Makingpayment2付款方式.pptVIP

Making Payment Lesson 7 Modes of payment The circulation of L/C 1 Sample reading Skip through the sample on pp. 161-163 and find out the parties involved in this L/C. Notification We have been requested by Industrial Bank of Korea, Seoul to advise that they have opened with us their irrevocable documentary credit number MO43391NS00107 for account of Poong Seong Su San Co., Ltd. in your favour for the amount of not exceeding fifty thousand U.S. Dollars (US$50,000.00) available by your draft(s) drawn on us at sight for full invoice value. The basic contents of L/C The parties involved; The type of the credit and its issuing date and number; The shipment date, expiry date and place; The detailed description of goods; The document required for presentation; Special terms, regarding who will bear the bank charges, the statement about More or Less Clause, etc. Instruction to the negotiating bank The issuing bank’s assurance to make payment to the beneficiary or the bona fide holder of the draft. Judge whether the following statements are true or false. The letter of credit is usually delivered to the exporter by the importer. An advising bank is usually located in the country of the exporter. The issuing bank must hold itself responsible if there is any discrepancy between the goods and the shipping documents. Features of L/C The issuing bank is the primary payer. L/C is an independent commercial document. Banks deal in documents, rather than actual goods. Advantages and Disadvantages of L/C Payment For the seller: Advantages and Disadvantages of L/C Payment For the buyer: Varieties of L/C Varieties of L/C Documentary Credit Clean Credit Sight Payment Credit Deferred Payment Credit Transferable Credit Non-transferable Credit Some correspondences in payment by L/C Urging the opening of L/C; L/C advice from the buyer; Notifying the receipt of L/C; Asking for amendment to the L/C. Urging the opening of L/C; Dear Sirs, We’d like to inform you th