chapter_6__terms of payment

1、Chapter 6PaymentTermsv1. Instruments (means) of Paymentv Currencyv Bills v Draftv Promissory Notev Chequev2. Modes of Paymentv Remittancev Collectionv L/CPayment TermsI.Payment InstrumentsVarious meansdraft 汇票汇票 (most common instrument of payment) Promissory notes 本票本票, 期票期票Checks (sometimes used)Mo

2、ney orders 汇票汇票Credit cards cashcashRarely used except for small transactions (involve large sum of sum-very dangerous e.g. 爆头哥)Credit card Not widely usedVerification with and approval from the credit card company be inconvenient and time-consuming1) draft/Bill of ExchangevDefinitionvBasic contents

3、 of a draft vTypes of draftvUse of draftvThe Roles of Bills of Exchange（1）Definition vDefinition of bill of exchangeIt is defined officially as an unconditional order in writing, signed by one party to another, requesting the second party to pay on demand, or at a future time, a certain amount of mo

4、ney, to a specified party or to the order of him.drawerdraweepayeenature凭凭xxx（of后面的名字）后面的名字）指示的付款指示的付款 .付款人, 受票人 出票人 收款人，取款人汇票：汇票： 由出票人签发的，由出票人签发的，要求付款人在见票时或在一定期限内，要求付款人在见票时或在一定期限内，向收款人或持票人无条件支付一定款项向收款人或持票人无条件支付一定款项的票据。的票据。汇票是无条件付款的命令！v出票人的一种命令，命令付款人对受款人进行无条件付款或者承兑的命令。Parties involvedvThe drawer: vT

5、he draweevThe payee收款人，取款人收款人，取款人I (drawer) order you (drawee) to pay someone (payee)出票出票提示提示付款、承付款、承兑兑 出票人出票人 收款人收款人 付款人（受票人）付款人（受票人）Bill of ExchangevNo.20042 Shanghai, March 27th, 2005 vEXCHANGE for HKD236,000.00 vAt 30 days sight of this FIRST Exchange (Second of Exchange being unpaid) pay to the

6、 order of Bank of China, (受票人，付款人受票人，付款人) Shanghai the sum of HK DOLLARS TWO HUNDRED AND THIRTY-SIX THOUSAND ONLYvDrawn under Bank of China, Hong Kong L/C No.2003056 Dated Jan. 10. 2005vTo: Bank of China, （付款人） China Machinery &Equipmentv Hong Kong Import & Export Corp., Shanghai Branch 张扬（出

7、票人签章） EXCHANGE for: 后填小写金额后填小写金额FIRSTSECOND: 分别指第一份汇票第二份汇票. 汇票一般一式两份,银行只付其中一份, 剩下的一份自动作废. 既所谓的付一不付二,付二不付一.见本汇票后_天付款(第二份汇票不付). pay to the order of Bank of China: “凭XX银行指示(3) Types of DraftvCommercial draft and Bankers draft vSight draft and Time draftvClean draft and Documentary draftCommercial draft

8、 and Bankers draftuCommercial draft商业汇票Drawn by a firm or an exporter Difference According to the different drawersDrawee： firm， or bank Feature: More risksBankers draft银行汇票vdrawn by a bank on another bank.Feature: Little riskApplication: used in international trade In settlement of paymentSight Dra

9、ft and Time DraftSight draft即期汇票即期汇票vpayable on presentation to the drawee, i.e. when sighted by him.汇票在提示提示时就付款Time/usance Draft远期汇票远期汇票Payable in a specified number of days afteruIts date of issueuIts date of acceptanceuThe date of B/L uAt a fixed dateTime/usance Draft远期汇票远期汇票at xx days after acce

10、ptance (sight).at xx days after issue. at xx days after B/L date(4) at Jan.12, 2011 fixedClean draft and Documentary draftClean draft 光票Documentary draft跟单汇票Paid without the presentation of any other documents attachedA bankers draft is usually cleanShould be paid only when certain documents have be

11、en attached to and presented together with the draft Commercial drafts are usually documentary Documentary draft跟单汇票随附单据一般为提单、 仓单、保险单、装箱单、发票、检疫检验证书、原产地证明等等。 L/C的含义及性质L/C是由一家银行(开证行)应客户(申请人)的要求和指示或以自身的名义，在符合信用证条款的条件下，凭规定的单据：向第三者(受益人)或其指定人付款，或承兑并支付受益人出具的汇票；授权另一家银行付款，或承兑并支付该汇票；或授权另一家银行议付。即：信用证是银行根据进口人的要

12、求，向出口人信用证是银行根据进口人的要求，向出口人开立的有条件的付款保证书。开立的有条件的付款保证书。信用证的性质属于银行信用。（2）The parties Involved in L/CApplicant & BeneficiaryBuyer、openersellerIssuing bank & Advising (notifying) bank通知行：advises the credit At the request of the Issuing bank without anyundertaking to honor or negotiate（2）The parties

13、Involved in L/CConfirming bank (保兑行)adds its own undertaking to that of the issuing banke.g. If issuing bank refuses to pay,Beneficiary can ask the confirmingBank to make payment Paying bank （付款行）Negotiating bank （议付行）the bank that Negotiates 议付议付or discounts 贴现 the beneficiarys draft. discount远期汇票经

14、承兑后，远期汇票经承兑后，汇票持有人在汇票汇票持有人在汇票尚未到期前在贴现市场上转让，尚未到期前在贴现市场上转让，受让人扣除贴现息后受让人扣除贴现息后将票款付给出让人的行为将票款付给出让人的行为，或银行购买未到期的票据业务，或银行购买未到期的票据业务E,g, 金额：金额： 100 万万还有三个月到期：还有三个月到期： 利息约利息约1万万经过贴现，汇票持有人可以获得：经过贴现，汇票持有人可以获得：100-1=99 万万Negotiate 是根据是根据开证行开证行在在议付信用证议付信用证中的授权，中的授权，买进买进受益人受益人提交的提交的汇票汇票和单据的银行。和单据的银行。 （2）The part

15、ies Involved in L/CAccepting bank承兑行承兑行Remitting bank汇出行汇出行/寄单行寄单行The bank Which sends theDocuments to the Issuing bank(4) Workflow of L/CvAvAvAvAApplicantAdvising/ NegotiatingbankBeneficiaryIssuing bankThe general procedure of using a L/Cstep1. The buyer and seller conclude a sales contract specify

16、ing documentary credit as the method of payment.step2. The buyer instructs his bank, the issuing bank to issue a credit in favor of the seller.3. The issuing bank opens the credit and sends it to the advising bank.4. The advising bank informs the seller (beneficiary) that the credit has been issued.

17、 As soon as the seller receives the credit and is satisfied with the terms and conditions, he is in a position to load the goods and dispatch them.Step 5. the seller then send the documents evidencing the shipment to the negotiating bank and the bank will negotiate according to the terms of the cred

18、it.Step 6. The bank sends the documents to the issuing bank.Step 7. The bank effects payment in accordance with the credit if the documents meet the requirements.Step 8. The issuing bank releases the documents to the buyer upon payment of the amount due, or upon other agreed terms between the buyer

19、and the issuing bank(5) types of L/CvIrrevocable L/C and revocable L/CvConfirmed L/C and Unconfirmed L/CvSight L/C and Time or Usance L/CvTransferable L/CvBack-to-back L/CvRevolving L/CSight L/C (Read by yourselves)vSight L/C: the issuing bank or nominated paying bank makes payment at sight of the r

20、equired documents and draft. And the buyer makes sight payment, too.Time L/C (Read by yourselves)vThe issuing bank or nominated paying bank will make payment at the specified time after receiving the documents and draft.vThe seller is financing the transaction.Irrevocable L/C and revocable L/C (Read

21、 by yourselves)vAn irrevocable L/C: cannot be amended or cancelled without express permission of all parties, i.e. the beneficiary, the applicant and the banks (issuing bank and confirming bank, if any).vA revocable L/C?vBlank indication means what?.Confirmed L/C and Unconfirmed L/C (Read by yoursel

22、ves)vA confirmed L/C gives double guarantee to the beneficiary by adding the confirmation of another bank.vThe issuing bank may dishonor the credit.Transferable L/C可转让可转让 Untransferable L/CuDefinition: one that can be transferred (only once)By the original (first) beneficiary to another (second) ben

23、eficiary uApplication: normally used when the first beneficiary doesnt supply some or all the merchandise himself, but is only a middleman and thus wishes to transferPart, or all, of his rights and Obligations to the Actual supplier(s) as second beneficiary 可转让信用证指经可转让信用证指经出口商出口商请求，请求，进口商进口商同意，同意， 由

24、由开证银行开证银行开立可转让信用证，并载明授权开立可转让信用证，并载明授权受益人（即原信用证受益人）有权将信用证受益人（即原信用证受益人）有权将信用证所列金额的全部或部分所列金额的全部或部分转让转让给出口商以外的给出口商以外的第三者，即第二受益人（第三者，即第二受益人（Second Beneficiary）有权使用转让后的权力。）有权使用转让后的权力。 e.g. 如果有供应商如果有供应商A，买家，买家B，中间商，中间商C。买家买家B开立以开立以C为受益人的可转让信用证，为受益人的可转让信用证， C收到信用证后，向银行申请转让信用证，收到信用证后，向银行申请转让信用证， 将将A作为第二受益人，转

25、让信用证有全部转让或作为第二受益人，转让信用证有全部转让或部分转让。部分转让。 比如第一张比如第一张B开的信用证金额是开的信用证金额是100万，万， C可以将可以将100万全部转让给万全部转让给A， 或者转让部分金额给或者转让部分金额给A，从中赚取差价。，从中赚取差价。 Back-to-back L/C (Read by yourselves)vDefinition vThe back-to-back L/C is opened at the request of the middleman when the actual buyer has opened a L/C in his favor

26、. He use the L/C as collateral and ask the bank to open another L/C with actual supplier as the beneficiary.vThe coordination between the two creditsRevolving L/C (Read by yourselves)vIt is usually used by an importer who anticipates a regular flow of merchandise from a particular foreign supplier.v

27、It is issued for a specific amount which renews itself for the same amount over a given period or when certain amount of money is used up.1. Remittance（汇付） According to the terms and time stipulated in the contract, the remittance is classified into 3 kinds: 1)Mail transfer (M/T) （信汇）：by mail 信汇是汇出行

28、应汇款人的申请，用航空信函的形式，指示出口国汇入行解付一定金额的款项给收款人的汇款方式。信汇的优点是费用较低廉，但收款人收到汇款的时间较迟。 2)Telegraphic transfer (T/T)（电汇）：by cable 电汇是汇出行应汇款人的申请，拍发加押电报或电传给在另一国家的分行或代理行（即汇入行）解付一定金额给收款人的一种汇款方式。 3)Demand draft (D/D)（票汇）：The buyer buys a draft from a local bank and sends it by mail to the seller, the seller or his appoin

29、ted person can collect money from the relative bank at his end against the draft sent by the buyer.v票汇是指汇出行应汇款人的申请，代汇款人开立以其分行或代理行为解付行的银行即期汇票，支付一定金额给收款人的汇款方式。 2. Collection（托收）是出口人在货物装运后，开是出口人在货物装运后，开具以进口方为付款人的汇票（随附或不随付货具以进口方为付款人的汇票（随附或不随付货运单据），委托出口地银行通过它在进口地的运单据），委托出口地银行通过它在进口地的分行或代理行代出口人收取货款一种结算方式。

30、分行或代理行代出口人收取货款一种结算方式。 1)The remitting bank（托收行）：appointed by the exporter to collect the proceeds of sales. 2)The collecting bank（代收行）：appointed by the remitting bank to collect the proceeds from the importer, usually a branch office abroad or a correspondent bank of the remitting bank. 3)Kinds of c

31、ollection A) Documents against payment (D/P): 付款交单 D/P at sight; D/P after sight 是出口人的交单以进口人的付款为条件，即出口人将汇票连同货运单据交给银行托收时，指示银行只有在进口人付清货款时，才能交出货运单据 B) Documents against acceptance (D/A):承兑交单 D/A is always after sight 指出口人的交单以进口人在汇票上承兑为条件。即出口人在装运货物后开具远期汇票，连同商业单据，通过银行向进口人提示，进口人承兑汇票后，代收银行即将商业单据交给进口人，在汇票到期

32、时，方履行付款义务。承兑交单是进口人只要在汇票上办理承兑之后，即可取得商业单据，凭以提取货物。 vestabliahsh/open an L/c with a bankvIssue an L/c by a bankvL/C will be opened (establiahsh)in a few days with the bank of china.vWe have asked our bank to issue an L/C in a few days.v vdraw v. 开出(汇票)（索取款项）vdraw on sb for against sth vAs agreed, we are

33、 drawing (a draft) on you for the value of this sample shipment.v按约定，我们将开出一张汇票向你方索取这批样货的价款。vWe are drawing on you at sight(at 30 days) against your purchase of 200 sets of color TV sets.v对于你方购买的200台彩电，我们将开出即期汇票向你方索取货款。 Case 1卖方货物已经等待装运，但还没收到买方的信用证，敬请买方尽快开立信用证。Key Points 1. 货物已装运货物已装运2.还未收到信用证还未收到信用证

34、3.请买方尽快开立信用证请买方尽快开立信用证Useful Sentencesv1. Please do your utmost to expedite its establishment of the relevant L/C.v2. We are eager to know when you can open the relative L/C as the goods have been ready for shipment for quite a few days.v3. But much to our disappointment, we have not received your L

35、/C yet.请尽快开立相关信用证。我方想知道你方何时能开立相关信用证，因为货物已经准备装运很久了。但令我方失望的是，至今还未收到你方的信用证。Useful Sentencesv4. We wish to inform you that the goods under S/C NO. 123 have been ready for quite some time.v5. If orders are booked for prompt shipment, it is necessary to establish L/C by telex.我方通知您编号为123的信用证已经准备好一段时间了。为了订

36、单能够及时装运，有必要通过电传开立信用证Case 2买方通知卖方信用证已开立，请卖方确认在九月内发货装运。Key Points 1. 信用证已开信用证已开2. 请卖方确认发货请卖方确认发货Useful Sentencesv1. An irrevocable, transferable L/C would be most appropriate.v2. We will open an irrevocable L/C in your favor within 10 days from the date of the contract.v3. I wonder if we can make paym

37、ent for this order by documentary collection.不可撤销的可转让的信用证最合适。我方将开具以你方为受益人的不可撤销的信用证，自合同之日期10日内有效。我方是否可以用跟单托收的方式来支付定单。Useful Sentencesv4. In terms of payment, we could only accept confirmed, irrevocable L/C.v5. To be on the safe side, we insist on payment by L/C.关于支付方式，我们只接受保兑的，不可撤销的信用证。从安全角度出发，我方坚持信用

38、证付款。Case 3买方收到的信用证有与协议不符合之处，主要是装运方式上有不一致，要求卖方修改。Key Points 1. 信用证有不符之处信用证有不符之处2. 要求修改要求修改Useful Sentencesv1. The Bill of Lading should be marked “Freight Collect” instead of “Freight Prepaid”.v2. Please insert the word “about” before the quantity in your L/C No. 345.v3. Please amend L/C No. 789 to r

39、ead “This L/C will expire on July 12, 2007.”提货单上应该是运费到付而不是运费预付。请在你方编号为345的信用证上的数量前插入单词“大约”。请修正编号789的信用证为“该信用证到2007年7月12日有效。Useful Sentencesv4. We regret to say that we have found some discrepancies after examining it carefully.v5. The amount in your L/C appears insufficient. Please increase the amou

40、nt by $700.在仔细检查后，我方很遗憾的发现有些不符之处。你方信用证上的数量不足。请增加700美元。BackCase 4买方已经收到卖方的信用证，但因为船只问题，不能及时装运，故要求卖方展延信用证，同时对引起的不便表示歉意。Key Points 不能及时装运，不能及时装运，要求延展信用证要求延展信用证Useful Sentencesv1. The credit should be opened one month before the date of shipment.v2. The L/C should be valid for 15 days after the date of s

41、hipment.v3. We can find no reason to explain why your relative letter of credit has not reached us yet.信用证应在装运期一个月前开立。信用证应在装运期15天后到期。我方发现你方的信用证至今未到达。Useful Sentencesv4. Unless your L/C advice faxed us the soonest possible, our contract will be terminated.v5. Your prompt attention and cooperation in

42、this matter will be highly appreciated. 除非你方尽快把信用证传真给我方，否则合同将中止。我方将很感激你方及时的关注和合作。BackCase 5买方希望卖方同意用托收里的付款交单的方式来支付货款，并且希望得到对方的早日回复。 Key Points 买方希望支付方式买方希望支付方式用付款交单用付款交单Useful Sentencesv1. However, in view of our friendly relations, we will accept payment for your trial order on D/P basis as an exce

43、ption case.v2. In order to pave the way for your promotion of our products in your market, we will accept D/P at sight as a special accommodation.v3. We sincerely hope you can give us your most favorable consideration, and await your early reply.然而，鉴于我们的友好关系，我方将作为特例，接受你方的首次订单用付款交单的方式支付。为了你方在市场上更好地推广

44、产品，我方将作为特例接受付款交单的支付方式。我方真诚希望你方能给予诚挚的考虑，并等待着你们的早日回复。Useful Sentencesv4. We are sorry to inform you that the listed terms of payment do not correspond to customary business practice.v5. Considering that it is your first order, we can accept D/P payment terms as a special accommodation.我方很遗憾地通知你方，所列支付方

45、式和惯例不符。考虑到是你方的首次订单，我们作为特例接受付款交单的支付方式。BackCase one Dear Mr Smith, Thank you for your order for 5,000 dozen shirts by your letter of 10 February. We have considered your proposal to pay a 30-day letter of credit. We do not usually accept time credit. However, in view of our long and mutually beneficia

46、l relationship, we are willing to make an exception this time. We must stress that this departure from our usual practice relates to this transaction only. We cannot regard it as setting a precedent for future transcations. We enclose our sales Contract No. TL120 covering the order. We would be grat

47、eful if you follow the usual procedure. Yours faithfully,1.pay v. 付（款，费用） pay in advance 预付 Pay by installments 分期付款 pay on delivery 货到付款 payable a. 应付的（款项）；可付的 bills payable 应付票据 amount payable 应付金额 account payable 应付账款 a check payable at sight 见票即付的支票Notes to case onevpayment n. 支付，支付的款 payment in

48、 advance 预付货款 deferred payment 延期付款 cash payment 现金付款 full payment 全额付款 in payment of 付某种费用的款，如发票、佣金等 in payment for 付某种具体实物的款，如广告、商品、样品等vWe enclose a check for US3，000 in payment of all commissions due to you up to date. 随信附上3000美元支票一张，以支付截至目前所欠你放全部佣金。 We have received your check for 300 in payment

49、 for the samples we sent you last month. 收到你放300美元支票一张，支付我方上个月寄给贵公司的样品。2. departure n. 背离，违背；离开（常接介词from)e.g. It is a departure from your promise. We can get the goods ready before the ships departure.3. usual practice 通常惯例，习惯 international business practice 国际商务 惯例e.g. It is our usual practice to a

50、sk for sight L/C, no matter the order is large-sized or small-sized.4. regard v. 把看作，把认为（后接介词 as）e.g. We regard your market as one of promising markets in USA.5. precedent n. 先例，惯例 set a precedent 开创先例 take sth. as a precedent 将某事当做先例e.g. Our accommodation in this respect should not set a precedent

51、for future transactions.v亲爱的Smith先生：感谢你2月10号来函订购5000打衬衫。（1打12个）我们考虑了你关于用一个30日信用证付款的提议。通常我们不接受有时限的信用证。然而，为了我们两方今后长远和更多的利益关系，我们决定破例一次。必须强调的是，这种破例做法仅限于此次交易。在今后的交易中，我们还是不能接受这种信用证。附上针对此次订单的销售合同，第TL120号。如果您能够遵循程序我们将万分感激。Yours faithfully, Enc. vDear sirs,v thank you for your letter of 15 februay, asking fo

52、r a change in payment terms.vDear sirs,vWe have received your irrevocable L/C No.123 in the amount of 10000ps about 100M/Ts opened with london bank. we regret to say that we have found some discrepancies upon checking with our S/C.in order to ensure timely shipment, please amend the L/C as follows:v

53、the name of the beneficiary should read qingdao guangda textiles import and export corporation instead of shangdong textiles import and export corporation. vPlease insert the word about before the quantity and amount in your L/CvThe shipment date should be on or before 2 March instead of before 2 Ma

54、rch. vAs the time of shipment is approaching ,please make the necessary amendments by fax the soonest possible so that we can effect shipment in time. vdiscrepancy n. 差异，不同，不符点vThe seller is liable for the refund of the extra cost because of the discrepancy in weight.v卖方应负责退还因重量差异而多收的货款。vThere are s

55、everal discrepancies between the clauses of the L/C and the terms of the contract. v信用证条款与合同条款有几点不符之处。vrather than 而非，而不是 v instead of 代替, 而不是vRather than extended the L/C, the buyer asked us to ship the goods as scheduled.v = Instead of extending the L/C, the buyer asked us to ship the goods as sch

56、eduled.v 买方没有展证，而是要求我们立刻装运。vdelete v.t. 删除， 删去 vPlease delete this clause, for it doesnt comply with the terms of our contract.v请删除这一条款，因为它跟我们的合同不符。vWe would like to ask you to delete “partial shipment is not allowed” from the L/C.v请把“不允许分批装运”从信用证中删除。vWhen writing a letter concerning terms of paymen

57、t，the following structure is often used:v1. Put forward the problem of terms of payment.v2. Present the desired terms of payment andvexplain why this mode of payment is preferred or why other terms of payment cannot be accepted.v3. Close the letter by expressing expectations of an early reply or sug

58、gesting future business dealings. vThe following structure is for your reference in writing a letter urging establishment of L/C:vOpen the letter in a positive way. For example, in the first paragraph the seller usually informs the buyer that the goods are ready for dispatch or that the shipping spa

59、ce has already been booked. vPolitely push the buyers to open the L/C without delay, either by referring to the stipulations of the contract or by reminding the buyers of the seriousness of not opening the L/C in time.v3. Express expectations and ask the buyers to take immediate action.vThe followin

60、g structure is for your reference in writing a letter asking for L/C amendment or extension: v1. Acknowledge receipt of the L/C and thank the buyer for opening it.v2. Point out the problem politely and ask the buyer to make the amendment accordingly. Usually, detailed and courteous explanations for such a request