商务英语综合教程上册课件刘玉玲主编 ISBN9787810789844Unit 7 Methods of Payment for Imports and Exports.ppt

Unit Seven Introduction There are several methods of payment used in international trade. This article introduces some traditional and accepted means of obtaining payment in imports and exports. Text 1 Credit terms and the method by which payment will be effected are agreed at the time the sales contract is concluded. If the relationship between the buyer and seller are good, then it may have been agreed to trade on ‘open account’ terms. This means simply that the seller will dispatch the goods directly to the buyer, send him an invoice and await the remittance of payment from the buyer, as in domestic trading. 2 There are several methods by which the debtor may remit payment to his supplier: 14 The exporter’s bank will forward the bill and documents to its correspondent bank in the buyer’s country passing on exactly the instructions received from the exporter. The correspondent bank (collecting bank) will present the bill and documents to the buyer, and release the documents to the buyer in accordance with the instructions received. If the arrangement was for payment to be made immediately then the bill of exchange will be drawn at ‘sight’ and the instructions will be to release documents against payment (D/P). if a period of credit has been agreed, then the bill will be drawn at say ’90 days sight’ and the instructions will be for the documents to be released against acceptance by the buyer of the bill (D/A). In this case, the buyer signs his acceptance across the face of the bill, which now becomes due for payment in 90 days time and the buyer obtains the documents of title to the goods. 14 The collecting bank will advice the remitting bank of the date of acceptance, and hope the bill until maturity, when the collecting bank will present it to the buyer for payment. In case of dishonor, and if so instructed, the collecting bank will arrange ‘protest’ by a notary. This procedure provides legal proof that the bill was present