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外 贸 英 语 函 电 Business English Correspondence

外 贸 英 语 函 电 Business English Correspondence. Terms of Payment. Chapter Seven. Contents of Chapter 7. Section One Introduction Section Two Useful Words & Expressions Section Three Specimen Letters. Section One. Introduction

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外 贸 英 语 函 电 Business English Correspondence

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  1. 外 贸 英 语 函 电 Business English Correspondence

  2. Terms of Payment Chapter Seven

  3. Contents of Chapter 7 Section One Introduction Section Two Useful Words & Expressions Section Three Specimen Letters

  4. Section One Introduction In the course of study of this chapter, the students will be acquainted with the various modes of payment and settlement of accounts and particularly those customarily used in our import and export organizations.

  5. International Payments • International payments are financial activities conducted among different countries. Paying for goods supplied in domestic trade is a fairly simple matter because payment can be made either in advance or within a reasonable short period after delivery. Payment is much more complicated in international trade.

  6. The sellers must sometimes wait several months for their money or the buyers may need to pay several months before they even see their goods. Clearly, both the sellers and buyers run certain risks of non-payment or non-delivery. So the appointment of agents for trust purpose becomes necessary. This function is usually entrusted to banks, which have branches or correspondent banks in most towns and cities overseas.

  7. Instruments of Payment in International Trade • There are three major instruments of payment used in international trade： • (1) cheques (seldom used) • (2) promissory notes. (more popular) • (3) bills of exchange /draft ( the most popular)

  8. Modes of Payment in International Trade • There are three major modes of payment in international trade: • Remittance, • Collection • Letter of credit.

  9. Remittance and Collection commercial credit offered by companies. Letter of Credit banker’s credit offered by banks.

  10. Remittance Mail Transfer (M/T), Telegraphic Transfer (T/T) Demand Draft (D/D).Collection Documents against Payment (D/P) Documents against Acceptance (D/A).

  11. While payment is sometimes made by Remittance and Collection, the most generally used method of payment is the Letter of Credit.

  12. As far as the seller’s benefit is concerned, Letter of Credit is better than D/P. D/P at sight is better than D/P after sight, whereas D/P is better than D/A. In international trade, payment through Collection is accepted only when the financial standing of the importer is sound or where a previous course of business has inspired the exporter with confidence that the importer will be good for payment.

  13. Section Three Specimen Letters

  14. Specimen letter 1 • Dear sirs, • Our past purchase of Electrical Fans from you has been paid as a rule by confirmed, irrevocable L/C. which has indeed cost us a great deal. From the moment to open credit till the time our buyers pay us, the tie-up of our funds lasts about three months. Under the present circumstances, this question is particularly taxing owing to the tight money condition and unprecedentedly high bank interests.

  15. If you would kindly make easier payment terms, we are sure that such an accommodation would be conducive to encouraging business between us. We propose either “Cash against Documents on Arrival of Goods" or “Drawing on us at 30days’ sight..Your kindness in giving priority to the consideration of the above request and giving us an early favorable reply will be highly appreciated.

  16. Specimen 1 P107CommentsThis is a letter asking for easier payment terms. For such kind of letter, the writer should give good reasons.Notes1 tie-up 占用2 particularly taxing 负担过重3 the tight money condition 紧缩银根

  17. Specimen letter 2 • Dear Sir , • Account No.37612 • We write to inform you that we do not appear to have received your payment of £6000 for Invoice No.7712,dated 8th June. We would be grateful if you would give this matter your prompt attention.

  18. If payment has been made in the past few days, please ignore this letter and accept our thanks for your payment.Should you have any queries about your account, please do not hesitate to contact us at 13112345678.

  19. Specimen 2 P108 Comments The first paragraph is a straightforward, fact-based reminder of the overdue bill. If there has been an eversight, you should be paid promptly. Notes queries 疑问

  20. Specimen 3 • Dear sirs • Account : 9211 • We note from our record that you have exceeded the credit limit of $2000 on your account. Your balance currently stands at $2891

  21. To reduce your balance to within the agreed limit please forward a cheque for the sum of $891 to us in the next 14 days.We look forward to your response. Yours faithfully

  22. Specimen 3 P109 Comments If a customer exceeds their credit limit, it is the joint responsibility of the customer and the accounts department that allowed the situation to develop. Faced with such a scenario, you can either monitor it in the hope that the balance will be reduced in due course or, if you are concerned about the customer ability to pay or their intentions, you can write to ask them to remedy the matter as soon as possible. Notes 1 credit limit 信用额度 2 scenario 情景

  23. Letter 4 • Dear sirsWe have received your final invoice of shipment 94/023 on the basic of which the balance amounts should be adjusted as US $8800. • Therefore ,you should remit us US$500 for final settlement according to the final invoice and our fax dated on December 4, 2010

  24. Specimen 4 P109 Comments This letter is a good example of conciseness. But it is not polite to say “you should do…” instead, we say “we feel grateful if you can remit us…”. Notes final invoice 最终发票

  25. Letter 5 • Dear sirs • Further to our fax of January 14, attached please find the final invoice for the shipment 668/456 contract and the statement of your account for your payment. We have instructed our accounting department to send you by courier the original final invoice again for your payment.

  26. Some of the item are overdue for long time, but they are still being outstanding. We are eager your best to settle it.Your kind and prompt attention of the issue will be highly appreciated.Yours faithfully

  27. Specimen 5 P110 Comments When you find something wrong with the payment, of course, you should tell the other party to correct the mistake immediately This letter urges the buyer to settle their accounts under the covering L/C. Writing such letter we should also do in a polite tone and express our opinion clearly. Notes 1 Further to 继……之后 2 Overdue 过期 3 outstanding 悬而未决

  28. Letter 6 • Dear sirs • We have received the above advice in reimbursement for our credit note no.203 and wish to draw your attention to the fact that your payment is $550 less than the amount claim in our schedule, which is $2800

  29. Please look into the matter and credit the difference of $550 to our head office’s account under advice to us.Yours faithfully

  30. Specimen 6 P110CommentsThis is a letter asking for reimbursement.NotesCredit Note 贷记单

  31. Letter 7 • Dear sirs • We thank you for your letter of 14thNovember 2010 • We are pleased to receive your order, and wish to say that we have adequate stocks of type em127dn tapes in our warehouse. as to the delivery, we think we manage well.

  32. Payment by irrevocable letter of credit is not convince for us and we shall draw a 45 days bill on your bank.We are now awaiting the arrival of your L/C on receipt of which we shall make the necessary arrangement for the shipment of tour order. Any request for further assistance or information will receive our immediate attention.Yours faithfully

  33. Specimen 7 P111CommentsThis is a good example to follow. Notesdraw a 45d/s bill on your bank 向你方银行开具45天的汇票

  34. Dear sirs We refer to our letter of enquiry dated September 26 we have received your proforma invoice no.7659 and now wish to place an initial order for 5000 tapes type no. em127d. the order number is 8873. Letter 8

  35. We have instructed our bank, the general commercial bank of Venezuela to open an irrevocable documentary letter of credit in your favor. The amount is $8800. This credit will be confirmed soon by our bank’s correspondent in London. You are authorized to draw a 60days draftcomplete set of shipping documents,

  36. consisting of :a full set of clean shipped on board bill of lading, commercial invoice 5 copies and the insurance certificate 3 copies. Our bank will accept your 60 days draft on them for the amount of you invoice including the cost of freight and insurance, as agreed. Your bill will therefore be at 60days for the full CIF invoice value. The credit is valid until the February 20 next year.

  37. Specimen 8 P111 Comments In this letter the writer gives clearly his requirements for payment terms. Notes 1 Proforma Invoice 形式发票 2 open 开立 3 in your favor 以某人为受益人 4 draw a 60 days’ draft 开立60天期汇票 5 Commercial Invoice 商业发票 6 Insurance Certificate 保险凭证

  38. Thank you!

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