外贸英语函电课件unit9概要1.ppt

Unit 9Payment Letters of Credit Text A Payment In international trade, there are three major modes of payment that the buyers may adopt, namely remittance, collection and letter of credit (L/C). 1. Remittance The payer (usually the buyer) remits a certain sum of money in accordance with the parties’ agreement to the payee (usually the seller) through a bank. Payer may remit the sum in the following manner: a). Mail Transfer (M/T) b). Telegraphic Transfer (T/T) c). Demand Draft (D/D) This method of payment is often used for down payment, payment of commission and for sample, settlement of claim, or as performance bond etc. 2. Collection The exporter, as drawer of a draft (bill of exchange), hands the draft to his bank, the remitting bank, who in turn forwards it to the buyer through a collecting bank in the buyer’s country. A draft (also called a bill) is a written order to a bank or a customer to pay someone on demand or at a fixed time in the future a certain sum of money. If shipping documents accompany the draft, the collection is called “documentary collection.” Documentary collection falls into two major categories: one is documents against payment (D/P), the other, documents against acceptance (D/A). Documents against payments, as the term suggests, is that the collecting bank will only give the shipping documents representing the title to the goods on the condition that the buyer makes payment. Where the paying arrangement is D/A, the collecting bank will only give the buyer the shipping documents after buyer’s acceptance of the bill drawn on him, i.e. the buyer signs his name on the bill promising to pay the sum when it matures. In return he gets what he needs --- the shipping documents. Under D/A, the seller gives up the title to the goods --- shipping documents before he gets payment of the goods. Therefore, an exporter must think twice before he accepts such paying arrangement. Text B Irrevocable Documentary Credit Bank of Brazilia