Chapter Seven Letters of Credit

Chapter SevenLetters of Credit • Main & Difficult Points • Basic contents of a L/C • All parties concerned • The kinds of L/Cs • Urging Establishment of a L/C • Advising the establishment of a L/C • Asking for extension of the L/C • Asking for amendment to the L/C • How to check up a L/C

Reimbursing Agreement Application and Security Agreement Issuing Bank 偿付协议开证申请和抵押协议 The buyer Letter of Credit Sales Contract Beneficiary

① Seller Buyer Contract ② Order to open credit Credit advice ④ Documentary Credit ③ Issuing Bank Advising Bank

Basic Contents of a L/C 开证行名：开证地点和日期。出口方名称：地址或通知行名称。信用证的性质/号码开证文句：开证说明受何进口商的委托开立信用证。汇票文句：受益人应凭汇票取款，汇票的付款人是谁，金额多少，汇票是即期还是远期。跟单文句：汇票应附有哪些单据、各需几份、货物的名称、品质、数量、重量、包装和价格。分批装运及转船：说明是否允许分批装运和转船。装船期限及信用证有效期文句开证行负责文句：确定开证行的付款责任。开证行对议付行或代付行的提示文句，要求议付行在议付或代付时应注意办理的事项。附加条款：如保兑条款、限制船只国籍条款，限制航程条款、履约保证条款等。

信用证的当事人All parties concerned in a L/C 开证申请人 applicant • 开证行 issuing/opening bank • 通知行 advising/notifying bank • 受益人 beneficiary • 保兑行confirming bank:根据开证行的要求，在信用证上加具保兑的银行。保兑行在信用证加具保兑后，必须承担付款或议付的责任。 • 议付行negotiating bank:应信用证受益人的请求，依据信用证规定条款，审核无误后予以议付，然后将单据寄给开证行或指定银行，收回垫款的银行。 • 转递行transmitting bank:将开证行开立的信用证原件转给受益人的银行。 • 通知行 paying bank:在收到开证行的信用证后，以自己的通知书格式照录后通知受益人。 • 付款行：信用证规定的付款银行，也可能是其他银行 • 偿付行reimbursing bank:指接受开证行的委托，代开证行偿还议付垫款的银行。

Kinds of L/Cs sight L/C term L/C =time L/C =usance L/C revocable L/C -- irrevocable L/C confirmed L/C -- unconfirmed L/C transferable L/C -- non-transferable L/C revolving L/C -- non-revolving L/C divisible L/C -- indivisible L/C clean L/C -- documentary L/C

Key Words Kinds of L/C sight L/C term L/C establish the L/C amendment to the L/C extension of the L/C check the L/C with the terms of contract

Sample Letters Letter 1 Urging establishment of a L/C

Language Points refer to 查看；提及；提交 • 有争议的问题须提交仲裁人处理。 The matter of difference shall be referred to arbitrators. 2)请你方查阅我方二零零三年五月七日的去函。 We refer to our letter dated May 7,2003. 3) 你方关于真丝女衫的询价已转交我方处理。 Your enquiry for silk blouses has been referred to us for attention.

Language Points 2. delivery date 交货期 • Deliver v. 交付 • delivery n. 交货 • symbolic delivery 象征性交货 • physical delivery 实际交货 • The quantity to be delivered each month must not be less than 30 metric tons. 每月应交的数量不得少于三十公吨。 • 单据已交银行议付。 The documents have already been delivered to the bank for negotiation.

3. due adj. 应得的；适当的；到期的；应支付的；定于（到达） • fall due 到期（应付给，应偿付） • due to do 定于（某时做某事） • due for 应该得到 • due to 由于（作状语）；应属于，应给予 • The bill is due.汇票到期了。 • 2) Both sides are due to sign a contract in the next week.双方定于下周签订合同。 • 3) 明年我们的薪水等级应该修改。 • Our salary scales are due for revision next year.

Language Points 4. shipping 装运；运输 • shipping company 轮船公司 • shipping agent 货运代理人 • shipping instruction 装运指示；装运须知 • shipping advice 装运通知 • shipping documents 装运单据 • shipping mark 装运标志 • shipping container 船运集装箱 • shipping order 装货纸；装货单 • shipping space 舱位；船位 • shipping date 装船日期 • shipping day 开船日期 • steamer ship 蒸汽机轮船 • motor vessel 内燃机轮船

Language Points 5. see to it that 要注意使…；务必使…；保证使… • Please see to it that the stipulations in the L/C should be in strict accordance with those of the contract. 务请你方做到信用证的条款要与合同的条款完全一致。 • Please see to it that the L/C is timed to reach here before the end of this month. 请注意安排使信用证在月内到达这里。

Language Points • to open an L/C with the bank 由…银行开出信用证 • （直接） • to open an L/C through the bank 通过…银行开出信用证（间接） • to establish an L/C • to issue an LC

Chinese version of Letter 1 执事先生：事由:我方第518号销售确认书关于我方第518号销货确认书项下的5000匹府绸，交货期日益逼近而有关的信用证尚未收到，这一事实提请你方予以注意。请立即赶开该信用证以便使此订单得以顺利执行。顺便告知,根据此地船运公司计划,“和平”轮预计下月中旬驶往贵港。如能在本月底前收到你方的信用证，我们则可能赶上这一班轮。为避免随后的修证，请务必做到信用证的条款与合同条款完全一致。期待佳音。谨上，

Sample Letters Letter 2 Advising of the establishment of a L/C

Language Points • draw one’s attention to 请…注意；提请…注意 • Similar Expressions • invite one’s attention to • call one’s attention to • direct one’s attention to • bring one’s attention to

Language Points expiration n. 期满；终止 expiry n. 期满；截止日期 expire v. 期满信用证于五月十五日期满。 The L/C expires on May 15. • 这批货物必须在许可证期满前运到。 The shipment must arrive here before the expiration of the license. • 信用证的截止日期是五月十五日。 The date of expiry of the L/C is May 15.

Language Points 你方在装运方面的延误，使我方陷入极大的困境中。 • involve us in problem with buyers使我方（在向客户交货 • 方面）陷入困境 Your delay in shipment will undoubtedly involve us in no small difficulty.

be in urgent need of sth. 急需 • be in need of sth 需要 • be badly in need of sth 急需 • be in dire need of sth 急需 • be in great need of sth 急需 • Please do your utmost to expedite the shipment of our order as our buyers are in urgent need of the gods. • 请尽快装运我方所订购货物，因为我方买主急需该货。

Chinese version of Letter 2 执事先生：我们想提请你方注意我方第321号订单订购的500匹纯毛兰哔叽呢。我方已于4月3日寄给你们不可撤销的信用证，该信用证有效期截止为6月30日。现在正值销售旺季，我们的客户急需此货。因此希望尽快装运。我们必须重申在装运我订单货物方面的任何延误都将使我方陷入困境，也会影响我们双方未来的交易。如蒙早复将不胜感激。谨上，

Sample Letters Letter 3 Asking for extension of the L/C

Language Points on the part of our suppliers 就…而言；在…方面 • on one’s part 就…而言；在…方面 • on the part of sb 就…而言；在…方面 • 这是轮船公司方面的错误。 The fault is on the part of the shipping company. • 就我们这方面来说，一贯遵守诺言。 On our part, we always keep to our promise. • 很遗憾，由于我供货商的延误，我方无法在本月底前将货物备妥。 We are sorry that owing to some delay on the part of our suppliers, we are unable to get the goods ready before the end of this month.

Language Points in the early part of May 五月初；五月上旬 • in the mid-May 五月中旬 • late in May 五月下旬 • ultimo 简写ult. means last month 上个月 • instant 简写inst. means this month 本月 • proximo 简写prox. means next month 下个月

Language Points • extend v. 展期；扩展；给予 • extension n. 展期 • 我们希望与你方扩大业务。 We would like to extend our business with you in this line. • 请用电报将你方第1212号信用证的装运期展延为十月三十日、有效期展延到十一月十五日，以便我方装运所谈论的货物。

Language Points to that effect 就…意思 • to this effect • to the above effect • 上周我们给你去信大意是说我们正在检查这批货物。 We wrote you last week to the effect that we were inspecting the goods. • 我们按这个意思传真给你方。 We are faxing you to this effect.

Language Points • 展证信的由来：造成出口人要求展证的原因是多方面的：主观上——货源不足，生产事故，运输脱节等；客观上——自然灾害，社会动乱或进口人未能在合同规定的期限内把信用证开到等等。

Language Points 展证信涉及到两个期限：装运期和有效期。 • 展证信的要点：根据责任的不同，采取相应的措辞和语气。但目的都是促使进口人同意展证，从而保证合同的顺利执行。 • 展证信的中心内容：提出具体的展证要求，即要求展延多少天或展延到具体某一天，同时一定要充分说明原因和理由。

Chinese version of Letter 3 执事先生：有关20公吨冻肉订单的信用证已收悉，谢谢。然而，我们深感抱歉由于原产地供货商方面的延误致使我方未能在本月底前将货物备妥。因此，今日早些时候我方就此意传真告知你方。预计货物将于9月初备妥，并准备安排装运到9月3日从波士顿启航的“五月花”轮上。期待早日收到对上述信用证的传真修改书以便于我方完成装运。本公司就此次延误深感歉意，不便之处，敬请原谅。谨上，

Specimen Letters Letter 4 Asking for amendment to the L/C

Language Points • examination n. 检查；检验 • examine v. 检查；检验 • upon examination 一经检验就… • on examination 一经检验就… • after examination 经过检验后… • 经销商允许厂家随时检查他与零售商的账户和合同。 Distributor shall permit examination by the producer at any time of such accounts and any contracts with his retailers. • 经审核发现你方信用证有与合同规定不符的地方。 Upon examination, we have found there are some discrepancies in your L/C.

transshipment n. 转船 货物必须在伦敦转船。 The goods will have to be transshipped at London. 3. partial shipment 分批装运 part shipment 分批装运 4. direct steamer 直达轮船 direct sailing 直达船 5. infrequent 稀少 few and far between 稀少

Language Points more often than not 常常；多半 • with regard 关于 • with reference • as regards • regarding • as to • about • in connection with • referring to • Respecting • in respect of

Language Points With regard to the point you have just raised, we will have it investigated. • 关于合同中的第三条款，我们已通知银行开立信用证。 • 关于你方刚刚提出的问题，我们将进行调查。 As to Item 3 in the contract, we have instructed our bank to open the covering L/C. • 关于你方五月十八日的要求，我们遗憾地通知你们，你方价格太低。 In connection with your request of May 18th, we are sorry to tell you that your price is too low. • Kindly let us hear from you regarding the possibility of shipment to be made in June. 请来信告知你方能否在六月份装船。 • 关于装运时间，我们希望十月份交货。 In respect to the time of shipment, we want the goods to be delivered in October.

Language Points • amend v. 修改 • amendment n. 修改；修改书 • amendment advice = advice of amendment 修改通知书 1)请对信用证速作修改。 Please rush the amendment to the L/C. 2)请将信用正上的金额修改为“允许5%上下幅度”。 Please amend the amount of the L/C to read“5% more or less allowed”. 3)请将信用证改为允许分批装运。 Please amend the credit as allowing partial shipments.

Language Points • via prep. 由；通过；取道 • 这批货物将由香港转运。 The goods will go via Hongkong. • The goods are to be shipped to Vancouver, thence via Overland to Montreal. 货物由船运到温哥华，再由温哥华陆运至蒙特利尔。 • 你方要求的样品已航空寄去。 The sample you required were sent via airmail.

Check & Amend a L/C 信用证的审核内容： 1.信用证的种类及条款、开证人和受益人的名称、金额、货物或商品的说明、装运港及目的港、有关保险的规定必须与合同一致。 2、合同号码是否正确。 3.信用证是否有效。 4.付款是即期还是远期。 5.有效期、交单期及到期地点是否充裕。 6.是否存在其它不合理的要求。

Chinese version of Letter 4 执事先生：由巴克莱银行开立的第2233号信用证已如期收到。经详细阅读（审核）发现不允许转船和分批装运。由于直达你港的直达班轮稀少，我们不得不经常在伦敦转船。至于分批装运，如能将手头现有货物立即装运而不必等到整批货物全部备妥一次性装运，这对我们双方都有益处。因此，今天我方传真你们要求你方将信用证修改为“允许分批装运和转船”。相信上述安排会得到你方的赞同并立即将此意传真我方。谨上，

Sample Letters Letter 5 Asking for amendment to the L/C

Language Points • discrepancy n. 异样；差异，不一致 • 如果单价与总金额之间有出入，应以单价为准。 In case of any discrepancies between unit prices and total amount, unit prices shall govern. • 请核查原有的成本估算表与实际帐单之间的差额。 Please check the discrepancies between the original estimate of the cost and the actual bills.

Language Points • more or less 溢短装条款；或多或少我们一个一个地检查，发现每个都有不同程度的渗漏。 We examined them one by one and found that each of them was leaking more or less. • 折扣或多或少能给我们一些鼓励，能使我们更加努力地推销你方的产品。 Discount will more or less encourage us to make every effort to push sales of your products.

instead of 代替，而不是 Language Points • 根据合同规定，付款条件应为即期信用证而不是即期付款交单。 As stipulated, payment is to be made by sight L/C instead of sight D/P. • 所报价的茶叶应是一级茶叶，而不是二级茶叶。 The tea offered should have been first grade instead of second grade.

Chinese version of Letter 5 执事先生：收到你方第8888号信用证，谢谢。但是发现信用证与合同不符，差别如下：信用证：合同： 1)不允许转船 1)允许转船 2) 3、4月份等量装运 2)不迟于4月1日装运 3)无溢短装条款 3)允许5%的溢短装为了能顺利地完成装运，请立即对你方的信用证作必要的修改。谨上，

Answers to Skill Training & Exercises

Ⅰ.Skill Training Dear Sirs, We have received your L/C No.112235 but regret to say that we have found some discrepancies in the above mentioned L/C. Please make the following amendments to the L/C. 1)The L/C should be confirmed and irrevocable; please delete the word “transferable”. 2)The beneficiary (in favor of) should be China National Silk Imp./Exp Corp. and the applicant (for account of) should be United Textiles Trading Company..

3)The amount should be ￡ 135 000. 00. (Say Pounds Sterling One Hundred And Thirty-five Thousand Only) 4)The loading port should be China port, and the destination port should be London. As the stipulated time of shipment is drawing near, please make the requested amendments to the L/C as soon as possible so that we can effect shipment in time. Yours faithfully,

Exercises Ⅱ.Fill in the blanks with prepositions and then translate the following sentences into Chinese： • We are thinking placing you a trial order for 5oo kegs Iron Nails shipment September/October. with of of for during 我们考虑向你方试订购铁钉500桶，装运期为九月/十月期间。 • We have only 300 kegs iron nails in stock; therefore we request you to extend the shipment date your L/C the end November. of to of 我们只有300桶铁钉库存，因此要求你方将信用证的装运期延至到十一月底。 • Please try your best to push the sales machine tools your end. of at 请在你处尽力推销我们的机床。 • Owing heavy commitments, we can not consider any fresh business this line. to in 由于卖货太多，我们不能在这一行业考虑任何新的业务。

We shall certainly contact you, as soon as we are a position to entertain new business your district. in in 一俟我方有能力在你地接受新业务，我方当然会与你方接洽。 • After examination, we find the goods high standard and are satisfied the quality the shipment. of with of 检验后，我们认为货物质量良好并且对装运的质量感到满意。 • We are well experienced this line and can handle big orders large quantities. in in 我们在此行业拥有丰富的经验且能处理大额订单。 • Our offer is firm 5 days and we expect to hear you ________noon time Saturday. for from at 本报盘有效期为5天，期待在星期六午前收到你方的答复。

Since we have only 5 metric tons green tea stock, we can only make you this offer subject prior sale. of on to 由于我们只有5 公吨绿茶库存，所以只能向你方报此盘以货物先售出为条件。 • We wish to call your attention the validity the L/C, since there is no possibility L/C extension. to of of 我方愿提请你方注意信用证的有效期，因为没有展期信用证的可能性。

Ⅲ. Translate the following sentences into English: • 信用证必须由我方公司可以接受的银行加以保兑。 The L/C must be confirmed by the bank that we accepted. • 为了避免随后修改信用证，务请注意下列事项。 In order to avoid subsequent amendment, please pay attention to the following. • 兹通知你方，以你方为受益人的信用证已由伦敦巴克莱银行开出。 We are pleased to inform you that the L/C has been issued in your favor with the Bank of Barclays, in London.

Chapter Seven Letters of Credit