[00:02.06]Payment in foreign trade is often complicated.
[00:06.22]It plays an important role in the process of trade.
[00:10.37]All activities mean nothing without gurantee of payment.
[00:15.12]The method of payment to be used is matter arreanged by the parties concerned.
[00:20.30]Various ways of payment are un use in the import and expore trade.
[00:24.50]Among them,payment by the letter of credit is most essentially a method of collecting money on the shipping documents.
[00:33.62]It can ensure that the exporter can get paid as soon as he has fulfilled his part of the sales contract and has shipped the goods even if the buyer has not received the oggds ,
[00:46.76]and insure that the importer is assured of title to the goods before he pays for them.
[00:52.95]Otherwise,the exporter is unwilling to deliver the goods without receiving payment,while the importer is reluctant to pay his money without actually controlling the goods.
[01:02.93]The problem of both the exporter and the importer is solved through the intervention of the third party-- a bank.
[01:12.39]The main stages a commercial letter of credit goes through as follow .
[01:17.06](1)A contract is made between the exporter and the overseas buyer stipulating payment by the letter or credit.
[01:27.20](2)The overseas buyer instructs the bank at the residence of the buyer (also called the originating bank).
[01:36.00]to open L/C in favor of the exporter on the terms agreed upon in the contract of sale.
[01:45.53](3)An L/C is opened and forwarded to the bank at the residence of the exporter (also called the advising bank )by the originating bank.
[01:56.58](4)The advising bank delivers the L/C to the exporter and advises the exporter to arrange for the delivery of the goods,according to the terms of delivery stipulated in the contrast,
[02:10.80]prepare the necessary documents and make the draft.
[02:15.05](5)On shipment ,the exporter presents the shipping documents to his advising bank(or the negotiating bank)with the request for payment in accordance with the payment terms.
[02:29.32](6)The advising bank(or the negotiating bank )checks the documents and then forward the documents to the issuing bank for reimbursement.
[02:39.95]The exporter must take care in scrutinizing the documentary letter of credit to make sure whether all the terms and condition in the credit can be complied with.
[02:50.55]If not,the L/C should be rejected immediately and require amendments,which must be made in advance of shipment of the goods,
[02:59.77]otherwise the exporter may be faced with the risk of his draft being dishonored by the bank.
[03:05.65](7)The issuing bank further checks the documents against the terms of credit and relays them to the buyer to enable him to take delivery of the goods,and,at the same time pays the exporter for the shipment or remberses the negotiating bank for the advance.
[03:23.52]We thank you for your check for $450.But your total amount due is found to come to $475 after our thorough check.
[03:34.67]Thank you for your kind information that we have undercharged you for shopping freight on our recent dispatch of the goods under S/C No 908 against your L/C No 43.
[03:48.73]Thank you for your letter of 3 June and enclose a statement of your account as requested .We hope you find it correct.
[03:59.93]As we have not received any replay to our letter dated 6 December of requesting settlement of the account,we are now writing again for that.
[04:09.81]We are pleased enclose the formal receipt and hope you find it correct.
[04:16.24]All items included in your order can be supplied form stock and will be packed and supplied immediately on receipt your remittance.
[04:27.65]Payment should be made in Sterling to your London representative within 14 days on the arriveal of the goods in Boston.
[04:36.82]We agree that payment is made by documentary draft at sight drawn in favor of you on collection basis instead of L/C.
[04:46.82]We are ready to allow your request of the extension of one month and hope it will help you oversome the special difficulty.
[04:55.00]Much to my regret that we have made repeated application for payment of this amount without avail.
[05:00.23]The stipulation in the L/C should be exactly in accordance with the terms stated in the contract signed by both parties.
[05:10.00]We confirmed your terms of payment,that is irrevocable letter of credit with draft at sight instead of D/P at sight.
[05:20.24]We request you to amend your L/C to read:
[05:24.34]We have deducted the commission agreed of 3% from the total amount due and enclosed a remittance bill for $1000 in full settement of account .
[05:35.49]We have accepted your order for woolen carpets .Please open the relative L/c,which must arrive here one week before the date of dispatch.
[05:49.15]Enclosed is Demand Draft for the difference of 457.24 .Please let us have your acknowledgement of receip.
[06:01.80]If you wish to make inquiries regarding our financial standing,you may refer to our bank.Commercial Bank of Germany.
[06:10.18]You are kindly appreciated to see to it that punctual delivery is made within the validity of the L/C.
[06:16.84]Please kindly send us the check for the lettlement of your account to the end of last year at yor earliest convenience.
[06:26.06]We shall appreciate if you fax us the amendment without any delay as our shirts have been available for shipment for quite some time.
[06:35.83]Those ovens ar available frone stock and packed ready for shipment any time.We will send them immediately as soon as we are in a possession of th amount due ,namely $780.00.
[06:50.88]If the invoice is correct ,your prompt remittance will be appreciated.
[06:58.01]We are pleased to find your order of February 24 for men's shirts has reached us.
[07:03.86]We hope that this is the first of many orders which you may place with us.
[07:09.24]Your letter does not mwntion your method of payment.
[07:13.24]You are no douvt aeare of the custom of the wolesale trade that opening orders are payable in cash.
[07:19.69]And ours is a strictly cash business and we have no facilities foe C.O.D. Shipment.
[07:26.90]If you wish to send the goods immediately we should ba glad to do so on receipt of your remittance for $430.00.
[07:35.50]We hope that the misunderstanding about this point will not be an inconvenience to you.
[07:40.98]Pending the receipt of your answer,
[07:43.80]We have packed the shirts ready for shipment.
[07:47.85]Very truly yours.
[07:51.98]We thank you for your revised price list,sent to us on 1 March.
[07:57.10]We are convinced that the instrument will meet our requirements.
[08:01.80]We are ,therefore,writing to place a norder for 100 sets model Y1 instruments.
[08:08.36]We enclose an official order form for the above goods.
[08:11.86]A proforma invoice will be required for the order.
[08:15.49]It should show us full details of discounts,freight and rnsurance .
[08:20.24]This order is subject to delivery before 13th April.
[08:24.29]We therefore reserve the right to cancel the order and/or return the shipment at your risk and expense at any time after that date.
[08:34.43]Since this is the first time we have done business ,the most acceptable method of payment will be irrevocable Letter of Credit.
[08:43.65]Our bank will therefore issure a Letter of Credit in your favor for your invoice CIF Alexandria.
[08:52.35]and the amount of our Letter of Credit will be sufficient to cover this.
[08:55.98]We hope this is acceptable.
[08:58.59]We will accept your draft within 30 days on our credit.
[09:02.85]Our bank will inform you of the type and numbers of copyed of the documents will be issued only against documents.
[09:12.36]The credit will be issued only against documents.
[09:16.30]We look forward to receiving your shipment ,and to doing further business with you.