Project 7Project 7

Payment Payment

1. Modes of Payment2. Remittance 3. T/T, M/T, D/D4. Collection 5. Document Against Payment6. Document Against Acceptance

Main & Difficult Points

In international trade, how to get paymentof the goods delivered is a matter of utmostconcern to the seller, simply because it is not easy to follow bad debts when the buyer livesin the foreign country.

Payment clause is very important in foreigninternational sales contract including such aspects as amount, time, place, currencies, modes and instruments of payment.

Contents of PaymentContents of Payment

In international trade, there are three majormodes of payment that the buyers may adapt,as follows: • Letter of Credit• Remittance• Collection

Modes of PaymentModes of Payment

CollectionCollection

It is a paying arrangement under which the exporter, asdrawer of a bill of exchange, hands the bill of exchange to his bank, who in turn forwards it to the buyer through a collecting bank in the buyer’s country. Collection can be divided into two kinds of types: cleancollection and documentary collection. A documentary collection falls into two major categories:• document against payment (D/P)• document against acceptance (D/A)

CollectionCollection

This Mode of payment means that the payer( usuallyThe buyer) remits a certain sum of money in accordance with the parties’ agreement to the payee (usually the seller) through a bank. Payer may remit the sum in the following manner: • Mail Transfer (M/T)• Telegraphic Transfer (T/T)• Demand Draft (D/D)

RemittanceRemittance

A letter of credit is a written undertaking, giving at the request ofthe buyer, by the buyer’s bank (the issuing bank) to pay a seller(the beneficiary), usually through an advising or negotiating bankin the beneficiary’s country, provided the terms and conditions ofthe credit are complied with and documents called for by the creditare presented within the time limit specified.L/C is widely used in the international trade, which the banker isresponsible to pay money and render documents on the behalf ofboth parties.

Letter of CreditLetter of Credit

4-1-2 Sample Letters4-1-2 Sample Letters

• 4-1-2-1 Layout of Payment

Dear Sirs, We have received your letter dated 20th

April in connection with the issue of L/C. In reply, we have the pleasure of informing you that an irrevocable letter of credit No. 678 in your favor, amounting to US$6700.00 has been opened with the Manhattan Bank, New York, valid until 30th September. The letter of credit authorizes you to draw at 60 days’ on the bank in New York for the 100% of invoice value after shipment is made.

1. 称呼

2. 正文

(1). 告知开证信息（信用证编号、开证金额、信用证受益人、开证银行、信用证有效期等。）

drafts under this L/C must bear on their face the words “Drawn under Bank of Manhattan, New York, Letter of Credit number 678, dated April 28, 2007”. Before accepting the draft, the bank will require you to present the following documents:Six copies of the bill of ladingFive copies of seller’s Commercial Invoice, indicating Contract No.Packing List in duplicateCertificate of OriginCertificate of QualityWe will expect your consignment about the middle of November. Yours faithfully,

XXX

(2 ）通知议付

所需单据

(3 ）提醒对方

按时交货

14.结束礼词

4. 签名

1. issue v. 开立 issue L/C 开立信用证 类似的表达还有： open/establish L/C 开立信用证

2. irrevocable letter of credit 不可撤销的信用证 revocable letter of credit 可撤销的信用证 We will issue an irrevocable letter of credit in your favor. 我们将开立以你方为受益人的不可撤销的信用证。

3. amount to 总金额达… My savings amount to $2000. 我的储蓄共达 2000 美元。

Language Points

1. draw vi. 开具汇票 draw a draft on sb. for a sum against sth. We have drawn a draft on you for ￡ 100 against your

order. 对于你方的订货， 我们已向你方开出金额为 400 英镑的汇

票。 We have draw on you at 60 day' sight a draft for

$90,000, under the credit no.450 of June 6, in favor of the Tokyo Bank.

对 6 月 6 日第 450 号信用证，我公司已开出面额为90 ， 000 元的汇票 , 该汇票以东京银行为受益人，付款日期为见票后 60 天。

8. bear on their face the words 票面上注明

10.drawn under 出票依据

7. accept the draft 承兑汇票 We are willing to accept your draft for the a mount involved payable at 60 day's sight. 我方愿承兑贵方开立的见票后 60 天付款汇票的总额。

8. present 呈递 The new ambassador is expected to present his credential tomorrow. 这位新任大使预定于明日呈递国书。

9. in duplicate 一式两份 We will send our catalogues in duplicate. 我们将寄出我们的商品目录一式两份。

10. Certificate of Origin 原产地证明书

11. Certificate of Quality 质量证明书

• 4-1-2-2 Sample Letters

Payment by D/P

Dear Sirs,

We have received your letter dated March 3.We regret that we are unable to consider your request for payment on D/A terms. As a rule, we ask for payment by L/C.

But, in view of our long friendly relations, we will, as an exception case, accept payment for your trial order on D/P basis. We consider it advisable to make it clear that if the amount exceeds USD 10,000, payment by L/C will be required.

Sample Letter 1

We hope the above payment terms will be acceptable to you and expect to receive your trial order in due course. We look forward to your early reply. Sincerely yours,

XXX

1. D/A: document against acceptance 承兑交单

We regret we can‘t accept D/A. 很抱歉我们不能接受承兑交单。

2. in view of … 鉴于

In view of our long and friendly business relationship, we make you a special allowance by 4%. 鉴于我们长期友好的业务关系我们给予你方 4% 的特殊折让。

3. as an exception case 作为特例

We'll give you a 2% discount as an exception to our usual practice. 我们破例给予你方 2% 的特殊折扣。

Language Points

4. on…basis 在…基础上

We can do the business on60 days D/P basis. 我们可以按 60 天付款交单的方式进行交易。

5. exceed 超出

The cost will not exceed ￡ 50. 费用不会超过五十镑。

6. be acceptable to sb. 可以接受

Is the proposal acceptable to you? 这个建议你认为可以接受吗？

8. in due course 及时

I receive in due course your letter of the 30th July. 我们如期收到您的 7 月 30 日的来信。

Urging establishment of L/C

Dear Sirs, With regard to your S/C No. ABC 598 for 1,000 cases of black tea, we regret up to the present we have received neither the covering L/C nor any further information from you. Please note that, as agreed, the terms of payment for the above goods are by sight Letter of Credit established within 2 weeks upon the receipt of our Sales Confirmation.

Sample Letter 2

We hereby request you to open an irrevocable sight Letter of Credit for the amount of USD 10,000 in our favor so that we can execute the above order within the prescribed time.

Your early reply will be highly appreciated.

Yours truly,

XXX

1. with regard to 关于1) 关于包装方面，我们无法接受你方的要求。 with regard to your packing, we can’t accept your requirement. 2. black tea 红茶1) 我们有红茶、绿茶和普洱茶。 We serve black tea, green tea and puer tea. 4. up to the present 到目前为止 1) 直到现在我还没收到你方信函。 Up to the present, we have not received your letter. 5. covering L/C 相关的信用证 relative L/C 1) 请立即开以我方为抬头人的相关的信用证。 Please open relative L/C in our favor without any delay.

Language Points

6. irrevocable sight Letter of Credit 不可撤销的即期信用证1) 我们将开立以你方为受益人的不可撤销的即期信用证。

We will issue an irrevocable sight Letter of Credit in your favor.

7. in our favor 以我方为受益人

in your favor 以你方为受益人

8. execute the above order within the prescribed time 在规定的时间内执行上述订单

Asking for extension of L/C

Dear Sirs ，

Referring to the stipulations in S/C No. 2279, shipment could be effected in March provided your L/C reached us not later than the 20th of this month. However, we received your L/C yesterday and it is absolutely impossible for us to ship the goods in March. Under the circumstances, we regret to have to ask you to extend the above L/C to April 31 and May 15 for shipment and negotiation respectively, with the amendment to reach us by March 30, otherwise shipment

Sample Letter 3

will be further postponed.

We are looking forward to receiving your faxed extension to the letter of credit so that we can effect shipment of the goods. Yours faithfully,

XXX

1. Referring to 参阅

2. provided 如果1) 如果司机们不罢工的话，下星期将可交货。 The goods will be delivered next week provided or providing the drivers were not on strike. • • Language 3. effect shipment 装运 make shipment 1) 我们将在合同规定的期限内装船。 We shall make shipment within the time the contract stipulate. 4. not later than 不迟于1) 你方的订单应该在本月中旬之前到达我方。 Your order should reach us not later than in the middle of this month.

Language Points

5. under the circumstances 在此情况下

1) 在此情况下， 你应该尽早装运。

Under the circumstances, you should effect shipment promptly.

6. extend to 展期至……

1) 我们将信用证延至 5 月 5 号。

We extend the L/C to May 5. 7. postpone v. 延期

1) 我被迫推迟这次访问。

I was forced to postpone my visit. 。

Amending the L/C

Dear Sirs ，

We have received your L/C No.2635 issued by the Bank of China . On perusal, we find that transshipment and partial shipment are not allowed. As there is no direct sailing from Shanghai to your port during February/March, we have to ship via London more often than not .As a result, transshipment may be necessary. As to partial shipment, it would be to our mutual benefit, if we could ship immediately the goods we have in stock instead of waiting for the whole shipment to be completed.

Sample Letter 4

With this in mind, we faxed you today, asking for the letter of credit to be amended to read: “TRANSSHIPMENT AND PARTIAL SHIPMENT ALLOWED” We trust this amendment will meet with your approval and you will fax us to that effect without delay. Yours faithfully,

XXX

1. on perusal 细读1) 一经祥阅，我们发现不允许转船和分批装运，请将你方信用证

修改 “ 允许转船和分批装运”。 On perusal, we find that transshipment and partial shipment are not allowed. Please amend you L/C to read "Transshipment and partial shipment allowed". 2.sailing n.航行，开船1)由于没有驶往你港的直轮，我方要求你方修改信用证，允许转

船。 Since there is no direct steamer sailing for your port, we would request you to amend your L/C to allow transshipment. 3. more often than not 多数时候 1)她上学多半迟到。 She‘s late for school more often than not.

Language Points

6. mutual benefit 互利1) 我们要建立互利互补，共同发展的新型国际经济关系。 We must establish a new type of international economic relations featuring mutual benefit, mutual support and common development.

8.have… in stock 存货，现货 1) 我们有 100台缝纫机的现货。 We have 100 sets of sewing machines in stock.

9.approval 赞成 1) 如果贵公司的费率能得到我公司的认可，我们将与贵公司签定一

契约。 If your rates meet with our approval, we will sign a contract with your company.

Dear Sirs,

Payment by L/C

Referring to your Contract No.S467, we regret that we are unable to consider your request____________________________________ You are well aware that our usual terms of payment are by ____, which have been widely accepted by___________________________ For your information,______________________________________________________________________________________________.

We look forward to your early reply.

Sincerely yours,

XXX

4-3-3 Simulation of Writing Letters

for payment by D/A of yourContract No.S467.

L/C

1. 称呼

2. 事由 信用证付款

3. 正文：（ 1 ）贵方S467 合同 D/A 付款要求歉难接受；

(2) 告知对方 L/C 付款为我司惯例 ,并已被对方国家大部分客户所接受；

(3)顺便奉告产品需求旺盛，价格趋涨，敦促对方早日成交；

(4) 盼复。

4. 结束礼词

5. 签名

most of customers in other countries. As the demands

for the goods are very heavy and the prices are increasing, we urge you to conclude the business at an early date.

• 4-1-5 Practicing

Part 1 Words and ExpressionsThis part is to practice your ability to use words andphrases correctly

Ex1. Translate the following terms and expressions

A． into Chinese

1. confirmed irrevocable letter of credit 2. issuing bank 3. documents against payment 4. make/effect payment 5. remain valid for negotiation in China 6. payment in advance 7. promissory note 8. extend credit validity 9. draw (a draft) on sb. 10. open a L/C

1. 保兑的不可撤销的信用证

2. 开证行

3. 付款交单

4. 支付

5. 在中国议付有效

6. 预付

7. 本票

8. ( 信用证 ) 展期

9. 向某人出具汇票

10. 开立信用证

B. into English

1. 开证申请人

2.凭即期汇票支付的

3. 一般支付条件

4. 汇票提示后

5.电汇

6. 受益人

7.托收

8. 通知行

9. 信汇

10. 分期付款

1. applicant2. payable by draft at sight3. usual terms of payment4. upon presentation of drafts5. T/T6. beneficiary7. collection8. advising bank9. M/T10. payment by installment

Ex2. Fill in the blanks with the words or phrases given in the box

6) We have heavy ________ to make before the end of this month. 7) The buyer requests his bank to ______ an L/C in favor of the seller.8) These payment terms are __________ for such orders in small

quantities.4) We have just been advised by the bank that our draft NO. 125 was

__________.5) I’m wondering whether you would ______ D/A.6) According to the ____________ in our Sales Confirmation No.AS25,we have drawn on you at sight. 7) As a rule ,we only accept __________ irrevocable letter of credit payable

by draft at sight.8) D/P will put to great trouble while an L/C will give us __________ of the

bank. 9) We regret to have found that there are certain clauses which do not

__________ those of the contract.10) All the documents required under L/C have been sent to the bank ___

__________ in due time.

payment dishonored stipulations confirmed concernedconform to issue exceptional accept protection negotiation

paymentissue

exceptional

dishonored accept

stipulations

confirmed

protection

conform to

concerned

Ex3. Choose the best answer to complete each of the following sentences

1. Our usual terms of payment are by irrevocable sight L/C, reaching us one month ____ shipment, remaining valid ____ negotiation in China ____. A. before, on, to allow transshipment and partial shipments B. after, in, and allow transshipment and partial shipments C. before, for, and allowing transshipment and partial shipments D. after, with, and allowing transshipment and partial shipments 2. The letter of credit is to be established through the Bank of China, payable ____ draft drawn at 30s’ sight. A. with B. by C. for D. to3. We will draw ____ you ____ 60 days ____ USD42,000 ____ your last shipment. A. for, on, for, on B. on, at, for, with C. for, for, for, for D. on, at, for, against 4. I suppose the terms of payment ____ acceptance ____ you, as we usually accept payment ____ arrival of goods. A. are, to, on B. is, for, before C. are, for, after D. is, to, on5. Enclosed ____ catalogues and price list ____ all the items available for export. A. is, for B. are, for C. have been, for D./, for

C

B

D

A

B

6. Payment by irrevocable L/C is convenient to us. And we shall draw a 30 day’s bill ____ your bank. A. with B. to C. from D. on7. The covering L/C must be confirmed by ____. A. the bank to accept us B. a bank acceptable to us C. the bank acceptable for us D. a bank acceptable by us8. The method of payment for each transaction ____ be agreed upon between the two trading parties at the time of ____. A. is to, negotiation the transaction B. are to, placing an order C. will be to, taking delivery of the goods D. has to, negotiating with the bank9. We are confident that you will find ____ ready market for the item ____ your end. A. /, at B. a, by C. a, at D. some, by 10. The two firms plan to ____ a joint venture( 合资企业 ) agreement. A. start on B. enter into C. intend for D. engage with

D

B

A

C

B

Ex4. Put in the missing words

Dear Sirs,

We are largest department store in Kuwait and have recently received anumber of ________ for your stainless –steel cutlery, we think there aregood prospects ___ the sale of this cutlery, but at present it is ______known here and as we can not count ______ regular sales we do not feelto make purchase on our own ______ We are ________ writing to suggest that you send us a trial delivery forsale___ D/A terms. We make the proposal hoping ____ place firm orderswhen the market is established. We believe our proposal offers good prospects and hope you will have atry. ___ to our standing, you may check it ____ our bankers, theNational Bank of Kuwait.

Yours faithfully,xxx

enquiries for little

onaccount

therefore

on to

As with

Part 2 Sentences This part is to test your ability to make sentences correctly. Ex5. Identify one error in each of the following sentences and then try to correct it.

2. With regard of terms of payment, we regret being unable to

accept T/T. 2. We have received your letter dated May 6, 2007, of which we

noted that you have established the L/C in our favor.

3. We shall draw to you for the amount of invoice at 60 days. 4. As requested, we exceptionally accept delivery against D/P

with sight.

5. Please see to it that the credit stipulations are in exact accordance of terms of contract.

\

\

\

\

\

to

from

on

at

with

6. Please amend L/C No.706 to read “The L/C will expire until August 10,2006 in China.”

7. We are glad to inform you that the L/C is in the way to you. 8. You are responsible for all the losses arisen from your delay in opening the covering L/C. 9. We are awaiting for your L/C.

10. We regret to have to ask you to extend the above L/C from June 30 and July 15 for the shipment and negotiation respectively.

\

\

\

\

\

to

on

on

arising

Ex6. Choose the correct translation for Group

A from Group B A B

1. 在收到你方信用证后两个星期 内装运。

2. 请注意，宽松的付款条件不但有 助于本次交易的顺利进行，而且 将会带给双方长久满意

3. 我们相信你方会在本周内及时 支付汇票。

4. 我们已通过伦敦银行开出了以 你方为受益人的不可撤销的信用证。

5. 装船后 , 我们将制作相关单据到 银行议付。

a. Please note that easier terms of payment will not only help conclude this transaction but also bring about lasting satisfaction to both of us.

b. After shipment is made, we will make out the covering documents and submit them to the bank for negotiation.c. After we have received your L/C, we will effect shipment within two weeks.

d. We have opened an irrevocable credit through the London Bank in your favour.

e. We are confident of your due payment of our draft within this week.

Ex7. Translate the following into English

1. 我们的付款方式一般是凭不可撤销的、即期汇票支付的信用证。

（ usual terms of payment ）

2. 鉴于货运量很小 , 我们同意破例接受承兑交单。 (make an exception)

3. 如你方同意按即期信用证付款，我们便能达成交易。（ come to terms ）

4. 关于第 101 合同，我们同意采用 D/P 的付款方式。（ be agreeable to ）

5. 我方已通过渣打银行（ the Chartered Bank ）向你方开出这笔金额的

即期汇票，并指示该行在你方承兑汇票时交出单据。 (instruct)

Our usual terms of payment are made by irrevocable letters of credit payable by draft sight.

Considering the small amount of goods shipped, we agree to make an exception by accepting the D/A payment.

If you agree to payment by sight L/C, we will come to terms.

With regard to Contract No.101, we are agreeable to D/P payment terms.

We have drawn on you for this amount at sight through the Chartered Bank, who has been instructed to hand over the documents against your acceptance of the draft.

Ex8. Translate the following into Chinese

3. We will arrange to open an irrevocable letter of credit for US$6,000.00 in favor of your company, the credit to be valid until March 30.

2. The above company may draw on your Beijing office at 60 days for each shipment.

3. Please try your best to issue the L/C as soon as possible, so

that we can process your order in good time. 4. We enclose our invoice No.161, and please remit the amount

due as per agreement. 5. L/Cs have long been used for the settlement of international business transactions.

我司将安排开立以你方为受益人的总额为 6,000 美元的不可撤销信用证，有效期至 3 月 30 日。

每批发货后，上述公司将向你行北京分行开出 60 天的汇票。

请速开信用证，以便我方顺利执行这项订单。

随函附 161 号发票，并请按照协议汇付应付金额。

信用证早就运用于支付国际间的交易了。

Part 3 Letters WritingThis part is to test your ability to do practical writing.Ex9. Translate the following letterA. into Chinese

Re: Bill of Exchange No.KJ438 Dear Sirs, We regret to find ourselves under the necessity of requesting foran extension of the payment of this acceptance bill, due on April 30th.Everything would be quite in order, were it not for the fire in ourstorage last Monday, which put us into financial difficulties. We are therefore writing to ask if you would allow us thirty days’ extension .Bythe time things will surely look up. Please confirm if you find it acceptable .By so doing you would do us a favor we should never forget.

Truly yours,

xxx

敬启者： 第 KJ438号汇票

非常遗憾，我们不得不请求贵方对已由我方承兑的 4月 30日到期的这张汇票延期付款。 如果不是由于上周一我方仓库发生火灾而使我方面临财务困难，按时付款原是不成问题的。不知贵方能否将付款日期延长 30天，到那时情况会好转的。 若贵方接受，请予确认，我们会永远记住贵方给予的帮助。 某某谨上

B. into English

致启者： 我们欣然告知现可供贵方 6月 1 7日第 507号订单所订的 1 000桶铁钉。根据我们要求海外客户的付款条件，兹随函附上见票 30天付款的汇票，由你方银行承兑。 一接到你方银行承兑的汇票，我们即安排装运。 请立即办理为感。

某某谨上

Dear Sirs,

We are pleased to inform you that we can supply1,000 kegs of iron nails under your Order No.507dated June 17th. In accordance with our usual termsof payment for overseas buyers, we enclose our draftat 30 days after sight for acceptance by your bankers.

Upon receipt of the accepted drafts, we will arrangeshipment.

We appreciate your immediate attention to the matter.

Yours faithfully,

×××

THE ENDTHE END