Check

A check is a common payment instrument in international trade, referring to a negotiable instrument issued by a drawer (usually the importer or buyer) that instructs a bank to unconditionally pay a specified amount to the payee (exporter or seller) or bearer upon presentation. In foreign trade, checks are often used for small transactions or settlements between long-term cooperative customers, featuring simple procedures and low costs. When using checks, note: first, the validity period is usually short (e.g., 6 months), so timely presentation for payment is required; second, if the drawer's account balance is insufficient, the check may be dishonored, leading to collection risk; third, checks need to be collected through banks, which may involve cross-border mailing and clearing time, affecting the speed of fund recovery. Compared with letters of credit, checks lack bank credit guarantee and are less secure; compared with telegraphic transfers, checks arrive slowly and carry the risk of bounce. Therefore, it is recommended that exporters verify the drawer's credit after receiving a check, or require bank certification. In addition, different countries have different legal provisions and format requirements for checks, and local negotiable instruments laws must be observed.