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

2、cable 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 7,applicant,Issuing bank,advising bank /negotiating,beneficiary,Paying bank,2.Procedure of the L/C Application Form; Advising the benefici

3、ary; Examination of the L/C; (Amendment of L/C) Complementing the contract; Presenting the documents under the L/C; Negotiating 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

4、 in dealing with the L/C;,4.specimen letters-1 (1) Exporter urges importer to establish a letter of credit We 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, sinc

5、e we have already made preparations for shipment according to our Sales Confirmation No.4.,You 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 shoul

6、d have refused 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.,This article, as you know, has met with great popularity since offered for sale, and new orde

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

8、re the suggested 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. We are looking forward to your letter of credit.,Specimen letter-2:(2)Amending the L/C De

9、ar sirs, We have received your L/C No.xx, but regret to find that there are certain points that do not agree with the terms of our Sales Confirmation No. xx. 1.Our S/C No. xx emphasized that your letter of credit shall allow transshipment, but the Credit states: “transshipment prohibited”; 2.Your Cr

10、edit calls for shipment 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.,3.There is no word “about” before the quantity and amount in the L/C, although the word is clearly used be

11、fore them in our S/C. 4.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%.,You are requested to make the necessary amendments, as the shipment is conditional upon the conformity of the L/

12、C with our Sales Confirmation. We 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 facilitat

13、e shipment of your products. We are awaiting your banks credit amendment.,5. useful expressions (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 ano

14、ther 21 days after the prescribed time of shipment, and allowing transshipment and partial shipments. (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.,(3)In compliance with your request, w

15、e will make an exception to our rules and accept delivery against D/P at sight, but this should not be regarded as a precedent. (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.,(5) We r

16、egret our inability 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. (6) We wish to draw your attention to the fa

17、ct that as a special 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. (7) Payment is to be made against sight draft drawn under a confirmed, irrevocable l

18、etter credit without recourse for the full amount of purchase.,Unit 8 Complaint and Adjustment,1. Complaint made by buyergenuine complaint Non-delivery; Shortage supply/shortweight; Defective goods/poor quality; Poor package; Leakage; -complaint made by buyer who find fault with the goods as an excu

19、se to escape from their contract;,2.Plan your letter,Begin by regretting the need to complain; Mention the details of the goods complained about; State your reasons for being dissatisfied and ask for an explanation; Refer to the inconvenience caused; Suggest how the matter should be put right;,3. Lo

20、dging a claim,(1)If you have anything to complaint about, make your claim at once; (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; (3) Avoid discourteous statements such as “I demand,” “you will have to”, and “why c

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

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

23、ry:We are indeed sorry 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 tr

24、ue, we suppose we will have 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 if w