Chapter 7 Terms of PaymentWord

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　　Terms of Payment

　　Lead-in In international trade payment is often complicated.It plays an important role in the procession of trade.All activities will mean nothing without guarantee of payment. Various ways of payment are in use in import and export trade.The letter of credit is the most generally used mode of payment in international trade.

　　Bills国际贸易中使用的票据主要有 汇票(Draft ,Bill of Exchange ) 、 本票(Promissory Note ) 和支票(Check,Cheque ) , 其中以使用汇票为主。

　　Useful expressions about draftdrawer 出票人 drawee 受票人 bank draft 银行汇票；trade draft 商业汇票； clean draft 光票；documentary draft 跟单汇票； sight draft 即期汇票 time/usance draft 远期汇票

　　draw 出票 presentation 提示(单据),交单 acceptance 承兑 payment付款 endorsement 背书 dishonor 拒付 recourse 追索honor a draft 承付汇票(包括对汇票的提示,承兑 和付款环节) Your draft will be honored upon presentation.

　　Methods of payment in international trade:1、 Remittance(汇付)*Open Account (O/A) 赊账(贸易);记账交易；赊购； 赊销 This is the least secure method of trading for sellers, but the most attractive to buyers. It can only be used when sellers are confident that payment will be received. *Advance Payment 预付

　　This is the most secure method of trading for sellers but the least attractive to buyers.

　　telegraphic transfer ,T/T 电汇 mail transfer ,M/T 信汇 demand draft, D/D 票汇

　　2、 Collection (托收)This method is more secure than open account but less so than a letter of credit. There is no guarantee of payment from the bank although it is involved.

　　*Documents against Payment (D/P) 付款交单

　　D/P at sight Upon presentation, the Buyer shall pay against documentary draft drawn by the Seller at sight. The shipping documents are to be delivered against payment only. D/P after sight The Buyer shall duly accept the documentary draft drawn by the Seller at 30 days’ sight upon first presentation and make payment on its maturity. The shipping documents are to be delivered against payment only.

　　The Buyer shall pay against documentary draft drawn by the Seller

　　*Documents against Acceptance (D/A) 承兑交单

　　The Buyer shall duly accept the documentary draft drawn by the Seller atdays’ sight upon presentation and make payment on its maturity. The shipping documents are to be delivered against acceptance. The buyer shall duly accept the documentary draft drawn by the Seller upon presentation and make payment atdays after the date of B/L. The shipping documents are to be delivered against acceptance.

　　3、 Letter of Credit(信用证)The main advantage of a letter of credit is providing security to both the exporter and the importer but it is expensive. The buyer shall open through a bank acceptable to the Seller an irrevocable sight L/C/ or L/C at …

　　days’ sight to reach the Sellerdays before the month of shipment, and remain valid for negotiation in China until 21st day after the time of shipment.