广东交通职业技术学院 樊 文辉

Unit 7: Payment by Letter of Credit

Learning Objectives Introduction Writing Skills Specimen Letters Module 10 Payment by Letter of Credit

Learning Objectives Following are the goals for this module. Read them and consider your personal goals. 1.To learn about different kinds of L/C and their usage. 2.To learn about the parties concerned with an L/C. 3.To learn about establishing, checking and requesting to amend an L/C. 4.To understand and be able to use words and expressions related to the topic of L/C. 5.To practice writing letters urging the establishment of the L/C. 6.To practice writing letters asking for establishment of or amendment to an L/C.

Writing Skills In writing the letter to urge the establishment of an L/C, you can write a gentle reminder considering that the importer may be too busy to remember the time of, or the L/C may be on the way to you. Include in the letter the contract number and/or the order number, and the time of shipment so that the addressee can have a clear idea which transaction you are referring to so that he can take measures directly and quickly. If the L/C is still not available after repeated reminders, write a strong request to the importer and mention the possible consequence resulting from failure in opening the L/C in time. The exporter must check the L/C immediately and thoroughly upon receipt from the bank, to ensure that the terms and conditions stipulated in the L/C are correct and conform to the sales contract, and that he/she can comply exactly with the L/C requirements. Otherwise, the exporter must immediately ask the importer to amend the L/C.

Writing Skills The exporter should check the details of letter of credit, including the following: 1.The names and addresses are complete and spelled correctly. 2.The L/C is irrevocable and confirmed by the advising bank, conforming to sales contract. 3.The amount is sufficient to cover the consignment. 4.The description of goods is correct. 5.The quantity is correct. 6.The unit price of goods, if stated in the L/C, conforms to the contract price.

Writing Skills 7.The latest date for shipment or the shipping date is sufficient to dispatch the consignment. 8.The latest date for negotiation or the expiry date is sufficient to present the documents and draft (s) to the bank. 9.The port /place of shipment and the port /place of destination are correct. 10. Partial shipment is permitted or prohibited. 11. Transshipment is permitted or prohibited. 12. The L/C is transferable or non-transferable. 13. The type of risk and the amount of insurance coverage are as agreed upon. 14. The documents required are obtainable.

Part Two Steps/ContentsTypical Expressions Part I. For Letters on Negotiating the Terms of Payment Asking for easier terms of payment 1. Referring to the relative order or contract We refer to your contract No.... 关于贵方第 …… 号合同 Referring to... 关于 …… With regard to our contract of... 关于我们 …… 的 合同 With reference to the contract of... 关于 …… 的合 同 See also other units for other expressions. As..., we shall be glad if you... 因为 ……, 如果贵方 …… 我们将不胜感激｡

Part Two Steps/ContentsTypical Expressions 2. Putting forward favorable payment terms or stating the reasons As you know..., we suggest that... 正如你所知 ……, 我们建议 …… Owing to..., we would appreciate it if you... 由于 ……, 如果贵方 ……, 我们将不胜感激｡ 3. Expecting the acceptance We wish that you can accommodate us in this respect. 我们希望贵方在这方面给予照顾｡ We hope to receive your favourable reply. 我们希望收到贵方肯定的答复｡

Part Two Steps/ContentsTypical Expressions Replies to the letters asking for easier terms of payment 1. Stating the receipt of the letter We have received your letter of... 已收到贵方 …… 的来函｡ Thank you for your letter of... 感谢贵方 …… 的来函｡ See also other units for other expressions. 2. Accepting or refusing the terms and stating the reasons or providing suggestions We understand that you have some difficulties in opening the L/C. Such being the case, we suggest... payment. 我们理解贵方开证有困难, 因此建议使用 …… 付款｡

Part Two Steps/ContentsTypical Expressions In terms of payment, we could only accept confirmed irrevocable L/C. 在付款条件方 面, 我们只接受保兑的､不可撤销的信用证｡ We regret we cannot accept your terms of payment. 抱歉我们不能接受贵方的支付条款｡ 3. Expecting cooperation or favorable reply See other units for the same expressions.

Part Two Steps/ContentsTypical Expressions Part II. For Letters on L/C Urging establishment of L/C 1. Referring to the goods, relative order or contract See Part I. in this table for the same expressions. The date of delivery is approaching, but we still have not received your L/C. 交货日期已临近, 但迄今为止我方尚未收到 贵方信用证｡

Part Two Steps/ContentsTypical Expressions 2. Complaining about non-receipt of L/C,  stating your urgent need for the L/C and inviting attention to the matter We wish to remind you that it was agreed when placing the order, that you would establish the required L/C upon receipt of our confirmation. 我方提请贵方注意, 订货时双方约定, 一接到我方 确认书, 贵方就开立信用证｡ The goods have been ready for shipment for quite some time. We request that you take immediate action, particularly since we are not aware of any valid reason for further delaying the opening of the L/C. 由于货已备妥多日, 贵方 应立即开证, 我们不知贵方有何合理理由迟迟不开 证｡

Part Two Steps/Content s Typical Expressions 3.Urging the buyer to rush the opening of L/C We would be grateful if you would expedite establishment of the L/C so that we can ship the order in time. 希望贵方能 立即开证, 以便我方按时发货｡ We want to make it clear that the L/C should be opened in time, otherwise, it will cause us a great deal of difficulties. 请注意信用证应及时开立, 否则将导致很多麻烦｡ Please open the relevant L/C in time to ensure the fulfillment of the order. 请及时开立相关信用证以保证订单 的执行｡ In order to book the shipping space at an earlier date,  please open the L/C immediately. 为便于及早租船定舱, 请尽快开证｡

Part Two Steps/ContentsTypical Expressions 4. Expecting receiving L/C in early time We hope you will open the L/C in time, so as to ensure early shipment. 希望贵方能及时开 出该信用证, 以确保早日装运｡ We look forward to receiving the relative L/C at an early date. 期待早日收到相关信用证｡ See other units for the similar expressions. Applying for L/C 1. Asking a bank for the opening of an L/C Please open an irrevocable Letter of Credit in favor of... 请开立一份以 …… 为收益人的不可 撤销信用证｡

Part Two Steps/ContentsTypical Expressions We shall be very glad if you arrange to issue an irrevocable L/C for the amount of... in favor of... 如贵方能安排开立以 …… 为收益人的, 金额为 …… 的不可撤销信用证, 我们将不胜感激｡ 2. Stating details of information in L/C The L/C should state that transshipment is prohibited. 信用证应注明禁止转运｡ Partial shipments are permitted because we cannot supply all the goods you ordered at one time. 应允许分批装运, 因为我们不能一次提供所 有贵方订购的货物｡ Payment will be made against shipping documents. 应凭运输单据付款｡

Part Two Steps/ContentsTypical Expressions 3. Enclosing the application form and expecting an early opening of L/C We enclose the application form for the L/C and would be glad if you can open the L/C as soon as possible. 附 上信用证申请表, 如能尽早开证, 将不胜感激｡ Please open the L/C as soon as possible. 请尽早开证 ｡ Please arrange to have the L/C opened at your earliest convenience. 请尽早安排开出信用证｡ Advising the seller of the establishment of the L/C 1. Referring to the goods, relative order or contract See Part I. in this table for the same expressions.

Part Two Steps/ContentsTypical Expressions 2. Stating that you have instructed a bank to open an L/C, indicating the details of the L/C We are glad to inform you that the L/C No.... for the amount of...has been established in your favor through the... Bank. 很高兴告知您, 以贵方为受益 人的金额为 …… 的第 …… 号信用证已由 …… 银行开 出｡ We have opened an L/C in your favour through the... (bank) for an amount of... 我们已通过 …… 银 行开立了以贵方为受益人的金额为 …… 的信用证｡ The relevant L/C has already been established. 相关信用证已经开出｡ We have arranged with our bank to issue an L/C in your favor. 我们已和我方银行办妥向贵方开出信用 证的手续｡

Part Two Steps/ContentsTypical Expressions 3. Expecting an early shipment Upon receipt of the above-mentioned L/C, please arrange shipment immediately as per the contracted date. 收到信用证后, 请立即按合同规 定安排装运｡ Please advise us when the goods have been shipped. 货物装运之后请通知我方｡ Asking the buyer for the amendment or extending of the L/C 1. Telling the buyers that you have received the L/C We wish to acknowledge receipt of the L/C No.30 for the amount of US$5000 covering your order No.987. 贵方 987 号订单项下金额 5000 美元的 30 号信用证 已收到｡

Part Two Steps/ContentsTypical Expressions Thank you for your L/C No.... 谢谢你们的 …… 号信用证｡ We have received your L/C No.... 你们的 …… 号信用证已收到｡ See other units for the similar expressions. 2. Pointing out the discrepancies that need amendment or stating the reasons for extending We find that the following two points do not conform to the contract. 我们发现信用证条款中有两点与合同不符｡ Please delete “transshipment not allowed” as direct steamers to your port are not available and transshipment at Hong Kong is necessary. 请删去 “ 不准 转船 ” 字样｡因为到你方港口没有直达船, 必须在香港转船｡

Part Two Steps/ContentsTypical Expressions Under such circumstances, we find that both the shipment and validity of the L/C should be extended respectively. 在这种情形下, 船期和信用证 有效期都应延期｡ 3. Expecting an early amendment Your prompt attention to the matter will be much appreciated. 请尽快办理此事, 不胜感激｡ We will not be able to ship the goods in time if the amendments to the L/C come too late. 如果信用证修改得太迟, 我们将无法按时交货｡

Exercises III. Translate the following sentences into Chinese. 1. You are requested to amend the L/C amount to read USD 28,000. Otherwise it will be impossible for us to negotiate the shipping documents. 2.Among the clauses specified in your credit we find that the following three points do not conform to the contract. 3. We regret that we could not ship the goods by a March vessel because of the delay in your L/C. 请将信用证金额改为 美金，否则，我们将无法议付 单据。 我们发现你方信用证的条款中有下列三点与合同规定不符。 很遗憾，由于你方信用证延误，我们的货不能装三月份船。

Exercises III. Translate the following sentences into Chinese. 4. The date of delivery is drawing near, but so far we have not received the news about the establishment of the L/C. 5. Owing to the fact that you have not established the L/C in time covering S/C No. 28, we have to cancel the Confirmation. 6. You may recall that according to the stipulations of our S/C No. 321, the relevant L/C should reach us not later than 15 Nov.. 交货期日益临近，但至今未收到你方有关开证的消息。 由于你方未能及时开立有关 28 号售货合同的信用证，我们 不得不撤销这份确认书。 你方应该记得，按照我方第 321 号售货确认书规定，有关信 用证应不迟于 11 月 15 日到达我处。

Exercises III. Translate the following sentences into Chinese. 7.We hope that you will open it in time so as to avoid any delay in shipment. 8.It would be advisable for you to establish the covering L/C as early as possible so as to enable us to make punctual shipment of your order. 希望你方及时开证，以免耽误装运。 你们有必要尽早开立信用证，以便我们能 够按时装运你方订货。

Exercises IV. Translate the following sentences into English. 1. 请注意，第 668 号信用证项下的 600 辆自行车备妥待运已久， 但至今我们尚未收到你方的相关信用证。请速开证，以便装运 。 2. 他们已经从伦敦中国银行开立有关信用证。 。 3. 请把你方 678 号信用证的装运期和有效期分别延至 2008 年 10 月 30 日和 11 月 15 日。 We wish to draw your attention to the fact that the 600 bicycles under Contract No. 668 have been ready for shipment for quite some time, but we have not yet received your covering L/C to date. Please open the L/C as soon as possible so that we may effect shipment. They have opened the covering L/C with Bank of China, London. Please extend the shipment date and the validity of your L/C No. 678 to Oct. 30 and Nov.15, 2008 respectively

Exercises IV. Translate the following sentences into English. 4. 我们要求你方开立保兑的、不可撤销的、允许分装和转船的，金额为 全部货款的信用证支付我方货款。 5. 请按下述意见修改 310 号信用证：金额增至 美金；删去 “ 不许转 船 ” 字样。 6. 尽管你方已经同我们有过两三次订货，但是我们的规定不允许接受信 用证以外的其他付款方式。 To cover our shipment, we request you to establish a 100% value, Confirmed and Irrevocable L/C with partial shipment and transshipment allowed clause, payable by sight draft. Please amend L/C No. 310 as follows: the amount is to be increased up to USD 24,000. the words “Transshipment Not Allowed” are to be deleted. Our rules don’t allow us to accept other payment terms except L/C, although the buyer has had two or three deal with us before.

Exercises IV. Translate the following sentences into English. 7. 如果信用证在 6 月 15 日之前到达销售方，发货时间可定于 7 月 15 日至 18 日。 8. 你方 4435 号信用证已到，但经详阅后发现不准转船和分批装运，请立 即修改你们的信用证。 Time of shipment will be on July 15 to 18 provided the L/C reaches the seller on or before June 15. Your L/C No has arrived, but on perusal, we find that transshipment and partial shipments are not allowed. Please have it amended immediately.