【正文】 English for International Business Communication Unit Five Terms of Payment ? I. Teaching Aims amp。 Requirements: ? will get a general knowledge of the terms of payment in International Trade Business, including the Letter of Credit which is the one most often adopted in International Cargo Trade. ? will study the example letters regarding payment and payment terms and learn some useful words and expressions in this respect. ? will learn how to write such kind of letters, especially the letters asking for amendment to L/C. ? II. Resources/Materials: ， 《 新編外經(jīng)貿(mào)英語(yǔ)函電與談判 》 。浙江大學(xué)出版社， 2022 2. 戚云方， 《 新編外經(jīng)貿(mào)英語(yǔ)寫作與套語(yǔ) 》 。浙江大學(xué)出版社， 2022 3. 諸葛霖， 《 外貿(mào)英文書信 》 （第三版）對(duì)外經(jīng)貿(mào)大學(xué)出版社， 2022 4. 凌華倍， 《 外經(jīng)貿(mào)英語(yǔ)函電與談判 》中國(guó)對(duì)外經(jīng)濟(jì)貿(mào)易出版社， 2022 III. Activities and Procedures: Part One: Study of Background Knowledge trade payment is rather p licated. In foreign trade, buyers and sellers are in two countries. Sometimes, they have to do business with unknown buyers. If the seller delivers goods before payment has been made, he runs certain risks of nonpayment of the buyer, and if the buyer makes payment in advance, he likewise runs risks of nondelivery of the goods. It bees necessary for a third party to act as an intermediate between them to solve the problem of payment. This party is the bank, who either guarantees payment to the seller and examines the seller’s shipping documents for the buyer or makes collection for the seller. Part One: Study of Background Knowledge 2. Methods of payment in international trade ? The methods we use of payment in the financing of international trade are ? Letter of Credit ? Collection ? Remittance The Letter of Credit ? 1) What is an L/C? ? It is a written promise made by a bank that it will make payment for the goods shipped. That is to say, the bank promises to pay for the goods when it opens a letter of credit. The Letter of Credit ? 2) The advantage of payment by L/C: ? The most generallyused method of payment in our international trade is the L/C which is a reliable and safe method of payment. It not only facilitates trade with unknown buyers and sellers, but also gives protection to both sellers and buyers. (The seller likes it because payment for the export goods is guaranteed by the bank。 the buyer knows that no payment will be made before the export goods have been shipped.) The Letter of Credit ? 3) The parties concerned to an L/C: ? They are: the applicant (importer/buyer), the issuing bank, the advising bank, the confirming bank, if any, the nominated paying/negotiating/accepting bank and the beneficiary (seller/exporter). The Letter of Credit ? 4) The procedure for issuing an L/C: ? The issuance of a letter of credit stars with the buyer who instructs his bank to issue an L/C in favor of the seller for the amount of the purchase. ? The buyer’s bank (the opening bank) sends the L/C to its correspondent bank in the seller’s country, giving instructions about the amount of the credit, the beneficiary, the currency, the documents required and other special instructions. ? On receipt of it, the correspondent bank advises the seller of the receipt of the credit. ? Sometimes a seller requires a confirmed L/C. In this case, the correspondent bank usually adds its confirmation （由自己保兌） to the credit. Hence, the correspondent bank has bee the confirming bank. ? The advising or confirming bank informs the seller that the credit has been issued. The seller will then dispatch the goods accordingly. ? (For further details, please refer to 戚云方 《 新編外經(jīng)貿(mào)英語(yǔ)函電與談判 》 。 ) Collection ? 1) What is collection? ? After the goods have been shipped, the exporter may issue a draft based on the invoice amount and send all the shipping documents to the importer to ask him to pay for the goods. This is called “collection”. That is to say, the exporter ships the goods to the importer before he collects payment for the goods through his bank. ? It is called adverse exchange,(逆匯 ) for the exporter takes the initiative to gather payment from the buyer. (The same is true of L/C.) Collection ? 2)Types of collection: ? Sometimes, the importer/buyer requests payment to be made by collection through banks under the terms of documents against payment (D/P) or documents against acceptance (D/A). In this case, the banks will only do the service of collecting and remitting and will not be liable for nonpayment of the importer. (While in the case of an L/C the opening bank offers its own credit to finance the transaction.) Collection ? D/P calls for actual payment against transfer of shipping documents. There are D/P at sight and D/P after sight. The former requires immediate payment by the importer to get hold of the documents. In the latter condition, the importer is given a certain period to make payment as 30, 45, 60 or 90 days after