A CRITICAL APPROACH TO THE COMMISSIONS AND TAXES CHARGED BY BANKS ON INTERNATIONAL PAYMENT TERMS

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Payment under letter of credit L/C and payment against documents as international payment terms are used in order to prevent probable difficulties between the drawee and the drawer. Banks acting as intermediaries in foreign trade by using those payment terms charge various commissions and taxes. As a result of the shortage of uniform customs for commission amounts in practice, critiques of banks charging inequitable commissions and taxes are made at times. Considering those charges causing conflicts between the drawer -drawee and their banks as both parties of foreign trade, this study is designed to recommend resolutions with the help of various applications and to emphasize the importance of international chamber of commerce to prevent the conflicts.

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International trade , Letter of credit L , C , Payment against documents , International Chamber of Commerce , Commission , Tax

Ege Academic Review (EAR)

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Ege Academic Review (EAR)