1. 外贸英语函电 Business English Correspondence 上海交通大学出版社

2. Project 9 Module 4 Execution of a Contract Project 10 Project 11 Project 12 Project 13

3. PART01 PART02 Task 1 Task 2 Project 9 Payment PART 04 Practice PART 03 Task 3

4. Project 9 Payment Learning Objectives By the end of this project, you will be able to: ☆ discuss the payment with your customers ☆ express your dissatisfaction and urge the buyer to establish L/C ☆ ask the buyer to amend the L/C and state the reasons ☆ ask the buyer to extend the expiry date and shipment date and state the reasons ☆ understand and translate the contents of a L/C

5. Background It is well-known that international payment is the most important part in international trade because the seller’s most interest is to get the money. However, international settlement is complicated and difficult due to the physical distances, customs and trade practices. There are mainly five kinds of terms of payment: remittance, collection, letter of credit, open account, payment in advance. Remittance is a settlement method by which the bank pays, at the entrustment of the remitter to the beneficiary. Compared with the letter of credit and collection, the remittance has the characteristics of simple formality and low charge. T/T, M/T and D/D are remittance. T/T is the fastest, but the charge is the highest. A letter of credit is a bank’s promise of payment. It is a written undertaking by an issuing bank given to the seller (beneficiary) at the request, and on the instructions of the buyer (applicant) to pay at sight or at a determinable future date up to a stated sum of money, within a prescribed time limit and against stipulated documents or other conditions. A letter of credit provides almost equal security to both the buyer and the seller and is second only to payment in advance in terms of security to the seller. It provides security of payment to the seller and enables the buyer to ensure that he receives the goods as ordered and delivered in the way he requires.

6. Collection is an order by the seller to his bank to collect payment from the buyer in exchange for the transfer of documents that enable the holder to take possession of the goods. Collection is not so safe as L/C, but collection is easier to use, and bank charges are usually lower. There are three kinds of collection: D/P at sight, D/P after sight and D/A. Under D/P, the bank releases the documents to the buyer only upon full payment. Under D/A, the collecting bank is permitted to release the documents to the buyer against acceptance of a time draft. Payment in advance requires that the buyer pays the seller before shipment of the goods ordered. Payment in advance is the most secure for the seller. Open account allows the buyer to make payment after he gets the goods. In other words, the goods are manufactured and delivered before payment is made. Open account is the most secure for the buyer but leaves the most risk to the seller.

7. Task 1 Discuss Matters about Payment Task You are John, the sales representatives of Guangdong Homestar Electric Appliances Co., Ltd. One of your customers suggest that the payment should be made by D/A instead of L/C as the preliminary negotiation. Write a tactful letter explaining that you accept D/A as the payment terms for this transaction, but in the future transactions only L/C will be accepted.

8. Writing Skills Common ways to organize your information:

9. Useful Expressions 1. We must stress that this departure from our usual practice relates to this transaction only. 2. We have today instructed our Bank, the Frank Bank in London to open in your favor a confirmed, irrevocable letter of credit with partial shipment and transshipment allowed clause. 3. In view of the small amount of this transaction, we are prepared to accept payment by D/P at sight for the value of the goods shipped. 4. We consider it advisable to make it clear that for further transactions D/P will only be accepted if the amount involved for each transaction is below $1,000.00. If the amount exceeds that figure, payment by Letter of Credit will be required.

10. Specimen Letters Letter 1

11. Letter 2

12. Letter 3

13. Task 2 Urge Establishment of L/C Task According to the contract, Sunny Trading Pty. Ltd. should open the L/C before February 3, 2013. However, you have not received the L/C up to today, February 6, 2013. You are John, the sales representatives of Guangdong Homestar Electric Appliances Co., Ltd. Please write a letter to urge Sunny Trading Pty. Ltd. to issue the L/C.

14. Writing Skills A letter of urging establishment of L/C should:

15. Useful Expressions 1. We regret having received no news from you up till now. 2. We regret that up to this date we have received neither the required letter of credit nor any further information. 3. We regret to say that your letter of credit has not yet reached us up to the time of writing. 4. It has caused us much inconvenience as we have already made preparations for shipment according to the stipulations of the said sales confirmation. 5. The shipment date is approaching. We must point out that unless your L/C reaches us by the end of this month, we shall not be able to effect shipment within the stipulated time limit. 6. We wish to draw your attention to the fact that the goods have been ready for shipment for a long time and the covering letter of credit has not been received up to now. Please let us know the reason for the delay. 7. Please expedite the issuance of the L/C.

16. Specimen Letters Letter 4

17. Letter 5

18. Letter 6

19. Task 3 Ask for Amendment and Extension of a L/C Task On February 8, 2013, you receive the L/C from Sunny Trading Pty. Ltd. Check the L/C against the contract No.BRS2013-05235 to see whether the stipulations in the L/C are in exact accordance with the terms and conditions of the contract. If not, please write a letter to Sunny Trading Pty. Ltd. to ask for proper amendments. Step 1: Try to understand and translate the clauses of L/C with your group member. Step 2: Read the L/C carefully and circle the points that are not in conformity with the terms of the contract. Step 3: Write a letter to ask Sunny Trading Pty. Ltd. to amend the discrepancies.

20. Letter of Credit

24. Sales Contract

29. Writing Skills A letter of asking for L/C amendment or extension should:

30. Useful Expressions 1. We have found several points that are not in accordance with the stipulations in the contact. 2. We regret that we could not ship the goods by a March vessel only because of the delay of your L/C. Please attend to this matter with all speed. 3. We are unable to effect shipment according to the price and other terms originally agreed upon owing to the delay of your letter of credit, and therefore the responsibility for any loss arising subsequently will wholly rest with you. 4. Please amend L/C No.475 as follows: a) Amount to be increased up to US$45,500.00. b) Validity to be extended to 30th September. c) The words “Transshipment Not Allowed” are to be deleted. 5. We regret to ask you to extend the shipment and validity to September 15 and 30 respectively.

31. Specimen Letters Letter 7

32. Letter 8

33. Letter 9

34. Letter 10

35. Practice I. Translate the following terms. 装船通知 ___________________ 信用证类型 _____________________ 定金 _______________________ 受票人 \ 付款人 __________________ 水渍险 _____________________ （信用证）申请人 _______________ 货物描述 ___________________ 运费已付 ______________________ 提示期限 ___________________ 分批装运 _______________________ 转运 _______________________ （信用证）受益人 _______________ 仓储费 _____________________ 最迟装运日期 ___________________

36. II. Translate the clauses of the L/C into Chinese. 1. FULL SET OF CLEAN ON BOARD OCEAN BILL OF LADING MADE OUT TO THE ORDER OF SHIPPER BLANK ENDORSED AND MARKED “FREIGHT PREPAID” NOTIFYING THE APPLICANT. ____________________________________________________________________ 2. DOCUMENTS TO BE PRESENTED WITHIN 10 DAYS AFTER THE DATE OF SHIPMENT INDICATED ON TRANSPORT DOCUMENT(S) BUT WITHIN THE VALIDITY OF THE CREDIT. ____________________________________________________________________ 3. ALL BANK COMMISSIONS AND CHARGES OUTSIDE AUSTRALIA ARE FOR ACCOUNT OF BENEFICIAY. ____________________________________________________________________

37. III. Translate the following sentences into English. 1. 我们已经通知中国农业银行深圳分行，开立以你方为抬头的保兑的、不可撤消 的信用证。 ____________________________________________________________________ 2. 我们通常的做法是凭即期付款交单而不是信用证。 ____________________________________________________________________ 3. 我们感到遗憾，由于你方信用证耽误，我们的货不能在 3 月份装运。 ____________________________________________________________________ 4. 由于你方没有及时开立有关的信用证，我们不得不撤销这确认书，并要求你方 负担由此而产生的一切损失。 ____________________________________________________________________ 5. 你方 638 号信用证条款中，我们发现有下列两点与合同条款不符。 ____________________________________________________________________ 6. 请把你方第 NK3648 号信用证的装船期和有效期分别延至 2008 年 12 月 2 日和 12 月 30 日。 ____________________________________________________________________ 7. 第 789 号合约项下的 500 辆自行车备妥待运已久，但至今尚未收到你们的有关信 用证。 ____________________________________________________________________

38. IV. Please write a letter to urge establishment of L/C. 你方货物已备妥，但仍未收到对方的信用证，现在写一封信催促对方开立相 关的信用证。 V. Examine the L/C with the following contract to see whether the stipulations in the L/C are in exact accordance with the terms and conditions in the contract. If not, please write a letter to ask for proper amendments. Note: shrink film 热收缩薄膜

44. Sales Contract

50. Thanks For your attention