Chapter 8 Payment Effecting

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2 Chapter 8 Payment Effecting
Learning Objectives: Learn how to advise L/C establishment. Know how to ask for cash payment. Master the way of effecting installment payments. Understand the formalities of negotiating payments and the expressions of asking for deferring payments.

3 Ⅰ. Urging Shipment Dear Sirs, Re: Urging Shipment
We have pleasure to inform you that the Letter of Credit No. XXX for the order No. XXX was established in your favor through the Bank of China, Shanghai Branch on the 10th of this month and we trust that by now you would have received the advice from the Bank at your end. As you know, our clients need the goods badly at the present time owing to the approaching of the busy season and we would be very grateful in case of your arranging to effect the shipment as soon as possible. Your prompt shipment of the goods would certainly attract our prospective buyers and lead to a prosperous development of the trading between us. Yours faithfully,

4 Ⅱ. Asking for Cash Payment
Dear Sirs, Re: Asking for Cash Payment We are in receipt of your letters 25 May and 2 June and now we are very glad to advise you that 100 pieces of art crafts you ordered last month have been shipped to you per SS “Queen” due at Rotterdam on 12th, next month. It is necessary to tell you that all the goods we shipped were selected by us with great care in order to meet with your requirements. We have enclosed a copy of invoice with the price of US $ XXX and have drawn on you for this amount at sight through the Bank of XX, who will hand over documents against payment of the draft. It is necessary to inform you that as our usual practice, we place order with new customers only on a cash basis and it is a pity that your urgent need of the goods gave us no sufficient time to make usual enquiry. In case that you would like to deal with us regularly in future, we would be prepared to consider open account terms with quarterly settlements. We think this term of transaction will be welcomed by you. As to the above mentioned order, we wish you expedite your cash payment. Truly yours,

5 Ⅲ. Accepting the Installment Payments
Dear Sir, Re：Accepting the Installment Payments Our Vice President Mr. XXX has already come back from your States, from whom we have known that with respect to our production line of manufacturing XXX you have given your serious consideration. In order to develop the future business between our two corporations and in view of helping us to overcome the difficulties in getting the large sum of foreign exchanges, you are intending to offer us an installment payments terms for the transaction of our importing the machinery Type XXX and equipment Type XXX of our production line, for which we would like to express our great thankfulness. We suggest to effect our installment payments by L/C according to the following schedule: 1. The 1st payment: 25% payable within 10 days against your clean draft after the signing of the contract. 2. The 2nd payment:50% payable within 15 days after receiving your full set of shipping documents of the machinery and equipment. 3. The 3rd payment: 25% payable within 20 days after the performance acceptance testing and normal operating of the machinery and equipment. Thank you for your friendly cooperation. Truly yours,

6 Ⅳ. Negotiating Payment Documents
Dears Sirs, Re:Negotiating Payment Documents Your letter dated 15 July has been in receipt of our Corporation. Referring to your question of the required documents for negotiating payment, we are pleased to give you our prompt reply. The documents required for negotiating payment are as follows: 1. Draft made out according to the provisions in the L/C. 2. Full set of negotiable clean shipped on board Ocean Bill of Lading marked “Freight prepaid” (for CIF transaction) and “Freight to collect” (for FOB transaction) and made out to order and endorsed in blank. 3. Invoice in____ copy (copies), indicating contract number and shipping marks. 4. Packing List in____ copy (copies), indicating gross and net weights and measurements. 5. Certificates of Quality and Quantity/Weight and Inspection Report, each in____ copies. 6. True copy of Fax Shipping Advice in____ copies. Best regards. Truly yours,

7 Ⅴ. Asking for Deferring Payment
Dear Sirs, Re: Asking for Deferring Payment As you know rather well, we have been an enterprise with high financial prestige. We have been persisting in meeting our commitments and in prompt settling our accounts with our trading partners. But owing to the Force Majeure cause, to the great tsunami happening in Indian Ocean, our industry and agriculture have been destroyed, our communications and transportations have been collapsed, and the national economy and most fields of our constructions have been put into a standstill. It will take us a long time to restore our economy and our production. Under such circumstances, we are now unable to effect our payment for the goods under Contract No. XXX in time and have to ask your favor of allowing us to defer our payment of your present accounts for 3 months. It is because that the above-mentioned payment deferring is caused by the Force Majeure, we would be very grateful if you would excuse us from the penalty resulted from the deferred payment. Please accept our apologies again. Truly yours,

8 Sentences for Doing English-Chinese and Chinese-English Translating Practices:
1. In international trade, there are three major modes of payment that the buyers may accept, namely remittance, collection and letter of credit. 国际贸易中买方可能采用的支付方式主要有三种，即汇付，托收和信用证。 2. 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. 付款人(通常为买方)根据双方的协议，通过银行向收款人(通常为卖方)汇付一定数量的款项。 3. Where the paying agreement 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. (Documents against acceptance D/A 译为承兑交单) 在承兑交单时，只有在买方承兑向他开出的汇票，即在汇票上签名承诺到期时付款的情况下，代收行方把运输单据交给买方。 4. 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 condition that the buyer effects payment. (Documents against payment D/P 译为付款交单) 付款交单，顾名思义，就是代收行只有在买方进行付款的条件下才交付代表货物所有权的运输单据。

9 Sentences for Doing English-Chinese and Chinese-English Translating Practices:
5. In view of the amount of this transaction being very small, we are prepared to accept payment by D/P at sight for the value of the goods shipped. 鉴于此笔交易金额很小，我们同意以即期付款交单方式支付所发运的货物。 6. We hope that D/P payment will result in a considerable increase of your orders and assure you that we shall always endeavor to execute them to your complete satisfaction. 我们希望付款交单方式支付货款会导致你方订货的大量增加，同时向你方保证我方将尽力履行交货，以使你们完全满意。 7. The banker’s transfer is a simple transference of money from the bank account of a buyer in his own country to the bank account of the seller in the seller’s country. 银行划拨是从买方自己国家的银行账户将钱划拨到卖方国家的卖方银行账户的一种简单程序。 8. We have remitted XX Corp. US $ XXX in payment for the sample sent us last week. 我方已给XXX公司汇去XXX美元，支付上周寄给我方的样品。 9. We have charged your account with the account of money. 我们已将这笔钱记在你们的账上。

10 Sentences for Doing English-Chinese and Chinese-English Translating Practices:
10. The bill of exchange (also called a draft) is an order in writing from a debtor to a creditor to pay on demand or on a named date a certain sum of money to a person named on the bill. 汇票是债权人写给债务人的一份书面命令，命令其在被要求时或在某一固定时间向汇票上列名的人支付一笔金额。 11. We shall thank you very much for handing us your check for US $ XXX in settlement at your earliest convenience. 如果你方能尽早给我们递交一张XXX美元的支票，以便结账，我们将十分感谢。 12. Our draft on you at 60 D/S in your favor will be presented to you by the XXX Bank. Please give it your acceptance. 我方开给你方的以你方为受益人的60天期汇票，将由XXX银行呈递你方，请予以承兑。 13. Much to our regret, our draft on you dated’ 1 August, and due on 1 September was returned dishonored two days ago by our Bank. 我方甚感遗憾，8月1日开给你方9月1日到期的汇票两天前已被我方银行拒付退回。 14. We propose to effect payments by bill of exchange at 30 days’ documents against acceptance. Please confirm if it is acceptable to you. 我方打算以30天期承兑交单的汇票进行付款，如果你方可以接受，则请确认。 15. Deferred payment is acceptable if the order is under the amount of US $ XXX. 如果订单金额不足XXX美元，可以接受延期付款。

11 Exercises Ⅰ. Translate the following sentences from English into Chinese. 1. The delayed payment interest commencing from May 15 to the date of payment December 15 at the interest of 10% per annum amounting to US $ XXX should be for your account. 2. We would like to inform you that you will be invoiced for all the samples if they are not returned to us within 120 days. 3. We expect certain orders to be paid within the next two months and ask if we may defer payment of your account from June 2 to July 15. 4. For future transactions D/P will be accepted if the amount involved for each transaction is below Stg 5. Please see to it that all the payments under the Contracts No. XXX and No. XX must be effected in time.

12 Exercises Ⅱ. Translate the following sentences from Chinese into English. 1. 我们认为必须通过挂号信寄出发运单证。 2. 一旦有货，我们将传真你方。 3. 这类商品通常按承兑交单出售。 4. 我方很高兴地通知你方，我方已按XX号信用证规定，完成100台电子计算机的付款。 5. 我方已开立以你方为收益人的、金额为XXX美元的、不可撤销的第XX号信用证。