外贸函电termsofpayment课件.ppt

1、Brief introduction In foreign trade,buyers and sellers are in 2 countries.Sometimes,they have to do business with unknown buyers.If the seller delivers goods before payment has been made,he runs certain risks of nonpayment of the buyer,and if the buyer makes payment in advance,he likewise runs risks

2、 of non-delivery of the goods.It becomes necessary for a third party to act as an intermediate between them to solve the problem of payment.This party is the bank,who either guarantees payment to the seller and examine the sellers shipping documents for the buyer or makes collection for the seller.T

3、hat is why we say payment in foreign trade is rather complicated.Part 1 PaymentBrief introduction In recent years,large amount of overdue debts have occurred in Chinas foreign trade.Owing to bad management and the disadvantage of enterprises system,many exporters suffer from failing to recover their

4、 foreign exchange.So,every exporter shall pay close attention to terms of payment（支付条款）（支付条款）.The terms of payment are an important part of the business contractFrom the sellers point of view,the best terms would be full payment in cash at the time of sale，while the buyers would prefer to have the g

5、oods before making paymentImporters and exporters are separated from each other by thousands of milesThis adds to the difficulties of coming to an agreement on how payment should be madeMethod of payment 1.Kinds of payments with times 1).Payment before delivery 交货前付款 2).Payment as delivery 交货时付款 3).

6、Payment after delivery 交货后付款2.Ways of payment A).Transfer/Remittance 汇款 Mail Transfer M/T 信汇 Telegraphic Transfer T/T 电汇 Bankers demand draft 票汇 B).Collection 托收 Documents against payment D/P 付款交单 Documents against Acceptance D/A 承兑交单 C).Letter of Credit L/C 信用证 （There are many different kinds of L/

7、C,such as Irrevocable Letter of Credit 不可撤销信用证 Confirmed Letter of Credit 保兑信用证 Divisible Letter of Credit 可分割信用证 Transferable Letter of Credit 可转让信用证 Sight Letter of Credit 即期信用证 Time Letter of Credit 远期信用证 Anticipatory Letter of Credit 预支信用证 Revolving Letter of Credit 循环信用证 Clean Letter of Credit

8、光票信用证 Documentary Letter of Credit 跟单信用证Letter of credit（This unit deals mainly with irrevocable documentary credit.）The exporters and importers usually meet each other half way and agree to payment by letter of credit opened by a reliable bank A letter of credit is a bankers guarantee that payment

9、will be made on presentation of all the required shipping documents.In this way，the sellers or exporters receive a guarantee not only from the buyers or importers,but also from a banker that payment will be made on delivery of the goodsOn the other hand,the buyers or importers are given the guarante

10、e that the banker will not make payment unless the shipping documents are presentedLetter of credit An L/C is a tool or instrument of payment,and the payment is guaranteed by a bank.It is usually called“an open letter of request”,because the opening bank requests the negotiating bank to advance mone

11、y or give credit to the beneficiary,and promises that he will remburse or repay the same to the negotiating bank against a draft accompanied by the relative shipping documents The parties concerned to a documentary credit are:The applicant(importer/buyer)开证申请人 The issuing bank开证行 The advising bank通知

12、行 The confirming bank保兑行 The nominated paying/negotiating/accepting bank 指定的付款行/议付行/承兑行 The beneficiary(seller/exporter)受益人Applicant（Importer）Beneficiary（Exporter）1 S/C Paying bank Issuing bankAdvising bank Negotiating bank8 Paying the money for documents2 L/C application4 Credit advice5Presenting d

13、ocuments for negotiation3 Issuing L/C6 Recourse 7 Reimbursement Performance of L/CThe procedures for issuing an L/C 1.Seller and Buyer conclude a sales contract,with method of payment usually by letter of credit(documentary credit).2.Buyer applies to his issuing bank,usually in Buyers country,for le

14、tter of credit in favor of Seller(beneficiary).The procedures for issuing an L/C 3.Issuing bank requests another bank to advise,and usually to confirm,the credit.4.Advising bank forwards letter of credit to Seller informing about the terms and conditions of credit.The procedures for issuing an L/C 5

15、.If credit terms and conditions conform to sales contract,Seller prepares goods and documentation,and arranges delivery of goods to carrier.The procedures for issuing an L/C 6.Seller presents documents evidencing the shipment and draft(bill of exchange)to negotiating bank named in the credit(the adv

16、ising bank usually),or any bank willing to negotiate under the terms of credit.The procedures for issuing an L/C7.Bank examines the documents and draft for compliance with credit terms.If complied with,bank will negotiate.8.Bank sends the documents and draft to the issuing bank.ReturnThe procedures

17、for issuing an L/C 9.Bank examines the documents and draft for compliance with credit terms.If complied with,Sellers draft is honored.10.Documents release to Buyer after payment.ReturnThe procedures for issuing an L/C11.Buyer surrenders bill of lading to carrier(in case of ocean freight)in exchange

18、for the goods or the delivery order.ReturnSentence patterns L/C 常用搭配常用搭配L/Ccovering/regardingfor the amount ofin ones favorfor ones accountwith/through+goods+amount+beneficiary+payee+issuing bankL/C 常用搭配常用搭配 Please open an L/C covering twenty metric tons of apples for the amount of USD 20,000.We ope

19、ned an L/C in your favor through the Citi Bank this morning.请开立一个20公吨苹果的信用证，金额为2万美元。今早，我们经由花旗银行开立了一个以你方为受益人的信用证。L/C 常用搭配常用搭配 Today we have opened an irrevocable L/C in your favor for the amount of US$9000 covering our Order No.3422 with the Bank of China,Dalian.我们今天通过中国人民银行大连分行就第3422号定单开立了以你方为受益人的不可

20、撤消的信用证，金额为9千美元。+L/C 常用搭配常用搭配 今天，我方收到由美国花旗银行开出的以你方为付款人的金额为3500美元的信用证。We received an L/C for USD 3,500 for your account by the Citi Bank this morning.Returnwith reference to参考，查看 With reference to your offer of Jan.3,we wish to point out that the price is$24 each instead of$26.We refer you to our cont

21、ract of July 3 for 1000 dozen of mens shirts.参考你方1月3日报盘，我们想指出价格是每个24美元而不是26美元。请查看我们7月3日关于1000打男式衬衫的合同。stipulate The shipment is stipulated to be made before July 15.It is stipulated in the contract that the insurance should be covered by the seller.（合同）规定在7月15日以前装运。合同规定由卖方投保。Returnshould be.instead

22、of/not isnot 开证行应是中国银行而不是花旗银行。单价应为每公吨38英镑而不是每公吨38欧元。The issuing bank should be Bank of China instead of Citibank.The unit price should be 38 per M/T not 38 per M/T.should be.instead of/not isnot 装运港是上海，不是大连。The port of shipment is Shanghai not Dalian.Return draw v.开出开出(汇票汇票)As agreed,we are drawing(

23、a draft)on you for the value of this sample shipment.按约定，我们将开出一张汇票向你方索取这批按约定，我们将开出一张汇票向你方索取这批样货的价款。样货的价款。We are drawing on you at sight against your purchase of 200 sets of color TV sets.对于你方购买的对于你方购买的200台彩电，我们将开出即期汇台彩电，我们将开出即期汇票向你方索取货款。票向你方索取货款。with an eye to 着眼于，考虑到，着眼于，考虑到，为了为了 We have lowered ou

24、r price with an eye to closing this deal.为了达成这笔交易，我们已经降低了我们的价为了达成这笔交易，我们已经降低了我们的价格。格。With an eye to our business prospects,we wish you will change your terms of payment.为了你我贸易的前景，我们希望你们可以变更为了你我贸易的前景，我们希望你们可以变更付款条件。付款条件。Letter about choosing payment（1）The relevant business documents,such as the contr

25、act No.,the order No.and so on;（2）The customary payment practice of the writers;（3）The method of payment that the writers asks for this business.Sample letter on page 153(incoming)Dear sirs We refer to our letter of enquiry dated the 5th October.We have received your Proforma Invoice No.03688 and no

26、w wish to place an initial order for 1,500 tapes Type No.EM127DN.The order number is 7305.We have instructed our bank,the General Commercial Bank of Venezuela to open an irrevocable documentary letter of credit in your favour.The amount is&1,275.00.This credit will be confirmed soon by our banks cor

27、respondent in London.You are authorized to draw a 60 days draft on our bank against this credit for the amount of your invoice.Your draft must be accompanied by a complete set of shipping documents,consisting of:A full set of clean shipped Bill of Lading Commercial Invoice 5 copies The insurance cer

28、tificate 2 copies The credit is valid until the 12th February.Yours sincerelyLanguage points Proforma Invoice No.03688 形式发票 place an initial order 首次订购 instructed 通知 General Commercial Bank of Venezuela 委内瑞拉商业银行开立以你方为受益人的不可撤销的跟单信用证 in your favour 以你方为受益人 by our banks correspondent in London 我方银行的伦敦往

29、来行Language points You are authorized to draw a 60 days draft on our bank against this credit for the amount of your invoice.现授权你方凭此信用证向我方银行按你方发票金额开立见票60天付款的汇票 Your draft must be accompanied by a complete set of shipping documents,你方必须随付全套装运单证 A full set of clean shipped Bill of Lading 全套清洁已装船提单 Our

30、bank will accept your 60 days draft on them for the amount of your invoice including the cost of freight and insurance,as agreed.按照商定，我方银行将承兑你方按包括运费在内的发票金额向它开立的见票后60天付款的汇票 Your bill will therefore be at 60d/s for full CIF invoice value.因此你方的汇票是见票后60天付款。Sample letter on page 154 Dear sirs We thank yo

31、u for your letter of 14th November,19 We are pleased to receive your order,and wish to say that we have adequate stocks of Type EM127DN tapes in our warehouse,and that delivery date can be met.Payment by irrevocable letter of credit is convenient for us,and we shall draw a 60d/s bill on your bank.We

32、 are now awaiting the arrival of your L/C,on receipt of which we shall make the necessary arrangements for the shipment of your order.Any request for further assistance or information will receive our immediate attention.Language points that delivery date can be met.可以如期交货 draw a 60d/s bill on your

33、bank 开立见票后60天付款的汇票 Any request for further assistance or information will receive our immediate attention.你方如果需要进一步协助或资料，当必即办。Exercises on page 163 Translation:1 Please note that payment is to be made by confirmed,irrevocable L/C allowing partial shipment and transshipment,available by draft at sigh

34、t.2 Our usual mode of payment is by confirmed,irrevocable letter of credit,available by draft at sight for the full amount of the invoice value to be established in our favour through a bank acceptable to us.3 It has been our usual practice to do business with payment by D/P at sight instead of by L

35、/C.we should,therefore,like you to accept D/P terms for this transaction and future ones.4 Your proposal for payment by time draft for Order No.1156 is acceptable to us,and we shall draw on you at 60 days sight after the goods have been shipped.Please honour our draft when it falls due.5.In order to

36、 pave the way for your pushing the sale of our products in your market,we will accept payment by D/P at sight as a special accommodation.6 Your request for payment by D/P has been taken into consideration.In view of the small amount of this transaction,we are prepared to effect shipment on this basi

37、s.Aim The advantage of payment byL/C Learn to write a letter urging buyers to open an L/CMain&Difficult Points What should the seller write in his first letter to urge the buyer to expedite the L/CPart 2 It is the usual practice that the letter of credit is to be opened and to reach the sellers 30 d

38、ays ahead of shipment so as to give the seller enough time to make preparation for shipment,such as making the goods ready and booking shipping space.For prompt shipment,it is advisable that the letter of credit be issued in good time.It is the usual practice that the L/C is to be established and to

39、 reach the seller one month prior to the date of shipment so as to give the seller ample time to make preparations for shipment.However,there may be circumstances where the buyer fails to establish the L/C,or the L/C does not reach the seller in time;then a letter has to be sent to the buyer to urge

40、 him to expedite the L/C.No suggestion of annoyance is allowed to be shown in the letter urging establishment of L/C.It is not advisable,except under special conditions,to start off too strongly by blaming the buyer for not executing the contract.The first message sent should therefore be a polite n

41、ote saying that the goods ordered are ready but the relevant letter of credit has not yet be received.If the first message brings no reply,a second one will be sent.This one,though still restrained,will express disappointment and surprise.Open the letter in a positive way.For example,in the first pa

42、ragraph the seller usually informs the buyer that the goods are ready for dispatch or that the shipping space has already been booked.Politely push the buyers to open the L/C without delay,either by referring to the stipulations of the contract or by reminding the buyers of the seriousness of not op

43、ening the L/C in time.3.Express expectations and ask the buyers to take immediate action.1.The date of delivery is approaching,but we still have not received your L/C.交货日期已临近交货日期已临近,但迄今为止我方尚未收到贵方信但迄今为止我方尚未收到贵方信 用证用证 2.We wish to remind you that it was agreed when placing the order,that you would est

44、ablish the required L/C upon receipt of our confirmation.我方提请贵方注意我方提请贵方注意,订货时双方约定订货时双方约定,一接到我方确认书一接到我方确认书,贵贵方就开立信用证方就开立信用证 3.The goods have been ready for shipment for quite some time.We request that you take immediate action,particularly since we are not aware of any valid reason for further delayi

45、ng the opening of the L/C.由于货已备妥多日由于货已备妥多日,贵方应立即开证贵方应立即开证,我们不知贵我们不知贵方有何合理理由迟迟不开证方有何合理理由迟迟不开证 4.We would be grateful if you would expedite establishment of the L/C so that we can ship the order in time.希望贵方能立即开证希望贵方能立即开证,以便我方按时发货以便我方按时发货 5.We want to make it clear that the L/C should be opened in tim

46、e,otherwise,it will cause us a great deal of difficulties.请注意信用证应及时开立请注意信用证应及时开立,否则将导致很多麻烦否则将导致很多麻烦 6.Please open the relevant L/C in time to ensure the fulfillment of the order.请及时开立相关信用证以保证订单的执行请及时开立相关信用证以保证订单的执行 7.In order to book the shipping space at an earlier date,please open the L/C immediat

47、ely.为便于及早租船定舱为便于及早租船定舱,请尽快开证请尽快开证 8.We hope you will open the L/C in time,so as to ensure early shipment.希望贵方能及时开出该信用证希望贵方能及时开出该信用证,以确保早日装运以确保早日装运 9.We look forward to receiving the relative L/C at an early date.期待早日收到相关信用证期待早日收到相关信用证 10.We have written to urge the manufacturer to speed up productio

48、n of your order.我们已经写信敦促制造商加速生产你方的订货。我们已经写信敦促制造商加速生产你方的订货。11.一收到贵方来函，我们就联系了银行，催促他一收到贵方来函，我们就联系了银行，催促他们开立信用证。们开立信用证。On receiving your letter,we have contacted our bank and urged them to open the letter of credit.Writing SkillsWhen writing letters to urge establishment of L/C,the following should be p

49、aid more attention:To mention the number of order or S/C To stress not have received the covering L/C To urge establishment of the L/C and related matters To express the expectation IV.1.The 800 bicycles under Contract 268 have been ready for shipment for quite some time,but we have not yet received

50、 your covering L/C to date.Please open the L/c as soon as possible so that we may effect shipment.CONT 268 BICYCLES 800 READY SOME TIME COVERING L/C UNRCVD TO DATE PLS OPEN IT ASAP RGDS 2.If your L/C reaches us by the end of this month,we will exert our utmost efforts to arrange shipment of your ord