Unit Six Terms of Payment

1、Unit SixTerms of PaymentTeaching Objective 1.To learn background information about the payment in international trade.2. To learn the format and useful terms and expressions in the letters concerning payment.3.To practice writing letters concerning payment.Revisionn1.What are the four steps of busin

2、ess negotiation? n2.In our export trade, should we immediately issue a Sales Confirmation or a Sales Contract once the transaction is concluded? n3.What should we send to the suppliers after conclusion of an import transaction?n4.When will the Sales Contract become effective 1.They are enquiry, offe

3、r, counter-offer and acceptance. 2.In our export trade, once the transaction is concluded we should issue our sales confirmation or sales contract to the foreign buyer. 3.After conclusion of an import transaction, we should issue a Purchase Confirmation or a Purchase Contract to the foreign supplier

4、. 4.The sales contract will become effective only when it is signed by the buyers and sellers.Remittance( (汇付汇付) )Mail Transfer( (M/T) )( (信汇信汇) )Telegraphic Transfer( (T/T) )( (电汇电汇) )Demand Draft( (D/D) )( (票汇票汇) )RemittancenRemittance is to deliver the payment of the goods to the seller by bank t

5、ransfer. nM/T: the buyer will hand over the payment of the goods to the remitting bank that will authorize its branch bank or correspondent bank (代理行)in the country of the beneficiary by mail to make the payment to him. nT/T: the buyer will hand over the payment of the goods to the remitting bank th

6、at will authorize its branch bank or correspondent bank (代理行)in the country of the beneficiary by telegraphic means to make the payment to him. nD/D: the buyer will come to the local bank to buy a bankers bill and then deliver it to the seller or beneficiary by mail. When the seller or beneficiary h

7、as received it, he will come to the bank designated by the bankers bill for cash. nT/T is the most expensive, safest, fastest and most common among the three types.Application of remittancenRemittance uses commercial credit and hence the parties involved need to trust in each other.nRemittance is ch

8、iefly used for: payment in advance, down payment, delivery first and payment afterwards for small quantity of goods, commission and so on.Collection ( (托收托收) )collection on clean bill( (光票托收付光票托收付) )documentary collection ( (跟单托收跟单托收) )DefinitionnUnder collection, the exporter takes the initiative t

9、o collect the payment from the buyer. Upon the delivery of the goods, the exporter draws开立 a bill of exchange on the importer for the sum due, with or without relevant shipping documents attached, and authorizes his bank to effect the collection of the payment through his branch bank or corresponden

10、t bank in the country of the importer.documentary collection ( (跟单托收跟单托收) )documents against payment ( (D/P) )付款交单付款交单documents againstacceptance ( (D/A) )承兑交单承兑交单D/P at sightn Drawee(buyer)Principal(seller)Collecting Bank(代收行）Remitting Bank(托收行）-1-2-3-4-5-6-7-1.签合同，采用D/P at sight 支付。2.委托所在地的银行帮收款。3

11、.将所有单据连同汇票送给代收行。4.通知买方单据已到，付款赎单。5.进口人来付款将单据拿走。6.代收行电告托收行货款已收到并已转帐。7.托收行将货款交给委托人。D/P after sightn Drawee(buyer)Principal(seller)Collecting Bank(代收行）Remitting Bank(托收行）-1-2-3-4-5-7-8-6-1.签合同，双方确立采用D/P after sight 支付。2.出口人开立汇票，交托收行，委托所在地的银行帮收款。3.托收行将所有单据连同汇票送给代收行。4.通知进口人（买方）单据已到，过来背书。5.进口人到托收行，先在汇票上签字，

12、保证到期付款，单据由代收行先保留。6.60天后再来付款。7.代收行电告托收行，货款已收到并已转帐。8.托收告知出口人来取款。D/A n Drawee(buyer)Principal(seller)Collecting Bank(代收行）Remitting Bank(托收行）-1-2-3-4-5-7-8-6-5-6-1.签合同，双方确立采用承兑交单支付方式。2.出口人按合同，准备货物并出口后，开立汇票，连同随船单据，交给托收行，委托该行向进口人收款，填委托书，交一定的费用。3.托收行将所有单据连同汇票送给代收行。4.代收行向进口人作承兑提示（进口人在汇票背面签字，保证到期付款），告诉进口人单据已

13、到，准备来承兑。5.进口人到代收行承兑汇票（签字），并拿走随船单据。 6.到了60天，代收行向进口人作付款提示，进口人向代收行交货款。7.代收行电告托收行，货款已收到并已转帐。8.托收告知出口人来取款。Letter of Credit ( (信用证信用证) )Revocable L/C & Irrevocable L/C ( (可撤销信用证与不可撤销信用证可撤销信用证与不可撤销信用证) )Straight L/C & Negotiation L/C ( (直接信用证与议付性信用证直接信用证与议付性信用证) )Original L/C & Back to Back L/C

14、 ( (原信用证与转开信用证原信用证与转开信用证) )Sight /Usance / Time/ Term Credit ( (即期信用证与远期信用证即期信用证与远期信用证) ) Documentary L/C & Clean L/C ( (跟单信用证与光票信用证跟单信用证与光票信用证) )Confirmed L/C & Unconfirmed L/C ( (保兑信用证与未保兑信用证保兑信用证与未保兑信用证) )Transferable L/C & Non-transferable L/C ( (可转让信用证与不可转让信用证可转让信用证与不可转让信用证) )Defini

15、tionnL/C: an L/C is a tool or instrument of payment, and the payment is guaranteed by a bank. It is usually called “An negotiation bank to advance money or give credit to the beneficiary, and promises that he will reimburse or repay the same to the negotiating bank against a Bill of Exchange accompa

16、nied by the relative shipping documents.”The parties involvednthe applicant: usually the importer who applies to the bank for the L/CnOpening/issuing bank: open the L/C upon the request of the importer. Hold itself responsible for the payment.nAdvising/notifying bank: authorized by the opening bank

17、to transfer the L/C to the exporters bank. Usually in the exporters country and the correspondent bank of the opening bank. nBeneficiary: usually the exporternNegotiating bank: the bank which is willing to buy the documentary draft drawn by the beneficiary. It can either or not be designated in the

18、L/C. Negotiating bank and advising bank can be the same. nPaying bank: designated by the L/C to pay the draft. In most cases, it is the issuing bank.nConfirming bank: which is asked by the opening bank to confirm the L/C.L/C Paymentn Applicant(importer开证人)Beneficiary (exporter受益人)Paying BankNegotiat

19、ing Bank(议付行）-1-4-3-9-10-7-5-2-Advertising Bank(通知行）Issuing Bank(开证行）-6-8-Procedures for L/C Paymentn1.签合同，双方确立采用信用证支付方式。n2. 进口人向开证行（进口人的业务行）申请向出口人开证。n3.开证行将信用证交给通知行，通知行审查 L/C.n4.信用证转交出口人（受益人）。n5.出口人收到信用证后，检查信用证与合同无误，准备货物，货物出口后，开立汇票，连同单据交给议付行议付（提前付款）。 n6.议付行审查无误后，将货款先交付给出口人。n7.议付行将汇票与单据交给开证行，议付行索偿。n

20、8.付款行将货款转给议付行。n9.付款行告诉进口人来付款索单。n10.进口人付款索单。Main Contents of L/CnCombination of the chief contents of the sales contract, the required documents and the bank assurance.nthe parties involvednRemarks about of the L/C: the No., its type, valid date etc.nThe clauses of the bill of exchanges: the amount o

21、f the bill, drawer and drawee, paying date etc.nThe clause about the goods. name specification, quantity, package, price, etcnThe clause about shipment and insurance. Loading and unloading port, partial transshipment allowed or not nThe clauses about the documents: what documents are required. Basic

22、 Document: invoice, bill of lading, insurance policy, Attached Documents ：the packing list, certificate of origin and inspection certificate etc. nParticular clauses: special provisions about the dealnGuarantee clauses of the opening bank: testify the opening bank will hold itself responsible for th

23、e payment.开证日期信用证号码信用证性质开证行开证申请人受益人信用证金额通知行信用证到期日东京银行纽约分行 100 Broadway New York, N.Y. 10005 日期：20-年 6 月 21 日 不可撤销 跟单信用证 开证行信用证号码 110 LCI 985467 通知行信用证号码 通知行 由中国银行青岛分行电传通知 申请人 Kanematsu-Gosho (Canada) Inc. 400 de Maisonneuve Blvd. W. Montreal, Quebec 金额 大约 174,000.00 加拿大元(大约壹拾柒万肆仟加拿大圆) 受益人 中国纺织品进出口公司

24、 中国青岛江西路 78 号 有效期 20-年 8 月 15 日以前议付有效 对信用证本身的说明要求的单据执事先生： 现开立不可撤销的跟单信用证，凭受益人向我行开立的发票全额的即期汇票付款，汇票上具明本信用证号码和开证日期，并由下列单据伴随： 签署的商业发票一式五份； 加拿大海关发票一式五份； 装箱单一式五份； 重量和尺码单一式五份； 全套清洁已装船提单，凭托运人指示，著名“运费预付” ，并通知收货人 Evidencing shipment of: About 300,000 yards of 65% Polyester, 35% Cotton Grey Lawn as per buyers o

25、rder No.S-0578, CFR Montreal. We are informed insurance is to be covered by buyer. Partial shipment permitted Shipment from China to Montreal latest July 31,20- Transshipment permitted All other bank charges are for the account of beneficiary. Documents must be presented to negotiating bank or payin

26、g bank within 15 days after the on board date of Bills of Lading, but within validity of letter of credit. 议付日期对货物的说明对运输的说明对保险的说明证实下列货物的装运： 买方订单 S-0578 项下的大约 30 万码原色细麻布，65%化纤，35%棉，成本加运费到蒙特利尔。 保险由卖方负责。 允许分批装运 最迟于20-年7 月31日由中国运往蒙特利尔 允许转船 其他银行费用均由受益人承担。 单据必须在提单日期后 15 日之内、并要在本信用证有效期内提交议付行或付款行。 特殊条款对偿付的特

27、殊规定特殊条款： 受 益 人 必 须 将 两 套 副 本 装 运 单 据 直 接 航 寄 给Kanematsu-Gosho (Canada) Inc., Montreal，并出具已航寄证明。 关于偿付特殊规定： 收到单据后我们会向议付行进行偿付。本信用证下开立的所有汇票的金额， 必须在议付的同时在本信用证背面背书，该汇票的提示即作为议付行的担保，证明该背书已作出，单据已经按此处要求寄出。 We hereby engage with the drawers, endorsers and bona fide holders of drafts drawn and negotiated under

28、and in compliance with the terms of this credit that the same shall be duly honoured on due presentation to the drawee. The advising bank is requested to notify the beneficiary without adding their confirmation. Yours faithfully, THE BANK OF TOKYO, LTD. 承诺语句我们向汇票的出票人、背书人以及善意持有人保证，在本信用证项下并按本信用证要求开立、

29、议付的所有汇票， 都将在向受票人提示时得到支付。 我们要求通知行在不加保兑的情况下向受益人发出通知。 东京银行 谨上 1. Put forward the problem of terms of payment.2. Present the desired terms of payment and explain why this mode of payment is preferred or why other terms of payment cannot be accepted.3. Close the letter by expressing expectations of an ea

30、rly reply or suggesting future business dealings. Format of letters concerning Urging Establishment of L/Cnacknowledge receipt of the order/salesnurge establishment of L/C in order to prepare and deliver goods in time.nExpress eagerness of receiving the L/CUrging Establishment of L/CnDear Sirs, n Ou

31、r Sales Confirmation No. C215n With reference to the 4000 dozen Shirts under our Sales Confirmation No. C 215, we wish to draw your attention to the fact that the date of delivery is approaching, but we still have not received your covering Letter of Credit to date. Please do your utmost to expedite

32、 same, so that we may execute the order smoothly.n nIn order to avoid subsequent amendments, please see to it that the L/C stipulations are in exact accordance with the terms of the Contract.n We hope to receive your favourable news soon,n Yours faithfully,Dear Sirs, We wish to place an order with y

33、ou for 1,000 casks Iron Nails at your price of US$150.00 per cask CFRC5% Lagos(拉哥斯） for shipment during July/August. For this particular order we would like to pay by 30 days L/C, Involving about US$150,000, this order is comparatively a big one. As we have only moderate means at hand, the tie-up of

34、 funds for three to four months indeed presents a problem to us. It goes without saying that we very much appreciate the support you have extended us in the past. If you can do us a special favour this time, please send your contract, upon receipt of which we will establish the relative L/C immediat

35、ely.Yours faithfully,Dear Sirs, Our past purchase of Mild Steel Sheet from you has been paid as a rule by confirmed, irrevocable L/C On this basis, it has indeed cost us a great deal. From the moment to open credit till the time our buyers pay us, the tie-up of our funds lasts about four months. Und

36、er the present circumstances, this question is particularly taxing owing to the tight money condition and unprecedentedly high bank interest. . If you would kindly make easier payment terms, we are sure that such an arrangement would be conductive to encourage business between us. We propose either

37、“Cash against Documents on Arrival of Goods” or “Drawing on Us at Three Months Sight”. Your kindness in giving priority to the consideration of the above request and giving us an early favorable reply will be highly appreciated. Yours faithfully,1. draw v. 开开出出( (汇票汇票) ) draw a draft/bill on sb. for

38、 ：开立以某人为付款人的汇票：开立以某人为付款人的汇票 for 后接开出的款数后接开出的款数 As agreed, we are drawing (a draft) on you for the value of this sample shipment.按按约定，我们将开出一张汇票向你方索取这批约定，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

39、即期汇票向你方索取货款。票向你方索取货款。 nPlease draw on us for the amount of your invoice.n请按发票金额开立以我方为付款人的汇票。ndraw on us: draw a draft on usnDraw on us (a draft) at sight:对我方开出即期汇票nWe have drawn a clear draft on you for the balance of $100. 30 days L/C 见票后30天议付 见票后多少天议付的说法很多，以见票后30天议付的信用证为例，常用的有以下几种：L/C available by

40、 draft at 30 days after sight;L/C at 30 days after sight;L/C at 30 days 30 days L/C 我们已根据这些单据通过亚洲银行向你方开立我们已根据这些单据通过亚洲银行向你方开立了发票金额的即期汇票。了发票金额的即期汇票。We have drawn a sight draft on you against the documents for the amount of invoice through the Bank of Asia . 请确认我们可以就你请确认我们可以就你328号订单向你方开出金号订单向你方开出金额为两万八

41、千美元的六十天远期汇票收款。额为两万八千美元的六十天远期汇票收款。Please confirm that we can draw on you at 60 days after sight for US$28,000 against your Order No. 328. n2.invite/draw/call ones attention to the fact that=to remind sb. OfnWe wish to draw your attention to the fact that the date of delivery is approaching.nWe wish t

42、o call your attention to the fact that up to the present moment no news has come from you about the shipment under captioned contract.3.means n. 资力资力 、财力、财力moderate means 资金有限 means of production 生产资料 This firm is quite reliable. It never does business beyond its means.这家公司比较可靠，在经营上一向量入为出。by all mea

43、ns 尽一切办法，一定，务必by means of 借助，依靠by no means 决不，一点也不4. tie up of funds 占压资金 tie-up n. 束缚tie-up in negotiation谈判僵局 tie-up of traffic 交通停顿tie up a property 冻结财产3.Pay1)vi.付款、值得、合算Pay in advance 预付 Pay in cash 付现金Pay by check 支票付款 pay in instalments 分期付款Pay on delivery 货到付款It does not pay to buy in small

44、quantities.小量购买不合算。2)vt.付，给予We trust you will pay our draft on presentation.我们相信你方在见到我们的汇票时即照付。 n3.payable/available by sight draft/draft at days sightnWe have opened an L/C in your favor against contract No.SFT58027 available by documentary draft at sixty days sight.4. to date / up to now /till now

45、/up to the present momentWe havent received any information from you to date. The captioned goods have not arrived at our end to date. 5. urge v. We have written to urge the manufacturer to speed up production of your order. On receiving your letter, we have contacted our bank and urged them to open

46、 the letter of credit. 6.to expedite (the)same= to expedite the establishment of the L/C.n rush v. nOn receiving your letter, we have instructed our factory to rush production of your goods.n nWe wish you will rush the relevant L/C so that we can effect punctual shipment.n n Specimen contract : 合同样本

47、合同样本 n7.reaching us one month ahead of shipment , remaining valid for negotiation in china till the 21th day after the prescribed time of shipment, and allowing transshipment and partial shipments.n 该信用证应在装运期前一个月到达我方，在中国议付，有效期截止到规定的装运期后第21天，并允许转船和分批装运。 n8.Reference is made to your letter Ref.SJ/mg o

48、f the 9th inst. along with your quotation against the captioned enquiry.n Ref.SJ/mg ：编号为SJ/mgn inst. ：instant本月n 参阅你方本月9日编号为SJ/mg的来函，以及来函中所附的关于标题所列询盘的报价单。 n9.down payment : a payment you make when you buy something that is only part of the full price, with the rest to be paid latern nWeve made a dow

49、n payment on a washing machine.n We require 10% down payment for your first order.n 对于你方的第一笔订单，我们要求收取10的定金。 n10.Since it takes time to open the L/C while the goods under this order are urgently required to meet the season, may we suggest that you draw on us at sight through your bank and we will hon

50、or it on presentation. 因为开立信用证花费时间，而该订单项下的货物急需应付销售季节，我们建议你方通过你方银行对我方开出即期汇票，我们在汇票提示时当即承兑付款。 n11.Honor：vt.（商）承兑；承认并如期支付nhonor a bill/ cheque/draft : 承兑票据(支票，汇票） 12. as a rule = usually 通常As a rule ，we require commercial invoice in four copies. 通常我们需要商业发票1式4份。As a rule ，commission is allowed to agents

51、only. 佣金通常只付给代理商。13. taxing 难于负担的，使人感到压力的Such an amount is taxing for a firm of moderate means.这样一笔数额对于一个中等资力的商号是有压力的。taxtax avoidance 避税 tax abatement 减税tax evasion 逃税 tax holiday 免税期to levy a tax on sth. 对某物征税14. tight 紧的，难得到的tight money tight marketEnergy resources are tight the world over.能源是全球性

52、紧张。They ask for this accommodation because their funds are tight.他们要求照顾，因为他们手头拮据。15.priority 优先top priority最优先考虑的事give priority to 给以优先权enjoy priority in 在方面享有优先权The question of payment will take top priority in our discussion.支付问题将在我们的讨论中占最优先的地位。We are unable to appoint you as our agent in your dis

53、trict, but you may enjoy priority in our offers.我们不能指定你们为你地区的我方代理人，但你方可在我方报盘方面享有优先权。16. freight prepaid 运费预付freight paid 运费已付freight collect/ to collect/ to be collected 运费到付 freight payable at destination 运费到付17. reimbursement 赔偿 In reimbursement of these extra expenses, please draw on us. 为付还这些额外费

54、用，请开汇票向我们支取。reimburse 付还，偿还reimburse sth. to sb. 偿还某人某物reimburse sb. for sth.偿还某人某物 18.facilitate v. make easy; lessen the difficulty of nPlease open your L/C immediately to facilitate our shipping arrangement.n Samples are badly needed to facilitate sales.n This will facilitate your applying for th

55、e export license.19.advisable =suitablenWe find it advisable that you ship the goods at an early date.n We find it advisable for you to pack the foods in wooden cases.nWe find it advisable that the shipment should be made in August.20.Transitional words in writingnto start with, first, firstly, firs

56、t of allnsecond, secondly, next, afterwardsnfurthermore, in addition, besides, apart from thatnlast, lastly, finally21.affirmative responsenWe are happy/pleased/delighted to inform you thatnWe have/take the pleasure of informing you that/to inform you that22.Negative responsenWe are sorry/regretful

57、to inform you thatnMuch to our regret23. covering adj. =relative Please see to it that the goods should be shipped as soon as the covering L/C reaches you.请注意：我方信用证一到达你处，请即发货。请注意：我方信用证一到达你处，请即发货。After shipment is made, we will make out the covering documents and submit them to the bank for negotiati

58、on.货物装运以后，我们将缮制出相关单据交到银货物装运以后，我们将缮制出相关单据交到银行进行议付。行进行议付。 24. refund v. To give someone their money back, especially because they are not satisfied with the goods or services they have paid for The shipping company refunded the cost of the damaged goods. You will have to refund us the the losses if yo

59、u cancel your order. We will refund the goods to you if our customers are not interested. 25. conform to = be in accordance with/ in compliance with/in conformative withThe quality of the products you provide should conform to that of samples. The stipulations of the relevant L/C should strictly con

60、form to the terms specified in our contract. 26. prevailing adj. As we all know, the prevailing economic climate is not so good. The prevailing price of this kind of product is much higher than ours. 27 .关于汇票 汇票（汇票（Bill of ExchangeBill of Exchange，DraftDraft）是出票）是出票人签发的，委托付款人在见票时或者在指人签发的，委托付款人在见票时或者在指定日期无条件支付确定的金额给收款人或定日