A study on the different aspects between the bank payment obligation under URBPO and undertaking payment of issuing bank in L/C transaction

Purpose: The BPO is an irrevocable undertaking given by one bank to another that payment will be made on a specified data following the successful electronic matching data‚ and is different from the Issuing Bank’s payment undertaking in the L/C transaction. Therefore the purpose of this study is that the BPO’s establishment and characteristics are investigated and the different aspects from L/C transaction will be elaborated. Research, design, data, methodology : This article dealt with and analyzed many domestic and foreign literatures and the articles of the URBPO 2013 and the UCP600, which were introduced in the D/C insight and foreign magazines. Results : As a result of this analysis‚ it was found that the BPO was much different from Issuing Bank’s Payment undertaking in the L/C‚ and had many problems in the practical trade. Conclusions : In this paper, if the problems of the BPO system are to be improved‚ the TSU/BPO system will lead to a useful payment solution in the international trade‚ and enable banks to offer flexible risk mitigation and financing services across the supply chain.