Talking about letters of credit - раздел Образование, UNIT 1 First impressions count! When An Exporter And Importer Have Done Business For Several Years And There ...
When an exporter and importer have done business for several years and there is a high degree oftrust(1) … between them security of payment is not an important issue. With a new client, however, both the importer and exporter use the bank as an intermediary. In order to minimize(2)… the risk of non-payment, the exporter, wants to have assurance(3) … that he will receive the full amount within the agreed time limit(4) … . The importer, on the other hand, does not want to pay (5) … until he is certain that the seller has fulfilled(6) … all hisobligations(7) … and the goods have been transported(8) … .
The documentary credit offers a unique(9) … anduniversally(10) … used method of arranging payment against documents. These documents represent the goods and facilitate(11) … the transfer of rights to those goods. In this process the bank plays a supervisory(12) … role and payment is not made unless the documents are complete(13) … . The most commonly used and secure type of letter of credit is an irrevocable letter of credit as this cannot be changed(14) … without the agreement(15) … of all parties involved.
Exercise 106. Look at the flow diagram below, which shows the stages in the process of issuing a documentary credit. Then number the stages according to the diagram.
… The Advising Bank checks the documents against the credit. If the documents are in order, the bank will pay, accept or negotiate, according to the terms of the credit.
… The Issuing Bank then checks the documents and arranges reimbursement.
… The Issuing Bank asks another bank, usually in the country of the Seller, to advise or confirm the credit and issues the credit.
… The Seller then sends the documents evidencing the shipment to the bank where the credit is available (the nominated bank).
… The Buyer and the Seller conclude a Sales Contract providing for payment by documentary credit.
… As soon as the Seller receives the credit and is satisfied that he can meet its terms and conditions, he can load the goods and despatch them.
… The Buyer instructs his bank (the Issuing Bank) to issue a credit in favour of the Seller (Beneficiary).
… The Advising or Confirming Bank sends the documents to the Issuing Bank and debits the applicant’s account
… The Advising or Confirming Bank informs the Seller that the credit has been issued.
Exercise 107. Answer the following questions about the letter of credit (fig.5).
1. Which company is the exporter?
2. Which company is the importer?
3. Which bank has issued the credit?
4. What is the total value of the credit?
5. Who will arrange insurance and freight?
6. What four documents must be sent before payment is made?
7. What goods have been bought?
8. Which port will they be shipped to?
9. Can the credit be used for more than one shipment?
10. What is the latest date for the presentation of the document?
Exercise 108. Match the items in italic in the letter of credit (Fig. 5) with these descriptions.
1. Three copies of a document.
2. The building where goods are stored before delivery.
3. Written orders to pay sums of money.
4. The date the document becomes invalid.
5. Following a set standard.
6. Two identical copies of a document.
7. The right to compel payment.
8. Responsibility for payment.
9. Loading and unloading goods from one kind of transport to another.
10. The agreed conditions.
11. The clients on whose behalf the bank is acting.
12. Sending goods by sea.
Exercise 109. Look through the letter of credit (fig. 5) and find English equivalents of the following:
Открытый коносамент; оплачен по предъявлению; подтверждать; частичная поставка; "Подпись удостоверяю..."; "Фрахт оплачен"; в пределах условий действия кредита; в двух экземплярах; на случай бедствия в море или военного конфликта; бенефициар; указывать в траттах и корреспонденции; в трех экземплярах; транзитная поставка; подлежащий погашению Вашими траттами на наше имя; плательщик; "Для ...."; с получением авизо через; подписанный и помеченный; Свидетельство о происхождении груза; на предъявителя; коносаменты, подтверждающие, что груз в полной сохранности был отгружен на торговое судно; настоящим...
Exercise 110. The Binny Company arrange for an irrevocable credit (HMDM/8726) to be opened in favour of John Watson Ltd through the International Bank of Bombay. The credit is for $17,223 to pay for 1200 stainless steel traps. The order should be sent CIF Bombay and be shipped from London by 15 December. The advising (and paying bank) is Barclays International. The documents required are:
1. Invoice in triplicate, signed and marked Licence No. MD/I6I2.
2. Certificate of Origin issued by a Chamber of Commerce.
3. Full set of clean on board Shipping Company’s Bills of Lading made out to order and blank endorsed, marked ‘Freight Paid’ and ‘Notify The Binny Company, 16 South Road, Bombay’.
4. Insurance Policy or Certificate in triplicate; covering Marine and War Risks up to buyer’s warehouse for the invoice value of the goods plus 10%.
The credit is for The credit must be presented within 21 days of shipment but within the credit validity (by 31 December). Neither partshipment nor transhipment is allowed.
Complete the Letter of Credit below using both the information above and that in Practice Letter 1.
Exercise 111. Fill in the missing prepositions in the following letter advising that a Letter of Credit has been opened.
Exercise 112. Translate into English.
Уважаемые господа
Мы рады подтвердить, что были сделаны следующие шаги для платежа. Инком Банк получил инструкции открыть аккредитив на сумму в 6.350 в
At some point in life everyone has to write business correspondence of some... Business correspondence generates more paper world wide than any other form of written communication Even the e mail...
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Talking about letters of credit
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HEADED NOTEPAPER
Nearly all businesses, and many private individuals, have a printed letterheading on their paper. Like all other parts of the letter, the heading should present a suitable image, and give all the n
SETTING OUT YOUR LETTER
It is important to achieve a good balance between the size of the sheet of paper and what is to be written on it. It will detract from the overall appearance if the first sheet is closely spaced, a
Figure 2
1 Sender’s address Bredgade 51
DK 1260
Copenhagen K
DENMARK
2Date 26 May 20—
3 Inside address
SURNAME KNOWN
As a guide to use of first names and/or initials, follow the recipient’s preferred style as indicated by past correspondence. Always use a courtesy title, and copy the spelling of names carefully.
DEPARTMENT KNOWN
Alternatively, you can address your letter to a particular department of the company, e.g. The Sales Department, The Accounts Department.
In both these cases an organisation name s
ORDER OF INSIDE ADDRESS
This should be copied carefully from the previous correspondence if available and should be the same as the address to be used on the envelope. Avoid using abbreviations for road or town names, alt
BODY OF THR LETTER
Sometimes it is difficult to think of suitable words with which to start the letter. In general, you should always refer to any previous correspondence in the first paragraph and also try to get to
Table 1
TITLE
STATUS
COMPLIMENTARY CLOSE
Mr
married or unmarried male
Yours sincerely
SIGNATURE
Letters will usually bear the signature of the writer. Always type your name and, if relevant, your job title, below your handwritten signature. This is known as the signature block. Even th
Figure 3
1 Letterhead Compuvision Ltd Warwick House
Warwick Street
Forest Hill
London
SE23 1JF
Telephone +44(0)20 8
PER PRO
The abbreviation p.p. sometimes appears in signature blocks. It means per pro, i.e. for and on behalf of, and is used by administrators or personal assistants when signing lett
DESPATCH METHOD
Sometimes it may be useful to indicate the despatch method to be used, such as: Recorded Delivery, Registered Post, Airmail, or Courier Delivery. Type this in capitals a
Figure 4
Compuvision Ltd Warwick House
Warwick Street
Forest Hill
London
SE23 1JF
Telephone +44(0)20 8566 1861
Facsim
Figure 6
42 Botley Close,
Colebourn,
RIPON,
Yorks,
R18 7QS.
Your Rcf: 5/12A
17th May 2000
Messrs Brown &
Figure 7
42 Botlcy Close,
Colebourn,
RIPON,
Yorks,
R18 7QS
Your ref: 5/12A
17th May 2000
Messrs Brown & Page (Bu
ADDRESSING ENVELOPES
Envelope addresses are written in a similar way to inside addresses. But in the case of letters within or for the UK, the name of the town and the country are written in capital letters, and the po
Figure 11
Dear Sir
Thank you for your enquiry. We have a wide selection of watches which we are sure you will like. We will be sending a catalogue
Figure 13
Dear Sir / Madam
We are interested in your security systems. We would like to know more about the prices and discounts you offer.
A bus
SIMPLICITY
Check that all the words you have used mean what you intend them to mean. Think carefully whether they will be understood by the reader, and whether they are suitable for the type of letter you are
Figure 15
Dear Sir/Madam
I beg to acknowledge receipt of your letter of the 15th inst. in connection with our not clearing our account, which was o
Figure 17
Dear Mr Rohn
I've already written to you concerning your debt of £1,994. This should have been cleared three months
Table 2
INAPPROPRIATE FORM
PREFERRED ALTERNATIVE
you’ve probably guessed
you are probably aware
you’ll ge
ABBREVIATIONS AND INITIALS
Abbreviations can be useful because they are quick to write and easy to read. But both correspondents need to know what the abbreviations stand for.
The abbreviations CIF and FOB
TYPES OF ORGANIZATIONS
Industry, in a general sense, the production of goods and services in an economy. The term industry also refers to a group of enterprises (private businesses or government-operated corporations) th
PEPLIES TO ENQUIRIES
A reply to an enquiry from a regular customer is normally fairly brief, and does not need to be more than polite and direct. Provided the supplier is in a position to meet his correspondent’s requi
Catalogues and samples
M. Gerard wrote to R.G. Electronics to enquire about CDs (see Figure 20). He implied that his store was a large one, that he was only interested in high-quality products, and that
MARKING
There are 3 principal types of marking which may have to he done on export packages:
1. The consignees’ own distinctive marks.
2. Any official mark required by authorities.
Specimens of marks
1 K R LTV
Durban X
Brisbane
FOREIGN PRODUCE OF SOUTH AFRICA
Net weight 100 kg. Dimensions
Gr
Figure 30
Exporter informs prospective customer of packing and marking procedures.
The buyer (
Figure 31
The buyer sends the instructions for packing and marking.
TYPES OF ORGANIZATIONS
Exercise 17.Classify the following industries as primary, secondary, or tertiary.
Agriculture; commercial fishing; government activity; hotel industries; mass media;
LANGUAGE PRACTICE
1. Note the use of ‘With the exception of …’, and ‘which …’ ‘ We can join these three sentences using them. The merchandise seems to be in good order. No. 9 is not.
Discrepancy negligence quantity up to standard
Complaints are often received by companies who ship consignments overseas. These complaints are sometimes about the (1) …… of goods received. Perhaps not enough goods were sent, perhaps too many. A
LANGUAGE PRACTICE
1. Notice how these sentences express regret:
We are very/extremely sorry to hear that two filing cabinets of the wr
Due to prompt short-shipped
Letters of adjustment should always be (1) … , or polite. You should express regret for any (2) … caused by your mistake, and it is a good idea to (3) … the buyer that you will correct the mistake,
In advance up-to-date
Exercise 94. The text of a letter replying to a complaint is given. Complete it, choosing from the alternativ
Column open submit
An invoice is a (1) …… , that is, a demand for payment. It can also be a (2) ……, a regular notice of a buyer’s account with a seller. The statement invoice is for buyers who have an (3) …… account
Dispatch v., n. (dispatch method)
38. DIY (Do It Yourself)
39. Doctor (Dr)
40. ea. (each)
41. enclose
42. enclosure (Enc./ Encl./ Enc/ Encs)
43. Esquire (Esq.)
44. etc. (et cete
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