商务英语课件-Unit-10-International-Payments10ppt

LearningObjectivesUnderstandingthemainmodesofpaymentininternationaltradeNegotiatingtermsofpaymentWritingaletteraskingforL/Camendments◆SpeakingTask◆Warm-upPractice◆ListeningTask◆Follow-upPractice◆WritingTask◆ReadingTaskWeneedtodiscusssomequestionsaboutwhatwearegoingtolearninthisunit.Sure,that’llhelpusunderstandbetteraboutwhatweareaskedtodo.1.Thetermsofpaymentareanimportantpartofthesalescontractbothsellersandbuyersareconcernedabout.Nowstorethewordsandphrasesthatareassociatedwithpaymenttermsandthenexplainordescribetheseterms.letterofcreditPaymentTerms2)Discussthefollowingquestions.1)Whatarethemaincontradictionsthatexistbetweensellersandbuyersininternationalpayment?2)Whatarebothsellersandbuyersconcernedaboutinnegotiatingpayment?3)Whatarethecommonlyusedmethodsofpaymentininternationaltrade?Canyoutelltheadvantagesanddisadvantagesofeachforbothsellersandbuyers?IntroductoryRemarksThetermsofpaymentareanimportantpartofthebusinesscontract．Fromtheseller'spointofview,thebesttermswouldbefullpaymentincashatthetimeofsale，whilethebuyerswouldprefertohavethegoodsbeforemakingpayment．Importersandexportersareseparatedfromeachotherbythousandsofmiles．Thisaddstothedifficultiesofcomingtoanagreementonhowpaymentshouldbemade．Theexportersandimportersusuallymeeteachotherhalfwayandagreetopaymentbyletterofcreditopenedbyareliablebank．Aletterofcreditisabanker'sguaranteethatpaymentwillbemadeonpresentationofalltherequiredshippingdocuments.Inthisway，thesellersorexportersreceiveaguaranteenotonlyfromthebuyersorimporters,butalsofromabankerthatpaymentwillbemadeondeliveryofthegoods．Ontheotherhand,thebuyersorimportersaregiventheguaranteethatthebankerwillnotmakepaymentunlesstheshippingdocumentsarepresented．MainModesofPaymentinInternationalTradeI.RemittanceA.MailTransfer(M/T)B.TelegraphicTransfer(T/T)C.DemandDraft(D/D)II.CollectionA.CleanBillforCollectionB.DocumentaryBillforCollection1.DocumentagainstPayment(D/P)(1)D/Patsight(2)D/PaftersightD/PT/R2.DocumentagainstAcceptanceIII.LetterofCredit(L/C)UnderstandingLettersofCreditDoyouknowthat50%ofL/Cdocumentspresentedtobanksarerejected?Thiscostsyoudearly,inextrabankcharges,yourwastedtimeandthecustomerdissatisfaction.KeyContentsWhatisaletterofcredit?LearnthedifferencesbetweendifferenttypesofL/Csandwhentousethem.DiscoverwhicharethemostusualtypesofL/C-Sight,DeferredPayment,Transferable,Standby.Applicant（Importer）Beneficiary（Exporter）1S/CPayingbankIssuingbankAdvisingbankNegotiatingbank8Payingthemoneyfordocuments2L/Capplication4Creditadvice5Presentingdocumentsfornegotiation3IssuingL/C6Recourse7ReimbursementPerformanceofL/CDifferentTypesofLettersofCredit1.Accordingtotheattachingofdocuments1)Cleancredit2)Documentarycredit2.Accordingtotherevocabilityofcredit1)Revocablecredit2)Irrevocablecredit3.Accordingtothetransferabilityofcredit1)Transferablecredit2)Non-transferablecredit4.Accordingtotheaddingofconfirmation1)Confirmedcredit2)Unconfirmedcredit5.Accordingtothetimeofpayment1)Sightcredit2)Usanceortimecredit6.Accordingtothemethodofpayment1)Paymentcredit2)Deferredpaymentcredit3)Acceptancecredit4)Negotiationcredit7.Accordingtothecreditamounttobeusedrevolvingly1)Automatic2)Semi-automatic3)Non-automatic8.Othercredits1)Redclausecredit2)Backtobackcredit3)Reciprocalcredit4)StandbycreditIdentifythefollowinglettersofcredit1.DeferredL/Cisacreditavailablebydeferredpayment,underwhichpaymentmustbeeffectedonaspecifiedfuturedate.2.RedClauseL/Cisonewithaclauseinsertedintothecreditauthorizingthenegotiatingbanktomakeanadvanceoftheamountunderthecredit,wholeorpart,tothebeneficiary.3.TransferableL/CThebeneficiaryisentitledtoaskthebanktotransferL/Crightspartiallyorwhollytoathirdparty.Thisisusedfordirectfinancingofsupplies,wherethesellingpartyisnotthedirectproducerbutisanintermediary.4.RevolvingL/CTheunderlyingL/CamountisrenewedduringthelifeoftheL/Caccordingtopre-definedtermsandconditions.Itisadvantageousforcontractswithrepeatedgoodsdeliveries.RevolvingL/CTransferableL/CCleanL/CSightL/CDeferredL/CIrrevocableL/CRedclauseL/CConfirmedL/C5.CleanL/Cisacreditunderwhichpaymentwillbeeffectedonlyagainstadraftwithoutanyshippingdocumentsattachedtheretoorsometimes,againstadraftwithaninvoicealoneattachedthereto.6.IrrevocableL/Cisacreditthatconstitutesadefiniteundertakingoftheissuingbankandcanbeamendedorcancelledbytheissuingbankonlyonconditionthatallpartiesconcerned.7.ConfirmedL/Cisacreditthatisadvisedtothebeneficiarywithanotherbank’sconfirmationaddedthereto.8.SightL/Ccallsforthepresentationofsightdrafts,underwhichthebeneficiary(thedrawer)isentitledtoreceivepaymentatonceonpresentationofhisdrafttothedraweebankortotheissuingbankifdrawnontheissuing,oncetherelevantdocumentshavebeencheckedandfoundtobeinorder.Advantages&DisadvantagesofaLetterofCreditAdvantagestotheExporterShiftscreditriskfromtheImportertotheImporter'sBank(IssuingBank).AnundertakingfromtheIssuingBankthatpaymentwillbemadeundertheLetterofCredit,providedthatyoumeetalltermsandconditionsoftheLetterofCredit.IftheLetterofCreditisnotissuedasagreed,youarenotobligatedtoshipagainstit.Dis