第一篇 section7（课件）-《外贸英语函电》同步教学（大连理工大学出版社）

/07 Situation Terms of Payment Be familiar with the terms of payment widely used in international trade Be able to write letters negotiating on terms of payment Be familiar with the words and expressions used in negotiating on payment terms Aims Today The modes of payment in international trade can be generally divided into three categories: Remittance，Collection and Letter of Credit. Under remittance，the payer instructs his bank or other institutions to have a payment made to the payee.There are three kinds of remittance : Mail Transfer ( M/T),Telegraphic Transfer(T/T) and Demand Daft(D/D).Remittance is often used in payment in advance,cash with order and open account. It is usually used between companies who trust each other in their former transactions. When the exporter is expanding his market，remittance can be used as a kind of preferential treatment offered to the importer. Background Information Under collection, the exporter takes the initiative to collect the payment from the buyer . Upon delivery of thegoods.the exporter draws a bill of exchange on the importer and authorizes his bank to effect the collection of the payment from the importer. Collection includes Documents against Payment( D/P ) and Documentsagainst Acceptance ( D/A).D/P means documents that represent the title of goods can only be released to the importer when he has honored the draft. D/ A is different from D/P in that the documents will be released to the importer once he has accepted the draft. A documentary letter of credit (L/C) is the written promise of a bank，at the request of the buyer,undertaking to pay the seller the amount specified in the credit provided the seller submits the documents which are in strict compliance with the terms and conditions set forth in the credit . Background Information Documentary credits providea high level of protection and security to both the buyer and the seller engaged in international trade.The seller is assured that payment will be made by t