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Terms of Payment Major ways of payment Open account T/T Collection Letter of credit Which is the safest way of payment theoretically? What are the steps involved? (Please draw the flow chart.) Sample letters to study Letter 1 and letter 2 What are the required ways of payment? Letter 3 How many parties are involved in the deal? What role does each party play? What is the terms of payment between the buyer and the supplier? When to open LC? Why does the buyer ask the seller to apply to Chinese banks for credit? What’s his intention? If a letter of credit is the way of payment Main problems related to LC When to open (who) Letter to inform of the opening of LC Letter of Credit Letter to urge the covering LC How to check LC Sales contract Comprehension of the stipulations in LC How to amend LC --letter to ask for amendments to LC through the buyer What kind of communications is necessary between the buyer and the seller if the terms of payment is letter of credit? How to write the corresponding emails? (based on letter 5, 8 and 9) Read Letter 6 and Letter 7 and discuss the details of the two documents. Discuss the details of the attached shipping documents. More examples of stipulations in LC + SIGNED COMMERCIAL INVOICE,4-FOLD WHEREOF ONE ORIGINAL HAS TO BE COUNTERSIGNED BY CHAMBER OF COMMERCE +CERTIFICATE OF ORIGIN,GSP FORM-A,ISSUED BY CHAMBER OF COMMERCE,CERTIFYING THAT GOODS ARE OF CHINESE ORIGIN IN 1 ORIGINAL AND 3 COPIES +FULL SET CLEAN ON BOARD OCEAN BILL OF LADING MADE OUT TO ORDER BLANK ENDORSED 今天这分信用证里面的B/L除了正本还要3 N/N COPY,这什么意思啊? FULL SET CLEAN ORIGINAI 3/3,BILL OF LADING PLUS 2NON NEGOTIABLES COPIES, CONSIGNED TO THE ORDER AND BLANK ENDORSED AND NOTIFY TO:ABC .,LTD 46A: 5. BENEFICIARYS DECLARATION STATING THAT ORIGINAL SIGNED COMMERCIAL INVOICE , ORIGINAL CERTIFICATE OF??ORIGIN ,ONE PACKING LIST ,1/3 ORIGINAL BILL OF LADING HAVE BEEN SENT TO APPLICANT BY EXPRESS COURIER . COURIER RECEIPT TO BE ATTACHED TO . Case study Read the case and discuss the
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