Letter of Urging Prompt Settlement

Focal Points Understanding the necessity of early settlement How to urge settlement Letter writing format of urging prompt settlement Grasping useful sentences or related words

From low risk to high risk for the exporter: Collection letters, demand letters or final demand letters A "first" request will usually be friendly in tone Send a second letter before taking action which may cost money and create ill will. The third letter will have to show that the writer cannot and will not wait any longer for his money Lead-in

Samples

Notes 1)past due 2)mutually agreeable 3)statement of account 4)resort to legal proceedings 5)unsettled 6)in settlement for 7)settle account

1. We would like to stress that the L/C stipulations must be ________ with the terms of the S/C b. in full reference toa. in exact accordance with d. in full light ofc. in exact view of 2. Please note that the goods _________ our S/C No. 563 are now ready for shipment. a. aboutc. ind. ofb. under Exercises I. Fill in the blanks with the best choice:

3. We have opened an irrevocable and confirmed L/C _________ Bank of China. b. byc. withd. fora. in 4. Your L/C No. 253 is to be established _________ the amount of HK$50,000. b. withc. atd. ona. for Exercises

5. We hereby undertake to ________ all drafts drawn in accordance with the terms of the above credit. b. paya. hounour d. creditc. refund 6. The payment method for this particular transaction is confirmed, irrevocable L/C by sellers documentary draft at sight________ for negotiation in China until 15 days after date of shipment. a. used c. validd. collected b. presented Exercises

7. The L/C must reach the sellers 30 days before the contracted date of _______. b. shipmenta. payment d. transportationc. arrival 8. The beneficiarys draft shall be drawn against the L/C________by the following documents. a. accompaniedc. companyingd. accompanyingb. companied Exercises

9. In the case of payment by L/C, both the exporter and the importer count on __________ credit. b. commerciala. business d. companyc. bank 10. The chief contents of the L/C is a combination of the chief contents of the sales contract, the ___________ and the bank assurance. a. bill of lading c. commercial invoice d. required documents b. bill of exchange Exercises

II. Translate the following sentences into Chinese: Exercises 1. We have received your L/C No. 562, but we find it contains the following discrepancies:… We would therefore request you to instruct your bankers to make the necessary amendment. 2. 6/7 2. As there is no direct liner from Qingdao to your port during June/July, it is imperative for you to delete the clause by direct steamer and insert Partial shipments and transshipment are allowed ……

Exercises 3. The buyers insist that an irrevocable L/C be opened within ten days after the receipt of the sellers advice that the goods are ready for shipment We hereby undertake to honour all drafts drawn in accordance with the terms of the above credit. 3.

Exercises 5. Please amend your L/C No. 256 to include the wording: 5% more or less under the items of quantity and amount % 6. The major parties involved in L/C are the applicant, opening/issuing bank, advising bank, beneficiary, negotiating bank, paying bank and confirming bank. 6. /

Exercises 7. An irrevocable letter of credit cannot be modified, amended or withdrawn by either the opening bank or the buyer before the expiry date of credit validity without the agreement of the beneficiary A confirmed letter of credit is confirmed by another bank (usually the advising bank) on behalf of the opening bank. The confirming bank is usually in the country of the exporter and is responsible for the payment of the goods. 7.

Exercises 9. Under a sight letter of credit, the negotiating bank makes payment immediately upon the presentation of the sight draft and shipping documents as stipulated in L/C by the seller Under usance L/C, the payer of the draft will not effect payment upon receipt of the documentary draft until the maturity of the draft. 9.

Exercises III. Letter Composition: Write a letter to ask the buyer to extend the L/C. You may refer to some of the following details. 1. The L/C arrived two weeks late on the 13 th of August. 2. Only one vessel sailing for the destination port every month and the sailing date usually in the early half of a month. 3. The only vessel sailing for the destination port this month is to depart in two days time, and the shipping space has been fully booked. 4. Shipment and negotiation dates to be extended to the 14 th and the 30 th of September respectively.