Unit 9 Terms of Payment• International business transactions are much

more complicated than domestic ones. • The payment process is much longer, and

involves all kinds of risks.• Terms of payment define the conditions under

which the seller and buyer agree to settle the financial amount of the sales contract.

Points for attention:Letters regarding payment often fall into

the following types: discussing mode of payment, urging establishment of L/C, amending L/C or asking for extension of L/C.

Methods of payment• 1.Remittance 汇付• Open Account (O/A) 赊账（贸易）；记账交易；赊购；赊销• The least secure method of trading for sellers, but the most attractive to bu

yers.

• Advance Payment 预付• The most secure method of trading for sellers but the least attractive to buy

ers.

• T/T (Telegraphic Transfer) 电汇• M/T (Mail Transfer) 信汇• D/D (Demand Draft) 票汇

• 2.Collection 托收• Documents against Payment (D/P) 付款交单 • The shipping documents are to be delivered against payment only. • D/P at sight • Pay against documentary draft at sight. • D/P after sight • Duly accept the documentary draft drawn at××days’ sight upon first presentatio

n and make payment on its maturity.

• Documents against Acceptance (D/A) 承兑交单 • The shipping documents are to be delivered against acceptance.• Duly accept the documentary draft drawn at××days’ sight upon presentation an

d make payment on its maturity.

Methods of payment in international trade

• Weakness of remittance and collection:• Remittance and collection are both commercial

credit.• There’s imbalance financial burden between

importers and exporters.

• There’re risks of defaults for importers or exporters when the methods of payment are remittance and collection.

non-payment, or non-payment after acceptance

Methods of payment in international trade

• 3.Letter of Credit (L/C) 信用证• L/C is a commitment of conditional payment of a bank to expor

ter.

• L/C provide bank credit.• L/C provide security to both the exporter and the importer. • To exporter: • once the cargo is on board, we’ll pay you immediately to importer:• if the exporter dispatches the goods, we’ll do payment for you first.

• Types of L/C• Irrevocable/ Revocable L/C 不可撤消的 / 可撤消的信

用证• Unconfirmed/ confirmed L/C 不可保兑 / 保兑的信用证• Sight L/C 即期信用证 • Usance credit/time credit/term credit 远期信用证 • Documentary/ clean L/C 跟单 / 光票信用证 • Standby L/C 备用信用证• Revolving L/C 循环信用证• Deferred L/C 展期信用证• Red Clause L/C 红条款信用证• Back-to-back L/C 背对背信用证

Letter 11. without recourse 无追索权2. W.P.A.(with particular average) 水渍险3. In triplicate 一式三份 in duplicate 一式两份4. Lloyds 劳合社5. T.P.N.D. (theft, pilferage, and non-delivery) 偷、盗、提货

不着险6. warehouse to warehouse 仓至仓

7.

7. draft draw a draft sight draft time draft (usance draft) draft at 30 days sight demand draft (D/D) documentary draft We have drawn a draft on you. We will negotiate our draft with the Bank of Chi

na. Please honour the draft on presentation.

Letter 2

1. Bill of Lading (B/L) 提单2. Customs Invoice 海关发票

Letter 31. pay vt. 付 ( 款项 , 费用等 ) ; 给予 ( 注意等 ) ; 进行 ( 访问

等 ) e.g. We trust you will pay our draft on presentation. pay vi. 付款 ; 值得 , 合算 e.g. pay in advance pay on delivery It does not pay to buy

in small quantities. Payable adj. 可付的 , 应付的 payment n. ( 不可数 ) 支付 ; ( 可数 ) 支付的款 e.g. terms of payment 或 payment terms 付款条件 payment on deferred terms We enclose a cheque for US$

2,345.67 in payment of all commissions due to you up to date.

We have received your cheque for DM9,876.50 in payment for the Carpets ordered as per your letter of May 5th.

2. 30 days L/C 见票后 30 天议付信用证 L/C = Letter of Credit sight L/C = Letter of Credit available

(or: payable against) draft at sight (or: sight draft) time L/C = usance L/C = term L/C

30 days L/C = L/C available by draft at 30 days after sight = time / usance / term L/C at 30 days confimed L/C irrevocable L/C

3. involve v. 牵涉 , 涉及 , 包含 e.g. As the extra premium involved is small, we will not ask

you to amend the L/C but will deduct it from the commission due to you.

4. moderate adj. 中等的 , 不大的 ; 公道的 , 便宜的 e.g. moderate price Business has been done on a moderat

e scale. 5. Means n. 资财 ; 手段 , 方法 ; 工具 e.g. This firm is quite reliable. It never does business beyo

nd its means.

6. at hand 在手边 e.g. We have only a few sample books at hand. 7. tie-up of funds 占压资金 tie-up n. 束缚 , 停顿 e.g. They put forward the request for easier paymen

t terms owing to their tie-up of funds in numerous commitments.

8. extend v. 给予 e.g. Any courtesy you may extend to our Mr Brown w

ill be highly appreciated.

Letter 41 accommodation n. 照顾 ; 通融 e.g. As a special accommodation, we will accept time L/C

at 30 days. accommodate v. 照顾 ; 通融 e.g. We did this to accommodate your buyers. accommodating adj. 照顾的 ; 通融的2. precedent n. 先例 e.g. It must be clearly understood that, in so doing, we are

not establishing a precedent.

Reply to letter 41. in the amount of 总金额计 ...... e.g. We have opened an L/C in your favour in (or: for) the amount of

￡ 25,000 2. equivalent n. 等值 e.g. What is the equivalent of US$850, -- in DM at the current cross r

ate? equivalent adj. 相同的 e.g. Doing business without marketing research is equivalent to co

mmitting economic suicide.3. conversion rate 兑换率4. exceed v. 超过 e.g. According to the current market situation, demand far exceeds

supply

Letter 51. make up v. 拼凑成 , 配齐 , 弥补 e.g. Let's make up a parcel of these items. We will do all we ca

n to make up the economic losses. 2. facilitate v. 使容易 , 便于 e.g. We have quoted you the best possible price to facilitate sa

les. facility n. ( 常用复数 ) 使工作方便的东西或设备 , 方便条件 e.g. One of the most modern transport facilities used currently

is the container ship.3. grant v. 答应 , 给予 grant sb's request 答应某人的要求e.g. The request was granted in accordance with international l

aw.

Reply to letter 51. meet sb's accounts 支付款项 e.g. We are sure they will meet the draft on presentation. 2. give one's attention to sth. 注意某事 e.g. Please give this matter your close (immediate, promp

t) attention. 3. notify v. 通知 Notify/ advise: e.g. The customer will notify you to take delivery of the go

ods. Please advise us of the name of steamer. notification

We have just received notification that the shipment of 500 tons Soya Beans has arrived.

Letter 61. with / in reference to 关于 (= with / in regard to) e.g. With (or: In) reference to payment, we cannot do other

wise than L/C. 2. up to the present = until now, so far 到目前为止3. covering = relative, relevant 有关的4. expedite = speed up, hasten 加快 e.g. expedite shipment 加快装船 expedite delivery 加快发货5. prescribe n. 规定 e.g. We refer you to Contract No.824 which prescribed pay

ment by sight L/C. 7.

7. amendment n. 修改 , 修改书 e.g. You are requested to make amendment to L/C No.

89 without delay. We require the amendment advice of L/C No.9312 by

the end of this month. amend v. 修改 e.g. Please amend the amount of the L/C to read "5%

more or less allowed". 8. in accordance with (to) 与 ...... 一致 ; 按照 , 根据 in exact (full) accordance with 与 ...... 完全一致 in strict accordance with 与 ...... 严格一致 e.g. The quality of the goods must be in strict accorda

nce with that of the sample. In accordance with cables exchanged, we are glad to have purchased from you 100 dozen cotton bed-sheets.

9. response n. 回答 , 反应 in response to 对 ...... 进行回复e.g. This is in response to your letter of August 18th. Please keep us advised of the response to our prod

ucts in your market. respond v. 回答 , 反应 e.g. Buyers did not respond to the quick rise in price. We hope you will respond to our request promptly.

Letter 81. extension n. 展期 Extend v. e.g. Can you extend your stay in haikou for a few days? 2. circumstance n. 情况 , 环境 under (in) the circumstances 既然如此 (means: in this cas

es) e.g. Under the circumstances, we have to drop the busines

s. 3. postpone v. 延缓 e.g. Regarding our Order No.86 for carpet wool,please pos

tpone shipment until September.4. relevant adj. 有关的 the relevant L/C = the relative L/C = the covering L/C e.g. We shall appreciate it if you will send us all informatio

n relevant (or: relative) to the case.

Letter 91. Contract v. 订立合同 e.g. We have contracted with a clothing firm for 1,000 me

n's suits a week ago. contractual adj. 合同的 e.g. We have no doubt that you will respect the solemnity

of contractual obligations.2. imminent adj. 临近的 e.g. The appointed date is imminent. Buyers have withdrawn in view of the reported imminent

arrival of large shipments. 58. Instruct v. 通知 e.g. Please instruct your bank (bankers) to amend the L/C

by cable. 3. instruction n. 指示 , 嘱咐 e.g. We are awaiting your shipping instructions.

Key to sentence translation

1. 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

2. 为了你方在市场上更好地推广产品，我方将作为特例接受付款交单的支付方式。

3. 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。

4. 我方很遗憾地通知你方，所列支付方式和惯例不符。

5. Please do your utmost to expedite its establishment of the relevant L/C.

6. 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 day.

7. But much to our disappointment, we have not received your L/C yet.

8. We will open an irrevocable L/C in your favor within 10 days from the date of the contract.

• T.P.N.D.（ Theft, Pilferage and Non-delivery Risk）偷窃、提货不着险