must be the depositor of the bank; the payee: the one to whom the cheque is to be paid; the drawee: the bank which pays it. drawer/makerpayeedrawee i

22、nstruct payModes of Intl Payment nModes of payment means a series of acts or operations to realize the funds flow from one country to another. Remittance ( (匯款）匯款）Collection（托收）（托收）Letter of Credit （信用證）（信用證）Bank credit 銀行信用銀行信用Commercial credit 商業(yè)信用商業(yè)信用Remittance 匯付匯付nIt refers to the transfer of f

23、unds from one party to another among different countries, that is, a bank(the remitting bank 匯出行), at the request of its customer(the remitter 匯款方), transfers a certain sum of money to its overseas branch or correspondent bank(the paying bank/ receiving bank 匯入行) and instructs it to pay to a named p

24、ayee. 指不同國(guó)家（地區(qū)）間一方向另一方轉(zhuǎn)移資金，指不同國(guó)家（地區(qū)）間一方向另一方轉(zhuǎn)移資金， 也也就是說(shuō)，某一銀行（匯出行）應(yīng)其客戶的要求，將一定貨幣就是說(shuō)，某一銀行（匯出行）應(yīng)其客戶的要求，將一定貨幣金額轉(zhuǎn)移至其海外分行或代理行，指示其付款給某一指定收金額轉(zhuǎn)移至其海外分行或代理行，指示其付款給某一指定收款人?？钊?。 Procedure of Remittance匯付業(yè)務(wù)流程匯付業(yè)務(wù)流程Remitter 匯款方（進(jìn)口商）匯款方（進(jìn)口商）Payee/Beneficiary收款方（出口商）收款方（出口商）Paying Bank/Receiving bank匯入行（出口商所匯入行（出口商所在地銀

25、行）在地銀行）Remitting Bank匯出行（進(jìn)口商所匯出行（進(jìn)口商所在地銀行）在地銀行）goods貨物貨物委托付款委托付款申申請(qǐng)請(qǐng)書(shū)書(shū)解解付付匯匯款款Types of Remittance Remittance( (匯付匯付) )Mail Transfer (M/T)(信匯信匯)Telegraphic Transfer (T/T)(電匯電匯)Demand Draft (D/D)(票匯票匯)nMail Transfer, M/T 信匯信匯nA remitting bank issues a payment order（付款委托書(shū)） at the request of the remitte

26、r and sends it to the paying bank by mail instructing the paying bank to pay a sum of money to a specified person or a beneficiary. 匯出行根據(jù)進(jìn)口商的指示，以銀行信件郵寄指示出口商所在地的匯入行，委托其向出口商或其指定人付款的匯款方式。nCharacteristicsnCheap but slow, seldom usedTypes of Remittance Types of Remittance nTelegraphic Transfer, T/T 電匯電匯n

27、A remitting bank issues a payment order（付款委托書(shū)）at the request of the remitter and sends it to the paying bank by cable/telex/SWIFT instructing the paying bank to pay a sum of money to a specified person or a beneficiary. 匯出行根據(jù)進(jìn)口商的指示，以電報(bào)/電傳/SWIFT等電訊方式指示出口商所在地的匯入行，委托其向出口商或其指定人付款的匯款方式。nCharacteristicsnF

28、ast and safe for exporter to get the money nThe most commonly used type of remittance nDemand Draft, D/D 票匯nImporter buys the bankers draft (銀行匯票）from its local bank and sends it to the exporter, so that the exporter can get the payment by presenting the draft to the designated bank. 進(jìn)口商在本地銀行購(gòu)買(mǎi)銀行匯票直

29、接寄給出口商，出口商憑以向匯票上指定的銀行收取款項(xiàng)的匯款方式。nCharacteristicsnFlexible to draw moneynConvenient for the exporterTypes of Remittance Collection 托收托收nUpon the delivery of goods, the exporter draws a bill of exchange on the importer for an amount of money, and authorizes his bank to collect payment through his branc

30、h bank or correspondent bank in the country of the importer. Collection 托收托收nThe Drawer/Principal 委托人委托人/出口方出口方: the person who entrusts the collection items to its bank nThe Drawee付款人付款人/進(jìn)口方進(jìn)口方 : usually the importer nThe Remitting Bank托收行托收行/出口地銀行出口地銀行 : the exporters bank which receives the colle

31、ction items from the principal and forwards the draft and/or other documents to its overseas branch or corresponding bank, asking the latter to collect proceeds from the importer nThe Collecting Bank代收行代收行/進(jìn)口地銀行進(jìn)口地銀行 : the bank which receives the collection items from the remitting bank, presents th

32、e draft to the drawee and collects payment from the importer Parties involved in collectionExporter/principalImporter/drawee1 shipment of goods2 submits draft, packing list, bill of lading, etcExporters Bank/Remitting BankImporters Bank/Collecting Bank3transfers documents to importers bank4notifies

33、importer that doc. have been received 5payment6releases doc. 7payment 8payment Procedure of collectionNote: in the case of a time draft, the importer makes a promise to pay, not the actual payment, in step 5Collection ( (托收托收) )clean collection( (光票托收光票托收) )documentary collection ( (跟單托收跟單托收) )Types

34、 of CollectionTypes of CollectionCollection Clean Collection Documentary Collection D/PD/AD/P at sight D/P after sight Types of Collection1. Clean Collection 光票托收光票托收 It means collection of financial documents not accompanied by commercial documents. 指不附帶商業(yè)單據(jù)的金融單據(jù)的托收。 Mainly used for small amount tr

35、ansaction, advance payment（預(yù)付款）, installment payment（分期付款）, commission and costs of samples etc.2. Documentary Collection 跟單托收跟單托收 It means collection of financial documents accompanied by commercial documents;指附帶商業(yè)單據(jù)的金融單據(jù)的托收；Types of Collectiondocumentary collection ( (跟單托收跟單托收) )documents against

36、payment ( (D/P) )付款交單付款交單documents against acceptance ( (D/A) )承兌交單承兌交單nDocuments include financial documents and/or commercial documents Financial documents means bills of exchange, promissory notes, cheques or other similar instruments used for obtaining the payment of money. 金融單據(jù)指匯票、本票、支票或者其它用于取得

37、付款的類似憑證。 Commercial documents means invoices, transport documents, documents of title or other similar documents, or any other documents whatsoever, not being financial documents. 商業(yè)單據(jù)指發(fā)票、運(yùn)輸單據(jù)、物權(quán)憑證或其它類似單據(jù)，或除金融單據(jù)以外的任何其它單據(jù)。Collection 托收托收Documents Against Payment, D/P付款交單付款交單nThe collecting bank may r

38、elease the documents only against immediate payment. It can be classified into D/P At Sight and D/P After Sight. n出口商的交單是以進(jìn)口商的付款為條件出口商的交單是以進(jìn)口商的付款為條件。指出。指出口商將匯票連同商業(yè)單據(jù)委托銀行代收款項(xiàng)時(shí)，口商將匯票連同商業(yè)單據(jù)委托銀行代收款項(xiàng)時(shí)，指示銀行只有在進(jìn)口商付清款項(xiàng)后才能將商業(yè)指示銀行只有在進(jìn)口商付清款項(xiàng)后才能將商業(yè)單據(jù)交給進(jìn)口商。又可分為即期和遠(yuǎn)期付款交單據(jù)交給進(jìn)口商。又可分為即期和遠(yuǎn)期付款交單。單。Types of Collection2

39、. Documentary Collection 跟單托收跟單托收b) Documents Against Acceptance, D/A承兌交單承兌交單nThe collecting bank may release the documents against the buyers acceptance of a draft (for instance, drawn payable 6080 days after sight or due on a definite date). After acceptance, the buyer(importer) gains possession o

40、f the goods before the payment is made. The buyer will make payment when the time draft is mature. n出口商的交單是以進(jìn)口商在匯票上承兌為條件。出口商的交單是以進(jìn)口商在匯票上承兌為條件。指指出口商按照合同規(guī)定裝貨后，開(kāi)具遠(yuǎn)期匯票連同商出口商按照合同規(guī)定裝貨后，開(kāi)具遠(yuǎn)期匯票連同商業(yè)單據(jù)交當(dāng)?shù)赝惺招校膯涡校?，指示并委托其在業(yè)單據(jù)交當(dāng)?shù)赝惺招校膯涡校?，指示并委托其在進(jìn)口地的與其有和約關(guān)系的代收行（提示行進(jìn)口地的與其有和約關(guān)系的代收行（提示行)向進(jìn)口向進(jìn)口商做出提示，進(jìn)口商承兌遠(yuǎn)期匯票，便可領(lǐng)取商業(yè)商

41、做出提示，進(jìn)口商承兌遠(yuǎn)期匯票，便可領(lǐng)取商業(yè)單據(jù)、提取貨物，待遠(yuǎn)期匯票到期時(shí)再付清貨款。單據(jù)、提取貨物，待遠(yuǎn)期匯票到期時(shí)再付清貨款。Types of Collection2. Documentary Collection 跟單托收跟單托收nEg. 出口商于出口商于2004年年9月月10日開(kāi)出跟單匯票，日開(kāi)出跟單匯票，9月月17日進(jìn)口地銀日進(jìn)口地銀行收到匯票當(dāng)天向進(jìn)口商提示，那么在行收到匯票當(dāng)天向進(jìn)口商提示，那么在D/P即期即期 、D/P 30天和天和D/A 30天的情況下，匯票的提示日、承兌日、付款日和單據(jù)的天的情況下，匯票的提示日、承兌日、付款日和單據(jù)的提交日分別如下：提交日分別如下：9月月1

42、7日日9月月17日日9月月17日日無(wú)需承兌無(wú)需承兌 No9月月17日日9月月17日日9月月17日日10月月17日日10月月17日日9月月17日日10月月17日日9月月17日日D/A vs. D/PnCollection belongs to commercial credit. nThe banker only functions as a middleman, and his obligation is only to provide services of delivering documents and collect payment. The seller sends goods fi

43、rst, and gets payment later. Whether the seller can get the payment or not is reliable on the buyers credit. The buyer gets financing from the seller. Nature of CollectionLetter of Credit, L/C信用證信用證nA L/C is a conditional written undertaking given by bank on the request of an importer to pay at sigh

44、t or at determinable future date a certain amount of money to the exporter against stipulated documents, provided that the terms and conditions of the credit are complied with. Importer Exporter BankSales Contract Apply for L/CConditional payment promisen A L/C gives the seller reassurance that he w

45、ill receive the payment for the goods when he presents the bank with the necessary shipping documents confirming the shipment of goods within a given time. Letter of Credit, L/C信用證信用證The Characteristics of L/C銀行憑單付款，銀行憑單付款，不問(wèn)貨物不問(wèn)貨物Case Study 我某公司向國(guó)外A商出口貨物一批。A商按時(shí)開(kāi)來(lái)不可撤銷，即期，議付信用證，該證由設(shè)在我國(guó)境內(nèi)的外資B銀行通知并加以保兌

46、。我公司在貨物裝運(yùn)后，將全套合格單據(jù)送交B銀行議付，收妥貨款。但B銀行向開(kāi)證行索償時(shí)，得知開(kāi)證行因經(jīng)營(yíng)不善已宣布破產(chǎn)。于是，B銀行要求我公司將議付的貨款退還，并建議我方可委托其向A商直接索取貨款。問(wèn)：我公司該如何處理？為什么？ 我公司應(yīng)拒絕接受B銀行的要求。根據(jù)UCP600規(guī)定，信用證一經(jīng)保兌，保兌行即與開(kāi)證行同樣承擔(dān)第一付款責(zé)任，保兌付款后，無(wú)追索權(quán)。因此，我公司應(yīng)拒絕B銀行的要求?！痉治龇治觥緾ase Study 外國(guó)一家外貿(mào)公司與我國(guó)一家進(jìn)出口公司訂立合同，購(gòu)買(mǎi)化肥500噸。合同規(guī)定，2009年1月30日前開(kāi)出信用證，2月5日前裝船。1月28日買(mǎi)方開(kāi)來(lái)信用證，有效期至2月10日。由于賣方

47、按期裝船發(fā)生困難，故請(qǐng)買(mǎi)方將裝船期延至2月17日并將信用證有效期延長(zhǎng)至2月20日，買(mǎi)方回電表示同意，但未通知開(kāi)證行。2月17日貨物裝船后，賣方到銀行議付時(shí)遭到拒絕。問(wèn)：1）銀行是否有權(quán)拒付貨款？為什么？2）作為賣方律師，應(yīng)如何處理此事？ 1）銀行有權(quán)拒付。根據(jù)UCP600的規(guī)定，信用證雖是根據(jù)銷售合同開(kāi)出的，但一經(jīng)開(kāi)出就成為獨(dú)立于銷售合同的法律文件。銀行只受信用證條款約束，而不受合同的約束。買(mǎi)賣雙方達(dá)成修改信用證的協(xié)議并未通知銀行并取得銀行同意，信用證條款未改變，銀行就只按原信用證條款辦事，銀行可以拒付。 2）作為賣方律師，當(dāng)銀行拒付時(shí)，可依據(jù)修改后的合同條款，直接要求買(mǎi)方履行付款義務(wù)?！痉治?/p>

48、分析】【分析分析】信用證項(xiàng)下要求信用證項(xiàng)下要求單證必須相符單證必須相符，否則銀行不予議，否則銀行不予議付。本案中裝運(yùn)單與信用證不符，所以銀行可以付。本案中裝運(yùn)單與信用證不符，所以銀行可以拒付。拒付。 某出口公司對(duì)美成交女上衣 1000件，合同規(guī)定綠色和紅色上衣按37搭配，即綠色300件，紅色700件。后國(guó)外來(lái)證上改為紅色30%，綠色70%，但該出口公司仍按原合同規(guī)定的花色比例裝船出口，后信用證遭銀行拒付。問(wèn)：為什么銀行拒付？Case StudyApplicant/opener: always the importer; Beneficiary: always the exporter;Open

49、ing/issuing bank: the one which issues a letter of credit at the request of an applicant to the beneficiary; Advising/notifying bank: the corresponding bank of the issuing bank or its head office or subsidiary located in the exporters country. It is to advise the credit to the beneficiary. Parties i

50、nvolved in L/CnNegotiating bank: the bank which buys the sight draft and/or documents presented by the exporter, and then forwards the draft and documents to the opening bank for reimbursement. The advising bank is also the negotiating bank. 議付行是根據(jù)開(kāi)證行在議付信用證中的授權(quán)，買(mǎi)進(jìn)受益議付行是根據(jù)開(kāi)證行在議付信用證中的授權(quán)，買(mǎi)進(jìn)受益人提交的匯票和單據(jù)的

51、銀行。人提交的匯票和單據(jù)的銀行。 nPaying bank: the bank that makes payment to the beneficiary against presentation of stipulated documents. It is usually the opening bank but can also be a third designated bank. 是信用證上被開(kāi)證行指明須履行付款責(zé)任是信用證上被開(kāi)證行指明須履行付款責(zé)任的銀行的銀行,一般為開(kāi)證行本身或開(kāi)證行的代理行。一般為開(kāi)證行本身或開(kāi)證行的代理行。 Parties involved in L/CnRe

52、imbursing bank: the bank nominated by the issuing bank to honor the claim from the negotiating bank, the paying bank or the accepting bank on behalf of the issuing bank. 償付行是受開(kāi)償付行是受開(kāi)證行指示或由開(kāi)證行授權(quán)，對(duì)信用證的付款行，承兌證行指示或由開(kāi)證行授權(quán)，對(duì)信用證的付款行，承兌行、保兌行或議付行進(jìn)行付款的銀行行、保兌行或議付行進(jìn)行付款的銀行 。Parties involved in L/CnConfirming ban

53、k: Sometimes to ensure the payment of the goods, the exporter would ask the importer to require the opening bank to authorize another bank to confirm the payment for L/C. 保兌保兌行是應(yīng)開(kāi)證行或信用證受益人的請(qǐng)求行是應(yīng)開(kāi)證行或信用證受益人的請(qǐng)求, 在開(kāi)證行的付在開(kāi)證行的付款保證之外對(duì)信用證進(jìn)行保證付款的銀行?？畋ＷC之外對(duì)信用證進(jìn)行保證付款的銀行。nThe confirming bank is usually the advis

54、ing bank and is usually in the country of the exporter. It holds itself responsible for the payment of the goods. Thus, two banks hold themselves for the payment of the goods, which is more secure than otherwise. Parties involved in L/CBeneficiary/Exporter 受益人受益人/出口商出口商Advising/Negotiating bank通知通知/

55、議付行議付行出口地銀行出口地銀行Issuing bank/ Paying bank開(kāi)證行開(kāi)證行/付款行付款行進(jìn)口地銀行進(jìn)口地銀行Applicant/Importer開(kāi)證申請(qǐng)人開(kāi)證申請(qǐng)人/進(jìn)口商進(jìn)口商1 sign the contract5 ship the goods12 takedelivery 11releasedoc.10pay2apply L/C3 issue L/C8 send doc. 9 pay/accept7pay6submitdoc.4adviseThe Procedure of L/C BusinessThe importer and exporter sign a sal

56、es contract and make an agreement on L/C payment. The importer makes application for L/C with his bank. The bank approves the application and issues L/C. The issuing bank advises the documentary credit to the advising bank. The advising bank delivers the L/C to the exporter. The Procedure of L/C Bus

57、iness5. The exporter examine the L/C and ship the goods ordered. 6. The exporter presents the whole set of documents required in accordance with the terms of the letter of credit to the negotiating bank. 7. The negotiating bank buys the exporters draft and makes payment to the exporter. 8. The negot

58、iating bank forwards the documents to the issuing bank.The Procedure of L/C Business9. The issuing bank will perform payment after a thorough checking of the document.10. The issuing bank notifies the importer to make payment for documents. 11. The importer makes payment and receives the documents.

59、12. The importer takes delivery of the goods at dock. The Procedure of L/C BusinessnThe basic steps of L/C include:nIssuance describes the process of the buyers applying for and opening a documentary credit at the issuing bank and the opening banks formal notification of the seller through the advis

60、ing bank. Three basic grouping of steps of L/CnExamine and amendment: after receiving the buyers L/C, the seller should examine and verify it in contrast with the contract. The content of L/C must be consistent with the contract. If there is any discrepancy, amendments are necessary. To amend the L/C, both parties