新实用物流英语 教学课件 高芳7 7 20.pptVIP

Module 7 International Trading Business Project 20 Practice in International Payment Objectives Contents Lead-in What are the common negotiable instruments and modes of payment in international trade according to your knowledge? The two classes of negotiable instruments are: promissory notes and bills of exchange. The major modes of payment are: T/T payment in advance Letter of credit D/P (document against payment) Open Account Mixed Payments Activity 1----Words Terms Learn the new words and terms. Activity 1 ----Task 1 The two classes of negotiable instruments are promissory notes and bills of exchange. (1) promissory notes: Common type is a bank note payable to bearer on demand. A person i.e. maker (drawer)’s promise to pay the payee (beneficiary) a specific amount on a specified date without any condition. (2) bills of exchange: A written order by the drawer to the drawee to pay money to the payee Common type is the cheque, a bill of exchange drawn on a banker and payable on demand. Activity 2----Task 1 How to Make Payment ? Letter of credit - a letter written by the importer’s bank to the exporter. - includes applicant (the importer), beneficiary, opening bank, negotiating bank, specification and quantity of the goods, amount of money, loading port and destination port, shipment date, the validity date of the L/C, terms and conditions and the documents required by the importers. The L/C payment procedure L/C is to be confirmed the payment process D/P (document against payment) - exporter makes shipment and sends the shipping documents to the exporter’s bank for collection. - bank then sends the shipping documents along with a collection letter to the importer’s bank, who then sends a collection notice to the importer. - importer makes payment upon receiving the notice, and only after payment does the importer receive the original shipping documents with which you take the physical possession