The purpose of this course work is to conduct research and analysis of international payment transactions, their features, the 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 payments and determine their essence
consider government regulation of international payments
analyze the forms of international payments, the procedure for their application, advantages and disadvantages

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

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

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

RUE "SPO "Khimvolokno"…………………………………………….……..22

CHAPTER 3. Ways to improve the forms of international payments used at RUE “SPO “Khimvolono”………………..…………….….26

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

LIST OF SOURCES USED………..………….…….31

APPENDIX A…..………………………………………………………32

APPENDIX B……..……………………………………………………33

Files: 1 file

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

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

CHAPTER 2. Forms of international payments, 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 form of payment………………………………………..…17
5. Forms of international payments used

RUE “SPO “Khimvolokno”………………………………………….… …..22

CHAPTER 3. Ways to improve the forms of international payments used at RUE “SPO “Khimvolono”………………..…………….….26

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

LIST OF SOURCES USED………..………….…….31

APPENDIX A…..………………………………………………………32

APPENDIX B……..……………………………………………………33

INTRODUCTION

Creating a mechanism for settlements between subjects of market relations, ensuring the smoothness 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 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, join the world's achievements of science and technology, and also fully and diversely satisfy the needs of the population. In this regard, it is of significant interest to study the forms of international payments used for the export and import of goods, both their advantages and disadvantages. These issues are of particular importance for Belarus and other countries oriented towards active participation in international trade in goods. The emergence and further changes in international payments 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 discrepancy between the periods of production and sale of goods, and 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 movements between countries.

The purpose of this course work is to conduct research and analysis of international payment transactions, their features, the 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 payments and define their essence
• consider government regulation of international payments
• analyze the forms of international payments, the procedure for their application, advantages and disadvantages

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

When writing the course work, the following methods were used: comparative analysis, research, induction, logical, factor analysis, specification, classification, synthesis, generalization.

This course work has the following structure:

introduction, main part, consisting of three sections, conclusion, list of references and appendices.

CHAPTER 1

THE CONCEPT OF INTERNATIONAL SETTLEMENTS AND THEIR ESSENCE. STATE REGULATION OF INTERNATIONAL PAYMENTS.

A significant part of transactions in foreign currency carried out by authorized banks is related to servicing international trade turnover, i.e., with payments for goods and services.

Settlements are a method of fulfilling monetary obligations regulated by law, consisting of the transfer of funds from the debtor to the creditor.

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. .

Payments can be made during foreign trade transactions, leasing transactions and other types of foreign economic transactions. Payments mediate the execution 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 of foreign economic transactions (in particular, foreign trade, credit, etc. .) .

There are cash and non-cash payments. The overwhelming majority of international payments 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 payments, funds are concentrated in banking institutions, which makes it possible to use them as a lending resource and exercise banking control over settlements. In this case, it is necessary to distinguish between the terms of payment for cash and on credit. In the first case, payment for goods and services is made immediately (the terms are specified in the legislation of the countries) after the sale, transfer or provision 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 provision by the seller of documents to receive goods or services, then credit payment terms apply.

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

International payments are regulated by international legislation:

• 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 trade terms most commonly found in foreign trade
• The Uniform Customs and Practice for Documentary Credits (UCP No. 600) applies to all documentary credits (including standby letters of credit).
• They are binding on all parties concerned unless expressly agreed otherwise.
• The Uniform Rules for Collections (International Chamber of Commerce Publication No. 522, as amended 1995) apply to all collections when reference to these Rules is included in the text of the "collection instructions" and will be binding on all parties mentioned therein unless otherwise specifically provided. or unless otherwise contained in non-derogable provisions of national, state or local law and/or regulation
• The Uniform Rules for Call Guarantees (1992 edition, ICC Publication No. 458) apply to any bank guarantee or amendment thereto which the guarantor has undertaken to issue and which states that it is made in accordance with these rules (ICC Publication No. 458 ) and is binding on all parties to the warranty, unless otherwise expressly stated in the warranty or an addendum thereto.
• Geneva Uniform Check Law

Geneva Convention Concerning the Uniform Law of 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 dated 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 monetary policy, as well as improve the procedure for carrying out foreign trade activities by 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 instructions on the procedure for performing banking 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 payments under foreign trade agreements involving imports”

CHAPTER 2

Methods of payment, transfer of goods and shipping documents are called payment forms. Traditional forms of payments used in international practice are:

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

Forms of settlements differ in the degree of participation of banks in their implementation, as well as in the degree of reliability for the participating entities. For example, the bank’s participation in settlements in the form of a bank transfer can be characterized as minimal, because His responsibilities include only the transfer of money from the transferor to the transferee. The most significant share of the bank's participation is observed in the letter of credit.

Due to the fact that the buyer (importer) and 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 buyer

In particular, when paying upon delivery, it is not profitable for the exporter bank transfer, since there is a risk of non-payment, but a letter of credit is most beneficial, since if the exporter complies with the terms of the letter of credit, the funds will be written off in his favor. The importer benefits from settlements in the form of collection, since payment is made for the goods actually delivered.

2.1. Settlements on an open account.

A special place is occupied by settlements on an open account. They represent a form of settlement of mutual claims and obligations in which banks are involved only in exceptional cases (when there remains part of the supply that is not covered by the counter supply volume).

The essence of this form of payment is that the exporter ships goods to the importer (or the seller to the buyer) and sends the relevant documents. At the same time, both counterparties make corresponding entries in their accounting books: the exporter - on credit, and the importer - on debit of open accounts, thus making a mutual offset.

An open account is used for settlements between firms connected by traditional trade relations. Typically, open account settlements are used for regular deliveries, when trust is supported by long-term business relationships and the buyer is a reputable company. The peculiarity 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 a commercial loan, and usually the exporter unilaterally credits the importer. If supplies of goods are carried out mutually with subsequent settlements on an open account, then bilateral lending occurs to each of the parties and offset of mutual claims.

Open account settlements are most beneficial for the importer, since he makes subsequent payments for the goods received, and interest for the loan provided is not charged separately: there is no risk of paying for undelivered or unaccepted goods. For the exporter, this form of payment is the least profitable, since it does not contain a reliable guarantee of timely payment, slows down the turnover of its capital, and sometimes makes it necessary to resort to a bank loan. The risk of non-payment by the importer of goods when using this form of payment unilaterally is similar to the risk of under-delivery of goods by the exporter when making advance payments. In fact, this form of payment is combined with lending to the importer and reflects the exporter’s confidence in him. Therefore, this form of payment is usually used only for counter deliveries, when counterparties alternately act as seller and buyer and failure to fulfill obligations by the importer entails the suspension of goods deliveries by the exporter. For one-way deliveries, open account settlements are rarely used.

Payment for foreign trade transactions, their forms and practice of application. The concept of international payments. Characteristics and main types of payments under a letter of credit. Collection form of payment, bank transfer. Comparative analysis of forms of international payments.
Brief summary of the material:

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Federal State Budgetary Educational Institution of Higher Professional Education

Russian Academy National economy And civil service under the President of the Russian Federation

"NORTHWEST INSTITUTE"

Department of World and National Economics

Course work

Forms of international payments: Comparative characteristics and application practice

3rd year students 3264 groups

Kazmin Yuri Alexandrovich

Scientific director

Candidate of Economic Sciences, Associate Professor

Khodachek Galina Mikhailovna

Saint Petersburg

• Introduction
• 1.3 Collection form of payment
• 1.4 Bank transfer
• Chapter 2. Comparison of forms of international payments
• Conclusion
• List of sources used

Introduction

Since the liberalization of foreign economic activity, increased attention has been paid to the organization and management of foreign trade operations, both at the theoretical and practical level. In connection with global trends in the unification of the methodological basis of international trade, the strengthening of integration processes, the emergence of new forms and methods of trade, trade is developing dynamically the legislative framework in this area of ​​economic activity.

Foreign trade is the most developed form of international economic relations. A feature of the world market at present is the development of interstate forms of its regulation: common trade organizations (GATT / WTO), regional integration associations (EU, Association of Countries South-East Asia and etc.). The result of this was an increase in the scale and qualitative changes in the nature of international trade, which has a huge impact on the internationalization of the economic life of all countries of the world.

The development of international relations and, first of all, trade relations provokes a constant search for payment methods that minimize the risks of both parties involved in civil relations. The buyer wants to be sure that the goods will be shipped (according to the terms of the contract), the seller - that the goods will be paid for in the manner prescribed by the foreign economic agreement.

The relevance of the topic of the course work is due to the fact that when concluding a foreign trade transaction, the choice of optimal forms and methods of payment for the supplied goods is one of the key ones - from the right choice counterparties, the forms and conditions of settlements, as well as the execution of registration and payment procedures, depend on the speed and guarantee of payment, the amount of expenses associated with banking and financial transactions, as well as the possibility of preventing claims and losses arising in connection with this.

The purpose of the work is to study the basic forms of payment used in the practice of payment for goods supplied in foreign trade transactions.

Job objectives:

1. Study the essence, purpose, legal support and scheme of application of the main forms of international payments.

2. Determine the directions of comparative characteristics of payment forms to justify the choice of one or another form of payment specified in the foreign trade contract.

Despite the dominant position of documentary payments over other banking operations, at present this topic has not been sufficiently studied. There is no comprehensive approach to solving the problem; there is no consensus in assessing individual forms of international payments and payment terms of foreign trade transactions.

international settlement form letter of credit

Chapter 1. Payment for foreign trade transactions: forms and practice of application

1.1 The concept of international payments

Foreign trade is the most developed form of foreign economic activity. The essence of foreign trade lies in the exchange of goods and services between economic entities of different countries (export-import operations), based on the internationalization and globalization of world economic relations, the intensification of the international division of labor in the conditions of the scientific, technological and information revolution.

Payments for foreign trade are carried out using international payments. International settlements are a system for organizing payments for monetary claims and obligations arising during the implementation of foreign economic activity between states, enterprises (organizations) and citizens located in different countries.

The subjects of international settlements interacting with each other in the process of movement of documents of title are exporters, importers, and banks. Banks that organize the movement of funds of participants in foreign trade activities act as intermediaries.

The procedure for making payments for exported and imported goods (services) is regulated by the laws of the countries, and is also subject to international rules for the documentation and payment of payment documents.

The development of international relations and, first of all, trade relations provokes a constant search for payment methods that minimize the risks of both parties involved in civil relations. The buyer wants to be sure that the goods will be shipped (according to the terms of the contract), the seller - that the goods will be paid for in the manner provided for in the foreign economic agreement.

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 collection or acceptance of a bill of exchange, by checks, using a letter of credit, etc.

1.2 Characteristics and types of payments under a letter of credit

A letter of credit is an order from the buyer's bank (issuing bank) to the supplier's bank to pay the supplier for goods and services on the terms stipulated in the buyer's letter of credit application against the relevant documents submitted by the supplier confirming the delivery of goods under the contract.

A special feature of a letter of credit is its strictly formal nature. This means that all interested parties involved in transactions 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.

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 payments under a letter of credit, the bank acting on behalf of the payer and in accordance with his instructions (the issuing bank) undertakes to make payments to the recipient of funds or pay, accept or honor a bill of exchange.

Payments by letters of credit are carried out in accordance with the scheme shown in Fig. 1 . The exporter and importer enter into a contract between themselves (1), in which they indicate that payments for the delivered goods will be made in the form of a documentary letter of credit. The contract must specify the payment procedure, 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 letter of credit, the name of the advising and executing bank, the terms of payment, the list of documents against which payment will be made, the validity period of the letter of credit, the procedure for paying bank commissions, etc. Payment terms contained in contract must be contained in the importer’s order to the bank to open a letter of credit.

Rice. 1. Scheme of payments by letters of credit

After concluding the contract, the exporter prepares the goods for shipment and notifies the importer (2). Having received the exporter's notice, the buyer sends an application to his bank to open a letter of credit, which specifies the terms of payment contained in the contract (3). After opening a letter of credit, the issuing bank sends the letter of credit to a foreign bank, usually 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 about the opening and conditions of the letter of credit (5).

The exporter checks the compliance of the terms of the letter of credit with the payment terms of the concluded contract. In case of discrepancy, the exporter notifies the advising bank of non-acceptance of the terms of the letter of credit and the requirement to change them. If the exporter accepts the terms of the letter of credit opened in his favor, he ships the goods within the time period established by the contract (6). Having received transport documents (7) from the transport organization, 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, and 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 covering letter specifies the procedure for crediting the proceeds to the exporter.

The essence of currency and settlement relations in the field of international economic relations. Forms and practice of international payments. Carrying out settlements in ACC...

Essence and principles, regulatory regulation of international payments. Principles of organizing non-cash payments, their forms and procedure for application in...

The previous lecture discussed the main mechanisms of international payments used in world practice. In this lecture we will consider in detail the forms of international payments themselves.

Indeed, the form of payment for products supplied, work performed or services performed is of great importance, especially in the practice of international trade. 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 collection or acceptance of a bill of exchange, by checks, using a letter of credit, etc.

The form of payment represents the methods of registration, transfer and payment of shipping and payment documents established in international commercial and banking practice. The previously mentioned forms of international payments 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, as well as for payments using a commercial loan. The choice of a specific form of payment 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 payments for exported and imported goods (services) is regulated by the laws of the countries, and is also subject to international rules for the documentation and payment of payment documents.

The forms of international payments used differ in the share of participation of commercial banks in their implementation. A minimum share of 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 conditions of the principal. The maximum share of participation of banks is in settlements using letters of credit, which is expressed in providing the recipient (beneficiary) with a payment obligation, which is implemented subject to compliance with the conditions contained in the letter of credit. (see table 1)

Table 1.

Comparative characteristics of the main forms of international payments.

	Bank transfer	Letter of Credit		Credit (including using a bill of exchange)	Check form of payment	Counter forms of trade
Importer's risk	Maximum, in case of advance	Minimum		Significant
Exporter's risk	In case of 100% advance - minimum	Minimum		Significant		Depends on the type of trading form and the reliability of the counterparty
Share of participation of banks	Minimum	Maximum degree of participation (the bank is the guarantor)		Minimal or none	Minimum (the Bank is not liable to the drawer)	Depends on the type of form of trade. As a rule - insignificant
Other characteristics	The simplest form. Easy and often feasible	A very complex form of calculation, but the maximum possible.	Carried out within tight deadlines	The most balanced form. For some reason this form is not recognized by the parties	It largely depends on the reliability of the counterparty. Requires certain guarantees.

Accordingly, the choice of one or another form of payment largely depends on the degree of mutual trust of the counterparties and on the specifics of national legislation.

Paragraph 1 of Article 862 of the Civil Code of the Russian Federation states: “when making non-cash payments, settlements by payment orders, letters of credit, checks, settlements for collection, as well as settlements in other forms provided for by law, banking rules established in accordance with it and customs applied in banking practice are allowed business turnover"

The most difficult part of the payment terms of the contract is the choice of the form of payment. Coordination of the opposing interests of participants in foreign economic activity and the organization of their payment relations is realized 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 of cash flows and goods (services): the procedure for conducting operations, 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, 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 payment forms, the opposing interests of the exporter and importer usually appear. The first is interested in minimizing payment risk; the importer, in turn, is interested in speeding up the receipt of goods and deferring payment until its final sale (Fig. 6.1).

Figure 6.1. V

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

o type of product;

o bank capabilities;

o 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 payments differ from the degree of participation of banks in their implementation: the share of participation of banks in bank transfers is minimal (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 in a letter of credit (providing the beneficiary with a payment obligation realized upon the latter’s fulfillment of the main conditions contained in the letter of credit). Accordingly, the security of payment for the beneficiary increases; the minimum for a bank transfer for goods actually delivered, the maximum for a letter of credit, which is essentially a monetary guarantee of payment for the shipped goods by the bank that issued the letter of credit.

Non-documentary forms of international payments

Advance payment form

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

The monetary form of advance payment provides for the buyer to pay the amount agreed upon under the contract towards payments due under the contract before the shipment of goods (provision of services), and sometimes even before the start of execution of the contract.

In global settlement practice, advance payments are used if:

o the seller is not sure of the buyer’s solvency;

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

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

o for the supply of rare, scarce goods, as well as strategic goods (nuclear fuel, weapons);

o in case of sufficiently long contract duration.

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

On the other hand, an advance, even in the amount of a corresponding 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 payment received to compensate for losses.

The obvious disadvantages of this form of payment include the complex risk of the importer: the risk that the exporter will not deliver the goods or will deliver the goods untimely and of a completely different quality or specification. In addition, a violation of the exporter’s obligations under the contract may occur in the form of non-compliance with the range of goods supplied, 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 through long time by court decision) and financial compensation. Advance payment also means that the importer credits the supply for the relevant period before he physically takes possession of the goods.

A deposit and compensation should be distinguished from an advance. The deposit, like an advance, is issued against the amount specified in the contract. If the counterparty who gave the deposit fails to fulfill the terms of the contract, he loses the full amount of the deposit. If the party that received the deposit fails to fulfill obligations under the contract, then this party is obliged to return it in double amount. Thus, the deposit does not relieve the party who failed to perform the contract from paying damages to the other party.

Compensation is the amount specified in the contract, upon payment of which the counterparty is released from its obligations under the contract without compensating for additional losses to the other party. Thus, if an advance and a deposit encourage counterparties to fulfill the contract on time, then compensation, on the contrary, under appropriate circumstances, can weaken the incentives to fulfill the contract.

An advance payment equal to 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 bans on the import/export of goods;

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

o the price of goods purchased using an advance form of payment is relatively small in the overall turnover of the importer’s funds.

In international trade, settlements in the form of an advance on total cost contracts are used relatively rarely, which is explained by three main reasons. Firstly, due to increased competition among commodity producers and the filling of 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 supplies. Secondly, exporters predominantly deal not directly with end consumers or large market operators, but with intermediaries, who generally do not have enough of their own resources for 100% advance payment. Thirdly, the sellers themselves do not always agree to this form of payment, since it results in the provision of significant actual discounts to the importer. Statistics show that advance payments under foreign trade contracts can ultimately reduce the real price of goods by 5-7% due to the discount that buyers receive.

In contrast to international practice, in Ukraine, when making import payments, the main requirement of a foreign partner is to receive an advance payment for the total cost of the contract, which is associated with distrust of the state as a whole. At the same time, by making an advance payment, the Ukrainian importer practically credits the foreign partner under the contract, in many cases without requiring a discount before selling the price of the goods for the loan provided. If the price discount condition is nevertheless included in the contract, then in reality it does not at all correspond to the losses that Ukrainian enterprises incur when 100% of their working capital is diverted.

Advance payments covering only part of the contract amount are quite common in international trade. In this case, the seller receives the main part of the payment after 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 given for the amount specified in the contract, then it is usually equal to 10-15% of the contract amount. The importer's advance for fulfilling a special order or replenishing the exporter's working capital reaches 30-50% of the contract amount. At the same time, an advance as a form of payment 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 payment of an advance in several installments: for example, 10-20% of the order value - upon signing the contract and 15% - after presentation technical documentation. This method is called staged payments.

The advance payment is paid within the appropriate period from the date of signing the contract. When supplying complex types of machinery and equipment with a long production period, the contract comes into force after the buyer transfers an 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 check instruments are also used).

The amount of payment for receiving an advance payment is determined by the rate stipulated in the contract as a percentage per annum, while interest in favor of the buyer is accrued from the date of transfer of the advance payment until the date of actual delivery of the goods. However, more often 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, by reducing the price by the amount of costs associated with providing an advance payment.

advance payment Repaid by offset upon delivery of goods. This condition must be timely recorded in the contract. When delivering goods in batches, the advance payment can be recorded until the last delivery and repaid upon final settlements. It is rational to repay the advance in the appropriate proportion of each delivery. In this case, two methods are possible: proportional, when with each delivery part of the advance is repaid, corresponding to its part in the cost of the goods, and progressive, when the percentage of advance repayment increases proportionally with each new delivery.

All other things being equal, it is more profitable for the importer to repay the advance in a way that minimizes the actual period of advance payment to the exporter. It is more profitable for the exporter if the advance is repaid when paying for the last shipment of goods, since this method ensures the longest use of the advance and fully insures against possible losses in the event of the buyer’s refusal of subsequent shipments of goods.

Because an advance payment carries significant risk for the buyer, its use often requires a first-class bank guarantee (a guarantee of repayment of the advance or a guarantee of the necessary performance of the contract).

In international practice, especially in Western European countries, advance payments, and especially prepayment, are not widely popular. An increasing proportion of transactions are concluded on installment payment terms.

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

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

o secondly, Ukrainian enterprises themselves are not sufficiently legally protected, and this forces them to play it safe, demanding 100% advance payment from their buyers. By insisting on an advance payment, they limit the number of potential partners and also reduce their profits by reducing 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 persons for the upcoming 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 enterprise must withdraw from turnover and transfer to the budget part of the funds from advances received until the actual shipment of products for export. On the other hand, in the event of non-delivery of goods, the exporter may experience difficulties in returning to the buyer the advance received in full due to a delay or impossibility of returning previously transferred funds from the budget.

In the practice of international trade, the form of payment for products supplied, work performed or services performed is of great importance. 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 collection or acceptance of a bill of exchange, by checks, using a letter of credit, etc.

These forms of international payments 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, as well as for payments using a commercial loan.

The choice of a specific form of payment in which payments will be made under a foreign trade contract is specified in the foreign trade transaction and is determined by a number of factors.

Application. A letter of credit is used if the buyer and seller of the goods are remote from each other or need a reliable intermediary to complete the transaction because they have little experience in cooperation. In such a situation, a letter of credit provides counterparties with flexible payment terms; legal reliability; obtaining short-term loans.

For settlements under a letter of credit, it is typical that the withdrawal of money from the payer’s account occurs in parallel with the dispatch of goods to his address. This distinguishes the letter of credit form from other forms of payment, in particular from collection payments. Payments are made by the payer's bank (recipient of the goods) in accordance with his instructions 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 brings to the attention of the party authorized to receive payment. In this case, the money listed 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.

Collection is rarely used on the territory of the Russian Federation, not to mention its use in settlements with foreign partners. Ignoring the obvious advantages of collection payments occurs mainly due to the confusion and imperfection of domestic legislation regulating these relations, as well as the low legal culture of Russian entrepreneurs in the field of both international and Russian legislation. Often, problems in choosing forms of payments between Russian entrepreneurs and their foreign partners arise due to basic ignorance of the regulatory framework.

Payments by payment orders (bank transfer) are the most commonly used form of payment in property transactions. In some legal relations, the use of this form of payment has a priority nature. For example, in relations for the supply of goods, the buyer pays for the goods supplied in compliance with the procedure and form of payment provided for in the supply agreement. If the procedure and forms of settlements are not determined by agreement of the parties, then settlements are carried out by payment orders.

In international trade, an open account is used for settlements between regular counterparties, with government organizations and for commission sales of goods in the form of consignment or for multiple deliveries of similar goods, especially in small quantities.

When comparing international forms of payment, an important role is played by risks of exporters and importers. The interests of exporters and importers of goods and services do not coincide: the exporter seeks to receive payments from the importer as soon as possible, while the latter seeks to defer payment until the final sale of the goods. Therefore, the chosen form of settlement is a compromise, which takes into account the economic positions of the counterparties, the degree of trust in each other, the economic environment, the political situation, etc.

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 a letter of credit (subject to the exporter fulfilling the terms of the letter of credit and submitting 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 complex form of payment: receiving payment from a letter of credit is associated with strict compliance with its terms, 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 use of a letter of credit is most favorable to the seller of goods (payee). Settlements under a letter of credit are made at its location, which brings the payment closer in time to the time of shipment of goods, helping to accelerate the turnover of the seller’s funds. In turn, the untimely opening of a letter of credit by the payer allows him to delay delivery or even refuse to fulfill the concluded contract, citing the insolvency of the counterparty. The opening of a letter of credit gives him confidence that the goods delivered will be paid for.

Collection settlements carried out in accordance with the Uniform Rules are beneficial for both banks and 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 the settlement documents he will receive the right to the goods, as well as shipping and title documents. The supplier will be confident that until the money is received, his goods will be in his possession.

In international banking practice, bank transfers can be used to pay an advance on a contract if its terms contain a provision 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 actual goods delivered. An advance payment actually means hidden lending to the exporter and is disadvantageous to the importer. In addition, the transfer of an advance creates for the importer the risk of losing money in the event of failure by the exporter to fulfill the terms of the contract and non-delivery of the goods.

In order to protect the importer from the risk of non-repayment of the advance in the event of non-delivery of goods by the exporter, in international banking practice there are several methods of protection:

Obtaining a bank guarantee for the return of the advance - in this case, before transferring the advance payment, a guarantee from a first-class bank is issued.

2. Using a documentary or conditional transfer - in this case, the exporter's bank makes the actual payment of the advance, subject to the exporter providing transport documents within a certain period.

Providing a loan on an open account and making payments in this form are associated with the risk of non-payment or late payment for the goods for the seller, since the buyer does not issue any promissory note to the seller upon receipt of the shipping documents. And for the buyer, an open account is a profitable form of payment and obtaining loans, because there is no risk of paying for undelivered goods. In addition, interest is usually not charged for using the loan. Therefore, open account firms often act alternately as buyers and sellers, which is one way of ensuring that parties meet their payment obligations.

Unlike settlements on an open account, settlements in the form of an advance most often mean lending to 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 the event of failure to fulfill the terms of the contract and non-delivery of the goods.

The check form of payment, like the letter of credit, provides certain guarantees to exporters.

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

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

The disadvantages of the letter of credit form of payment are: complex paperwork and high cost, since the buyer’s funds in the amount of the letter of credit are diverted from his business turnover for the period of validity of the letter of credit; trade turnover slows down, since the supplier cannot ship finished products before being notified of the opening of a letter of credit and incurs additional costs for their storage. In addition, with the letter of credit form of payment, there are delays in the movement of documents associated with the control of documents in banks and their transfer between banks.

The advantage of the collection form of payment is that it is beneficial to the buyer - banks protect his rights to the goods until the documents are paid for or accepted. 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 payments also have a number of disadvantages. In particular:

There is a large time gap between the shipment of goods, the transfer of documents to the bank and the receipt of payment, which slows down the turnover of the exporter’s funds.

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

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

Such situations can be avoided by using telegraphic collection when:

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

or the exporter’s bank sends documents to the foreign bank only upon receipt of a notification from it about the crediting of funds securing payment.

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

The lack of bill circulation 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, and there are no methods for banks when providing a loan in the form of a bill.

Besides important has the type of product - the object of the transaction, as well as the level of supply and demand for the product - the object of the transaction.

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

Table 1

Comparative characteristics of the main forms of international payments

Comparison pointBank transfer Letter of credit CollectionCredit (including using a bill of exchange) Check form of paymentImporter's riskMaximum, in case of advanceMinimumLowSignificantMediumExporter's riskIn case of 100% advance - minimalMinimalMediumSignificantMediumShare of participation of banksMinimumMaximum degree of participation (the bank is the guarantor) Average. There is a benefit for banks. Minimum or noneMinimum (The Bank is not responsible to the drawer) Other characteristics The simplest form. Easy and often feasible. A very complex form of calculation, but the maximum possible. Carried out within tight deadlines. The most balanced form. For some reason, this form is not recognized by the parties. It largely depends on the reliability of the counterparty. Requires certain guarantees. Limited terms of use

The forms of international payments used differ in share of participation of commercial banks in their implementation.

A minimum share of participation of banks is assumed when making a bank transfer. When paying by bank transfers commercial banks execute payment orders of foreign banks or pay in accordance with the terms of correspondent agreements issued on them bank checks 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 transferee's bank is guided by specific instructions contained in the payment order. For example, a payment order may contain a condition on payment to the beneficiary of the corresponding amount against the provision by him of commercial or financial documents specified in the payment order or against the provision of a receipt to him.

When performing a transfer operation, banks take part in settlements by transfer only after the payer submits a payment order to the bank to pay for the contract. However, banks are not responsible for payment. Banks do not control the delivery of goods or the transfer of documents to the importer, as well as the execution of payment under the contract. With this form of payment, the bank’s responsibilities include only transferring the payment from the account of the transferor to the account of the transferee at the time of submitting the payment order.

The share of participation of banks in carrying out collection operations 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 specified by the payer in this or another specified bank within the period provided for by law or established in in accordance with it, unless a shorter period is provided for in the bank account agreement or is not determined by business customs applied in banking practice.

The role of banks in carrying out settlements between counterparties using letter of credit settlements is maximum compared to other forms and consists of 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 issuing the letter of credit cannot refuse to make 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 making any commitments regarding the goods listed in the sales contract.

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

Since international payments 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 influences the choice of payment form.

Since checks are not a lending instrument, but are a means of managing a current account, their validity period is limited. According to the Geneva Check Convention of 1931, which regulates check circulation in international payments, its validity period 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 payment in which payments under a foreign trade contract will be made is stipulated in the foreign trade transaction and is determined by a number of factors - the specifics of the application, the degree of risk of exporters and importers, the list of advantages and disadvantages of the form of international payments, the share of participation of commercial banks in settlements.