Unit 10 Terms of Payment

1、LOGOUnit 10Terms of PaymentTo practice listening for specific information about terms of paymentAimsTo listen and know the three major terms of payment in international tradeTo listen and know how to ask for an easier payment terms and make a relative responseTo practice listening for general ideas

2、Aims To master some specific terms and expressions concerning paymentContentsPart I. Warm-Up Part II Remittance and CollectionPart III Discussing the Time of Opening L/CPart IV Discussing Terms of PaymentContents The final result of all business activities should be to recover the value of goods sup

3、plied or services rendered. If payment is not ensured, then all will be meaningless. The method of payment for each transaction is to be agreed upon between the two trading parties at the time of placing an order. Generally, there are three commonly used methods: L/C (the letter of credit), remittan

4、ce and collection.SituationPart I. Warm-Up 1. Can you tell what a letter of credit is?2. How many parties are involved in a letter of credit transaction? Who are they? Task 1: Directions: Work with your partner and discuss the following questions: Task 1 Keys1Definition: a letter from one banker to

5、another authorizing the payment of a specified sum to the person named in the letter on specified conditionsTask 1 Keys2The parties involved are: A. Applicant: the opener of the L/C, who applies for establishment of the L/C to the bank.（开证（开证申请人）申请人）B: Opening bank: the bank that accepts the applica

6、tion and issues the L/C. The opening bank is liable for payment of the L/C. It is often a bank in the importers country.（开证行）（开证行）C: Advising bank: the bank which, entrusted by the opening bank, hands the L/C to the exporter. It is often a bank in the exporters country.（通（通知行）知行）Task 1 Keys2D: Confi

7、rming bank: the bank which adds confirmation to the L/C.(保兑行）保兑行）E.: Negotiating bank: the bank that buys the documents and the draft from the exporter.（议（议付行）付行）F: Paying bank: the bank, often the opening bank, which pays to the negotiating bank as the L/C stipulates.（付款行）（付款行）G: Beneficiary: the e

8、xporter who has the right to get the L/C.（受益人）（受益人）Word BankWord Bankadopt 采用采用reliable 可靠的可靠的establish 开立开立prior 在在之前的之前的ample 足够的足够的clause 条款条款set forth 提出提出in conformity with 与与相符相符stipulate 规定规定discrepancy 矛盾矛盾arise 出现出现amend 修改修改expiry date 有效期有效期extension 延长延长validity 有效性有效性Task 2 KEYS : Liste

9、n to the passage and decide whether the following statements are true or false. ( F ) 1. The most generally adopted method of payment is remittance.( F ) 2. As a usual practice, the L/C is to be established and to reach the seller 2 weeks prior to the date of shipment. ( T ) 3. Upon receipt of the r

10、elevant L/C, the seller should, first of all, make a thorough examination to see whether the clauses set forth in the L/C are in full conformity with terms stipulated in the contract.( F ) 4. If any discrepancies arise, the seller may amend the letter of credit himself.( F ) 5. A letter of credit do

11、esnt have its expiry date.Task 3 KEYS : Work in pairs and match the English terms with their corresponding translations.1. Confirmed L/C H. 保兑的信用证保兑的信用证 2. Unconfirmed L/C E.未保兑的信用证未保兑的信用证3. Sight L/C D.即期信用证即期信用证 4. Time/term L/C I. 远期信用证远期信用证 5. Revocable L/C A.可撤销的信用证可撤销的信用证 6. Irrevocable L/C J.

12、不可撤销的信用证不可撤销的信用证 7. Transferable L/C B.可转让的信用证可转让的信用证8. Non-transferable L/C G.不可转让信用证不可转让信用证9. Divisible L/C C.可分割的信用证可分割的信用证10. Indivisible L/C F.不可分割的信用证不可分割的信用证11. Documentary L/C K.跟单信用证信用证跟单信用证信用证Part II Remittance and CollectionWord Bankremittance 汇付汇付Demand Draft汇票汇票on ones own initiative 主主

13、动动remit 汇款汇款trustworthy 可靠的可靠的former 以前的以前的collection托收托收be liable for 有有的义务的义务Task 1 KEYSListen to the passage and complete the following table of the other two methods of payment.Terms of Payment Remittance Collection 1. Mail Transfer (M/T)2. Telegraphic Transfer (T/T) 3. Demand Draft (D/D)1. Docu

14、ments against Payment (D/P)2. Documents against Acceptance (D/A).Task 2 KEYS : Listen again and fill in the blanks. Remittance includes Mail Transfer (M/T), Telegraphic Transfer (T/T), and Demand Draft (D/D). When remittance is adopted in international trade, the buyer will on his own initiative rem

15、it money to the seller through a bank according to the terms and time stipulated in the contract. Remittance is often used in payment in advance, cash with order and open account. Therefore, either the exporter or the importer takes risk in remittance. Usually it is used between companies that are t

16、rustworthy to each other in former transactions. Task 2 KEYS : Listen again and fill in the blanks. Collection is another mode of payment in international trade. In collection payment is made through banks under the terms of Documents against Payment (D/P) or Documents against Acceptance (D/A). Paym

17、ent by collection can be used, when the exporter and importer know each other well, or when the sum in question is small. However, there is obviously a risk involved in collection, which is actual payment after shipping. In this case, the bank will only do the service of collecting and remitting and

18、 will not be liable for nonpayment of the importer. Task 3 KEYS : There are some other modes of payment. Work with your partner and try to figure out the full name for each abbreviated terms according to the Chinese translation.C.W.O随订单付现随订单付现 (Cash With Order) C.O.D交货付现交货付现 (Cash On Delivery) C.A.D

19、凭单付现凭单付现 (Cash Against Documents ) P.O.D货到付款货到付款(pay on delivery) Part III Discussing the Time of Opening L/CWord Bankarrangement 安排安排document 文件文件invoice 发票发票certificate 证书证书origin 原产地原产地inspection 检查检查Task 1 KEYS Listen to the conversation and tick the documents provided by the seller. draft an in

20、voice a packing list legal documents an export license bills of lading an origin certificate embassy legalization an insurance policy an inspection certificateTask 2 KEYS Listen to the dialogue and decide whether the following statements are true or false.( T ) 1. The seller asks the buyer to open r

21、elevant L/C 30 days before the date of shipment.( T ) 2. The buyer thinks 15 days before the date of shipment would be long enough to open L/C.( F ) 3. Currently, the seller gets only one order from his clients. ( T ) 4. The buyer makes concession on the time of opening L/C. ( F ) 5. The validity of

22、 the L/C is 50 days.Task 3 KEYS Discuss with your partner and put the following sentences in the correct order according to the procedure of opening an L/C. 4The issuing bank asks another bank, usually in the country of the seller, to advise and perhaps also to add its confirmation to the documentar

23、y credit. 6The seller presents his documents to the advising bank for settlement.2The buyer instructs the issuing bank to issue a documentary credit in favor of the seller5The seller examines the documentary credit, and requires an amendment of the credit if necessary.Task 3 KEYS Discuss with your p

24、artner and put the following sentences in the correct order according to the procedure of opening an L/C. 1A buyer and a seller enter into a sales contract providing payment by a documentary credit. 7The negotiating bank forwards documents to the issuing bank, claiming reimbursement as agreed betwee

25、n the two banks. The issuing bank examines the documents and makes reimbursement. 8The buyer redeems the documents and picks up the goods against the documents.3The issuing bank opens a documentary credit according to the instructions of the applicant Part IV Discussing Terms of PaymentWord Bankdepo

26、sit 保证金保证金tie up 占用占用consult 咨询咨询minimum 最小值最小值charge 收费收费the other way round 反过来讲反过来讲Task 1 Keys Listen to the dialogue and answer the following questions.1. Why is the buyer unwilling to accept L/C as the term of payment? A letter of credit would increase the cost of import.2. Why does the seller

27、insist on L/C as the term of payment? An L/C provides the seller with guaranteed payment from the bank. Its much safer for exporters.Task 2 KEYSListen again and fill in the blanks. A: Well, weve settled the questions of price, quantity and packaging. Now shall we talk about the terms of payment? Wha

28、t is your usual practice concerning payment?B: We normally conduct our international sales with L/C.A: I see. To tell you the truth, a letter of credit would increase the cost of my import. If I open a letter of credit with a bank, I have to pay a deposit. Thatll tie up my money and increase my cost. So could you accept D/A or D/P?Task 2 KEYSListen again and fill in the blanks. B: Im afraid not. We insist on a letter of credit. Maybe you could consult your bank and ask