Chapter 7 Payment

Review Let’s review what we learnt last time together!

Learning Objectives 学习目标 By learning this chapter you will be able to: know the basic terms of payment know the letter writing of negotiation of payment terms know the letter writing under D/P and D/A terms. Learning Objectives 学习目标

Warming-up Questions Because the seller and the buyer all have the risk of suffering losses. If the payment is not assured, all will be meaningless. Because the seller and the buyer all have the risk of suffering losses. If the payment is not assured, all will be meaningless. Q1: Why is the problem of payment rather complicated in foreign trade? Q1: Why is the problem of payment rather complicated in foreign trade? Two

Q2: Besides L/C, what otherBesides L/C, what other methods are used in the international trade? Q2: Besides L/C, what otherBesides L/C, what other methods are used in the international trade? In international trade, besides the L/C, there are many methods covering payment. Such as D/P and D/A etc. In different transactions, we should select different terms of payment.

9. at hand 在手边 10. tie-up of funds 占压 资金 11. in compliance with 按照 12. acquire vt. 取得， 13. presentation n. 提 示 14. to that effect 就这一点 15. instant adj. 本月的 16. in view of 由于， 考虑到 1. render v. 提出；提供 2. complicated adj. 复 杂的 3. Installment n. 分期 付款 4. remit v. 汇付 5. credit transfer /giro 划拨，信用转账 6. promissory note 本票 7. moderate adj. 中等的， 不大的 8. means n. 资财 New Words and Expressions

17. at sight 即期 18. at 60 days sight 见票 60 天后 19. timely adj. 及时的 20. entitle vt. 给 …… 权利 21. in consideration of 考虑 到 22. extension n. 扩展；展期 continued

Payment plays an important role in the course of business. The final result of all business activity should be to recover the value of goods supplied or services rendered. If payment is not ensured then all will be meaningless. In foreign trade, the payment terms are complicated and settlement of foreign accounts may be made in a number of ways. General Introduction

Instrument of payment for home trade and for international trade are as follows: Instrument of payment for home trade and for international trade are as follows: Instruments of Payment 付款工具 / 手段

1. For home trade (1) Cash (2) Cheque/Check (3) Credit transfer /Giro (4) Banker’s draft / Bank draft 1. For home trade (1) Cash (2) Cheque/Check (3) Credit transfer /Giro (4) Banker’s draft / Bank draft 2. For international trade (1) Banker’s draft /bank draft (2) Mail transfer /Telegraphic transfer/ Telex transfer (3) Bill of exchange (4) Promissory note (5) Documentary Bill (6) Letter of Credit 2. For international trade (1) Banker’s draft /bank draft (2) Mail transfer /Telegraphic transfer/ Telex transfer (3) Bill of exchange (4) Promissory note (5) Documentary Bill (6) Letter of Credit

Writing Skills How to write letters making payment as a buyer 买方提出付款方式的信函的写作

1.The letter should be concrete, not too long. long. 2. Try to avoid grammatical errors. 3. The information you offer in the letter should be concrete and credible. should be concrete and credible. 4. The format and layout should be standardized and printed neatly. standardized and printed neatly. Here are some guideline:

(1) Mention the contract, goods, etc. (2) Suggest the term of payment and reason. (3) Wish the reader to accept. When making payment, plan your letter as follows:

Replies to payment When we write a reply to payment, follow the under -mentioned guidelines:

(1) State that you have received his letter. (2) Give your reply of agreeing or refusing and your reasons. (3) State your goodwill and your wish to do business with the reader.

May 8, 2006 The Manager S. Daniels & Co. ， Ltd. 82 City Road, London UK Dear Sirs, Specimen Letter 1

1 We wish to place with you an order for 100,000 yards Printed shirting at your price of US ＄ 2.00 per yard CIF London for shipment during July/August. For this particular order we would like to pay by 30 L/C days because this order is comparatively a big one. As we have only moderate means at hand, the tie-up of funds for as ling as three to four months

indeed presents a problem to us. It goes without saying that we very much appreciate the support you have extended us in the past. If you can do us a special favour this time, please send us your contract, upon receipt of which we will establish the relative L/C immediately. Yours faithfully, 1

敬启者： 我方希在 CIF 伦敦的基础上以每码 2 美元向 你方订购 100 ， 000 码印花细布，七 / 八月份 装运。 由于这笔订单的金额巨大，我方愿以 30 天期 的信用证支付。由于我方目前手头资金有限， 长达三四个月的资金占压给我方带来了很大 的问题。 无痈置疑我方非常感谢你方一直给予的支持。 如果此次你们能给予关照，请将有关合约寄 来，一旦收到合约，我方立即开出相关的信 用证。 Reference Translation

Specimen Letter Advising Payment by D/P Dear Sirs, We are very thankful to you for informing us that the goods under Contract No.791 were shipped in good time on May 10. We would like to notify that in compliance with the Contract stipulation, we have made full payment for these goods and acquired 2

a complete set of shipping documents upon presentation by the Bank of China. The Bank of China will also inform the collection bank at your place to that effect. As to the condition of goods, we shall communicate with you after inspection is made. Yours faithfully, 2

Reference Translation 敬启者： 得知 791 号合约项下货物已于 5 月 10 日如 期出运，非常感谢。 现接中国银行提示，当即按合约规定付 清全部货款，取得全套货运单据。除由 中国银行转告贵地托收银行外，特此函 告。 至于货物状况，当于检验后再行奉告。

F Useful Expressions on Payment Please note that the terms of payment for the above orders are letter of credit of 60 days sight or D/P at sight. 请注意上述订货货款以 60 天期票信用证或即期付款交 单方式支付。 Please note that the terms of payment for the above orders are letter of credit of 60 days sight or D/P at sight. 请注意上述订货货款以 60 天期票信用证或即期付款交 单方式支付。 We will draw on you by our documentary draft at sight on collection basis. 我们将按托收办法向你方开具即期跟单汇票。 We will draw on you by our documentary draft at sight on collection basis. 我们将按托收办法向你方开具即期跟单汇票。 1 1 In compliance with your request, we exceptionally accept delivery against D/P at sight, but this should not be regarded as a precedent. 按你方要求，我们破例接受即期付款交单，但只此一 次，下不为例。 In compliance with your request, we exceptionally accept delivery against D/P at sight, but this should not be regarded as a precedent. 按你方要求，我们破例接受即期付款交单，但只此一 次，下不为例。

We enclose invoice for your order No.541 which we shopped yesterday per s.s “Sunrise”. Meanwhile, kindly give out draft due honour when presented to you from your bankers. 贵方 541 号订单货已于昨日装 “ 日出 ” 轮，现将 有关发票附上。当你方银行提示我们的汇票 时，请予以兑付。 We enclose invoice for your order No.541 which we shopped yesterday per s.s “Sunrise”. Meanwhile, kindly give out draft due honour when presented to you from your bankers. 贵方 541 号订单货已于昨日装 “ 日出 ” 轮，现将 有关发票附上。当你方银行提示我们的汇票 时，请予以兑付。 We are pleased to confirm that each shipment will be separately charged and that we shall draw on you for the invoice amount. 兹确认，各次交货将分别向你收款，按发票 金额向你开具汇票。 We are pleased to confirm that each shipment will be separately charged and that we shall draw on you for the invoice amount. 兹确认，各次交货将分别向你收款，按发票 金额向你开具汇票。

7 7 In order to conclude the business, I hope you’ll meet me half way. What about 50% by L/C and the balance by D/P? 为了做成这批生意，希望双方都各让步一半。 50% 以信用证 付款， 50% 按付款交单怎么样？ In order to conclude the business, I hope you’ll meet me half way. What about 50% by L/C and the balance by D/P? 为了做成这批生意，希望双方都各让步一半。 50% 以信用证 付款， 50% 按付款交单怎么样？ We hope you well accommodate us in this respect and look forward to your favourable reply. 我们希望你方能在此方面给予通融并期盼你 方的肯定答复。 We hope you well accommodate us in this respect and look forward to your favourable reply. 我们希望你方能在此方面给予通融并期盼你 方的肯定答复。 6 6

Since the total amount is so big and the world monetary market is rather unstable at the moment, we can not accept any terms of payment other than a Letter of Credit. 因为这次交易额大，而且目前国际金融市场很不稳 定，所以我们除 接受信用证付款外，不能接受别的 付款方式。 Since the total amount is so big and the world monetary market is rather unstable at the moment, we can not accept any terms of payment other than a Letter of Credit. 因为这次交易额大，而且目前国际金融市场很不稳 定，所以我们除 接受信用证付款外，不能接受别的 付款方式。 For a small size of goods on advertised promotion, we feel it unnecessary to have a letter of credit opened since the charges resulting therefore would increase our cost account. 针对用于广告推销这样的少量商品，我们认为没有 必要以信用证支付，因为由此而产生的费用只会加 大我们的成本。 For a small size of goods on advertised promotion, we feel it unnecessary to have a letter of credit opened since the charges resulting therefore would increase our cost account. 针对用于广告推销这样的少量商品，我们认为没有 必要以信用证支付，因为由此而产生的费用只会加 大我们的成本。

In this chapter, we will learn the writing of the letter covering the payment. In the course of study of this chapter, we will be acquainted with the various modes of payments and especially those customarily used in our import and export organizations. Summary

Homework a.Finish the exercisesFinish the exercises on page … b. Writing practice

Thank you! Goodbye