Unit 7 Letter of Credit(1)

信用证开证申请书中英文对照及注释Application for Letter of Credit信用证开证申请书Applicant: ABC Company申请人：ABC 公司Beneficiary: XYZ Company受益人：XYZ 公司Date: January 1, 2022日期：2022年1月1日Dear Sir/Madam,尊敬的先生/女士，I am writing to apply for the issuance of a letter of credit in favor of XYZ Company for the amount of USD 10,000 to cover the cost of goods purchased from them.我写信是为了申请开立一份信用证，金额为10,000美元，受益人为XYZ 公司，用来支付从他们购买的商品费用。

The details of the transaction are as follows:交易细节如下：- Goods Description: 100 units of Product A商品描述：产品A 100个单位- Unit Price: USD 100 per unit单价：每个单位100美元- Total Amount: USD 10,000总金额：10,000美元- Delivery Date: February 1, 2022交货日期：2022年2月1日- Payment Terms: Irrevocable letter of credit at sight付款条件：不可撤销即期信用证We kindly request that the letter of credit be issued in accordance with the above details to ensure a smooth transaction between our two companies.我们诚挚地请求信用证的开立应符合以上细节，以确保我们两公司之间的交易顺利进行。

Unit 7A contract is a legally binding agreement between two or more parties which starts with an offer from one person but which does not become a contract until the other party signifies an unequivocal willingness to accept the terms of that offer.Order is a commercial document used to request someone to supply something in return for payment and providing specifications and quantities. Order letters create one half of a contract。

A good letter ordering an item or service should be accurate and complete。

1。

你公司2000年9月20日来函内附一千台缝纫机订单一纸已收到。

兹附寄第346号销售确认书一式二份，请签回一份以便存档。

We have received your letter of September 20，2000 together with an order for 1,000 Sewing Machines. Enclose is our Sales Confirmation No。

346 in duplicate, one copy of which please sign and return to us for our file。

2。

我已接受你方85号订单订购货号1002号印花布十万码。

外贸函电试题(一)I.Put the following from English into Chinese or vice versa. (10%)1. be in receipt of2. in compliance with3. specific enquiry4. assure sb. of sth.5. letter of credit6. 实盘7. 形式发票8. 下试订单9. 以我方最后确认为准10. 提单II.Choose the best answer to complete each of the following sentences. (20%) 1．Apple Co. are the leading exporter in New York dealing computers.A. withB. inC. aboutD. for2. We the fact that the market is declining.A. are aware ofB. awareC. aware ofD. are aware3. Could you make us a firm offer 3,000 metric tons fertilizer.A. for…forB. on…inC. of…forD. for…of4. There is always a ready market here for your goods, they are of good quality and competitive in price.A. whenB. providedC. because ofD. that5. We are receipt your letter of March 16 offering us the goods US $ 80 per dozen on the usual terms.A. of…of…onB. in…of…atC. in…of…forD. of…of…at6. This is closely-calculated price and any further reduction is .A. out of questionB. out of the questionC. no questionD. beyond question7. If you send us a catalog by air, we shall very much.A. appreciateB. appreciatingC. appreciationD. appreciate it8. requested, we are enclosing a quotation sheet our silk gartments.A. As…aboutB. At…aboutC. At….forD.. As…for9. Our S/C No.402, we wish to say that the goods will be shipped by Oct. 6.A. ReferringB. Refer toC. With reference toD. With refer to10. Remittance and collection are two kinds of credit while L/C belongs tocredit.A. banker’s….commercialB. banker’s….banker’sC. commercial…..banker’sD. commercial….commercial11. We cannot see any possibility of business your price is too high.A. sinceB. whileC. thoughD. because of12. We would like to quote you our most favourable price 800 pieces Electric Blankets.A. of….as followsB. at…as followingC. for…as followsD. with…as follows13. The opens a letter of credit 30 days the time of shipment.A. buyer…beforeB. buyer…afterC. seller…beforeD. seller…after14. Should you to the price by 5%, we would place our trial order with you.A. prepared…reduceB. prepared….cut downC. be prepared…reduceD. be prepared…cut down15. When submitting our quotation, we suggest that the relevant L/C as early as possible.A. establishesB. be establishedC. is establishedD. would be established16. Our corporation exclusively the import and export business of light industrial .A. deals…productsB. deals…goodsC. handles…productsD. handles…goods17. If our clients need more goods before the end of this year, we shall you again.A. meetB. contactC. communicateD. contact18. The gloves are made superior genuine leather and can be supplied various designs and colors.A. of…inB. from…withC. with…inD. in…at19. The price of our new products is 8% than of similar products of Japanese origin.A. lower…thatB. below…thoseC. under….thatD. lower…those20. Since three fifths of the voyage is in tropical weather and the goods are liable to go mouldy, we think it advisable to have the shipment the risk of mould.A. covered insuranceB. taken out insuredC. covered againstD. insured forIII.Fill in the blanks with appropriate words (15%)1. We prefer Chinese bicycles (1) Japanese bicycles (2) their fine quality.2. The WPA covers (3) risks than the FPA.3. We thank you (4) advance for your corporation.4. Because there is no direct steamer from here to your port, we suggest that you accept (5) at Hongkong.5. We are glad that in the past few years, (6) joint efforts, we have greatly promoted both business and friendship.6. We would like to (7) you halfway in your request for lower prices.7. Please do everything necessary (8) as to enable us to send you the relevant documents at an early date.8. You may avail yourselves (9) the advantage of this strengthening market.9. We shall (10) an L/C (11) your favour (12) Barclay’s Bank here(13) the extent of USD 5500.10. Please cable us as soon as (14) , giving us all necessary information.11. We shall book a trial order with you, (15) your goods are competitive in price and of good quality.IV.Translate the following from English into Chinese (15%)1. This offer must be withdrawn if not accepted within seven days.2. We might add here that, owing to heavy demand, our offer remains firm until December 20 and that there is little likelihood of the goods remaining unsold once this particular offer has lapsed.3. They have informed us that you are in the market for chemicals.4. We desire some sample of your products in order to acquaint ourselves with the material and workmanship before we place a large order with you.5. Although the export of computers falls within the scope of our business activities, we regret that we are not in a position to supply you with computers direct.V.Translate the following from Chinese into English (20%)1．我们接到你方3月25日对我们500辆“飞鸽”自行车的询价单，按照请求，我方报盘如下：……。

信用证（Letter of Credit）（一）信用证的含义和作用在进出口贸易中，交易的双方分处两个不同的国家或地区，彼此之间不可能非常信任。

因此，如何实现货物和货款的对流对买卖双方的确是一个难题。

采用汇付方式，尽管手续十分简便，费用也不高，但是它存在着一方需承受过重的资金负担和很大的风险；而使用跟单托收方式，虽然出口商可以通过不同的交单条件来制约进口商在付款或作出承兑后再可将代表货物所有权的单据交给进口商，但此时出口商是否能够安全收到货款就完全取决于进口商的信誉。

因此，对于初次交易的双方，使用跟单托收方式将使卖方面临很大的风险。

而信用证支付方式则是由银行出面向出口方提供信用保障，只要出口商在信用证规定的期限内向银行提交符合信用证规定的单据，银行将对出口商履行付款责任。

由此可见，信用证支付方式不仅向进出口双方提供了交单和付款的保证，而且也为交易的双方提供了资金融通的便利。

因此，信用证结算方式成为进出口贸易中使用较为广泛的支付方式。

（二）信用证的内容信用证是银行开立给出口人的保证付款的责任文件，虽然各银行都有自己的格式，但其主要内容通常不外乎以下六个方面：1．关于信用证本身(1)信用证的类型(Form of credit)(2)信用证号码(L/C number)(3)开证日期(Date of issue)(4)信用证金额(L/C amount)(5)有效期和到期地点(Expiry date and place)(6)开证银行(1ssumg/Opening bank)(7)通知银行(Advising/Notifying bank)(8)开证申请人(Applicant)(9)受益人(Beneficiary)(10)单据提交期限(Documents presentation period)2．关于汇票(1)出票人(Drawer)(2)付款人(Drawee)(3)付款期限(Tenor)(4)出票条款(Drawn clause)3．关于单据(单据的种类、份数和具体要求)(1)商业发票(Commercial lnvoice)(2)提单(Bill of Lading)(3)保险单(1nsurancePolicy)(4)产地证明(Certificate Of Origin)(5)其他单据(Other documents)4．关于货物品名、货号和规格(Commodity name, article number specifications) 数量和包装(Quantity and packing)以及单价(Unit price)等5．关于运输(1)装货港(Port Of loading/shipment)(2)卸货港或目的地(Port of discharge Or destination)(3)装运期限(Latest date Of shipment)(4)可否分批装运(Partial shipments allowed/not allowed)(5)可否转船运输(Transshipment allowed/not allowed)6．其他(1)附加条款或特别条款(Additional conditions Or Special conditions)(2)开证行对议付行的指示(1nstructions to negotiating bank)背批议付金额条款(Endorsement clause)索汇方法(Method Of reimbursement)寄单方法(Method of dispatching documents)(3)开证行付款保证(Engagement/Undertaking clause)(4)惯例适用条款(Subject to UCP clause)(5)信开证中的开证行签字(Signature)或电开证中的密押(Test Key)信用证实例BANCOBISELS．A．ARGENTINA(见下页)（三）信用证的结算程序使用信用证方式收付货款大致需要经过这样一些步骤：(见图10-8)1．进出口双方签订买卖合同。

李蕾商务英语函电课后题答案7Unit Seven T erms of PaymentPart Five: ExercisesI. Answer the following questions:1. The methods of payment we use in the financing of international trade are chiefly theLetter of Credit, Collection and Remittance.2. The most-often-used method of payment in our international trade is the L/C which is areliable and safe method of payment. It not only facilitates trade with unknown buyers and sellers, but also gives protection to both sellers and buyers.3. The parties in connection with an L/C are: 1) Applicant (Importer/Buyer); 2) IssuingBank (Opening Bank); 3) Beneficiary (Seller/Exporter); 4) Advising Bank (Notifying Bank); 5) Negotiating Bank; 6) Paying Bank.4. The issuance of a letter of credit stars with the buyer who instructs his bank to issue anL/C for his account in favor of the seller for the amount of the purchase. The buyer’s bank (the opening bank) sends the L/C to its correspondent bank in the seller’s country, giving instructions about the amount of the credit, the beneficiary, the currency, the documents required and other special instructions. On receipt of it, the correspondent advises the seller of the receipt of the credit. Sometimes a seller requires a confirmed L/C. In this case, the correspondent usually adds its confirmation and advises the seller of the same. Hence, the correspondent has become the confirming bank. Then the seller will dispatch thegoods accordingly.5. To the seller’s benefit, D/P is safer and better, because it calls for actual paymentagainst transfer of shipping documents. However, in the case of D/A, the buyer can get hold of the shipping documents against his acceptance, which merely is a promise to pay after certain days.6. In order to let the seller have ample time to prepare for shipment, the L/C rea ch theseller at least one month prior to the time of shipment.7. No, it isn’t. We must realize that there may be circumstances beyond his control thatpreclude him from doing so. Therefore, before we have a thorough knowledge of the whole matter, it is wrong to blame the buyer for nonperformance of the contract.8. A contract is the basis of a transaction. The performance and the making of shippingdocuments of a transaction should be in accordance with the stipulations of the contract.On the other hand, the bank’s examination of the shipping documents is based on the L/C, not on the contract. If there are any discrepancies between the contract and the L/C, the bank will not accept the shipping documents and refuse to make payment to the seller. Therefore, it is essential for the seller to make a thorough examination of the L/C upon receipt of it.9. The seller should ask the buyer to make an amendment to the L/C or to delete theclauses before shipment.10. Yes, he can. The usual procedure is that the buyer should first obtain consent from theseller and then instruct the opening bank to amend the L/C.11. In order to leave sufficient time to the seller to make out the shipping documents andthe bank to make their negotiation, the time of shipment and the expiry date of the L/C should be made at least two weeks apart.II. Choose the best answer:1—5：DBBCA 6—10：CADBB 11—15：DBCACIII. Fill in the blanks with appropriate words or phrases:1. by2. In; for/covering; relevant/relative/covering3. before (prior to)4. covering/for5. in; for; for6. to; in; to7. with/through; on; for; in8. against/by; under9. with; for10. open/establish; withinIV. Insert the correct words or phrases in the appropriate spaces in the passage below: document; payment; carry out; issue; agent; documentary; irrevocable; cancel; confirmed; Bill of Exchange; abbreviation; credit; draw; valid; financeV. T ranslation work:1. From English into Chinese:1）我行同意出票人、背书人及善意持票人在其适时提交/提示符合信用证条款和条件的汇票/单据时即予以承付。

Unit 7 Terms of PaymentI. IntroductionThe payment plays a very important role in business. The final result of all business activity should be to recover the value of goods supplied or services rendered. If payment is not ensured then all will be meaningless. Both the exporter and importer face risks in an export transition because there is always the possibility that the other party may not fulfill the contract.For exporters there is the risk that buyers defaults; the customers might not pay in full for the goods. There are several reasons for this: the importers might go bankrupt; a war might ban importers of certain commodities. Another possibility is that the importer might run into difficulties getting the foreign exchange to pay for the goods. It is even possible that the importers are not reliable and simply refuse to pay the agreed amount of money.For the importers there is risk that the goods will be delayed and they might only receive them after paying them. This may caused by port congestion or strikes. Delays in fulfillment of orders by exporters and difficult customs clearance in the importing country can cause loss of business. There is also a risk that the wrong goods might be sent.Payment in foreign trade is complicated and settlement for foreign accounts may be made in a number of ways. The method of payment for each transaction is to be agreed upon between the two trading parties at the time of placing an order. The most often adopted method of payment in our foreign trade is payment by L/C,Terms of payment means way or method of making payment. The methods we use in payment in the clearing of international trade are remittance, collection and the letter of credit (L/C).Remittance is classified into 3 kinds: 1)Mail transfer (M/T) 2)Telegraphic transfer (T/T) 3)Demand draft (D/D) The buyer buys a draft from a local bank and sends it by mail to the seller, the seller or his appointed person can collect money from the relative bank at his end against the draft sent by the buyer.Sometimes, the importer requests payment to be made by collection through banks under the terms of documents against payment (D/P) or documents against acceptance (D/A). In this case, the banks will only do the service of collecting and remitting and will not be liable for non-payment of the importer. D/P calls for actual payment against transfer of shipping documents. There are D/P at sight and D/P after sight. The former requires immediate payment by the importer to get hold of the documents. In the latter condition, the importer is given a certain period to make payment as 30, 45, 60 or 90 days after presentation of the documents, but he is not allowed to get hold of the documents until he pays. D/A calls for delivery of documents against acceptance of the draft drawn by the exporter. D/A is always after sight.L/C is used in cases where the exporter wishes to avoid the risk, and it involves a guarantee of the bank opening the L/C. An L/C is a document issued by a bank (issuing bank) stating its commitment to pay the seller a stated amount of money on behalf of the buyer as long as the seller meets very specific terms and conditions. There are many types of L/C, such as Documentarty L/C, Irrevocable L/C, Revocable L/C, Transferable L/C, Sight L/C, Time L/C, Confirmed L/C, Unconfirmed L/C. Parties concerned to a documentary credit are: the applicant, the issuing bank, the advising bank, negotiating bank, the paying bank, confirming bank and the beneficiary.The letters of payment of payment in international trade may discuss which terms of payment of OK for both parties, accept or decline a method of payment, urge to open the relevant L/C or ask for amendment to the L/C.II. Study of sample lettersLetter 1 Payment on D/P termsDear Mr. Baker,Thank you for your order of May 10. As requested, we have arranged to ship the electric hair dryers by S.S. Fenghua, leaving Shanghai on May 20.As the urgency of your order left us no time to make usual inquiries about the payment, we have to place this transaction on a cash basis and have drawn on you through the Bank of China for the amount of the enclosed invoice. The bank will instruct its correspondent in Melbourne to pass the bill of lading to you against payment of the draft.When you have seen our products, we are sure that you will find them satisfactory. We hope that your present order will order will be the first of many to follow in the near future.Yours sincerely,Wang MeiWang MeiSales ManagerLetter 2 Payment on D/A termsDear Mr. Johns,We are pleased to inform you that arrangements have now been made to ship the sewing machines you ordered on October 22. The consignment will leave Shanghai by S.S. Jinan, due to arrive at Port Klang sometime in late November.In keeping with our usual terms of payment, we have drawn on you at 60 says and passed the draft and shipping documents to our banker. The documents will be presented to you by the Standard Chartered Bank against your acceptance of the draft in the usual way.Yours sincerely,Zhang PingZhang PingSales ManagerLetter 3 Urge establishment of L/CDear Mr. Thompson,With reference to the 4,000 dozen Shirts under our Sales Confirmation No. TE 151, we wish to draw your attention to the fact that the date of delivery is approaching but up to the present we have not received the covering L/C. Please do your utmost to expedite its establishment so that we may execute the order within the prescribed time.In order to avoid subsequent amendments, please see to it that the L/C stipulations are in exact accordance with the terms of the contract.We look forward to receiving your favorable response at an early date.Yours sincerely,Zhang HuaZhang HuaSales ManagerLetter 4 Request to amend L/CDear Ms. Mays,We are in receipt of your letter of May 23 requesting us to send all of your Order On. MC-471 in one lot. We are sorry that we are unable to comply with your request.Due to the size of your order, we will not be able to meet your requested delivery date of June 15 if we send in one lot. We plan to ship about two-thirds of the order first, the remaining one-third will arrive two weeks later.Please amend the L/C to allow for partial shipment, and to extend the validity period to cover the second shipment.We trust that this arrangement will meet with your approval, as we are attempting to get as many bedding as possible for you at the earliest date. We look forward to your early reply.Yours sincerely,Zhuo JingZhuo JingSales ManagerLetter 5 Payment on L/C termsDear Sir,We refer to our letter of enquiry dated 5 October. We have received your Proforma Invoice No. 03688 and now wish to place an initial order for 1,500 tapes Type No. EM 127DN. The Order number is 7213.We have instructed our bank, the General Commercial Bank of Venezuela to open an irrevocable documentary L/C in your favor. The amount is $ 1,275.00. This credit will be confirmed soon by our bank’s correspondent in London. You are authorized to draw a 60 days’draft on our bank against this credit for the amount of your invoice. Your draft must be accompanied by a complete set of shipping documents, consisting of:A full set of clean shipped Bill of LadingCommercial Invoice 5 copiesThe Insurance Certificate 2 copiesOur bank will accept your 60 days’ draft on them for the amount of your invoice including the cost of freight and insurance, as agreed. Your bill will therefore be at 60d/s for full CIF invoice value. The credit is valid until the 12th February.Yours sincerely,Judy LowJudy LowManagerLetter 6 Accept payment on L/C termsDear Sir,We thank you for your letter of 14th November, 2013.We are pleased to receive your order, and wish to say that we have adequate stocks of Type EM127DN tapes in our warehouse, and that delivery date can be met.Payment by irrevocable L/C is convenient for us, and we shall draw a 60 b/s bill on your bank.We are now waiting the arrival of your L/C, on receipt of which we shall make the necessary arrangements for the shipment of your order. Any request for further assistance or information will receive our immediate attention.Yours sincerely,Kevin GreenKevin GreenManagerIII. Useful expressions1. Our usual mode of payment is by confirmed, irrevocable L/C in our favor, available by draft at sight, reaching us ahead of shipment and allowing transshipment and partial shipments.2. On examination, we find that the amount of your L/C is insufficient. Please increase the unit price from RMB￥0.55 to RMB￥0.60 and total amount to RMB￥37,000.00.3. In compliance with your request, we will make an exception to our rules and accept delivery against D/P at sight, but this should not be regarded as a precedent.4. We regret having to inform to you that although it is our desire to pave the way for a smooth development of business between us, we cannot accept payment by D/D.5. We regret our inability to make any arrangement contrary to our usual practice, which is payment by confirmed, irrevocable L/C payable against presentation of shipping documents and valid for at least 15 days beyond the promised date of shipment.6. We wish to draw your attention to the fact that as a special sign of encouragement, we shall consider accepting payment by D/P during this sales-pushing stage. We trust this will greatly facilitate your efforts in sales.7. Payment is to be made against sight draft drawn under a confirmed, irrevocable and transferable L/C without recourse for the full amount of purchase.8. As the amount of our Order No.111 is below ￡1000, please agree to payment by D/P, because an L/C will cost us much.9. We propose to pay by bill of exchange at 30 days’ documents against acceptance. Please confirm if this is acceptable to you.10 Much to our surprise, our draft on you dated 11 May and due 1 July was returned dishonored yesterday by our bank.11. Please amend L/C No. 2345 to read as follows:a)“metric ton”, as was contracted, instead of “long ton”;b)“shipment latest 30th September and partial shipments and transshipment allowed.”12. The shipment covered by your Credit No. 552 has been ready for quite some time, but the amendment advice has not yet arrived, and now an extension of 15 days is required.ExercisesI. Put the following Chinese into English:1. 汇付2. 托收3.保兑信用证4. 信汇5. 电汇6. 票汇7. 托收行8. 运输单据9. 付款交单10. 承兑交单11. 跟单信用证12. 金额为13. 洁净已装船提单14. 承兑汇票II. Multiple choice:1. Payment should be made ___ sight draft.A. atB. uponC. byD. after2. Mr Yin could agree ___ D/P terms.A. WithB. toC. inD. ever3. 90% of the credit amount must be paid __the presentation of documents.A. atB. byC. againstD. when4. You don’t say whether you wish the transaction to be __cash or __ credit.A.at; onB. by; byC. on; inD.in; by5. We have opened an L/C in your favor __ the amount of RMB￥2,000.A.onB. inC. byD. at6. In order to promote business between us to our mutual advantage, we shall consider ______payment by D/P at 60 days.A. acceptingB. acceptC. to acceptD. acceptance7. Emphasis has to be laid to the point _____ shipment must be made within the validity of the L/C.A. whatB. whichC. thatD.as8. _____ subsequent amendments, please see to it that the L/C stipulations are strictly in accordance with the contract terms.A. AvoidB. Having avoidedC. To avoidD. Being avoided9. We shall open the L/C _____ the bank of Boston.A. inB. withC. forD. at10. We advised our bank to ______ L/C No.6543 to read “Partial shipments to be permitted.A. changeB. amendC. alterD. add11. We think it impossible to have the L/C ______ again.A. extendedB. extendingC. to extendD. extends12. As we are ______ of these goods, please expedite shipment after receiving our L/C.A. in badly needB. in urgently needC. urgent in needD. badly in need13. An L/C should be established ______ our favor available by documentary draft ______sixty days’ sight.A. in, afterB. on, inC. in, forD. in, at14. We regret ______ to accept your terms of payment and therefore have to return theorder to you.A. not be ableB. cannotC. not ableD. being unable15. The amount in your L/C appears insufficient. The correct total CFR value of your ordercomes to USD9,328.00 instead of 3,928.00, the difference ______ USD5,400.00.A. beB. is to beC. beingD. beenIII. Fill in the blanks with an appropriate words from the table.request settled be whose had commitments receiving with have allow in forDear Sir,We have received and checked your statement __1__ the quarter ended January 27 and agree with the balance of & 7,780 shown to __2__ due.Up to now we have __3__ no difficulty in meeting our __4__ and have always __5__ our accounts __6__ you promptly. We could have done so now, but for the bankruptcy of an importantcustomer, __7__ affairs are not likely to be settled for some time. We should therefore be most grateful if you would __8__ us to defer payment of your present account __9__ the end of April.During the next few weeks, we shall be __10__ payments under a number of large contracts and if you grant our __11__, we shall have no difficulty in settling with you __12__ full when the time comes.Yours sincerely,IV. Put the following sentences into English:1. 我们通常支付方式是保兑的、不可撤消的信用证，凭即期汇票付款。