Unit8TermsofPayment市公开课一等奖省赛课微课金奖课件

termsofpaymentUNIT

8LearningObjectivesUnderstandthemainmodesofpaymentininternationaltrade;Negotiatetermsofpayment;WritealetteraskingforL/Camendments.1/61

Rememberthatcreditismoney.

AnAmericanstatesmanBenjaminFranklin2/61SpeakingTaskStartingUp

1ListeningTask23ReadingTask

5WritingTaskFollow-upPractice64543216Contents3/618.1StartingUp

8.1.1Workinpairstoworkoutasmanyfactorsasyoucanthatneedtobeconsideredinnegotiatingpaymentsforexportsales.Forexample:

theimporter’spastandpresentbusinessrelationshipwiththeexportertheimporter’spastpaymenthistoryandperceivedcreditworthiness4/61ModesofPaymentM/T

L/CT/TD/PD/AD/D8.1.2.Thetermsofpaymentareanimportantpartofthesalescontract.Whenconsideringpayment,weneedtounderstanddifferentmodesofpaymentusedininternationaltrade.Nowstorethewordsandphrasesthatareassociatedwithmodesofpaymentandthenexplainordescribetheseterms.??5/611)Whatarethedifferencesinpaymentbetweendomestictradeandforeigntrade?2)Whatarethemaincontradictionsthatexistbetweensellersandbuyersininternationalpayment?3)Whatarebothsellersandbuyersconcernedaboutinnegotiatingpayment?4)Whatarethecommonlyusedmethodsofpaymentininternationaltrade?Canyoutelltheadvantagesanddisadvantagesofeachforbothsellersandbuyers?8.1.3Discussthefollowingquestionsinpairsorsmallgroups.6/61

The_______ofpaymentareanimportantpartofthe____________．Fromthe_______pointofview,thebesttermswouldbefullpaymentin_______atthetimeofsale，whilethebuyerswouldprefertohavethegoodsbeforemaking__________．Importersandexportersareseparatedfromeachotherbythousandsofmiles．Thisaddstothedifficultiesofcomingto____________onhow_________shouldbemade．Theexportersandimportersusuallymeeteachother________andagreetopaymentby____________openedbya________bank．Aletterofcreditisa__________guaranteethatpaymentwillbemadeonpresentationofalltherequired___________________.Inthisway，thesellersorexportersreceivea_________notonlyfromthebuyersorimporters,butalsofrom__________thatpaymentwillbemadeon___________ofthegoods．Ontheotherhand,thebuyersorimportersaregiventhe___________thatthebankerwillnotmakepaymentunlessthe_________________arepresented．termssalescontractseller'scashpaymentanagreement

payment

halfway

letterofcredit

reliablebanker's

shippingdocumentsguarantee

abanker

deliveryguaranteeshippingdocuments

IntroductoryRemarks

7/61MainModesofPayment

inInternationalTrade

I.Remittance

A.MailTransfer(M/T)

B.TelegraphicTransfer(T/T)

C.DemandDraft(D/D)II.Collection

A.CleanBillforCollectionB.DocumentaryBillforCollection1.DocumentagainstPayment(D/P)(1)D/Patsight(2)D/PaftersightD/PT/R2.DocumentagainstAcceptance

III.LetterofCredit(L/C)8/61BasicPaymentMethods:RiskSpectrum

HighestRisktoExportersHighestRisktoImportersLeastRisktoImportersLeastRisktoExportersOpenAccountDocumentaryCollection—D/A—D/PDocumentaryCredit—TimeL/C/Unconfirmed—SightL/C/ConfirmedPaymentinAdvance

9/61UnderstandingLettersofCredit

Doyouknowthat50%ofL/Cdocumentspresentedtobanksarerejected?Thiscostsyoudearly,inextrabankcharges,yourwastedtimeandthecustomerdissatisfaction.

KeyContentsWhatisaletterofcredit?LearnthedifferencesbetweendifferenttypesofL/Csandwhentousethem.DiscoverwhicharethemostusualtypesofL/C-Sight,DeferredPayment,Transferable,Standby.10/6111/61

Afterthesalescontracthasbeenestablishedbetweentheexporterandimporter,agreeingtosettlethepaymentbyL/C,theapplicant(theimporter)appliestotheirbankforaletterofcreditinfavoroftheexporter(beneficiary)

Theissuingbank(openingbank)issuesanL/Candforwardsittotheadvisingbankintheexporter’scountry.

Theadvisingbankpassesthedocumentarycredittothebeneficiaryafterverifyingthegenuinenessofthecredit.

OnreceivingtheL/C,theexporterchecksthetermsandconditionsofthecreditbasedonthesalescontract.Ifthereisadiscrepancy,thebeneficiarymayhavetheoptiontoacceptitasitstandsortoasktheapplicanttohaveitamendedsoastobeinlinewiththecontract.TheexporterpreparesthedocumentationasperthetermsandconditionsoftheL/C,andhavethegoodsshipped.Theexporterthenpresentsthedocumentstothenegotiatingbankforthenegotiationofthedraft.

Afterreceivingthedocuments,thenegotiatingbankwillcheckthedocumentsagainstthetermsandconditionsoftheL/C.Ifallareinorder,theabovebankwilleffectpaymenttothebeneficiary.

12/61

Thenegotiatingbankforwardsthedocumentstothepayingbankorthebankauthorizedbytheissuingbanktoaskforreimbursement.

Thepayingbank,afterreceivingthedocumentsfromthenegotiatingbank,willexaminethemcarefullytoseewhetherthedocumentsareincompliancewiththetermsoftheL/C.IfthedocumentsconformtotheL/C,thepayingbankwillreimbursethenegotiatingbankwhichhaspaidthebeneficiary.

Theissuingbankwillnotifytheimporterofthearrivalofthedocumentsandaskhimtopaythebankforthedocuments.

Theimporterwillpaymoneytothebankandgetthedocumentswithwhichhecanclaimthemerchandise13/61DifferentTypesofLettersofCredit1.Accordingtotheattachingofdocuments1)Cleancredit2)Documentarycredit2.Accordingtotherevocabilityofcredit1)Revocablecredit2)Irrevocablecredit3.Accordingtothetransferabilityofcredit1)Transferablecredit2)Non-transferablecredit4.Accordingtotheaddingofconfirmation1)Confirmedcredit2)Unconfirmedcredit5.Accordingtothetimeofpayment1)Sightcredit2)Usanceortimecredit6.Accordingtothemethodofpayment1)Paymentcredit2)Deferredpaymentcredit3)Acceptancecredit4)Negotiationcredit7.Accordingtothecreditamounttobeusedrevolvingly

1)Automatic2)Semi-automatic3)Non-automatic8.Othercredits1)Redclausecredit2)Backtobackcredit3)Reciprocalcredit4)Standbycredit14/61Identifythefollowinglettersofcredit

1._____________isacreditavailablebydeferredpayment,underwhichpaymentmustbeeffectedonaspecifiedfuturedate.2._______________isonewithaclauseinsertedintothecreditauthorizingthenegotiatingbanktomakeanadvanceoftheamountunderthecredit,wholeorpart,tothebeneficiary.3._______________ThebeneficiaryisentitledtoaskthebanktotransferL/Crightspartiallyorwhollytoathirdparty.Thisisusedfordirectfinancingofsupplies,wherethesellingpartyisnotthedirectproducerbutisanintermediary.4.____________TheunderlyingL/CamountisrenewedduringthelifeoftheL/Caccordingtopre-definedtermsandconditions.Itisadvantageousforcontractswithrepeatedgoodsdeliveries.

RevolvingL/CTransferableL/CCleanL/CSightL/CDeferredL/CIrrevocableL/CRedclauseL/CConfirmedL/CDeferredL/C

RedClauseL/C

TransferableL/C

RevolvingL/C

（

循环信用证）

（可转让信用证）（光票信用证）

（即期信用证）（延期信用证）（不可撤消信用证）（红条款信用证）（保兑信用证）15/615.________isacreditunderwhichpaymentwillbeeffectedonlyagainstadraftwithoutanyshippingdocumentsattachedtheretoorsometimes,againstadraftwithaninvoicealoneattachedthereto.

6.___________isacreditthatconstitutesadefiniteundertakingoftheissuingbankandcanbeamendedorcancelledbytheissuingbankonlyonconditionthatallpartiesconcerned.7.____________isacreditthatisadvisedtothebeneficiarywithanotherbank’sconfirmationaddedthereto.8._________callsforthepresentationofsightdrafts,underwhichthebeneficiary(thedrawer)isentitledtoreceivepaymentatonceonpresentationofhisdrafttothedraweebankortotheissuingbankifdrawnontheissuing,oncetherelevantdocumentshavebeencheckedandfoundtobeinorder.CleanL/C

IrrevocableL/C

ConfirmedL/C

SightL/C16/61Advantages&DisadvantagesofaLetterofCredit

AdvantagestotheExporter

ShiftscreditriskfromtheImportertotheImporter'sBank(IssuingBank).AnundertakingfromtheIssuingBankthatpaymentwillbemadeundertheLetterofCredit,providedthatyoumeetalltermsandconditionsoftheLetterofCredit.IftheLetterofCreditisnotissuedasagreed,youarenotobligatedtoshipagainstit.DisadvantagestotheExporter

DocumentsmustbepreparedinstrictcompliancewiththerequirementsstipulatedintheLetterofCredit.Non-complianceleavesyouexposedtoriskofnon-paymentandremovestheprotectionaffordedbytheIssuingBanksincethefinaldecisiononthedocumentsthenrestswiththeImporter.17/61AdvantagesandDisadvantagesofDocumentaryCollection

Themajoradvantageofa"cashagainstdocuments"paymentmethodfortheBuyeristhelowcost,versusopeningaLetterofCredit.TheadvantagefortheSelleristhathecanreceivefullpaymentpriortoreleasingcontrolofthedocuments,althoughthisisoffsetbytheriskthattheBuyerwill,forsomereason,rejectthedocuments(ortheywillnotbeinorder).Sincethecargowouldalreadybeloaded(togeneratethedocuments),theSellerhaslittlerecourseagainsttheBuyerincaseofnon-payment.ApaymentagainstdocumentsarrangementinvolvesahighleveloftrustbetweentheSellerandtheBuyerandshouldbeadoptedonlybypartieswellknowntoeachother.18/61RisksinDocumentaryCollections

FortheExporterIfitisasightdraft,theexporterwillreducetheriskofnon-paymentbutwillnoteliminateittotallysincetheimportermaynotbeinapositiontopayforthegoodsormaynotbeabletoprocuresufficientforeignexchangetomakethepayment.Inthiscasetheexportermaybeforcedtoeithercallbackthegoodsornegotiatesaletosomeotherinterestedparty,whichmaybeatareducedrate.Inthecaseoftermdraft,therisktotheexporterishighersincetheforeignbuyerwilltakepossessionofthegoodsandmaynotpayatduedate,forcingthereforetheexportertotryandcollectpaymentfromtheforeignbuyerintheforeignbuyer'shomecountry.FortheImporterTheimporterfacestheriskofpayingforgoodsofsub-standardqualityorevenwithshortages.Insuchacircumstance,itwouldtakesometimetogetrefundsfromtheexporter.Itcouldalsohappenthattheexporterrefusestomakerefunds,leadingtheimportertolengthylegalproceedings.19/61WhentouseDocumentaryCollections?

SinceDocumentaryCollectionstransactionsentailsomemeasureoftrust,itisadvisabletousethemechanismwhenthefollowingconditionsapply:

Whentheexporterandimporterhaveawellestablishedrelationship

Whenthereislittleornothreatofatotallossresultingfromthebuyer'sinabilityorrefusaltopay

Whentheforeignpoliticalandeconomicsituationisstable

Whenaletterofcreditistooexpensiveornotallowed20/61Inthispartyouwilllistentoapassageandtwoconversationsabouttermsofpayment.Trytofinishtheexerciseswhilelistening.

Areyouready?8.2ListeningTask

21/618.2.1Listentotheconversationaboutthemodesofinternationalpaymentsandfillinthetreeaccordingtowhatyouhearinthedialogue.

ModesofInternationalPaymentremittancecollectionLetterofcreditM/TT/TD/DD/AD/PSightL/CTimeL/CIrrevocableL/CRevolvingL/C22/618.2.2Listentotheconversationandcompletethefollowingtablewiththeinformationyouhear.CDB23/61BD24/618.2.3Listentotheconversationaboutthetermsofpaymentandfillinthechartbelowwiththeinformationyougetfromtherecording.Mr.GreenMissWangPositionsofpaymentReasonsforinsistenceorrefusalConcessionsAddedrequirementsD/PorD/AConfirmed&irrevocableL/Chavingtopayamargin,bankchargesandtaxexpensesacceptL/CpaymentMayconsiderD/PaftermorebusinesstogetherThegoodsshouldbedeliveredonemonthbeforeChristmasseasonstartsTheL/Cshouldreachtheselleronemonthbeforeshipment25/61

1.WhatdoesMr.ChenHaido?2.WhatdoestheMalaysiancompanyintendtodo?3.WhatpaymenttermsdoestheMalaysiancompanyinsiston?4.WhydoesMr.Chengotothebank?5.CanthebankprovidetheserviceMr.Chenasksfor?6.HowmuchshouldMr.Chenpayfortheservice?7.WhatdoesMr.Chengetfromthebank?8.WhatinformationdoesMr.ChengetabouttheMalaysiancompany?

04.12Listentoadialogueandanswerthefollowingquestions.补充听力26/611.HeisamanageroftheChinaNationalElectronicsImp.&Exp.Corp.SouthChinaBranch.2.ToimportalargeamountofSleepHelperfromChen’scompany.3.TimeL/C.4.TomakeaninvestigationofthefinancialpositionoftheMalaysianTradingCompany.5.Yes.6.RMB￥898intotal.RMB￥200inadvance.7.TheresultoftheinvestigationofthefinancialstandingoftheMalaysiancompany.8.TheMalaysiancompanyisanimporterandwholesalerofelectricalmachineryandequipment,havingabusinessbackgroundofsometwentyyears.Itisdoingwellatthepresent.ItisoneofthefastestgrowingwholesaledealersinBangkokhandlingmanytypesofelectricalproductsforlocalclients.IthascapitalaboutUSD750000atthispoint.Answers:27/611.Wemayacceptdeferredpaymentifthequantityisover3000.2.Sincewehavesettledthepriceandquantity,shallwediscussthequestionofpaymentterms.3.Paymentbyletterofcreditisourusualpractice.4.Weallowyouapaymenttermsof15days,butwishtodrawyourattentiontoourattractivediscountforimmediatepayment.5.WhenshouldweopentheL/CifwewantthegoodsdeliveredbeforeJune?6.Theirbalancesheetsofrecentyearswillshowyouthattheirimportbusinessinoilproductshasbeenmanagedandoperatedunderasatisfactorycondition.7.OpeninganL/Cmeansanadditionalcosttoourimports;8.TheL/CmustreachusnotlaterthanApril28andremainvalidfifteendaysafterthedateofshipment.9.Thegoodsarereadyforshipment.PleaseopentheL/Cimmediately.10.OurtermsofpaymentarebyirrevocableL/Cpayablebysightdraftagainstpresentationofshippingdocuments

Dictation:(14.57)补充听力28/61Inthispartyouaregoingtoreadthreedialoguesandthenyouwillbeaskedtoanswersomequestionsaboutwhatyouhaveread.Pleasereadlouder!SpeakingTask29/618.3SpeakingTask

8.3.1Conversation1Havingsettledthepriceofthetransaction,Mr.GreenfromAmericaisdiscussingwithMr.Zhaoabouttermsofpayment.1）WhatisMr.Zhao’susualtermsofpaymentwithhiscustomers?Answer:2）WhatpaymenttermsdidMr.Greenpropose?Answer:

3）DidMr.

ZhaoagreetoacceptMr.Green’spaymentterms?Whatdidhesay?Answer:

4）WhatwasMr.Green’sproposednumberofdaysaftersightortermdocumentarycredit?Answer:

5）WhatwasMr.Green’sexplanation?Answer:

6）WhatpaymenttermsdidMr.Zhaoacceptintheend?Answer:Confirmed,irrevocableletterofcreditagainstpresentationofsightdraft.D/Aagainstpresentationoftimedraftortermdocumentarycredit.No.Hesaidtheircapitalwouldbetiedupforseveralmonthsaftertheyeffectedshipment.90days.Becauseofthesizeofthisorder,theymightnotbeabletomakefullpaymenttilltheendofthefiscalyear.ThecurrenteconomicdownturnsintheU.S.andotherexistingfactorshaddrainedtheircashflowtothelimit.

HemadeaconcessionbyacceptingD/Patsightforhalfthetotalpayment,anddeferredpaymentcreditat90daysfortheremainingbalance30/61

8.3.2Conversation2Havingsettledtheproblemsofprice,qualityandquantity,Mr.StoneandMr.Zhouarecontinuingtheirtalkaboutthetermsofpayment.1）WhatisthemodeofpaymentusuallyacceptedbyMr.Zhou?

Answer:2）WhydoesMr.StonesaythatpayingbyL/Cisreallytroublesomeandcostsalot?Answer:

3）WhydoesMr.ZhouinsistonpaymentbyconfirmedirrevocableL/C?Answer:

4）HowdoesMr.ZhouusuallypayforimportsfromMr.Stone’scountry?Answer:

5）WhatdoesMr.Stonemeanbysaying“Let’smeeteachotherhalfway”?Answer:

6）Whatisthemodeofpaymentfinallyagreedbybothparties?Answer:Confirmed,irrevocableletterofcreditpayableagainstshippingdocuments.Whenopeningaletterofcreditwithabank,theyhavetopayalargesumofmoneyasadeposit.Thatwilltieuptheircapital.Becauseaconfirmed,irrevocableletterofcreditallowsexporterstheadditionalprotectionofthebanker’sguarantee.ThesamekindofletterofcreditasherequiresofMr.Stone.50%byL/CandthebalancebyD/P

L/Cat60dayssight31/61

8.3.3Conversation3Aftertheyhavereachedanagreementonthetermsofpayment,Mr.WhiteandMr.ZhangaretalkingaboutwhenthecoveringL/Cshouldbeopened.1）WhendoesMr.ZhangthinkgenerallytheL/Cshouldbeopenedbythebuyer?Answer:2）WhydoesMr.WhitethinkitaddstohisfinancialdifficultiesiffollowingMr.Zhang’srequirementtoopentheL/C?Answer:

3）WhatisMr.White’sproposalastowhentoopentheL/C?Answer:

4）WhydoesMr.Zhangrefusetheaboveproposal?Answer:

5）HowdotheyagreeonthevalidityoftheL/C?Answer:

6）WhatdocumentswillbeprovidedbyMr.Zhang?Answer:Generally,30daysbeforedeliverysothatthesellercanmakethenecessaryarrangements.BecausetoopentheL/C30daysbeforethemonthofshipmentpracticallymeansMr.Whitecannotgetbackmydeposituntilafterthreeorfourmonths.That'lltieuphiscapitalinthebankfortoolongandhesimplycouldn'taffordit..ToopentheL/C15or20daysbeforethemonthofshipmentBecause15or20dayswon'tdo.Gettingthegoodsready,bookingtheshippingspaceandwhatnot,allthesetaketime.TheL/Cexpires15daysafterthe30-daydurationisdue.Acompletesetofbillsoflading,acommercialinvoice,anexportlicense,aninsurancepolicy,acertificateoforiginandcertificateofinspection.32/61ReadingTaskInthispartyouaregoingtoreadapassageandthenyouwillbeaskedtoanswersomequestionsaboutwhatyouhaveread.33/618.4ReadingTaskPre-readingquestionsforpairwork1)Whichmethodofpaymentwouldyouchooseforinternationaltransactions?Why?2)Whatkindofservicescanabankeroffertoyouininternationaltransactions?Howdotheyhelpyou?3)Whatdoyouthinkarethemainrisksthatareinvolvedininternationaltradepaymentforbothanexporterandabanker?34/61Answerthefollowingquestions

1）Whyhasinternationaltradealwaysbeenconsidered“lowrisk”bybanks?Answer:2）Whatkindofrisksdoesabankfaceinfinancinginternationaltransactions?Answer:

3）Toavoidfraud,whatshouldalendingbankertotheimporterconsider?Answer:

4）WhatisoneofthegreatestservicesabankcandoforitsexporterinadvisingtheDCitreceivesfromanoverseasbank?Answer:

5）Howdoesthisarticleenlightenyouasanimporter/exporter?Answer:

Comparedwithotherformsofbanklending,financingtradetransactionsispopularbecausethesedealsareshortterm,selfliquidating,secured(bytheunderlyinggoods)andspeedilycompleted.Therearethreemainareasofrisk−microrisks,macrorisks,andproductrisks.BeforeundertakingtoestablishaDCforanimporter,thebankshouldconsiderthefinancialstandingoftheimporter,thegoodsandthestatusoftheexporter(orbeneficiaryoftheDC.CheckcarefullywhethertheDCisworkableandthattheexporterwillbeabletocomplywithitstermsandconditions.（Open）35/61WritingTaskInthispartyouaregoingtolearnhowtocheckletterofcreditandwritelettersforL/Camendment.36/618.5WritingTaskAmendmenttoaLetterofCreditWhatmaycausethedelayinopeninganL/C?

Thebuyerdoesn’thavesufficientdepositinitsissuingbanktoopentheL/C.

ThebuyeristoobusytoarrangetheL/Cproceduresasapriority.

Themarketsituationhaschanged.

TheissuanceoftheL/Cisneglectedinthebuyer’scompanyowingtoproblemsincoordinationamongdifferentdepartmentsconcerned.

Anymorereasons?37/61Writealetter,faxoremailtourgetheestablishmentoftheL/C!WhatcanyoudothenifthebuyerfailstoopentherelativeL/Cintime?It’sausualpracticeininternationaltradethattheL/CistobereceivedbytheselleronemonthbeforethedateofshipmentsothatthesellerisabletomakepreparationsforproductionandshippingdocumentswithinthetimelimitstipulatedintheL/C.

38/611.Thesellerrequestsamodificationoramendmentofquestionabletermsintheletterofcredit;2.Ifthebuyerandissuingbankagreetothechanges,theissuingbankwillchangetheletterofcredit;3.Thebuyer'sissuingbanknotifiestheseller'sadvisingbankoftheamendment;and4.Theseller'sadvisingbanknotifiestheselleroftheamendment.Forthesellertochangethetermsnotedonanirrevocableletterofcredit,itmustrequestanamendmentfromthebuyer.Theamendmentprocessisasfollows:39/61CheckingtheL/CWhencheckingtheL/C,thesellerneedstofocusonthefollowingprovisions:Theshipmentdate;ThetimeofvalidityoftheL/C;Thequantityofthegoodsandamountofpayment;Theaddressofthebeneficiary;Thepriceterms,theloadingandunloadingport;Insuranceclause;Thepackingclause;Thedescriptionofthegoods.40/61Thefollowingpointsshouldbementioned:

CitetheL/Creferencenumberandorderinformation;Sayexplicitlytheword“amend”or“amendment”toshowyourpurposeofthisletter;

Explainthereasonfortheamendment;

Providetheothersidewithcorrectcontents;TelltheothersidetheexpecteddateordeadlineforreceivingtheL/Camendment.ThanktheothersideforcooperationandexpectthepromptamendmentoftheL/C.ForaletteraskingforL/Camendment,expressthankstotheothersidefortheopeningoftheL/C.ItisquitenecessarytogiveexplanationsfortherequestfortheL/Camendmentasitmaycosttheimporterasumofmoneyandsometrouble.41/61SampleLetter1DearSirsThankyouverymuchforyourletterofthefirstMay,informingusoftheestablishmentofyourL/CNo.H-1022againstourS/CNo.ZF110103.TheL/Cinquestionhasjustcometohand.However,uponchecking,weregrettohavefoundthattherearecertainclauseswhichdonotconformtothoseofthecontract.Herebywelistthefollowingdiscrepanciesforyourattention1.TheamountofthecreditshouldbeUS$152000(SayUSDollarsonehundredandfifty-twothousandonly)insteadofUS$125000.2.TheB/Lshouldbemarked“freightprepaid”insteadof“freighttocollect”.3.ThecreditshouldexpireonJuly15,fornegotiationinChinainsteadofJune30,.Wehopeyouwillmakethenecessaryamendmentsasearlyaspossiblesoastofacilitateourshippingarrangement.Yourpromptattentiontotheabovewillbehighlyappreciated.Yoursfaithfully,42/61SampleLetter2DearSirsThankyouforyourirrevocableL/CopenedthroughBankofChinafor10casesofbottledmedicine.AccordingtothestipulationsoftheL/C,thetotalquantityshouldbeshippednotlaterthanFebruary10.Althoughwehavebeenmakinggreateffortstobookshippingontime,muchtoourregret,weweretoldbytheshippingcompaniescontractedthattherewouldbenoshippingcontainerbeforeJanuary24.Therefore,weherebyrequestyoutohaveboththedateofshipmentandvalidityoftheL/CextendednotlaterthanFebruary15and30respectively.Sincethisisanurgentmatter,pleaseamendtheL/Cimmediately.Yourcompliancewithourrequestwillbehighlyappreciated.Yourstruly,43/61

WritingPracticeWritealetteraskingforamendmentstothefollowingL/Cbycheckingitwiththegivencontractterms.WritealetteraskingforamendmentstothefollowingL/Cbycheckingitwiththegivencontractterms.44/61COMMERCIALBANKOFTHATTOWNDate:May15,To:ZhejiangFoodstuffsImport&ExportCorporation,Hangzhou,ChinaAdvisedthroughBankofChina,ZhejiangNo.BOC/5/15DOCUMENTARYLETTEROFCREDITIRREVOCABLEDearSirs:YouareauthorizedtodrawonHongKongFoodCompany,VancouverforasumnotexceedingCAN$120000(SAYCANADIANDOLLARSONEHUNDEREDANDTWENTYTHOUSANDONLY)availablebydraftdrawnonthematsightaccompaniedbythefollowingdocuments:—FullsetofCleanonBoardBillsofLadingmadeouttoorderandblankendorsed,marked“freighttocollect”datednotlaterthanJune30,andnotifyaccountee.—SignedCommercialInvoiceinquintuplicate.—CanadianCustomsInvoiceinquintuplicate.—InsurancePolicy(orCertificate)induplicatecoveringAllRisksandWarRisks,EvidencingshipmentfromChinaporttoMontreal,Canadaofthefollowinggoods:50000tinsof430gramsofMeiLinBrandStrawberryJam,atCAN$2.50pertinCIFC3%Vancouver,detailsasperyour