《外贸英语函电》

《外贸英语函电》 外语系程赟

Unit 8Payment and L/C支付与信用证

Contents Basic Knowledge Concerned • Part One Letter-writing Guide • Part Two Other Commonly Used Expressions and Sentences • Part Three Sample Letters • Part Four Practical Training • Part Five

Part One 1. International Payments International payments are financial activities conducted among different countries. Paying for goods supplied in domestic trade is a fairly simple matter because payment can be made either in advance or within a reasonable short period after delivery. Payment is much more complicated in international trade. The sellers must sometimes wait several months for their money or the buyers may need to pay several months before they even see their goods. Clearly, both the sellers and buyers run certain risks of non-payment or non-delivery. So the appointment of agents for trust purpose becomes necessary. This function is usually entrusted to banks, which have branches or correspondent banks in most towns and cities overseas.

Part One 2. Instruments of Payment in International Trade There are three major instruments of payment used in international trade: (1) cheques (seldom used) (2) promissory Notes (more popular) (3) bills of Exchange/Draft (the most popular)

Part One 3. Modes of Payment in International Trade There are three major modes of payment in international trade: remittance, collection and Letter of Credit. Remittance and collection are commercial credit offered by companies. The Letter of Credit is banker’s credit offered by banks. Remittance includes Mail Transfer (M/T), Telegraphic Transfer (T/T) and Demand Draft (D/D). Collection includes Documents against Payment (D/P) and Documents against Acceptance (D/A). While payment is sometimes made by remittance and collection, the most generally used method of payment is the Letter of Credit. As far as the seller’s benefit is concerned, Letter of Credit is better than D/P. D/P at sight is better than D/P after sight, whereas D/P is better than D/A. In international trade, payment through collection is accepted only when the financial standing of the importer is sound or where a previous course of business has inspired the exporter with confidence that the importer will be good for payment.

Part One 4. Letter of Credit(1) Letter of Credit (abbreviated to L/C) is a reliable and safe method of payment, facilitating trade with unknown buyers and giving protection to both sellers and buyers. There are various types of L/C, such as irrevocable documentary credit, revolving credit, standby credit and back-to-back credit. Among them, the irrevocable documentary credit is the most popular. The parties concerned to a documentary credit are: the applicant (importer/buyer), the issuing/opening bank, the advising/notifying bank, the confirming bank, if any, the nominated paying/negotiating/accepting bank and the beneficiary (seller/exporter).

Part One 4. Letter of Credit(2) The procedure for issuing an L/C is as follows: (1) The buyer and the seller conclude a sales contract providing for payment by documentary L/C. (2) The buyer instructs his/her bank (opening/issuing bank) to issue an L/C in favor of the seller (beneficiary) for the amount of the purchase. (3) The opening/issuing bank asks its correspondent bank (advising bank), usually in the country of the seller, to advise and perhaps also add its confirmation to the documentary L/C. (4) On arrival of the L/C, the advising bank advises the seller of the receipt of the L/C. (Sometimes a seller requires a confirmed L/C. In this case, the advising bank usually adds its confirmation, becoming the confirming bank). (5) The seller will then dispatch the goods accordingly. It is evident that the function of a bank is very important in the issuing of an L/C.

Part One 5. The main Contents of a Letter on Payment and L/C Usually, a letter on payment and L/C concerns one of the following topics: (1) The seller and the buyer negotiate the terms of payment. (The buyer usually asks for easier payment terms.) The seller can accept or reject the buyer’s request. (2) The seller urges the buyer to rush the opening of the L/C. (3) The buyer applies to the bank for the establishment of the L/C. (4) The buyer advices the seller of the establishment of the L/C. (5) The seller asks for the amendment of the L/C. (6) The seller asks the buyer to extend the L/C.

Part Two

Part Three Expressions (1) 1. on perusal 仔细阅读之后 2. amend the L/C to read “...” 把信用证改为“……” 3. conform to... 与……相一致 4. establish/issue/open L/C with/through the bank 通过银行开立信用证 5. apply for L/C 申请开立信用证 6. urge the establishment of L/C 催开信用证 7. advise the establishment of L/C 通知信用证的开立 8. amendment to L/C 修改信用证; extension of L/C 延展信用证 9. in one’s favour 以某人为收益人 10. draw (a draft) on sb. 向某人开立(汇票)

Part Three Expressions (2) 11. D/P at sight 即期付款交单; D/P after sight 远期付款交单 12. collection 托收 13. cash against shipping documents 凭单付现 14. terms of payment 付款条件 15. confirmed/irrevocable/documentary/transferable Letter of Credit 保兑的/不可撤销的/跟单的/可转让的信用证 16. D/A 承兑交单 17. under (on)...terms, on...basis 按……方式 18. make an exception, as an exceptional case 破例 19. as a special accommodation 作为特殊照顾 20. expedite/rush an L/C 加速开立信用证

Part Three Typical Sentences (1) 1. In regards to the 25000 yards of cotton under the sales confirmation No.789, we would like to draw your attention to the fact that the date of delivery is approaching, but we have not yet received your relative L/C. 2. It would be advisable for you to establish the covering L/C as early as possible to enable the shipment in due time. 3. In order to avoid any further delay, please make sure that the L/C stipulations are in precise accordance with the terms of the contract. 4. The S/C stipulates that shipment should be effected during August and the L/C should reach us by the end of June. However, so far we have not received your L/C. 5. To develop our business, it is essential to adopt more flexible modes of payment. 6. We thank you for your L/C No.135 for 20 tons of clam. Among the clause specified in your L/C we find that the following points do not conform to the S/C.

Part Three Typical Sentences (2) 7. We are confident that you will give us cooperation by extending the shipment date to June 10, 2007 and the negotiation validity to June 25, 2007 respectively. 8. Since the goods are now ready for shipment, we request that you cable your amendments to the credit as soon as possible. 9. You are kindly requested to increase the amount of your L/C by US$600. 10. We regret that we could not ship the goods by an April vessel because of the delay of your L/C. We request that you make up the extension of the L/C as soon as possible. 11. We request that you extend the shipping date to December 30, 2007 and the credit validity to January 15, 2008. Please send us your reply as soon as possible. 12. We write to you asking for an extension of the shipping date for one month. 13. We earnestly hope that you will extend the credit to the 30th of this month.

Part Three Typical Sentences (3) 14. As a special accommodation, we will accept time L/C at 30 days. 15. Our usual terms of payment are by a confirmed, irrevocable Letter of Credit available by draft at sight, accompanied by shipping documents which are to be presented to the negotiating bank at the port of loading. 16. In view of the small amount of this transaction, we are prepared to accept payment by D/P at (30 days) sight for the value of the goods shipped. 17. We regret that we are unable to consider your request for payment under D/A terms. 18. In view of our long business relations, we will make an exception to our rules this time and accept L/C at 30 days sight. 19. Please amend the amount of the L/C No.778 to read/reading “2% more or less”. 20. We are faxing requesting a two-week extension of the L/C covering your order No.123 for 500 cases frozen chicken.

Part Four Sample 1 A Letter Asking for Easier Payment Terms Dear Sirs, Regarding your sales confirmation No.123 for selling Mild Steel Sheets1in the amount of US$100 000, we want to propose an easier payment arrangement. Our past purchase from you has been paid as a rule by confirmed irrevocable Letter of Credit. On this basis, it has cost us a great deal. From the time credit is opened until the time our buyers pay us, the tie-up2of our funds lasts about four months. This situation is particularly taxing3owing to the tight money4conditions and unprecedentedly5high bank interest rate. We request that you agree to easier payment terms. Such an accommodation6would be conductive to encouraging business. We propose either C/D7 on arrival of goods or D/P. Your kindness in giving priority to the consideration of the above request and giving us an early favorable reply would be appreciated. Yours faithfully,

Part Four Sample 2 A Reply to the Letter of Sample 1 Dear Sirs, We note from your letter of August 2, 2007 that you wish to have a change in payment terms. Actually, there is nothing unusual in our original arrangement. Counting from the time you open credit till the time shipment reaches your port, the intervals1, which is quite normal, is only about three months. Besides, your L/C is opened when the goods are ready for shipment. In this case2, we are sorry that we cannot meet your wishes. As we must insist on our customary practice, we sincerely hope that you will not think us unaccommodating. As soon as a fresh supply3of Mild Steel Sheets comes in, we will contact you. Yours faithfully,

Part Four Sample 3 Urging Establishment of L/ C Dear Sirs, Re: Our Sales Contract No.C234 With reference to the 4000 dozen shirts under our S/C No.C234, 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 date1. Please expedite2the opening of the L/C, so that we may execute the order smoothly. In order to avoid subsequent amendments, please see to it that the L/C stipulations are in exact accordance with the terms of the contract. We hope to receive your favorable news soon. Yours sincerely,

Part Four Sample 4 Applying for L/C Dear Sir or Madam: Please open an irrevocable Letter of Credit for US$30000 in favour of1the Medifa Medica Equipment Ltd., the credit to be valid until October 30, 2007. The documents, which may be used against negotiation2, are as follows: bill of lading3, commercial invoice4and packing list5in triplicate. The conditions of shipment of 400 sets medical equipment are as per S/C No.968; Transshipment is prohibited and partial shipments are permitted. We have enclosed the application form for the L/C and would appreciate it if you can open the L/C as soon as possible. Yours sincerely,

Part Four Sample 5 Advising the Establishment of L/C Dear Sir or Madam: Re: Our Order No.887/07 Sewing Machines We have instructed the Commercial Bank of San Francisco to open a credit for US$... in your favour, valid until May 30, 2007. The credit will be confirmed by the Bank of China, Guangzhou, who will accept your draft on them1at sight for the amount of your invoice. The documents required for negotiation are: 3 copies of Commercial Invoices 2 copies of Bill of Lading Insurance Policy2 Please advise us by cable when the sewing machines have been shipped. Sincerely yours,

Part Four Sample 6 Asking for the Amendment to L/C Dear Sirs, We have received your L/C No.3639 issued1by the Chartered Bank2, London for the amount of US$18000 covering 15000 dozen stretch nylon socks3. On perusal, we find that transshipment and partial shipment4are not allowed. As direct steamers to your port are few and far between5, we often have to ship via Hong Kong. It would be to mutual benefit to use partial shipment because we could ship immediately whatever we have on hand instead of waiting for the whole lot to be completed. Therefore, we are cabling, asking you to amend the L/C to read “Partshipments and transshipment allowed”. We would greatly appreciate it if this amendment is cabled without delay, as our goods have been packed ready for shipment for quite some time. Yours faithfully,

Part Four Sample 7 Asking for the Extension of L/C Dear Mr. Stone, We have received your L/C No.189 and thank you for your cooperation. We regret that we could not ship the goods by the end of July because of the delay of your L/C. We are aware that the only vessel1 available this month that will leave in one or two days and the deadline for booking space has past. We would ask that you extend2 the shipping date and credit validity for one month respectively. Please reply as soon as possible. Yours faithfully,

Part Five Beginning Training 1. Put the following English into Chinese. (1) (1) urge the establishment of L/C 催开信用证 (2) cash against shipping documents 凭单付现 (3) documentary L/C 跟单信用证 (4) as a special accommodation 作为特殊照顾

Part Five 1. Put the following English into Chinese. (2) (5) D/P at sight 即期付款交单 (6) on perusal 仔细阅读之后 (7) extension of L/C 延展信用证 (8) collection 托收 (9) draw (a draft) on sb. 向某人开立(汇票)

Part Five 1. Put the following English into Chinese. (3) (10) in one’s favor 以某人为收益人 (11) Our terms of payment are by confirmed irrevocable Letter of Credit by draft at sight. 我方支付条件是凭保兑的、不可撤销的即期信用证付款。 (12) Payment is to be made against sight draft drawn under a confirmed irrevocable, divisible and transferable Letter of Credit without recourse for the amount. 付款需凭保兑的、不可撤销的、可分割的、可转让的、无追索权的信用证及即期汇票支付。

Part Five 1. Put the following English into Chinese. (4) (13) For payment, we require 100% value, confirmed, and irrevocable Letter of Credit with partial shipment and transshipment allowed clause,available by draft at sight, against surrender of full set of shippingdocuments to the negotiating bank here. 关于支付，我们要求按发票金额的100%以保兑的、不可撤销的信用证凭即期汇票付款，允许分批装运和转船，并以提交全套装运单据给我处的议付银行为有效。 (14) As agreed, the terms of payment for the above orders are Letter of Credit at 60 days sight or D/P sight draft. 按照协定，上述订货的支付条件是见票60天的信用证或即期付款交单。

Part Five 1. Put the following English into Chinese. (5) (15) In compliance with your request, we have made an exception to accept delivery against D/P at sight. However, this should not be taken as a precedent in future shipments. 按照贵方要求，我们破例地接受即期付款交单的支付方式，但下不为例。 (16) We regret we cannot accept cash against documents on arrival of goods at destination. 抱歉，我方不能接受货到后凭单付现的支付条件。 (17) We would suggest that for this particular order you let us have a D/D, on receipt of which, we will ship the goods on the first available steamer. 我方建议，对这次订货，你们用票汇方式支付。一收到汇票我们就用最早可用的轮船装运这批货。

Part Five 1. Put the following English into Chinese. (6) (18) We wish to reiterate that it is only in view of our long friendly business relations that we extend you this accommodation. 我方想重申一下，只是鉴于我们之间长期友好的贸易关系，我方才给贵方这样的宽限。 (19) It appears that the stipulations in the L/C are not in agreement with the contract. 信用证中的规定似乎与合同的条款不一致。 (20) We wish to draw your attention to the fact that the date of delivery of your order No.123 is approaching, but we still have not received the covering L/C. 我们希望引起贵方注意：贵方第123号订单的交货期已临近，但至今为止我们仍然未收到有关信用证。

Part Five 2. Read the following letters and choose the best one from the given answers for the missing prepositions. to; at; of; with; in; on; for; from; onto; into; by Letter 1 Dear Mr. James, We refer (1) your contract No.368 covering lumber (2) the amount of US$8000 and contract No.369 (3) iron pipes (4) the amount of US$7000. Since both the contracts are less than 10000 (5) value, we would like you to accept D/P as the term of payment. We hope that this arrangement will meet with your approval and look forward to your early reply. Yours sincerely, P. Medway Purchasing Manager ______ to ______ in _______ ______ in for ______ in

Part Five to; at; of; with; in; on; for; from; onto; into; by Letter 2 Dear Mr. Medway,  We have received your letter in which you ask for an easier term (1) payment. In consideration of the very pleasant business relationship we have had with your firm for more than 15 years, we have decided to agree (2) your suggestion. We shall, therefore, in future draw (3) you (4) 60 days, documents (5) acceptance, and trust that this term will suit your requirements. We hope that our concession will result in a considerable increase of your orders. We can assure you that we will always try our best to execute them to your complete satisfaction. Sincerely yours, Mr. Wu ______ of ______ to _______ __________ ______ on at against

Part Five Intermediate Training 1. Put the following Chinese into English. (1) (1) 加速开立信用证 expedite/rush an L/C (2) 破例 make an exception; as an exceptional case (3) 承兑交单 D/A (4) 保兑的､不可撤销的､可转让的信用证 confirmed, irrevocable, transferable Letter of Credit

Part Five 1. Put the following Chinese into English. (2) (5) 付款条件 terms of payment (6) 把信用证改为: amend the L/C to read “…” (7) 远期付款交单 D/P after sight (8) 通过银行开立信用证 establish/issue/open L/C with/through the bank (9) 通知信用证的开立 advise the establishment of L/C

Part Five 1. Put the following Chinese into English. (3) (10) 与……相一致 conform to… (11) 请尽力加快开证,以便我们能顺利地执行订单｡ Please do your utmost to expedite L/C, so that we may execute the order smoothly. (12) 鉴于这桩交易的金额很小,我方打算接受以即期付款交单方式收取所运货物的款项｡ In view of the amount of this transaction being very small, we are prepared to accept payment by D/P at sight for the value of the goods shipped.

Part Five 1. Put the following Chinese into English. (4) (13) 为了避免往后的修改,请务必做到信用证的规定与合同的条款完全一致｡ In order to avoid subsequent amendment, please see to it that the L/C stipulations are in exact accordance with the terms of the contract. (14) 今天下午我方电告贵方,要求将信用证修改为:允许转船和分批装运｡ We are cabling you this afternoon, asking you to amend the L/C to read: TRANSHIPMENT AND PARTSHIPMENTS ALLOWED.

Part Five 1. Put the following Chinese into English. (5) (15) 如贵方能毫不延误地电开信用证修改书,我们将不胜感激,因为我方的货物已备妥待运多时了｡ We will be glad if you will see to it that the amendment to the L/C is cabled without delay, as our goods have been ready for shipment for quite some time. (16) 请电展信用证中的装船期至7月15日､有效期至8月15日,以便我方能顺利执行该货物的装运｡ Please extend by cable the shipment date of your L/C to July 15 and validity to August 15, thus enabling us to effect a smooth shipment of the goods in question.

Part Five 1. Put the following Chinese into English. (6) (17) 作为鼓励业务的表示,我方将考虑在促销期间接受贵方付款交单的支付条件｡这一点你们也许会有兴趣｡ It may interest you to know that as a sign of encouragement, we will consider accepting payment by D/P during this sales-promotion stage. (18) 由于贵方第123号订单下的货物已备妥有相当长的时间,所以贵方有必要立即采取行动,尽快开出有关信用证｡ As the goods against your order No.123 have been ready for quite some time, it is imperative that you take immediate action to have the covering L/C established as soon as possible.

Part Five 1. Put the following Chinese into English. (7) (19) 请将349号信用证有效期延至2007年6月4日,以便装运顺利进行｡ Please have the L/C No.349 extended until June 4, 2007 so that we may make shipment without fail. (20) 兹附寄跟单信用证申请书一份,请开立以ABC公司为收益人,金额为40000 美元的不可撤销的信用证,有效期至6月15日｡ We enclose an application form for documentary credit. Please arrange to establish for our account an irrevocable Letter of Credit for US $40000 in favor of ABC Co., the credit to be valid until June 15.

《 外贸英语函电 》