UnitSixTermsofPayment教程.pptVIP

Unit Six Terms of Payment Teaching Objective Revision 1.What are the four steps of business negotiation? 2.In our export trade, should we immediately issue a Sales Confirmation or a Sales Contract once the transaction is concluded? 3.What should we send to the suppliers after conclusion of an import transaction? 4.When will the Sales Contract become effective Remittance Remittance is to deliver the payment of the goods to the seller by bank transfer. M/T: the buyer will hand over the payment of the goods to the remitting bank that will authorize its branch bank or correspondent bank (代理行)in the country of the beneficiary by mail to make the payment to him. T/T: the buyer will hand over the payment of the goods to the remitting bank that will authorize its branch bank or correspondent bank (代理行)in the country of the beneficiary by telegraphic means to make the payment to him. D/D: the buyer will come to the local bank to buy a banker’s bill and then deliver it to the seller or beneficiary by mail. When the seller or beneficiary has received it, he will come to the bank designated by the banker’s bill for cash. T/T is the most expensive, safest, fastest and most common among the three types. Application of remittance Remittance uses commercial credit and hence the parties involved need to trust in each other. Remittance is chiefly used for: payment in advance, down payment, delivery first and payment afterwards for small quantity of goods, commission and so on. Definition Under collection, the exporter takes the initiative to collect the payment from the buyer. Upon the delivery of the goods, the exporter draws开立 a bill of exchange on the importer for the sum due, with or without relevant shipping documents attached, and authorizes his bank to effect the collection of the payment through his branch bank or correspondent bank in the country of the importer. D/P at sight