1、Unit 7 Payment and Settlement of accounts1. Terms of payment(1) Remittancen-T/T (Telegraphic Transfer)n-M/T (Mail Transfer)n-D/D (Demand Draft) (2) Collectionn-D/P (Document against Payment)n-D/A (Document against Acceptance)(3) Letter of Credit -What is L/C? -Types of L/C Documentary L/C; Irrevocab

2、le L/C; Confirmed; Sight/Usance; Transferable; Revolving; Reciprocal; Back to Back; anticipatory; Standby; -Parties in the L/C 1.contract 5.shipment 2 8 4 6 3 7applicantIssuing bankadvising bank/negotiatingbeneficiaryPaying bank2.Procedure of the L/CnApplication Form;nAdvising the beneficiary;nExami

3、nation of the L/C;n(Amendment of L/C)nComplementing the contract;nPresenting the documents under the L/C; nNegotiating or Paying for the L/C;3. Objectives in L/C business (1)Exporter urges importer to open a L/C;(2)Importer notices seller for the L/C;(3)Amendment of L/C;(4)Dispute arise in dealing w

4、ith the L/C; 4.specimen letters-1 (1) Exporter urges importer to establish a letter of creditnWe regret to inform you that there has been no news from you at all about your letter of credit, which should have reached us before Sept. 9th, 2002. This has caused us much inconvenience, since we have alr

5、eady made preparations for shipment according to our Sales Confirmation No.4.nYou may recall that the same thing happened to the execution of our last contract. It was only after the market had turned for the better that you opened the covering L/C, quite beyond the time limit. We should have refuse

6、d then to effect shipment, but we acceded to your request for fulfillment of your order. At the same time we pointed out that you should take effective measures to prevent a similar occurrence.nThis article, as you know, has met with great popularity since offered for sale, and new orders have nearl

7、y exhausted our stock. But considering our long-term business relationship we are still holding the goods for you. nWe hope that you will lay great store on your credit standing this time and establish the relevant L/C before Oct. 9th, 2002.nPlease not that unless the L/C reaches us before the sugge

8、sted time, we shall have no alternative but to cancel the contract and will not enter into any more transactions with you next year. We regret this decision, but of course we are in on way to blame. nWe are looking forward to your letter of credit.Specimen letter-2:(2)Amending the L/CDear sirs,nWe h

9、ave received your L/C , but regret to find that there are certain points that do not agree with the terms of our Sales Confirmation No. xx.n1.Our S/C No. xx emphasized that your letter of credit shall allow transshipment, but the Credit states: “transshipment prohibited”;n2. Your Credit calls for sh

10、ipment in two equal monthly lots during June/July, 2002, whereas it is explicitly stipulated in the S/C that shipment is to be made in a single lot not later than July 31,2002.n3.There is no word “about” before the quantity and amount in the L/C, although the word is clearly used before them in our

11、S/C.n4.Your L/C stipulates for the goods in an assortment of Types A, B, C：20%, 40%, 40% RESPECTIVELY. But the assortment contracted for is：Types A 30%, B 30%, and C 40%. nYou are requested to make the necessary amendments, as the shipment is conditional upon the conformity of the L/C with our Sales

12、 Confirmation.nWe hope that in future you will establish your letters of credit exactly according to the terms and conditions of relevant sales confirmation, or include in them such terms as “AS PER S/C No.”. By so doing you will not only save much trouble, but also help to facilitate shipment of yo

13、ur products.nWe are awaiting your banks credit amendment. 5. useful expressionsn(1) Our terms of payment are by confirmed, irrevocable letter of credit in our favor, available by draft at sight, reaching us one month ahead of shipment, remaining valid for negotiation in China for another 21 days aft

14、er the prescribed time of shipment, and allowing transshipment and partial shipments.n(2) In view of the small amount of this transaction, we are prepared to accept payment by D/P at sight (or at 30 days sight) for the value of the goods shipped.n(3) In compliance with your request, we will make an

15、exception to our rules and accept delivery against D/P at sight, but this should not be regarded as a precedent.n(4) We regret having to inform you that although it is our desire to pave the way for a smooth development of business between us, we cannot accept payment by D/A. n(5) We regret our inab

16、ility to make any arrangement contrary to our usual practice, which is payment by confirmed, irrevocable letter of credit payable against presentation of shipping documents and valid for at least 15 days beyond the promised date of shipment.n(6) We wish to draw your attention to the fact that as a s

17、pecial sign of encouragement, we shall consider accepting payment by D/P during this sales-pushing stage. We trust this will greatly facilitate your efforts in sales, and we await your favorable reply.n(7) Payment is to be made against sight draft drawn under a confirmed, irrevocable letter credit w

18、ithout recourse for the full amount of purchase. Unit 8 Complaint and Adjustmentn1. Complaint made by buyergenuine complaintnNon-delivery;nShortage supply/shortweight;nDefective goods/poor quality;nPoor package;nLeakage;n-complaint made by buyer who find fault with the goods as an excuse to escape f

19、rom their contract;2.Plan your letter nBegin by regretting the need to complain;nMention the details of the goods complained about;nState your reasons for being dissatisfied and ask for an explanation;nRefer to the inconvenience caused;nSuggest how the matter should be put right;3. Lodging a claimn(

20、1) If you have anything to complaint about, make your claim at once;n(2) Be sure the claim is accurate and reasonable, and before you write a letter about it gather all of the information that you can; n(3) Avoid discourteous statements such as “I demand,” “you will have to”, and “why cant you ,” be

21、cause they only offend the reader and lessen the likelihood of your obtaining the best possible adjustment. 4. The tone of the claim letterAnger tone: It was certainly carelessness on your part to send me “Forever” brand bicycles when I asked for “Phoenix” brand. I simply do not understandMile tone:

22、Today I received a consignment of 200 “Forever”brand bicycles instead of “Phoenix” brandspecified in my order of May 23. AdjustmentSlogan: Settle the problem and keep the customer!1, Reply promptly;2. Show understanding;Apologetic: We are sorry for our late shipment.Conciliatory:We are indeed sorry

23、to learn of your disappointment in not receiving our shipment.3. Be tactful;Negative: We have your letter about the alleged loss of two cases of your consignment.Positive: We are sorry to learn about the loss of two cases of your consignment.Negative: If what you say is true, we suppose we will have

24、 to replace the damaged pens.Positive: Please rest assured that well replace the damaged pens.Correct the following sentences:1. The wrong delivery of the goods resulted in our careless handling your order.2. Fifteen trays entered on the invoice, but there are only twelve in the case.3. Please let us know