Terms of Payment

Cash in advance 现金 Remittance 汇款 Telegraphic Transfer (T/T) Documentary letter of credit 信用证 （ L/C ） Documentary collection or draft 跟单托收 或汇票 （ D/P ， D/A ） Open account 赊销 Consignments sales 寄售

Text A: Request easier payment terms Dear Sirs, In the past, our purchases of steel pipes from you have normally been paid by confirmed, irrevocable Letter of credit. This arrangement has cost us a great deal of money. From the moment we open the credit until our buyers pay us normally ties up funds

For about four months. This is currently a particularly serious problem for us in view of the difficult economic climate and the prevailing high interest rates. If you could offer us easier payment terms, it would probably lead to an increase in business between our companies. We propose either cash against documents on

Arrival of goods, or drawing on us at three months’ sight. We hope our request will meet your agreement and look forward to your early reply.

comments State the current payment arrangements Outline the financial problems affecting the company Make the request for easier payment terms Urge acceptance of the proposal

Text B: Requesting modified payment terms Dear Sirs, We have examined the specifications and price list for your range of ceramic tiles and now wish to place an order with you. Enclosed please find our Order No. FC 674. As we are in urgent need of new stock, we would be grateful if you would make up the

Order and ship it as soon as possible. In the past we have traded with you on a sight credit basis. We would now like to propose a different arrangement. When the goods are ready for shipment and the freight space booked, you phone us and we then remit the full amount by telegraphic transfer.

We are asking for this concession so that we can give our customers a specific delivery date and also save the expense of opening a letter of credit. As we believe that this arrangement should make little difference to you, but should help our sales, we trust that you will agree to our request. We look forward to receiving confirmation of our order and your agreement to the new arrangement for payment.

comments Identify the reference Urge quick delivery, giving the reasons State the modified payment terms requested Give the reasons for requesting the modified payment terms Urge acceptance of the proposal

Text C: accepting modified payment terms Dear Sirs, Thank you for your letter of 16 June. We are pleased to acknowledge your order No FC 674 of the same date for ceramic tiles. The modified terms of payment you propose are quite acceptable. A fax has been dispatched to you to this effect.

All the terms in your order can be supplied from stock and will be packed and shipped immediately your remittance by telegraphic transfer is received. The following documents will be airmailed to you immediately after shipment is made:

Bill of lading in duplicate Invoice in triplicate Insurance policy for 110% of invoice value Guarantee of quality We will notify you by fax as soon as your order is shipped. You can rely on us to give prompt attention to this and any future orders you may place with us.

comments Identify the reference Accept the proposal and give written confirmation Detail the availability of goods and the conditions for shipment List the documents which will be forwarder later. Assure that further notification on shipment will be given End with a friendly message to the customer

L/C Letter of credit The exporter should check the details of letter of credit, including the following: The name and address are complete and spelled correctly The L/C is irrevocable and confirmed by the advising bank, conforming to sales contract The amount is sufficient to cover the consignment

The description of goods is correct The quantity is correct The unit price of goods, if stated in the L/C, conforms to the contract price The latest date for shipment or the shipping date is sufficient to dispatch the consignment The latest date for negotiation or the expiry date is sufficient to present the documents and draft to the bank

The port of shipment and the port of destination are correct The partial shipment is permitted or prohibited The transshipment is permitted or prohibited The L/C is transferable or non-transferable The type of risk and the amount of insurance coverage, if required

The documents required are obtainable

Text D: urge establishment of L/C Dear Sirs, We refer you to your order for 1,000 dozen of tablecloth and our sales confirmation No 219. We would like to remind you that the delivery date is approaching and we have not yet received the covering L/C.

We would be grateful if you would expedite establishment of the L/C so that we can ship the order on time. In order to avoid any further delay, please make sure that the L/C instructions are in precise accordance with the terms of the contract. We look forward to receiving your response at an early date.

Comments Identify the reference State the problem Ask for action Foresee any further problems and give instructions so that they will be avoided Urge a prompt answer

Text E: Explain the necessity of L/C extension Dear Sirs, We have received your letter of June 30th and regret to learn that you are unable to extend the L/C No new As is known to you, there is only one vessel sailing for your port each month and it usually leaves here in the first half of a month.

So far as we know, the only vessel available in this month will leave here in a day or two and the deadline for booking shipping space is long past. Therefore it is impossible to ship the goods this month, and we would ask you to do your best to extend the L/C as requested in our letter of June 20th. Pls act promptly and let us have your reply by return airmail.

comments Identify the reference and express regret at the buyer’s inability to extend the L/C Outline the reasons for the new delivery date arrangement Urge confirmation of the extension to the L/C

Text F: Amend a letter of credit Dear Sirs, We are pleased to have received your L/C No. LNF231 against S/C 2998 for tablecloth. However, we find that the L/C stipulates for the invoice to be certified by your consul, which is unacceptable to us there is no consul of your country here.

It is our usual practice to have our invoice certified by the China Council for the promotion of international trade and this has universally been accepted by our clients abroad. We hope you will agree to it as well. You are, therefore, requested to contact your bank to delete this clause immediately upon receipt of this letter, or you may replace it by

Inserting the clause to read ‘invoice in quintuplicate to be certified by the China Council for the promotion of international Trade’. If your amendment could reach us by the end of this month, we would effect shipment in the first half of next month. We thank you in advance for your co- operation.

Comments: Identify the reference State the problem and give the reason for requesting amendment Make a suggestion Request the appropriate action Urge a prompt reply

Useful words and expression

Unit 6 Packing Text A: stating packing requirements Dear Sirs, We received your consignment of 20 cardboard cartons of men’s shirts on June 4. We regret to inform you that 2 cartons were delivered damaged and the contents had spilled, leading to some losses.

We accept that the damage was not your fault but feel that we must modify our packing requrements to avoid future losses. We require that future packing be in wooden boxes of 10 kilos net, each wooden box containing 2 cardboard cartons of 5,000 grams net. Please let us know whether these specifications can be met by you and whether they will lead to an increase in your prices.

We look forward to your early confirmation.

comments Identify the shipment State the problem Make request for future packing requirements Ask for approval and information about any effect on prices Urge a prompt reply

Text b: describing a container service Dear sirs, Thank you for your inquiry of 20 November regarding our container service. The shipping containers we provide are of two sizes, namely 20 ft, and 40 ft. They can be opened at both ends, thus making it possible to load and unload at the same time.

For carrying goods liable to be spoiled by damp or water they have the advantage of being both water-tight and air-tight. Containers are loaded and locked at the factory, rendering pilferage impossible. When separate consignments are carried in one container if their ports of destination are the same, there will be a saving on freight charges, and an additional saving on insurance because of the lower premium charges for container-shipped goods. We enclosed a copy of our tariff and look forward to receiving your insturctions.

Identify the reference State the demensions of the containers avaible and list the advantages of containerized transport Give details of the enclosure