Unit 6 Payment

As we know, doing international business is not the same as doing domestic business，because each country has its own laws and business practice. In addition, both exporters and importers have relatively limited knowledge of the financial strength and commercial reputation of their counterparts and they will probably experience the possibility that the other party may not fulfill the contract. To guarantee the punctual delivery on the part of the exporter and payment by the importer, different methods of payment have been created. Do you know what they are?

Explanation and comments on the text Now go through the “Introduction” and try to answer the following questions: 1). What are the common modes of payment in international trade? 2). What should you keep in mind when discussing the mode of payment?

Supplementary materials In international trade, there are three methods of payment, illustrated as follows: remittance collection letter of credit The differences among these three kinds of methods of payment Remittance and collection belong to commercial credit, the letter of credit belongs to banker’s credit. In foreign trade, “credit” stipulates who takes the responsibility of paying money and surrendering the shipping documents that represent the title to the goods. In remittance or collection transaction, the buyer is responsible for making payment, the seller for handing over documents. While in letter of credit transaction, the banker is responsible for paying money and tendering documents on behalf of both parties. 汇付和托收属于商业信用，信用证属于银行信用。“信用”在对外贸易中货物的交接和货款的支付上规定由谁承担付款和提供货物所有权单据的责任问题。在汇付和托收项下，买方负责付款，卖方负责提交装船单据。在信用证项下，银行代替买卖双方负责付款和提交单据。

More information about the methods of payment 1.Remittance Remittance is the simplest mode used in international payment. It includes mail transfer, telegraphic transfer, and demand draft. 汇付在国际贸易付款方式中是最简单的支付方式。汇付包括信汇，电汇和票汇三种。 Mail Transfer (M/T) It is a process by which the remitting bank, at the request of the remitter, sends instructions by mail to the paying bank asking it to make a certain amount of payment to the payee. The cost of this method is less but the speed is slower. This kind of remittance is beneficial to the buyer because he pays less bank charges. 信汇是汇出行应汇款人的申请，将信汇委托书寄给汇入行，授权解付一定金额给收款人的一种付款方式。信汇的成本较底，但速度较慢。这种汇付方式对买方有利，因为他可支付较少的银行费用。

Telegraphic Transfer (T/T): is a process by which the remitting bank, at the request of the remitter, sends a cable to its correspondent bank at the payee’s end asking it to make a certain amount of payment to the payee. The payee can receive payment promptly, but the charges are relatively high. This kind of remittance is beneficial to the seller because he can get money at an early date. But, to the buyer it is more costly because he has to pay more cable expenses and bank charges. 电汇是汇出行应汇款人的申请，电报通知另一国家的代理行解付一定金额给收款 人的一种汇款方式。电汇方式下收款人可以迅速收到汇款，但费用较高。这种汇 付方式对卖方有利，因为他可较早拿到货款，但对于买方来说，他必须支付较多 的电报费用及银行费用。 Demand Draft (D/D): is a process by which the remitting bank, at the request of the remitter, draws a demand draft on its branch or correspondent bank instructing it to make a certain amount of payment to the payee on behalf of the remitter. If the paying bank is not at the payee’s end, this kind of remittance is the slowest. 票汇是指汇出行应汇款人的申请，代汇款人开立以其分行或代理行为解付行的银 行即期汇票，支付一定金额给收款人的一种汇款方式。如果汇入行不在收款人所 在地，那么这种汇付方式是最慢的。

Advantages and disadvantages of remittance 在国际贸易中，一旦采用汇付，大多数交易是通过信汇和电汇来完成的。对于出口商来说，他更愿意使用电汇，因为他可以较快地收到货款，加速资金周转，增加利息收入和避免汇率变动的风险。 但对于进口商来说，他更愿意使用信汇，因为信汇意味着他可以承担较少的银行费用，不必承担电报费用。在实际业务中，是用电汇还是信汇要根据实际情况在合同中明确规定。如果合同中没用明确规定使用电汇，买方最好使用信汇付款。至于票汇，它是可以转让的，这一点与信汇和电汇不同。

2.Collection Collection is another mode of payment in international trade. There are two types of collection: Documents against Payment ( D/P) and Documents against Acceptance (D/A). 托收是国际贸易中另外一种支付方式。在托收项下，卖方开具汇票并随附单据，把它交给当地银行，并提出托收申请，委托该行通过它在进口地的代理行代向进口人收款。托收有两种形式：分为付款交单和承兑交单两种。

Advantages and disadvantages of collection Collection has the following advantages for the importer: a. it facilitates the importer to get financing. Under D/P after sight, capital tie-up of the importer can be avoided or reduced; b. the expenses are low. Under collection, the importer does not need to pay the service fee as required for the opening of L/C. At the time of market with intense competition, collection is usually used by exporters to gain customers and promote sales. But collection has some risks for the exporter : if the importer goes bankrupt or is not in a position to pay the debts, then the exporter will face the risk of non-payment or late payment by the importer.。In case the importer refuses to make payment for the documents, the bank will not have obligations to take care of the goods for the exporter unless they had already reached an agreement in advance. Especially under D/A, the importer can get the shipping documents and take delivery of the goods after mere acceptance is made on the draft. Whether the exporter gets the payment or not will depend on the credit standing of the importer. Should the importer fail to make payment on expiry of the draft, the exporter will suffer from loss. 托收对于进口人来说具有以下的优点：a.有利于资金融通，如能争取到远期付款，还可不占用或少占用资金；b.费用低，进口商可以免去申请开立信用证的手续费用。在市场竞争激烈的情况下，托收常被出口商用来作为一种争夺客户，扩大销售的竞争手段。但托收对于出口人来说却存在一定的风险：如进口商破产或丧失清偿债务的能力，出口商则可能收不回或晚收货款。在进口人拒不付款赎单后，除非事先约定，银行没有义务代为保管货物。尤其是在承兑交单的条件下，进口人只要在汇票上办理承兑手续，即可取得货运单据，凭以提取货物，出口人收款的保障就是进口人的信用，一旦进口人到期不付款，出口人便会遭到货款全部落空的损失。

3. Letter of Credit Because a letter of credit is operated through banks, it has certain advantages to both the seller and buyer: for the buyer, it is a conditional undertaking where payment can be made on his behalf only against the documents which will transfer to him the title to the goods; for the seller, it is a bank undertaking to which he can look for payment. So, the letter of credit has become a safer and faster method of obtaining payment and it is widely used in international trade. But to the buyer, it still has some disadvantages because he has to pay more fees and also a down payment. This will tie up his fund. Moreover, the application procedure is complicated. So it is not the payment terms he would always like to ask for. 由于信用证是通过银行来操作的，因此，它对买卖双方都具有一定的好处。对于买方来说，它是一种有条件的承诺，既只有表示物权凭证的单据转交给他，银行才能够代表他支付货款。对于卖方来说，它是能够拿到货款的一种银行保证。因此，信用证已成为一种较安全，较快捷的支付方式，并在国际贸易中被广泛地使用。但对于买方来说，信用证仍然有不利之处，因为他不得不支付一定的费用及定金，这将占据他的资金，而且申请的程序复杂。因此买方并不总是要求用信用证支付货款。

When talking about terms of payment in a business negotiation, you should always take the following into consideration: the relationship between you and your counterparts; the financial strength and commercial reputation of your counterparts, and the market situation of the time.在贸易磋商中，当谈及支付方式时，你因考虑以下的问题： 买卖双方的关系 // 对方的财务状况和商业信誉 //当时的市场行情 If the seller and buyer know each other and have a long-standing business relationship, they may transact business on trust. They can adopt such methods of payment as remittance or collection or sometimes the seller may periodically send invoices to the buyer for settlement. Payment may also be made by other methods such as “cash with order” --- the buyer has to pay when he orders or “cash on delivery” ---payment is made at the time of delivery. 如果买卖双方互相了解并且已有长久的业务关系，他们可以在信任的基础上进行交易,他们可采用象汇付或托收的支付方式或有时卖方只需将发票定期地寄给买方结算货款。还可以通过其他方式付款，如订货付款或交货付款. If the seller and buyer do not know each other and are located in countries thousands of miles apart, then they are not in a position to conduct their commercial transactions on trust. Under the circumstances, both parties had better adopt documentary credit as the payment terms for the sake of safety. In a word, the parties concerned in a business negotiation should try their best to persuade the other parties to accept the payment terms which are favorable to him. 如果买卖双方互相并不了解并处在相隔千里之外的不同国度，他们不可能在信任的基础上进行交易。在这种情况下，为了安全起见，买卖双方最好采取跟单信用证的支付方式。总之，在贸易磋商过程中，有关的当事人应尽力说服对方接受对自己有利的付款条件。

汇款、托收、信用证三种结算方式的比较: 选用结算方式需要考虑资金占用、费用负担、手续繁简等诸多因素。现就这些方面对三种主要结算方式作综合比较。 汇款结算方式若是预付货款，手续简单，银行收费最小，资金负担不平衡，买方风险最大，卖方风险最小。 汇款结算方式若是货到付款，手续简单，银行收费最小，资金负担不平衡，买方风险最小，卖方风险最大。 托收结算方式若是付款交单，手续稍多，银行收费稍大，资金负担不平衡，买方风险较小，卖方风险较大。 托收结算方式若是承兑交单，手续稍多，银行收费稍大，资金负担不平衡，买方风险极小，卖方风险极大。 跟单信用证结算方式，手续最繁，银行收费最大，资金负担不平衡，买方风险较大，卖方风险较小。

Some business negotiation tactics for your reference: 1. Establish a joint goal. Even if the parameters are broad, you and your colleague will both focus on the objective instead of beating each other up. 2. Establish ground rules for the negotiations. This is particularly useful if the negotiation has typically created conflict and emotional outbursts. 3. State your needs clearly and firmly. Make sure that the other party understands them by getting verbal confirmation. 4. Determine the other person's needs. If you can meet his needs, chances are he will meet yours. If you frustrate him, he will do the same to you. Find out what his needs are by listening. Focus on what he is telling you instead of on formulating rebuttals. 5. Find common ground and build on it to solve other problems. 6. Determine what is negotiable and what is not. 7. Try to understand what people think and feel. Read their non-verbal language. What are their facial expressions telling you? What are their eyes doing when you ask for commitment? What are their postures and hand gestures telling you? 8. Avoid arguing, especially on minor issues. Train yourself to agree to the small things so that you establish a collaborative environment focused on solving the more important items.

More questions about modes of payment What advantages does the documentary credit have for both the seller and the buyer? Key: Because L/C is operated through banks, therefore it belongs to banker’s credit. For the buyer, it is a conditional undertaking where payment can be made on his behalf only against the documents which will transfer to him the title to the goods; for the seller, it is a bank undertaking to which he can look for payment. So, a letter of credit has become a safer and faster method of obtaining payment and is widely used in international trade.

What’s the difference between letter of credit and collection? Key: Collection belongs to commercial credit, the letter of credit belongs to banker’s credit. Under collection, whether the exporter gets the payment or not will depend on the credit standing of the importer. Because the letter of credit is operated through banks, the banker’s credit is involved. for the buyer, it is a conditional undertaking where payment can be made on his behalf only against the documents which will transfer to him the title to the goods; for the seller, it is a bank undertaking to which he can look for payment. So, the letter of credit has become a safer and faster method of obtaining payment and is widely used in international trade.

When doing business with new customers, what kind of method of payment should the exporters adopt ? Why ? Key: He had better adopt L/C. Because they do not know each other and it is not likely for them to conduct their commercial transactions on trust. Under the circumstances, they had better adopt documentary credit as the payment terms for the sake of safety.

Dialogue One Payment By L/C

Explanation and comments on the dialogue Understand the important details of the dialogue. Now go through the dialogue and answer the following questions in Task One. 1. What kind of terms of payment does Mr. Wu require for this transaction? He requires payment by confirmed, irrevocable L/C payable by sight draft against presentation of shipping documents. 2. What kind of terms of payment does Mr. Green propose? Why? He asks Mr. Wu to make easier payment terms and accept D/A or D/P in his case. He does so because opening a letter of credit will not only increase his cost but also tie up his money. The second reason is that as the world market has been rather dull recently, other suppliers can give him more favorable terms, such as D/P or D/A. 3. Does Mr. Wu agree to his proposal? Why ? No, he doesn’t. Because payment by L/C is their usual practice with new customers. 4. What do you learn from this dialogue? When doing business with new customers you had better adopt documentary credit as the payment terms for the sake of safety.

Comments on the dialogue 信用证是通过银行来操作的，因此，它对买卖双方都具有一定的好处。对于买方来说，它是一种有条件的承诺，既只有表示物权凭证的单据转交给他，银行才能够代表他支付货款。对于卖方来说，它是能够拿到货款的一种银行保证。因此，信用证已成为一种较安全，较快捷的支付方式，并在国际贸易中被广泛地使用。但对于买方来说，信用证仍然有不利之处，因为他不得不支付一定的费用及定金，这将占据他的资金，而且申请的程序复杂。因此买方并不总是要求用信用证支付货款。 该对话中，由于买卖双方是首次做生意，为了安全起见，卖方最好采取跟单信用证的支付方式。但跟单信用证结算方式，手续较繁， 买方支付的银行费用大，所承担的风险较大，因此，买方为了自己的利益，总会争取对自己有利的支付方式。如对话中，买方一次次提出对自己有利的支付方式，首先是托收，然后是信用证和托收相结合，最后是远期信用证。在卖方的坚持下，不得已才接受跟单信用证的支付方式。

Language points 1）tie up 占用 It is not wise to tie up all your money in shares. 你把所有的钱全买了股票，这样不明智。 That'll not only tie up my fund but also increase my cost. 那将不仅会冻结我的资金而且会增加我的费用。 2) turn- over （资金的）周转 The quick turn- over will help our company a lot. 资金的快速周转对公司帮助很大。 His company went bankrupt because he was lack of turn-over. 由于缺乏资金的周转，他的公司破产啦。 3) offset : 抵销 He raised his prices to offset the increased cost of materials. 他提高售价以抵销材料增加的成本。 What he earns can not offset his debt. 他挣的都不够抵销他的债务。 4）bend the rules 变通，通融一下 In order to come to business, the seller had to bend the rules and accepted D/P. 为了达成交易，卖方不得不变通一下，接受了付款交单。 I would like to bend the rules a little if possible. 如果可能的话，我是愿意通融一下的。

Practice 1.你方通常采用何种支付条件呢？ 2.我们的付款条件是保兑的信用证，凭装运单据见票即付。 3.这种支付方式在国际贸易中被广泛地采用。 4.我听说你们也接受不同的支付方式. 5.偶尔接受，但只有在非常特殊的情况下。 6.开立信用证会增加我们的成本而且还占用资金. 7.国际市场近来极不景气，其他供应商给我们更加优惠的支付条件. 8.你方能否接受较宽容的支付方式? 9.信用证支付是我们与新客户交易的惯例。 10.让我们各让一半. 1) What kind of terms of payment do you usually adopt? 2) We require payment by confirmed L/C payable by sight draft against presentation of shipping documents. 3) It is universally adopted in the international trade. 4) I heard you would accept different kinds of payment. 5) Occasionally we do. But it is only under very special circumstances. 6) Opening a letter of credit will not only increase our cost but tie up our money. 7)The world market has been rather dull recently, other suppliers can give us more favorable terms. 8)Could you kindly make easier payment terms? 9)Payment by L/C is our usual practice with new customers. 10)Let’s meet each other half way.

11.很抱歉，我不能答应你的要求. 12.我认为采用信用证支付对双方都安全，因为它不但保护买方也保护卖方. 13.希望你方能替我们考虑，帮助我们降低成本. 14.我们的价格是非常具有竞争力的，我们产品在你们市场很畅销. 15.我肯定你们在销售方面不会有困难的。 16.资金的快速周转，不仅抵销了你在信用证上的支出，还为你带来了可观的利润。 17.你方能否通融一下? 我相信你方的通融对今后的交易会有很大的帮助的。 18.如果是那样的话，我别无选择，只好接受你方的支付条件。 19.你能保证你方一收到信用证就能马上发货吗？ 20.希望下次你能灵活一点，给予我们更优惠的条件。 11.I’m awfully sorry that we can’t grant your request. I2. think it is safe for both of us to adopt L/C as the payment terms because it protects the seller as well as the buyer. 13.I hope you can take our case into consideration and help us to decrease our cost. 14.Our price is very competitive and our goods sell well in your market. 15.I am sure you will have no difficulty in sales. 16.The quick turn-over will not only offset your L/C expense but give you a satisfactory profit. 17.Would you bend the rules a little? I’m sure the accommodation would help our transaction in the future. 18.If that’s the case, I’ll have no alternative but to accept your payment terms. 19.Can you guarantee that the goods can be dispatched immediately after you get the L/C? 20. I hope next time you would be a bit more flexible and give us more favorable terms.

Dialogue Two Payment by T/T

Lead-in In dialogue one, we learned how the buyer and seller negotiate on payment terms. In this dialogue, we will learn another negotiation on payment terms. Let’s see on what payment terms the business is concluded.

Explanation and comments on the dialogue Now go through the dialogue and answer the following questions in Task One. 1. Why doesn’t Mr. White agree to payment by sight L/C? Because his is a sample order and it doesn’t pay to adopt L/C for an order as small as that. 2. What kind of terms of payment does Mr. White ask for? He asks for T/T. 3. How does Mr. White persuade Mr. Wang to accept his payment terms? He persuades Mr. Wang to accept his payment terms by view of their business relation and his good prestige in the business circles.

Comments on the dialogue 汇付是出口商提供给进口商的一种优惠待遇。这种支付方式的使用，取决于交易双方中一方对另一方的信任，如果买卖双方互相了解并且已有长久的业务关系或所涉及的金额不大时，他们可以采用汇付这种付款方式。另外，采用汇付时，必须事先说明如何付款及付款的比例，这样可避免出现纠纷。

Language points 1) the tie-up of our funds 资金占用 a sample order 按样品订货 the balance余额， 剩余的部分 enjoy a very good prestige 享有很高的声誉 credit standing 信用 with an eye to further business 为了促进业务 2) It doesn’t pay to do 做… 不值得 It doesn’t pay to sell the goods at such price. 以这样的价格销售这些商品不值得。 Sometimes it doesn't pay to be overcautious in business. 在商业中有时过于谨慎是得不偿失的。 3）balance : n. 余额, 剩下的部分 He used the balance of the salary to buy new books. 他用剩下来的工资购买新书。 v. 使收支平衡 My accounts balanced for the first time this year! 我的帐上今年第一次出现收支平衡！

Practice - Translation 1. 现在可以谈谈付款条件吗？ 2. 即期信用证确实花费我方不少资金。 3. 这次我们是按样品定货，所涉及的金额不大。 4. 你有什么建议呢？ 5. 像我们这样少量的订单，采用信用证支付是不合算的。 6. 有限的利润还不够抵销那些额外的开支。 1）Shall we go on to the terms of payment? 2）The letter of credit at sight indeed cost us a great deal. 3）Ours is a sample order, and the amount involved is not so big. 4) What is your proposal? 5) It doesn’t pay to adopt L/C terms for an order as small as ours. 6) The limited profit is not even enough to balance the additional expenses.

7.当我方所订购的货物准备装运时，你方发传真告诉我们，我方将10%的货款电汇给你方，其余的在收到货物后再电汇给你们. 8.要求信用证支付是我们的惯例。 9.你知道我们公司在商界享有很高的声誉. 10.我认为你没必要担心我们的信用。 11.好吧，为了促进业务，我想我们可以破例接受你方的建议. 12.当货物备妥待运时，你方必须电汇30%的货款，余下的70%你方收到货后再电汇我方。 13.我不准备再做让步。 7) When the goods purchased by us are ready for shipment, you fax us and we will remit you 10% of the full amount by T/T and the balance will be remitted to you after we receive the goods. 8) It is our usual practice to ask for payment by L/C. 9) You know our company enjoys a very good prestige in the business circles. 10) I don’t think you have to feel worried about our credit standing. 11) Well, with an eye to further business, I think we can make an exception for you. 12) You will have to remit 30% of the payment of the goods to us when the goods are ready for shipment and 70% after you receive the goods. 13) No further concession can be made.

Payment by Installments Dialogue Three Payment by Installments

In dialogue one and dialogue two we learned negotiations on payment by L/C and T/T. In this dialogue, we will learn negotiation on another payment term. That is, payment by installments. Now, let’s see how the buyer and seller negotiate on this issue.

Explanation and comments on the dialogue Understand the important details of the dialogue 1. What kind of terms of payment does Mr. Li propose for this transaction? Why ? He proposes installments for this transaction because his order is not a small amount. 2. What is Mr. Li’s proposition about the installments ? 10% of the total value will be paid within 30 days after signing the contract. 50% will be paid upon delivery and 40% after final acceptance. 3.Does Mr. Smith agree to his proposition? Why? No, he doesn’t. because the advance payment is used to finance the manufacturing. If Mr. Li only pays 10%, he will have financial problems producing the machinery Mr. Li orders. 4. What is Mr. Smith’s suggestion about the other two installments? He asks Mr. Li to pay off 75% of the total amount upon delivery and the remaining 10% after final acceptance. 5. Does Mr. Li agree to his suggestion? Why? No, he doesn’t. Because that will tie up his funds and add to the cost of his import.

Comments on the dialogue 分期付款是目前国际贸易中常用到的一种付款方式，这种付款方式主要是用于占用资金较多的大宗交易，比如重型机械的买卖。在使用分期付款时，买卖双方必须明确确定分期付款的次数和时间，每次付款所涉及的金额以及付款方式。本对话中主要针对每次付款所涉及的金额进行磋商，因为涉及到资金流动，是买卖双方据理力争的要素。

Language points 1) advance payment 定金 final acceptance 最后验收 financial problems 资金问题 money is tight, 银根紧缩 bank loan. 银行贷款 finalize the business 做成交易 cash flow problem 现金流转问题 2）finance v. 为…提供资金， 供给...经费 The government will finance the building of the new school. 政府将为新学校的建立提供资金。 Who will finance the project? 谁为这一项目融资？ 3）pay off 付清, 偿清(债务) In order to pay off his debt, he had to work day and night. 为了偿清债务， 他不得不没日没夜地干活。 He has a huge overdraft to pay off. 他有一大笔透支要偿还。

Practice - Translation 1）对于这笔交易，我方想采用分期付款的方式支付. 2) 希望我方所建议的支付条款能被接受。 3) 为了促进业务，这次我们接受分期付款. 4) 你能具体的说明你方有关分期付款的主张吗？ 5）金额分三次付清，合同签署后30天内以电汇方式先支付10%做为定金，交货时以即期信用证付50%，最后验收也以即期信用证付40%。 6) 定金是用来资助生产，如果你只付10%，我方在生产你方所购买的机械就会有资金问题. 1）We would like to make our payment for this transaction by installments. 2) I hope our proposed payment terms are acceptable. 3) With an eye to further business, we’ll accept payment by installments. 4) Would you explain specifically your proposition about it? 5）The amount is to be paid in three installments. 10% of the total value will be remitted to you by T/T within 30 days after we sign the contract, as an advance payment. 50% will be paid by sight L/C upon delivery and 40% also by sight L/C after final acceptance. 6) The advance payment is used to finance the manufacturing. If you only pay 10%, we would have financial problems producing the machinery you wish to buy.

7) 对于第一笔交易我方从未付高达40%的定金。 8) 你能否破例一下？现在银根紧缩，很难贷到款。 9) 恐怕我必须得坚持我的做法。 10) 在定金方面我方做出了很大的让步，希望你们对剩下的那两笔也做出一些让步。 11）这样会占用我方资金并加大我方的进口成本。 12）为了达成交易，我同意你的建议，希望下次你能给予我方更多的优惠。 7) We never make an advance payment as large as 40 percent for the first transaction. 8) Could you make an exception in our case? As you know, money is tight, and it is difficult for us to get a bank loan. 9) I am afraid we must insist. 10) We made big concessions about the advance payment, now we need you to make some concessions on the other two. 11) That will tie up our funds and add to the cost of our imports. 12) To help make this transaction possible, I agree to your proposal. I hope next time you will give me more favorable terms.

Practice Task Two Language Practice I. Translate the following into English orally: 1) It is our usual practice to … a. ask for payment by sight L/C. b. ask for cash on delivery. c. do business on CIF basis. 2) I’m awfully sorry that … a. we can not accept your offer. b. we are unable to meet your request. c. there is no room for reducing the price. 3) With an eye to further business … a. we decide to accept your terms of payment b. we will allow/give/ grant you a 2% discount. c. we will lower our price by 5%. 4) If that’s the case … a. I have to make concessions. b. we have to accept usance L/C. c. we will have to buy other products. 5) I hope you can be a bit more flexible and … a. accept D/A or D/P as the payment terms. b. agree to conclude this transaction on FOB basis. c. agree to accept payment by T/T.

II. Translate the following into English orally: 1.With regard to terms of payment, we regret being unable to accept D/P (documents against payment). 2.Payment by L/C is our usual practice of doing business. 3.Opening a letter of credit would add to the cost of our imports. 4.Would you accept different kinds of payment such as D/A or D/P? 5.At present, T/T is one of the terms of payment that has been widely accepted and often used in international trade. 6.We would like to adopt the terms of payment by installments for this transaction. 7.What is your regular practice about terms of payment? 8.With an eye to further business, I think we can make an exception for you.

9.As a rule, we don’t accept D/A payment terms. 10.We find it necessary to do our business on L/C basis. 11.We agree to such terms only under very special circumstances. 12.I am sorry I am not in a position to do that this time. 13.I am afraid no further concessions can be made. 14.Could you kindly make easier payment terms in our case? 15.In view of our long friendly relations, we agree to your proposal.

III. Translate the following dialogues into English orally: A: I want to have a discussion with you about the terms of payment. B: Our terms of payment are usually by confirmed irrevocable letter of credit payable by sight draft against presentation of shipping documents. A: But I think it would be beneficial to both of us to adopt more flexible payment terms. This time the amount of our order is very small. Would you agree to accept D/A? B: I’m afraid we cannot accept D/A. A: The transaction between us this time is in the nature of sample order and the amount is very small. So it doesn’t pay to adopt L/C terms. What’s more, we have done business with each other for quite a few years, I don’t think it is necessary for you to worry about our credit. B: Well, in order to finalize the business between us, we agree to change the terms of payment from L/C at sight to D/P at sight, and this is the best we can do. A: Thank you for your cooperation.

Task Four Case Study From the case, we can know the following: 1. the differences between remittance and letter of credit 2.the disadvantages of remittance 3. the risks of the diversion from banker’s credit to commercial credit 4. the financial strength and commercial credit of the buyer 5. the purpose of the buyer’s late L/C 6. so many discrepancies found in the L/C 7. the seller’s carelessness and negligence a.)The seller dispatches the goods before he gets the proceeds. b.) He finds something wrong one month later, which makes him lose total control over the goods he has dispatched.

本案例的特点 本案例由信用证付款方式变更为D/D货到付款，隐藏着商业信用危机，但卖方毫无提防，结果遭到货款两空的损失。 案例分析详解 本案例在订立合同时双方采用信用证方式支付，这是双方相互不是很了解的情况下较普遍的做法，在执行合同时，对方不按时开证，在装运期将到时才开来一张不符合要求的信用证，我方对对方的违约行为，理应主张有索赔的权利，并坚持必须修改信用证，否则决不发货，但我方丧失了警惕。 在港商提出使用汇付方式时，已由银行信用转为商业信用，就更不可靠了，为安全起见，必须坚持收到货款后才发货的原则，但我方还是轻信了对方，又一次上了对方的圈套，先发货并且等到一个月之后才发现问题，结果完全丧失了控制权，酿下了不可挽回的损失。 案例启示 第一，在买卖双方不是十分了解 、相互信赖的情况下，必须坚持用信用证方式支付，以防范信用风险；第二，在交易对方违约的情况下，必须声明对对方违约保留索赔的权利，决不能留情面；第三，在交易对方已经发生违约的情况下，更不可掉以轻心，必须要求对方严格履行合同，追究对方的违约责任，不可接受对方再提出对我不利的任何条件；第四，我们要从这个案例中接受教训，生意场上必须坚持依法经商，要树立起强烈的风险防范意识。