3.2.1TermsofPayment1.Briefintroductionoftermsofpaymentletterofcreditcollectionremittancebanker’sguaranteecommercialcreditLetterofcreditLetterofcreditisabanker’sguaranteethatpaymentwillbemadeonpresentationofalltherequiredshippingdocuments.WecanhavemanykindsofL/Csfromdifferentpointsofviews.SightL/CandUsanceL/CCleanL/CandDocumentaryL/CConfirmedL/CandUnconfirmedL/C,etc.L/Cisareliableandsafetermsofpayment.Itprovidesthesellerwithadditionalbanker’sguaranteeandfacilitatestradewithunknownbuyers;meanwhile,thebuyerwillgettheguaranteethatthesellerwillfulfillthecontractaccordingtotheL/Cstipulations.Thusitgivesprotectiontobothsellersandbuyers.SoL/Cbecomesthemostgenerallyusedtermsofpaymentininternationaltrade.RemittanceRemittancemeansthebuyersendthepaymentthroughbankorotherformstothereceiverinitiatively.Itisdividedintothreeformsofmailtransfer(M/T),telegraphictransfer(T/T)anddemanddraft(D/D).CollectionCollectionmeansthecreditorissuesthebillofexchangeandentruststhebanktocollectthepaymentoftheshipment.Ithastwoformsofdocumentsagainstpayment(D/P)anddocumentsagainstacceptance(D/A).D/PcanbedividedintoD/PatsightandD/Paftersight.collectionD/PD/AD/PatsightD/PaftersightAsforastheseller’sbenefitisconcerned,L/Cisbetterthancollection,andcollectionisbetterthanremittance.D/PatsightisbetterthanD/PaftersightisbetterthanD/A.Ininternationaltrade,paymentthroughcollectionisacceptedonlywhenthefinancialstandingoftheimporterissoundorthepreviousbusinesshasmadetheexportersurethattheimporterwillbegoodforpayment.Iftheamountinvolvesisrathersmall,remittanceisalsoacceptable.NotesPaymentterms=termsofpayment=methodsofpayment=modesofpayment2.RemittanceT/T(TelegraphicTransfer)M/T(MailTransfer)D/D(DemandDraft)3.CollectionD/P(documentagainstpayment)D/A(documentagainstacceptance)4.atourendatyourendWeappreciateyoureffortstopushsalesofourproductatyouend.5.enterinto6.dealwith7.SettlesettlementTheyreachanamicablesettlementthroughnegotiation.8.tieupoffundtryingupfundstie-upfunds9.accommodation10.usualpractice11.asanexceptionalcase12.transactioninfavourofPackinglistAt60d/s---at60days’sightMaturityDiscount---todiscountabillmeanstoacquireitbypurchaseforasumlessthanitsfacevalueunderpaymentHEVER---howeverPAYT---paymentSEAFRT---seafreight1.Billofexchange;draft2.PromissoryNote3.Cheque;check4.Drawer5.Drawee/Payer6.payee7.At…daysaftersight8.At…daysafterdate9.At…daysafterdateofB/L10.Atafixeddateinfuture匯票的使用Issue出票Presentation提示Acceptance承兌Payment付款Endorsement背書Dishonour拒付HowtonegotiatethetermsofpaymentUsuallythebuyersadoptthefollowingthreestepstowritealettertonegotiatepaymentterms:MentiontheContract,goods,etc.;Suggestthetermsofpaymentandgiveoutthereason;Wishthereadertoaccept.Whenthesellerreceivedthebuyer’sletter,theselleralsoadoptsthreestepstocompletetheletter:Statethatyouhavereceivedtheletter;Giveyourreplyofagreeingorrefusingandyourreason;Stateyourgoodwillandyourwishtodobusinesswiththereader.<Letter1>Dearsirs,Let’sintroduceourselvesasacorporationspecializingintheimport&exportoftextiles.Weknowyoucorporationthroughyourwebsite.Aftercarefullystudyyourcatalogue,wearepleasedtotellyouthatweareinterestedinyourproductsitemNo.1andNo.2item,wehaveconfidencethatyourgoodswillenjoygoodsalesatourend.Wouldyoupleasesendusapricelist,statingthepaymenttermsyouusuallyacceptforyourexportation?Wewillplaceorderswithyoufortheabove-mentioneditemsifyourofferisacceptable.Welookforwardtoyourearlyreply.Sincerelyyour,<Letter2>Dearsirs,WearepleasedreceiveyourletterdatedMay23.Andweappreciateyourintentiontopushthesaleofourproductsatyourend.Asourusualpractice,paymentistobemadebyaconfirmed,irrevocableletterofcreditpayablebydraftatsight,tobeopened30daysbeforethetimeofshipmentandtoremainvalidfornegotiationinChinawithin15daysafterthedateofshipment.Enclosedisapricelistfortheitemsyoumentioned.Wehopethetermsonthelistwillbeacceptabletoyouandwishtoenterintobusinesswithyousoon.<Letter3>Dearsirs,WeareinreceiptofyourletterdatedAugust10andwishtoplaceanorderfor10,000piecesofelectronictoyswithyouforOctobershipment.WehavebeendealingwithyouonsightL/Cbasisforyearsandalwayssettledouraccountpromptly.ThisisabigorderinvolvingaboutUSD200,000andnowwehaveonlymoderatecashreserves,tyingupfundsforthreemonthswouldcauseproblemforus.Soforthisorder,wewouldliketopayby30–dayL/C.Welookforwardtoyourfavorablereplytothenewpaymenttermsandyoursalesconfirmation.Ifyoucandousafavorthistime,pleasesendusyoursalesconfirmationearliersoastoenableustoopentheL/Cimmediately.Dearsirs,Thanksforyourorderof10,000piecesofelectronictoys.Yourproposalofpayingby30–dayL/Chasbeencarefullystudiedbyus.Usuallyweonlyacceptconfirmed,irrevocableL/Cpayablebydraftatsight.However,inviewofourlong-termfriendlyrelations,weagreetoacceptyourproposaltopayby30–dayL/C.Butwewishtomakeitclearthatthisaccommodationisonlyforthistransaction.Wecannotregarditassettingaprecedentforfuturetransactions.WeencloseourSalesConfirmationNo.ES16coveringtheorderandlookforwardtoyourL/C.Sincerelyyours,<letter4>DearSirs,ReferenceismadetoyourcontractNo.339coveringCottonUnderwearintheamountofGBP700andcontractNo.340forsilkblouseintheamountofGBP600.AsboththesecontractsarelessthanGBP1000invalue,wewouldappreciateitverymuchifyoucouldshipthegoodstousonT/Tbasis.Wehopeyouwillaccommodateusinthisrespectandlookforwardtoyourfavorablereplysoon.Yoursfaithfully,Letter5<letter6>DearSirs,WeareinpossessionofyourletterofOctober8andhavenotedyourrequestforpaymentbyT/TforcontractNo.339andNo.340.WeregretthatweareunabletoconsideryourrequestforpaymentonT/Tterms,accordingtoourusualpractice,weaskforpaymentbyL/C.Butinviewoftheamountoftwotransactionsbeingverysmall,asanexceptionalcase,wearepreparedtoacceptpaymentforcontractNo.339andNo.340onD/Patsightbasis.ButwethinkitadvisabletomakeitclearthatD/PwillonlybeapplicableiftheamountinvolvedforeachcontractislessthanGBP1,000.Wehopethattheabovepaymentwillbeacceptabletoyouandlookforwardtohearingfromyousoon.Sincerelyyours,Paymentinforeigntradeiscomplicated.Themethodofpaymentforeachtransactionistobeagreeduponbetweenthetwotradingpartiesatthetimeofplacinganorder.Themostoftenadoptedmethodofpaymentinourforeigntradeispaymentbytheletterofcredit.<Buyerinstructsbank>Dearsirs,WeencloseanapplicationformfordocumentarycreditandshallbegladifyouwillarrangetoopenforouraccountwithyourofficeinLondonanirrevocableletterofcreditfor$…infavoroftheUrbanTradingCompany,thecredittobevaliduntilNov.30.Thecreditwhichevidencesshipmentof2,000tonsofSteelsmaybeusedagainstpresentationofthefollowingdocuments:BillsofLadingintriplicate,onecopyeachofCommercialInvoice,PackingList,CertificateofInsuranceandCertificateofOrigin.ThecompanymaydrawonyourLondonofficeat60d/sforeachshipment.Yoursfaithfully,<bankagreetoopencredit>DearSirs,Asinstructedinyourfaxof2MaywearearrangingtoopenaletterofcreditwithourofficeinLondoninfavoroftheUrbanTrainingCompany,validuntil30November.Pleasecheckourenclosedtelexopeningthecredittoensurethatitagreeswithyourinstructions.AssoonasthecreditisusedweshalldebityouraccountwiththeamountnotifiedtousashavingbeendrawnagainsttheL/C.Weshallseetoitthatyourinstructionsarecarefullycarriedout.Yoursfaithfully,<Buyernotifiesexporter>DearSirs,Pleasebeinformedthatwehavenowopenedanirrevocableletterofcreditinyourfavourfor$…withtheABCBank,London,validuntil30November.Theletterofcreditauthorizesyoutodrawat60days’onthebankinLondonfortheamountofyourinvoiceaftershipmentismade.Beforeacceptingthedraft,thebankwillrequireyoutoproducethefollowingdocuments:BillsofLadinginTriplicate,CommercialInvoice,PackingList,CertificateofInsuranceandCertificateofOrigin.WewillexpectyourconsignmentaboutthemiddleofNovember.Yoursfaithfully,<Bankissuesletterofcredit>Dearsirs,OninstructionsfromBrowning&Sons,receivedthroughourHongkongoffice,wehaveopenedanirrevocableletterofcreditfor$…inyourfavor,validuntil30Novembernext.Youhaveauthoritytodrawonusat60days’againstthiscreditfortheamountofyourinvoiceuponshipmenof2,000tonsofSteelstoBrowning&Sons.Yourdraftsmustbeaccompaniedbythefollowingdocuments,whicharetobedeliveredtousagainstouracceptanceofthedraft:Billsofladingintriplicate,CommercialInvoice,InsuranceCertificateandCertificateofOrigin.Providedyoufulfillthetermsofthecreditwewillacceptandpayatmaturitythedraftpresentedtousunderthiscreditand,ifrequired,providediscountingfacilitiesatcurrentrates.Yoursfaithfully,<Amendingletterofcredit>DearSirs,WehavetodayreceivedLC/AC---3coveringtheshipmentof2,000tonsofSteels.AfterwehavecheckedtheL/Ccarefully,werequestyoutomakethefollowingamendments:Thequantityshouldread:2,000Metrictons(5&moreorlessatSeller’soption)Partialshipmentandtranshipmentallowed.ThelastshipmentdatetobeextendedtoendNovemberandthevalidityofthecredittoDecember15.Pleaseconfirmtheamendmentsbytelex,sothatwemayarrangeshipmentaccordingly.Yoursfaithfully,<Exporterpresentsdocuments>DearSirs,Referringtoyouradviceof10May,weencloseshippingdocumentsfortheconsignmentof2,000tonsofSteelstoBrowning&Sons.Asrequiredbythemwehaveincludedallchargesinourinvoice,whichamountsto$…andencloseourdraftat60days’forthissum.Weshallbegladif,afteracceptanceyouwilldiscountitatthecurrentrateandremitthenetamounttoouraccountwiththeBankofEngland,London.Wethankyouforyourhelpinthismatter.Yourfaithfully<Bankdebitsbuyer>DearSirs,Asinstructedbyyourfaxof12May,ourLondonofficehavejustacceptedforyouraccountabillfor$…drawnbytheUrbanTradingCompanyfortheconsignmentof2,000tonsofSteelstoyoubym.v.”Star”.Wehavedebitedyouraccountwiththisamountandourchargesamountingto$…ThevesselleftLondonon3OctoberandisduetoarriveinXingangon4November.Theshippingdocumentsfortheconsignmentarenowwithusandweshallbegladifyouwillarrangetocollectthem.Yoursfaithfully,<Bankrefusespayment>Dearsirs,WerefertoourL/CNo.AC---3covering2,000metrictonsofSteelshippedon3rdOctober.Theshippingdocumentswerepresentedtousyesterday.Uponcheckingtheabove-mentioneddocumentswefoundthefollowingdiscrepancies:Theinvoicevalueincludes5%commissionwhichisnotmentionedintheletterofcredit.Thedocumentsarefortheshipmentof1,000tonsofsteels,butpartialshipmentisnotallowedasstipulatedintheL/C.Inviewofthesediscrepancieswehadtorefusetoacceptthedraft.Nowweholdthedocumentsatyourdisposalandawaityourinstructions.Yoursfaithfully,<Exporterurgespayment>DearMr.…WehavejustlearnedfromouragentthattheoriginalideatotranshipContractKJ-109hasbeenchanged,andthecarryingvesselwillcontinuetosailonfromthetranshipmentportthroughtothedestination,Shanghaionorabout4thMay.ThenameorthecarryingvesselisSilverThreadasadvisedpreviously.NowthattheBuyershavethevessel’snameandthedocuments,thereisnofurtherreasontodelaypayment.We,therefore,expectconfirmationonMondaythatpaymenthasbeentele-transferredtoouraccount.Yourssincerely,ExercisesChoosethebestanswer.Asagreeduponinournegotiations,payment_______L/C.A.byB.isbyC.willbeD.willby2.Takingintoconsiderationourlongstandingbusinessrelationswithyou,weaccept_______byD/A.A.enquiriesB.invitationsC.installmentD.payment3.Inordertopromotebusinessbetweenustoourmutualbenefit,weshallconsiderpaymentbyD/Pat60days.A.acceptingB.acceptC.toacceptD.acceptance4.Weshallbegladifyouagreetoshipthegoodstous___CashAgainstDocumentsbasis.A.withB.duringC.inD.on5.Astheamountinvolvedisrathersmall,weagreetodraw_____youbydocumentarysightdraft.A.withB.toC.inD.onIftheamount________(exceeded,exceeds)thatfigure,anL/C____(was,be,is)required.ForfuturetransactionsD/Pwillbeacceptediftheamount______(involved,involving)isnotuptoGBP1,000.Wehave_________(enteredinto,entered)anagreementonthetechnologicaltransfer.Wehopeournewarrangementofpaymentwillhelpyouto_______(pushthesaleof,pushsalewith)ourproducts.Wehaveconfidencethatoursilkpiecegoodswillfindareadymarket______(atyourend,inyourend).Inordertofacilitateyoureffortsinintroducingourproductstoyourmarket,wewouldconsider,asanexception,acceptingpaymentbyD/Patsight.WeregrettohavetodeclineyourrequestforD/Pterms.PaymentbyL/Cisourusualpracticeinthesetraditionalgoods.Asthevalueofthisorderisrathersmall,wetrustyouwouldagreetoourmakingpaymentbymailtransferafterreceiptofthedocuments.Aswemustadheretoourcustomarypractice,wesincerelyhopethatyouwillnotthinkusunaccommodating.Incompliancewithyourrequest,weexceptionallyacceptD/Apaymentterms,butthisshouldnotberegardedasaprecedent.BuyerinstructsbankBankagreestoopencreditBuyernotifiesexporterBankissuesletterofcreditAmendingletterofcreditExporterpresentsdocumentsBankrefusedpaymentExporterurgespaymentSentencestructuresan