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me of placing an order. The most often adopted method of payment in our foreign trade is Letter of Credit. Under Letter of Credit way, after contract or confirmation is signed by buyers and sellers, the buyers should open a Letter of credit according to the payment clause in the contract, usually one month before the time of shipment. Step 1. Introduction ? The main methods of payment in international business are as follows: ? 1. Method of payment ? 1) Kinds of payments with times ? ( 1) Payment before delivery 交貨前付款 ? ( 2) Payment as delivery 交貨時付款 ? ( 3) Payment after delivery 交貨后付款 Step 1. Introduction ? 2) Ways of payment ? ( 1) A Transfer / Remittance 匯款 ? Mail Transfer M/T 信匯 ? Telegraphic Transfer T/T 電匯 ? Banker`s demand draft D/D 票匯 Step 1. Introduction ? ( 2) Collection 托收 ? Documents against payment D/P 付款交單 ? Documents against Acceptance D/A 承兌交單 Step 1. Introduction ? ( 3) Letter of Credit L/C 信用證 ? Irrevocable Letter of Credit 不可撤銷信用證 ? Confirmed Letter of Credit 保兌信用證 ? Divisible Letter of Credit 可分割信用證 ? Transferable Letter of Credit 可轉(zhuǎn)讓信用證 ? Sight Letter of Credit 即期信用證 ? Time Letter of Credit 遠(yuǎn)期信用證 ? Anticipatory Letter of Credit 預(yù)支信用證 ? Revolving Letter of Credit 循環(huán)信用證 ? Clean Letter of Credit 光票信用證 ? Documentary Letter of Credit 跟單信用證 Step 1. Introduction ? 2. Establishment of L/C ? L/C is established by the bank which is appointed by the buyer. The buyer is the Applicant for opening (opener). The bank who established the L/C is Issuing Bank (Opening Bank). The Issuing Bank open a L/C and transfer the L/C to the seller through the bank which the seller appointed. This bank is Advising Bank (Notifying Bank). The Seller who accepts the L/C is the Beneficiary. After the delivery of the shipment, the Beneficiary will sign a draft to negotiate of payment by a bank whichis a Negotiating Bank. Step 1. Introduction ? 3. Checks and Amendments of the Credit ? Once the credit is opened, the opening bank will send the credit either directly to the seller or to the notifying bank. Upon arrival of the credit, the seller should check the credit immediately. If the L/