Unit 10 Examination of L&C

1. Unit 10Examination of L&C 精品课程《外贸函电英语》

2. Text A • Examination of a Letter of Credit 精品课程《外贸函电英语》

3. When an exporter receives a letter of credit either by fax or by mail from the importer or from the importer’s bankers or through an advising bank, it is always important to examine the details mentioned in the letter of credit. If there is any discrepancy, the exporter should immediately contact the importer and request the latter to arrange with the issuing bank of the letter of credit to send an amendment in time. 精品课程《外贸函电英语》

4. The following points may be given for reference in the examination of the letter of credit: • 1.Whether the bank issuing the L/C is a sound reliable foreign bank, whether the currency employed and other reimbursement clauses are clear and in accordance with the regulations in the exporting country. 精品课程《外贸函电英语》

5. 2.The L/C should usually be irrevocable without any restrictions, such as “ Subject to import licence obtainable”, etc. • 3.Whether the description, specifications, quantity, number, packing, unit price, shipping time, port of destination, insurance cover, etc. of the goods are in accordance with the sales contract. 精品课程《外贸函电英语》

6. 4.The total amount, validity time and date and place of expiry. • 5. Whether any special clauses or stipulations are mentioned in the L/C regarding shipping documents. 精品课程《外贸函电英语》

7. Text B • Asking for Amendments to Letters of Credit 精品课程《外贸函电英语》

8. (A) • Dear Sirs, • We are in receipt of your letter of September 1, informing us of the establishment of your L/C No. A - 880 against our S/C No. 122. The L/C in question has just come to hand. However, we regret to have found that there are certain clauses which do not conform to those of the contract. Hereby we list discrepancies for your attention: 精品课程《外贸函电英语》

9. 1.The name of the beneficiary should read “Shanghai Machinery & Equipment Imp. & Exp. Corp.”, instead of “Shanghai Machinery Imp. & Exp. Corp.”, the latter being the name of another import and export corporation in Shanghai. • 2.Please insert the word “about” before the quantity and amount in your L/C as it is impossible for us to ship the goods in the exact quantity as contracted. 精品课程《外贸函电英语》

10. We suppose that the above mistakes are clerical and hope you will make the necessary amendments immediately by fax so that we can ship the goods in time. • Your prompt attention to the above will be appreciated. • Yours faithfully, 精品课程《外贸函电英语》

11. (B) • Dear Sirs, • We are pleased to inform you that L/C No. H-15 issued by the Chartered Bank of Liverpool for our S/C No.187 has just been received. However, on examining the clauses contained therein, we regretfully find that certain points are not in conformity with the terms stipulated in the contract. The discrepancies are as follows: 精品课程《外贸函电英语》

12. 1.Commission is 3%, not 6%; • 2.Shipment is to be made during Oct./Nov. instead of “ on or before 30th October”; • 3.Goods should be insured for 110% of the invoice value, not 150% 精品课程《外贸函电英语》

13. Therefore you are requested to amend the L/C accordingly. On receipt of your amendment to the L/C, we will arrange for the shipment without any delay. • Yours faithfully, 精品课程《外贸函电英语》

14. Skill drilling • Please check the Ls/C with the contracts below and then write letters to ask for the amendments to the Ls/C: 精品课程《外贸函电英语》

15. (1) • (所给信用证) • Bank of Liverpool • No. 97425 Date: May 21, 20__ • Documentary Letter of Credit • Irrevocable • To: China Native Produce and Animal By-Products Import and Export Corporation • Beijing, China 精品课程《外贸函电英语》

16. Advising Bank: Bank of China, Beijing • Dear Sirs, • You are authorized to draw on British Import Co., Ltd. for a sum not exceeding US$ 10 000 (SAY US DOLLARS TEN THOUSAND ONLY) available by draft drawn on them at sight accompanied by the following documents: 精品课程《外贸函电英语》

17. --- Full set of Clean on Board Bills of Lading made out to order and blank endorsed, marked “fright to collect” dated not later than July 31, 20__ and notify accountee; • --- Signed commercial invoice in triplicate; • --- British Customs Invoice in triplicate; • --- Insurance Policy (or Certificates) in duplicate covering All Risks and War Risk for 110% of the invoice value as per CIC of January 1, 1981. 精品课程《外贸函电英语》

18. Evidencing shipment from China port to Manchester, England of the following goods: • 500 kilograms of black tea, first grade, at ￡20 per kilogram, CIF Liverpool, details as per your S/C No. SW8712. • Partial shipments are allowed. • Transshipment is prohibited. • The credit expires on July 31, 20__ for negotiation in China. 精品课程《外贸函电英语》

19. (所给合同主要条款) • 卖方：中国土畜产进出口公司 • 买方：英国进口有限公司 • 商品名称：红茶 • 规格：一级 • 数量：500公斤 • 单价：CIF利物浦每公斤20英镑 • 总值：10 000.00英镑 • 装运期：20__年7月31日前自中国港口至利物浦，允许转船，不允许分批装运 • 支付条件：凭不可撤销即期信用证付款，于装运前一个月开到卖方，并于上述装运期15天内在中国议付有效 • 保险：由卖方根据中国人民保险公司1981年1月1日中国保险条款，按发票金额的110%投保一切险和战争险 精品课程《外贸函电英语》

20. (2) • (所给信用证) • Copenhagen Bank Singapore • Date: January 4, 20__ • To: Bank of China, Beijing • We hereby open our Irrevocable Letter of Credit No. 112235 in favor of China Trading Corporation for account of Copenhagen Import Company up to an amount of GBP 1,455.00 (SAY POUNDS STERLING ONE THOUSAND FOUR HUNDRED AND FIFTY FIVE ONLY) for 100% of the invoice value relative to the shipment of: 精品课程《外贸函电英语》

21. 150 metric tons of Writing Paper Type 501 at GBP 97 per m/t CIF Copenhagen as per your S/C No. PO-5476 from Copenhagen to China port. • Drafts to be drawn at sight on our bank and accompanied by the following documents marked “X”: • (X) Commercial Invoice in triplicate • (X) Bill of Lading in triplicate made out to order quoting L/C No. 112235, marked FREIGHT COLLECT • (X) One 精品课程《外贸函电英语》

22. (X) One original Marine insurance Policy or Certificate for All Risks and War Risk, covering 110% of the invoice value, with claims payable in Copenhagen in the currency of draft(s) • Partial shipment and transshipment are prohibited. • Shipment must be effected not later than 31 March 20__. • This L/C is valid at our counter until 15 April 20__. 精品课程《外贸函电英语》

23. 所给合同主要条款) • 卖方：中国贸易公司 • 买方：哥本哈根进口公司 • 商品名称：写字纸 • 规格：501型 • 数量：150公吨 • 单价：CIF哥本哈根每公吨英镑 • 总值：14，550英镑 • 装运期：20__年3月31日前自中国港口至哥本哈根 • 保险：由卖方按发票金额的110%投保一切险和战争险 • 支付：不可撤销的即期信用证，于装运前1个月开到卖方，并于上述装运期后15天内在中国议付有效。 精品课程《外贸函电英语》