International Trade Finance—A Practical Guide (Second Edition)
There are few textbooks or reference works on international trade finance pertaining to Hong Kong. This text covers all the basic concepts of international trade and takes into account actual practices of trade financing in Hong Kong. The book consists of two sections—the Principles Section and the Practical Guide Section. Risks associated with most trade-finance products are discussed.
This second edition represents a substantial revision to the first edition first published in 1999. Readers will find this book an update of the adoption of UCP–600 and new practices of the services by ECIC and major trade promotion institutions in Hong Kong. Major differences between Incoterms 2000 and 2010 will also be discussed.
The book provides ample and systematic material for the training of practicing bankers, import and export managers, and lawyers. Students of the subject Finance of International Trade of the Associateship Examination of the Hong Kong Institute of Bankers would find this book very useful for preparing the Examination.
It has been more than a decade since the publication of the first edition and three years after the fifth printing of the first edition in 2008. The second edition of this book represents a substantial revision to the first edition. Several chapters have
Chapter 5 Documentary Credit has been updated to reflect the adoption of UCP–600.
Chapter 7 Export Credit Insurance has been rewritten to reflect the most up-to-date roles of and services offered by ECIC.
Chapter 8 Important Trade Promotion Institutions in Hong Kong has been rewritten to reflect the introduction of new services, apart from the existence of the traditional services.
Chapter 15 Uniform Customs and Practice for Documentary Credit has been fully rewritten to reflect the current version of the rule governing the operation of documentary credit — UCP–600. True/false questions with answers and explanations have been added in this chapter with a wish to help reader understand more thoroughly the new rules.
At the time of writing, I am fully aware that Incoterms 2010 will come into force early next year. Therefore, I have added a few pages in Chapter 3, drawing readers’ attention the major differences between Incoterms 2000 and Incoterms 2010. As international trade finance is an ever-changing subject, readers are advised to keep abreast of the latest developments by reading trade articles, journals and ICC (International Chamber of Commerce) newly published materials. For the remaining chapters, they have been checked and amended to ensure accuracy.
I firmly believe that the second edition can in particular give readers an insight of UCP–600 and understanding of the most up-to-date services offered by the trade promotion institutions in Hong Kong.
Lastly, I would like take this opportunity to express my sincere thanks to the Editorial Manager of City University of Hong Kong Press, Mr. Edmund Chan, for his great effort in editing the 2nd edition. Any omissions and mistakes, if any, are of course mine.
1. Terms of Payment in International Trade
2. Shipping Documents in International Trade
3. Shipping Terms Used in International Trade
4. Documentary Collection
5. Documentary Credit
6. Banking Facilities and Services for Exporters and Importers
7. Export Credit Insurance
8. Important Trade Promotion Institutions in Hong Kong
9. Contractual Relationship of Various Parties in a Documentary Credit Operation
Part 2—Practical Guide
10. Transferable Credit (Letter of Transfer)
11. Back-to-Back Credit and Bridge Credit
12. Red Clause Credit, Revolving Credit and Standby Credit
13. Various Types of Bonds in International Trade
14. Uniform Rules for Collections: ICC Publication N。522
15. Uniform Customs and Practice for Documentary Credit: ICC Publication N。600
16. Uniform Rules for Bank-to-Bank Reimbursement: ICC Publication N。525
17. Questions and Answers