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Letter of Credit
❖ Revocable/ Irrevocable ❖ Documentary/ Clean ❖ Confirmed/ Unconfirmed ❖ Sight/ Usance, or Time ❖ Transferable/ Non-transferable ❖ Revolving ❖ Reciprocal ❖ Back to Back ❖ Anticipatory (→Red Clause L/ C) ❖ Standby
Unit 4 Terms of Payment
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Learning Objective
❖ To make clear terms of payment; ❖ To know the difference between the
three basic terms of payment.
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Background Information
❖ 3) RMB¥898 in total. ❖ 4) The results of the investigation of the
financial standing of the Malaysian Trading Company.
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D/ P
D/ A
D/P at Sight
D/P after Sight (D/P. T/R)
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L arrangement with a bank by which the bank will accept and pay bills of exchange for the customer.
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Listening Practice
❖ 1. Listen to a passage and fill in the blanks.
❖ the letter of credit, reliable, safe, buyers, sellers, buyers, the opening bank, finance, collection, Documents Against Payment, Documents Against Acceptance, expanses, procedures, a risk, actual payment, collecting, remitting, non-payment, shipping documents, D/P at sight, D/P after sight, immediate payment, D/P, make payment, 45, 90, the documents, pays, acceptance, promise, the financial standing of the importer is sound, have convinced, payment
❖ Instrument of payment (currencies, bills)
❖ Date of payment ❖ Place of payment ❖ Credit
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Terms of Payment
❖Remittance (汇付) ❖ Collection(托收) ❖Letter of Credit(信用证)
❖ 银行应进口商的请求开给出口商的一 种保证付款凭证,银行承担在信用证 条款得到完全遵守的情况下,向出口 商付款的责任。信用证属于银行信用。
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Letter of Credit
❖ L/C, generally, involves the following parties:
❖ Opener/ Applicant ❖ Beneficiary ❖ Opening Bank, Issuing Bank ❖ Advising Bank ❖ Negotiating Bank ❖ Paying Bank (or Reimbursing Bank)
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Remittance
❖ Mail Transfer (M/ T) (信汇) ❖ Telegraphic Transfer (T/ T) (电汇) ❖ Demand Draft (D/D) (票汇)
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Collection
Clean collection
Documentary collection
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Listening Practice
❖ 2. Listen to a dialogue and answer the following questions.
❖ 1) To make an investigation of the financial standing of the Malaysian Trading Company.