1、Unit 5 Terms of PaymentEnglish Correspondence for International TradeObjectivesTo analyze the advantages and disadvantages of different payment terms for importers and exporters.1To write emails to negotiate about payment terms.2Activities Understanding different terms of payment01Which one is more
2、favorable?02How to negotiate payment terms?03Language practice04Activity 1 Understanding different payment termsI.Read the flow charts of different payment terms.Form groups of 4 to 5.Choose one of the payment terms to act out.You may use gestures,posters,and motions while performing.Get ready to an
3、swer some of the questions from both your teacher and fellow students after performance.（一）电汇的业务流程：5电汇在国际贸易中的应用!1、预付货款（Payment in Advance），俗称“前T/T”。!2、货到付款（Payment After Arrival of Goods），俗称“后T/T”，实为赊销（Open Account，O/A）或称延期付款（Deferred Payment），!3、双汇付，“前T/T后T/T”。为实务中普遍接受的做法，其中“前T/T”的比例一般为20%30%。67v（二
4、）托收的业务流程v（1）D/P即期业务流程 8v（2）D/P远期业务流程 9v（3）承兑交单业务流程 三种托收方式的比较托收方式特点D/P at sight使用即期汇票，见票即付，付款交单。D/P after sight使用远期汇票，见票承兑，到期付款，付款交单。D/A使用远期汇票，见票承兑，承兑交单，到期付款。10开证申请人（进口商）开证申请人（进口商）Applicant受益人（出口商）受益人（出口商）BeneficiaryIssuing/Opening Bank付款行付款行/开证行开证行Paying/Drawee BankAdvising Bank通知行通知行/议付行议付行Negotiat
5、ing Bank （三）信用证业务的一般程序11开证申请人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付款行付款行/开证行开证行通知行通知行/议付行议付行 进出口商在贸易合同中，规定进出口商在贸易合同中，规定使用使用L/CL/C方式支付；方式支付；12开证申请人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付款行付款行/开证行开证行通知行通知行/议付行议付行 进口商向当地银行提出申请，填写开证申请书，依照进口商向当地银行提出申请，填写开证申请书，依照合同填写各项规定和要求，并交纳押金，请开证行开证；合同填写各项规定和要求，并交纳押金，请开证行开证；13开证申请
6、人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付款行付款行/开证行开证行通知行通知行/议付行议付行 开证行根据申请书的内容，向出口人开出L/C，并寄交出口人所在地分行或代理行（统称通知行）；14开证申请人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付款行付款行/开证行开证行通知行通知行/议付行议付行 通知行核对印鉴无误后，将L/C转交给出口人；15开证申请人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付款行付款行/开证行开证行通知行通知行/议付行议付行 出口人审核L/C条款与合同相符后，按L/C规定装运货物并备齐各项货物单据，开出汇票，在L
7、/C有效期内，送请当地银行议付。(议付行按L/C条款审核无误后，按汇票金额扣除利息和费用，把货款垫付给出口人；)16开证申请人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付款行付款行/开证行开证行通知行通知行/议付行议付行 议付行将汇票和货物单据寄交开证行或其指定银行索偿；17开证申请人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付款行付款行/开证行开证行通知行通知行/议付行议付行 开证行或其指定付款行核对单据是否有误。若相符，则付款；若有问题，则拒付；议付行再向受益人行使追索权；18开证申请人（进口商）开证申请人（进口商）受益人（出口商）受益人（出口商）付
8、款行付款行/开证行开证行通知行通知行/议付行议付行 开证行通知进口人付款赎单，在进口人付款赎单之前，开证行对单据有留置权（Lien），以保护自己的权益。19Activity 1 Understanding different payment termsII.Comparing and contrasting different payment terms1.Work in groups of 4(home group).Each member chooses a number from 1 to 4.2.Rearrange the group by numbers.No.1 students
9、get together to form expert group 1;No.2 students get together to form expert group 2;No.3 students get together to form expert group 3;No.4 students get together to form expert group 4.So there will be 4 expert groups.Activity 1 Understanding different payment terms3.For four expert groups:Each exp
10、ert group finds your corresponding card below.Read the instruction on your card and finish the task.Go back to your home group.4.For home groups:Work together to complete the form.Paste your form on the wall.Read other groups forms and compare theirs with yours.Activity 2 Which one is more favorable
11、?1.An exporter will suffer great loss if the importer defaults.The word“default”means.A.make mistakesB.forgetsC.fails to payD.disappearsActivity 2 Which one is more favorable?2.The risk for an importer in a business transaction is that he may not _.A.get the goods he orderedB.be able to pay for the
12、goodsC.get the trust of the exporterD.find a suitable means of paymentActivity 2 Which one is more favorable?3.Which of the following terms of payment is safe for both importers and exporters?A.L/C.B.T/T.C.D/P.D.D/A 30 days.Activity 2 Which one is more favorable?4.Why do so many importers and export
13、ers prefer to use T/T as their payment method?A.It is cheap and safe.B.It is cheap and profitable.C.It is cheap and fast to collect payment.D.It has no advantages compared with other methods of payment.Activity 2 Which one is more favorable?5.D/P at sight requires .A.immediate payment after document
14、s being presented to the importerB.payment after 30 or 60 daysC.payment made by the bankD.payment made by the shipperActivity 2 Which one is more favorable?6.If the payment method is D/A 30 days after sight,which of the following statements is not true?A.The importer can get the shipping documents a
15、s long as he promises to pay within 30 days.B.The importer doesnt need to pay when the documents is presented to him.C.The importer can get the cargo as long as he accepts a 30-day draft drawn upon him.D.The importer wont get the cargo until he makes payment.Activity 2 Which one is more favorable?7.
16、If the exporter and the importer do not know each other well and are located in countries thousands of miles apart,which of the following terms of payment is the safest for the exporter?A.D/P at sight.B.30%T/T in advance,70%D/P.C.an irrevocable L/C at sight.D.30%T/T in advance,70%irrevocable L/C at
17、sight.Activity 2 Which one is more favorable?8.If payment is made by irrevocable L/C,the exporter is guaranteed to get paid unless .A.the goods are damagedB.the ship is damagedC.the importer is bankruptD.the opening bank is bankruptActivity 2 Which one is more favorable?9.Take the role of the export
18、er.Read the following pairs of payment methods and choose the better ones for the exporter.1)a.D/A 30 days.b.D/P at sight.2)a.D/P at sight.b.D/P 30 days after sight.3)a.D/P at sight.b.L/C at sight.Activity 2 Which one is more favorable?4)a.L/C at sight.b.L/C 30 days after sight.5)a.30%in advance,bal
19、ance before shipment.b.30%in advance,balance against B/L.6)a.30%in advance,balance against B/L.b.30%in advance,balance against the copy of B/L.Activity 2 Which one is more favorable?7)a.30%in advance,60%before shipment and 10%within 10 days after receipt of goods.b.30%in advance,balance by L/C at si
20、ght.8).a.30%in advance,balance against B/L.b.30%in advance,balance to be paid within 10 days after receipt of goods.9)a.30%in advance,balance to be paid within 10 days after receipt of goods.b.30%in advance,balance to be paid within 10 days after B/L date.Activity 2 Which one is more favorable?III.R
21、ead the six cases below and make decisions for each case.Choose the factors you have considered while making decisions.f.exchange rateg.experiences with L/C documentsh.stability and safety of the customers regioni.sellers reputationFactors for consideration:a.order sizeb.expensesc.buyers reputationd
22、.previous cooperatione.market trendCase 1 The seller has received the first order from a buyer in the USA.The total value is above USD 400,000 and the buyer wants to make payment by L/C 30 days after sight.If you were the seller,would you accept it?Activity 2 Which one is more favorable?Factors cons
23、idered:A.order sizeG.experiences with L/C documentsF.exchange rateCase 2 The seller has just received the first order from a new client and the order value is USD 3,000.The seller is asking for payment to be made by L/C at sight.If you were the buyer,would you accept it?Activity 2 Which one is more
24、favorable?Factors considered:A.order sizeB.expensesCase 3 The seller has just received an order with the value of USD 30,000 from an old customer who has placed repeated orders.The customer used to pay by 100%T/T before shipment,but this time he wants the payment to be made by D/A 30 days.If you wer
25、e the seller,would you accept it?Activity 2 Which one is more favorable?Factors considered:A.order sizeC.buyers reputationD.previous cooperationF.exchange rateCase 4 ABC Company is specializing in manufacturing Christmas gifts.Since September,the company is receiving a crowd of orders from customers
26、 in Europe and North America.ABC Company is asking for payment to be made by T/T before the shipment of goods.If you were the buyer,would you accept it?Activity 2 Which one is more favorable?Factors considered:E.market trendCase 5 February is usually the slack season for ABC Company specializing in
27、manufacturing Christmas gifts.The company has just received an order from a buyer who is asking for payment to be made by T/T 10 days after the B/L date.If you were the seller,would you accept it?Activity 2 Which one is more favorable?Factors considered:A.order sizeC.buyers reputationD.previous coop
28、erationE.market trendF.exchange rateCase 6 A seller has just received an order from a customer from a region where it is not stable and safe.The customer is asking for payment to be made by D/P at sight.Do you think it is acceptable?Activity 2 Which one is more favorable?Factors considered:H.stabili
29、ty and safety of the customers regionActivity 3 How to negotiate payment terms?1.Read the following emails written by the importer asking for more favorable terms of payment.2.Take the role of the exporter,analyze the possible risks,advantages and relevant background information about the importer a
30、nd fill out the analysis form.3.Decide whether to accept,decline or put forward a compromised terms of payment.Support your decision with reasons.4.Write a reply.5.Read the sample reply at the end of the unit and compare it with yours.Activity 3 How to negotiate payment terms?Dear Mr.Deng,Enclosed p
31、lease find our order for your new paints.We are in urgent need of several of the items,please ship the order as soon as you can.In the past,we have dealt with you on sight credit basis.Now,we would like to propose a different way of payment,i.e.,when the goods purchased by us are ready for shipment
32、and the freight space booked,you cable us and we will pay you the full amount by T/T,so that we can assure our buyers of the time of delivery and save a lot of expenses on opening the L/C.It will make no much difference to you but would facilitate our sales.We hope you will grant our request.Await y
33、our favorable reply.Best regards,Alexander TunkEmail 1method of payment proposed by the importerImporters reasonsBackground information of the importer(1)Is he a new customer or old customer?(2)How about the previous cooperation?(3)Are his reasons for changing the payment methods acceptable?Risk ana
34、lysis(4)When will I get my payment,before shipment or after shipment?(5)What kind of loss will there be if the importer refuses to pay?(6)Can the risks be under my control?Advantages for us(7)What benefits will this new payment method bring us?Payment by T/T when the goods are ready for shipment and
35、 the freight space booked.They can assure their buyer the time of delivery and save the expenses for opening an L/C.Old customerVery wellYes Before shipment I still have the goods,but need to sell them to another buyer.Yes.We can get payment faster.Activity 3 How to negotiate payment terms?Dear Mary
36、,We wish to place with you another order for 10,000 sewing machines.After long-term cooperation with you,wed like to ask for easier terms of payment.Most of our suppliers are drawing on us at D/A 45 days,so we would like to pay you by D/A 30 days.We should be grateful if you could grant us the same
37、terms.Await your favorable reply.Best regards,Crystal Email 2m e t h o d o f p a y m e n t proposed by the importerImporters reasonsBackground information of the importer(1)Is he a new customer or old customer?(2)How about the previous cooperation?(3)Are his reasons for changing the payment methods
38、acceptable?Risk analysis(4)When will I get my payment,before shipment or after shipment?(5)What kind of loss will there be if the importer refuses to pay?(6)Can the risks be under my control?Advantages for us(7)What benefits will this new payment method bring us?D/A 30 daysMost of their suppliers pa
39、y them by D/A 45 days.Old customerVery well(open)After shipment Wont get the payment and the goods.No.(open)Activity 2 How to impress the customers?Types of buyersSourcing needs3.They hope suppliers can:provide a wide range of products.offer first-class after-sale service.pass the factory inspection
40、.take the social responsibilities.share the market information.offer products with good quality and competitive prices.a.Big retailers s u c h a s WalmartKeys to Language practice I.phrase translation1.30 天承兑交单2.即期付款交单3.30 天远期付款交单4.保兑的、不可撤销即期信用证 5.不可撤销的 45 天远期信用证 D/A 30 daysD/P at sightD/P after 30
41、days sightconfirmed and irrevocable L/C at sightirrevocable L/C after 45 days sightKeys to Language practice I.phrase translation6.预付款7.余款8.全款9.30%预付款，余款发货前付清10.30%预付款，余款见提单付清 payment in advancethe balancethe full payment 30%TT in advance,the balance to be paid before delivery30%TT in advance,the ba
42、lance to be paid against B/LKeys to Language practice I.phrase translation11.30%预付款，余款见提单副本付清12.30%预付款，余款货到后十天内付清13.30%预付款，余款在提单日后十天内付清 30%TT in advance,the balance to be paid against the copy of B/L30%TT in advance,the balance to be paid within 10 days after the receipt of goods30%TT in advance,the
43、 balance to be paid within 10 days after B/L datesKeys to Language practiceII.sentence translation1.我们公司的政策是对于海外的客户只接受信用证付款。2.我们建议30%的预付款，余款采用不可撤销的信用证。3.我们公司的政策是前TT30%，余款见提单复印件后付清。It has been our company policy to have L/C opened by all our overseas customers.We propose 30%down payment and the balan
44、ce to be paid by an irrevocable L/C.It has been our company policy to work on 30%down payment and the balance to be paid against the copy of Bill of Lading.Keys to Language practiceII.sentence translation4.我们只能接受货到3个月60%货款，而不是您所要求的70%。5.因为这是一款新产品，为了验证一下市场的反映（test the market），我们建议第一笔订单采用D/A。6.由于这笔订单的
45、金额少于3000美金，我们建议D/P付款,这样我们可以节约开具信用证的费用。We can only accept a payment of 60%within three months after the receipt of the goods,but not 70%as you have requested.As this is a new product,in order to test the market,we propose D/A for this first order.As the value of this order is less than USD 3000,we pr
46、opose payment on D/P bases and we can save the expenses of opening a letter of credit.Keys to Language practiceII.sentence translation7.为了帮助您促进销我们的新产品，我们同意D/A 30天。8.我们同意您的建议。9.我们考虑了您的建议，但是很遗憾不能接受。因为我们没有关于贵公司的足够的信用证明。In order to help you push the sales of our new product,we agree to make payment by D
47、/A 30 days.We agree to your proposal.We have considered your proposal,but regret to say that we cannot accept it because we do not have sufficient credit information of your company.Keys to Language practiceII.sentence translation10.如您所说，在之前的合作过程中，贵公司已经证明了自己信用状况。因此我们同意接受您更改付款方式,但是仅此一次。11.对于今后的交易，如果订
48、单金额超过3000美金，我们只接受L/C。As you have mentioned,you have proven your credit during the previous cooperation.We therefore agree to the changes in payment method,but for this time only.For further transactions,if the value of orders exceeds USD 3000,we can only accept L/C.Keys to Language practice III emai
49、l analysisGroup 1:EmailsGroup 2:RepliesNo.payment termsreasonsNo.Accept/Decline/compromiseReasons/follow-up actions1100%L/C 60 daysN/A ddeclineL/C at sightOur usual practice:360%TT in advance,the balance before shipment;Bank charges for L/C is high2L/C after sightNew investment into three new produc
50、ts in EuropeadeclineL/C at sightOur cash is tied up too.3L/C 60 days(can help with the interests rates of 60 days)bCompromiseL/C 30 days,1%interest;L/C 60 days,3%interest Keys to Language practice III email analysisGroup 1:EmailsGroup 2:RepliesNo.payment termsreasonsNo.Accept/Decline/compromiseReaso
