chapter 6 terms of payment概要1.pptVIP

Objectives To know about payment terms To learn the phrases and expressions about payment To learn how to write a business letter about payment I. Basic Knowledge 1. Introduction Payment is one of the most important steps in international trade. Terms of payment is directly related with the benefits of both sides of the buyer and seller. The method of payment for each transaction is to be agreed upon between the two trading parties at the time of placing an order. Generally, there are three commonly used methods: L/C (letter of credit), collection and remittance. With the development of Internet and modern E-commerce, Online Payment is used widely. Payment is sometimes made by collection through banks under the terms of Documents against Payment (D/P) or Documents against Acceptance (D/A). There are D/P at sight and D/P after sight. D/A is always after sight. Under D/P payment method, the seller instructs his bank to send the documents, along with the draft, to the buyer’s bank or to a correspondent bank in the buyer’s vicinity. He also instructs the receiving bank to present the draft to the buyer for payment. When the buyer pays the sight draft, the instructions state that the correspondent bank is authorized to release the accompanying documents to the buyer. The buyer obtains the title documents, namely the negotiable bills of lading, only after he pays the sight draft. Sometimes we accept the terms of payment by remittance, which means the buyer himself remits money to the seller through a bank contracted. There are three kinds of remittance: mail transfer (M/T), telegraphic transfer (T/T) and demand draft (D/D). Generally, only when the transactions are rather small and the finance involved is small too can remittance be accepted. Samples postage, commissions and little order payment are usually adopted T/T payment. 3 Legal Basis  国际结算和法律密切相关， 涉及有关的国际法、国内法和国际惯例。 II. Words and Expressions Banks Merchants Bank