Nine: Letter of credit
Useful sentences:
1、We'll open the confirmed credit in your farvor.
2、We've opened the confirmed and irrevocable credit in your favor.
3、We are pleased to inform you that we have been requested to open a credit in your favor.
4、We engage you that we have issued a commercial letter credit.
5、Bills of lading must be dated not before this date of credit and not later than August 15th, 1977.
6、We hereby engaging with you that all draft drawn under any compliance with these terms of credit will be drawn in your honor
7、We undertake this draft drawn presented and confirmed credit will do your honor.
8、We hereby engage with the draft endorsed
9、I have got touched the bank already and instructed them to open the letter of credit without delay.
10、Now we call the bank and see to it that letter of credit will be opened immediately.
11、A letter of credit is a written payment instrument issued by a bank at the request of a customer, always the importer.
12、A letter of credit will sent to the exporter to make shipment and prepare the documents specified in the letter of credit. As soon as the letter of credit and the documents are presented to the issuing bank, the bank must pay to the exporter, beneficiary.
13、The main content of L/C include name, quility, unit price and amount of goods, ports of lading and destination, price and payment terms, shipping documents, latest shipment date and valicity of the L/C.
14、In practise, the issuing bank will send the letter of credit to one of its correspondence at the place of export by mial or cable. After they find valicity of the letter of credit, the correspond, advising bank will send the letter of credit to the exporter.
15、The exporter will make shipment and present the letter of credit with all the documents to the negotiation bank if it is available by the negotiation. If the documents are in compliance with the terms of letter of credit through careful checking. The bank will negatiate the documents and send them to the issuing bank for reimbursement.
Conversation:
Conversation 1:
M: We should instruct the delivery of T-shirt next month, but the letter of credit hasn't reached us yet. Four days ago I sent a fax to Anderson to remind him the delivery day is approaching and urge him to have his bank to open letter of credit immediately. But so far I havn't had any reply.
W: Did you tell him that the goods are ready for shipment.
M: Yes, I did.
W: Will you give Anderson on the phone, please?
M: Of couse. Hello, This is anger from China. Can I speak to Anderson, please?
W: Thank you, jack. Hello, Mr Anderson, this is Dons from CNRCE
M: Hello, Mamdan Don, nice to hear your voice again. How are you keeping.
W: Very well indeed, thank you, and how are you?
M: Oh, I'm topest well, thanks.
W: Mr Anderson, I'm phoning to enquire about the letter of credit on the contract number 849929. Is it open now.
M: As soon as I received the fax the other day, I got and touched the bank immediately and instructed them to open the letter of credit without delay.
W: I supposed that must be OK, but up to now, we havn't received the relevant letter of credit. The goods are ready, the seamer mariner is due from HK in the middle of October. If we miss the seamer, we may be unable to find another for the end of next month.
M: That would be too bad.
W: Yes, indeed. I wouldn't bother you if the letter hasn't been so urgent but time is greatly important in this issue.
M: Yes, I can very well understand. Now I will call the bank and see to it that the letter of credit will be opened immediately.
M: Will you? Thank you for your kind cooperation.
W: You will done the same in my position, I'm sure. And besides, there is a good chance that the letter of credit has been opened and might reach you at any minute now.
M: Oh, that would be very nice, thank you very much, Anderson, bye-bye.
Conversation 2:
W: Can I help you, sir?
M: Yes, I want to open a letter of credit, but I don't know how to work.
W: OK, let me tell you. A letter of credit is a written payment issued by a bank at the request of a customer, always the importer. It would be sent to the exporter to make shipment and prepare the documents specified in the letter of credit. As soon as the letter of credit and the documents are presented to the issuing bank. The bank must pay to the exporter, the beneficiary. The bank act as the first payer and this is the most important teacher of the letter of credit.
M: I see. Would you tell me what's the main content of letter of credit?
W: Name, quality, unit price and amount of goods, ports of lading and destination, price and payment terms, shipping documents, latest shipment date and valicity of letter of credit.
M: And how can I send the letter of credit to my customers?
W: In pratise, the issuing bank will send the letter of credit to one of its correspondence at the place of export by mail or cable. After verifying the valicity of the letter of credit, the correspondence, the advising bank will send the letter of credit to the exporter.
M: How can my customers received the prosea?
W: The exporter will make shipment and present the letter of credit and all the documents to the negotiation bank if it is available by the negotiation. If the documents are in compliance with the letter of credit throught careful checking. The bank will negotiate the documents and send them to the issuing bank for reimbursement. The issuing bank deposit the importer's account when release the shipment documents to the importer. The whole transation now comes to the end.
M: I see, thanks very much.
W: You are welcome. |