Peranan Letter of Credit Sebagai Alat Manajemen Risiko

Organization manages risk in order to mitigate risk and uncertainty. They identify risks and minimize negative impact of those risks. Letter of Credit used to fund trading of goods and services between two parties who doesn\u27t know each other. Letter of Credit often used in trading between countries. The reason why Letter of Credit can be classifying as an effective payment systems is because it is safe, for exporter or importer. Because of the safety of Letter of Credit, it is often used in International trading

LETTER OF CREDIT (L/C) SYARIAH MENURUT HUKUM EKONOMI ISLAM

JUJU SYAHRIYAH. 14122210993.LETTER OF CREDIT (L/C) SYARIAH MENURUT HUKUM EKONOMI ISLAM,2017. Letter of Credit adalah salah satu jasa yang diberikan oleh bank sebagai penjamin kepada para nasabah yang melakukan transaksi ekspor-impor. Seiring perkembangan zaman, Bank Syariah mulai menerapkan Letter of Credit dalam produk jasanya guna memfasilitasi para nasabah yang ingin tetap menggunakan kaidah-kaidah Islam pada setiap kegiatan. Namun, masih ada kekhawatiran pada penerapan Letter of Credit Syariah mengenai sifat keuntungan yang diperoleh Bank Syariah, apakah sudah jauh dari unsur riba melihat pada jenis produk jasa L/C Syariah adalah adaptasi dari produk jasa bank konvensional. Serta sudah sesuaikah menggunakan Wakalah bil-Ujrah sebagai akad pelengkap dalam L/C Syariah. Penelitian ini bertujuan untuk mengetahui bagaimana Letter of Credit Syariah di tinjau dari Hukum Ekonomi Islam, serta mekanismenya yang dilandasi dengan akad Wakalah bil-Ujrah. Penelitian ini dengan menggunakan penelitian kualitatif mengambil wilayah kajian Hukum Ekonomi Syariah melalui pendekatan deskriptif (normatif) yang bersifat deskriptif analitik, yaitu penelitian yang menggambarkan, menelaah, menjelaskan dan menganalisis suatu peraturan hukum, dengan tekhnik Library Research yaitu menelaah data dari beberapa literatur yang berkaitan, baik dari bukubuku, jurnal, dan bahan tertulis lainnya yang berkaitan dengan Letter of Credit Syariah. Hasil Penelitian menunjukan bahwa Letter of Credit Syariah menurut Hukum Ekonomi Islam adalah sesuatu yang di hukumi boleh atau mubah, karena tidak ada dalil yang melarangnya. Dan mekanisme penerapan akad Wakalah bil-Ujrah pada transaksi Letter of Credit (L/C) Syariah sangan sederhana sehingga memudahkan para nasabah yang ingin menggunakan fasilitas jasa ini. Kata Kunci : L/C Syariah,Wakalah bil Ujrah, Hukum Ekonomi Isla

Reconciling the Old Theory and the New Evidence: Comments on Ronald Mann\u27s \u27The Role of Letters of Credit in Payment Transactions\u27

Ronald Mann\u27s thorough research and rigorous analysis provide compelling evidence that the commercial letter of credit does not further the fundamental purpose traditionally associated with it. Equally persuasive are his hypotheses about the functions that letters of credit actually serve in the real world. The objective statistics are startling. An overwhelming majority of letter of credit seller-beneficiaries make at least initial presentations to issuing or correspondent banks that by the express terms of the letter of credit do not entitle the seller to payment. Without a waiver from its customer, the issuing bank is legally entitled to, and surely will demand, strict compliance with these terms. It is only the voluntary foregoing by the buyer-applicant of its own unambiguous formal power, which is essentially always forthcoming, that enables the seller to draw on the letter of credit. Thus, the normal course of a letter-of-credit transaction at least initially places the seller at the mercy of the buyer. Given these empirical findings, it is difficult to believe that the persistent use of letters of credit in commercial transactions has anything to do with their theoretical potential to ensure that the seller actually gets paid. It is difficult to believe, but not impossible. Mann recognizes that his evidence does not conclusively refute the traditional view that the principal function of the letter of credit is to assure payment. At least one plausible conceptual account of the letter of credit remains that is consistent both with the new, surprising empirics and the old idea that the commercial letter of credit is primarily an atomic element of the payment system. The traditional view does not depend on the legal enforceability of letters of credit because one does not need legal rights to feel assured of payment

Garment Exporter View on Letter of Credit

Letter of credit is as ‘documentary credit'. This can offer a guarantee to the seller that they will be paid, and the buyer can be sure that no payment will be made until they receive the goods. The main advantage of using a letter of credit is that it can give security to both the seller and the buyer. A letter of Credit is the Buyer's Banker's promise to the Bank of the Seller / Exporter that the bank will honor the Invoice presented by the Exporter on due date and make payment, provided that the Seller/Exporter has complied with all the requirements and conditions set by the Importer mentioned in letter of credit or the Buyer's Purchase Order and produced documentary evidence to prove compliance, along with the necessary shipment related documentation

The Flip Side of Twist Cap: Letters of Credit as Executory Contracts in Bankruptcy

This article analyzes the treatment of letters of credit as executory contracts in bankruptcy. Some courts had stated that the bankruptcy of the beneficiary terminates a letter of credit. This article concludes that decisions were incorrect in treating a letter of credit as an executory contract to provide financial accommodations to the beneficiary. A letter of credit is not a means to provide credit to the beneficiary: it is a means to provide credit to the applicant (and thereby allowing the applicant and beneficiary to avoid extending credit to each other). The issuer is not dependent on the credit risk of the beneficiary, rather that of the applicant. So terminating the letter of credit due to the beneficiary\u27s bankruptcy does not fit the executory contract framework in bankruptcy

Conflict and Explanation About the Use of Negotiable Instrument Law of China for the Documentary Letter of Credit Draft

The documentary letter of credit draft, first of all, depends on compulsory procedure of bill of exchange, legal status of sides during negotiating bank registration, unconditional payment and endorsement with signature and stamp; it also depends on other questions and conflicts, occurred with the use of UCP600. The applicable of the documentary letter of credit draft suffered from negotiable instrument law in China and the international convention on the law. Through the analysis of bill legal interpretation rules and international law practice, the documentary letter of credit draft not only matches the bill of exchange, but also plays the role of bill of exchange with unconditional payment. This provides the logic basis for the documentary letter of credit draft to apply negotiable instrument law in China and forward the legal interpretation to resolve the conflict

MEKANISME TRANSAKSI EKSPOR DENGAN NEGOTIATION LETTER OF CREDIT (L/C) PADA PT. BANK NEGARA INDONESIA (Persero) Tbk KCU SURAKARTA

ABSTRAKSI MEKANISME TRANSAKSI EKSPOR DENGAN NEGOTIATION LETTER OF CREDIT (L/C) PADA PT. BANK NEGARA INDONESIA (Persero) Tbk KCU SURAKARTA Oleh : Daning Fitri Hafidha F3610024 Penulisan Tugas Akhir ini bertujuan untuk mengetahui mekanisme transaksi ekspor dengan Negotiation Letter of Credit (L/C), sebab-sebab discrepancies (penyimpangan) dokumen serta tindakan yang dilakukan untuk menanggulangi hal tersebut yang ada di PT. Bank Negara Indonesia (Persero) Tbk KCU Surakarta. Metode yang digunakan dalam penelitian ini yakni dengan melakukan pengamatan secara langsung pada satu obyek tertentu, wawancara langsung dengan asisten luar negeri serta dengan mempelajari dan membaca buku-buku yang berkaitan dengan penelitian yang akan dibahas. Hasil dari penelitian ini yaitu mekanisme transaksi ekspor dengan Negotiation Letter of Credit (L/C) yang ada di PT. Bank Negara Indonesia (Persero) Tbk KCU Surakarta pada praktiknya berpedoman dengan UCP yang berlaku saat ini yaitu UCPDC 600 tahun 2007 dan sesuai dengan buku pedoman kerja yang ada di PT. Bank Negara Indonesia (Persero) Tbk. Penyebab utama discrepancies dokumen pada Letter of Credit (L/C) umumnya terjadi akibat kurangnya ketelitian para pelaku ekspor untuk memenuhi persyaratan yang diminta dalam Letter of Credit (L/C), sehingga membuat pihak bank harus teliti dalam memeriksa kelengkapan dokumen dan memastikan semuanya telah lengkap. Untuk mengatasi permasalahan tersebut, para pegawai PT. Bank Negara Indonesia (Persero) Tbk KCU Surakarta sudah memiliki berbagai cara dalam mengatasi permasalahan tersebut dengan mengacu pada UCP yang berlaku dan sesuai dengan aturan pedoman kerja. Saran yang dapat direkomendasikan dari penelitian ini yakni diperlukan kesungguhan, kejujuran serta ketelitian dari masing-masing pihak untuk melaksanakannya mulai dari sales contract hingga penyelesaian pembayarannya, agar tidak terjadi discrepancies, sehingga apa yang ditransaksikan benar-benar sesuai dengan yang diperjanjikan dalam sales contract. Kata Kunci : Mekanisme Ekspor, Negotiation, Letter of Credit (L/C) ABSTRACT MECHANISM OF EXPORT TRANSACTIONS WITH NEGOTIATION LETTER OF CREDIT (L/C) IN THE PT. BANK NEGARA INDONESIA (Persero) Tbk KCU SURAKARTA By: Daning Fitri Hafidha F3610024 This final project aims to determine the mechanism of export transactions with Negotiation Letter of Credit (L/C), the causes of discrepancies (deviations) document as well as the actions taken to overcome it in the PT. Bank Negara Indonesia (Persero) Tbk KCU Surakarta. The method used in this study namely by direct observation on a single object, interviews with foreign assistants as well as by studying and reading books related to the study will be discussed. Results from this research that the mechanism of export transactions with Negotiation Letter of Credit (L/C) in the PT. Bank Negara Indonesia (Persero) Tbk KCU Surakarta, in practice, be guided by current UCP is UCPDC 600 in 2007 and according to the manual work in the PT. Bank Negara Indonesia (Persero) Tbk. The main cause of the discrepancies document on Letter of Credit (L/C) is generally caused by a lack of rigor actors export to meet the requirements requested in the Letter of Credit (L/C), thus making the bank must be careful in checking the completeness of the documents and make sure everything has been complete. To overcome these problems, the employees of PT. Bank Negara Indonesia (Persero) Tbk KCU Surakarta already have a variety of ways to overcome these problems by reference to the applicable UCP and in accordance with the guidelines set out in the rules. Suggestions that can be recommended from this study that the required seriousness, honesty and accuracy of each of the parties to execute start of the sales contract until the completion of the payment, to avoid discrepancies, so what actually transacted in accordance with the agreement in the sales contract. Keywords: Mechanism of Export, Negotiation, Letter of Credit (L/C

Article 5 - Recent Developments

I. Mitigation in Letter of Credit Transactions Assume a Buyer has procured a letter of credit to pay for contracted goods but no longer wants the goods. The Buyer and the Issuer would like to force the Beneficiary to mitigate. Assume that both the Issuer and Applicant repudiate their obligation or that the Applicant has failed and the Issuer repudiates its obligation to pay under the letter of credit. At the moment of repudiation the price for a gallon of the underlying oil that is the subject of the letter of credit is $.75 and that the letter of credit provides for payment at$1.00 per gallon. Seller off loads the oil, presents the proper documents and the documents are dishonored when the oil is worth $.75. The oil continues to decline in value to$.40 and the Beneficiary sues the Issuer and asks for the full amount of its draw. (Assume that to be $1 per gallon times 1 million gallons or a$1 million claim.) Can the Issuer reduce the Beneficiary\u27s claim by the amount that could have been saved by the Beneficiary\u27s mitigation--namely the difference between $.75 per gallon (the value of the oil at the time of repudiation) and$.40 per gallon (the value of the oil at the time of buyer\u27s later disposition)? The answer is no. One sentence in Section 5-11l(a) reads as follows: The claimant is not obligated to take action to avoid damages that might be due from the issuer under this section

Article 5 - Recent Developments

I. Mitigation in Letter of Credit Transactions Assume a Buyer has procured a letter of credit to pay for contracted goods but no longer wants the goods. The Buyer and the Issuer would like to force the Beneficiary to mitigate. Assume that both the Issuer and Applicant repudiate their obligation or that the Applicant has failed and the Issuer repudiates its obligation to pay under the letter of credit. At the moment of repudiation the price for a gallon of the underlying oil that is the subject of the letter of credit is $.75 and that the letter of credit provides for payment at$1.00 per gallon. Seller off loads the oil, presents the proper documents and the documents are dishonored when the oil is worth $.75. The oil continues to decline in value to$.40 and the Beneficiary sues the Issuer and asks for the full amount of its draw. (Assume that to be $1 per gallon times 1 million gallons or a$1 million claim.) Can the Issuer reduce the Beneficiary\u27s claim by the amount that could have been saved by the Beneficiary\u27s mitigation--namely the difference between $.75 per gallon (the value of the oil at the time of repudiation) and$.40 per gallon (the value of the oil at the time of buyer\u27s later disposition)? The answer is no. One sentence in Section 5-11l(a) reads as follows: The claimant is not obligated to take action to avoid damages that might be due from the issuer under this section