国际贸易英语Unit 8 2016

Description 8.1 Payment InstrumentsTypes
8.1.1 Bill of
Both the drawer and the Exchange drawee are banks.
Banker’s draft Commercial draft
The drawer is a commercial C. The Types of Bill of Exchange. organization, the drawee can be either a commercial organization or a bank. Accompanied by commercial documents? Accompanied by other commercial documents Not accompanied by other commercial documents
Unit 8 International Payment
1.Unit Points
1 Objectives
2
Preview Case
3
Contents
Objectives
Key points
★ The function of different payment instruments ★ The different types of remittance and collection
Warm-up
Read the following tongue twister aloud and fast. Where is the watch I put in my pocket to take to the shop because it had stopped?
我的那块因为停止而装在我口袋里送到商店的表哪 去了?
8.1 Payment Instruments
Bill of exchange Check Promissory note.
8.1 Payment Instruments
8.1.1 Bill of Exchange
A. What is Bill of Exchange? The Bill of Exchange, or draft, is an unconditional order in writing, addressed by one person (the drawer) to another (the drawee) and signed by the person giving it. It requires the drawee to pay on demand, or at a fixed or determinable future time, a specified sum of money to, or to the order of, a specified person (the payee) or toWO
Now listen to a short passage and fill in the blanks.
M/T refers to the transfer made between banks by mail, with (1 ). T/T refers to the transfer made by telecommunication system such as telex or telegraph. Under D/D, the importers buys (2 )from a bank in the importing country, called a (3 ), and sends it to the exporter so that the exporter can get money by (4 ) the demand draft to a bank in the exporting country. D/D is (5 ), which is different from M/T and T/T.
Difficult points
★ How remittance and collection work
Parties Involved Number of Copies
drawer payee payer One single original
Tenor
Acceptance Applicable Areas
Sight time
A time bill of exchange must be accepted. Widely used in international trade
Sight
No acceptance Local city or domestic areas
Sight time
No acceptance Domestic and international
Objectives
Key points
★ The different types of remittance and collection
Difficult points
★ How to use different payment instruments
★ How remittance and collection work
Preview Case
In 2008, a Guangxi exporting company signed an FOB contract with an importer in a Middle East country. The payment method was L/C at sight. Owing to the tight production schedule, the exporter asked for postponing the delivery. The importer agreed to delay the delivery on the condition that if the L/C expired before the delivery date the payment method would be changed to D/P at sight. The goods were subsequently delivered after the expiry date of the L/C, while the importer refused to make payment claiming that the goods were missing. The exporter suffered a big loss.
8.1 Payment Instruments
8.1.2 Check
A check is a preprinted form on which instructions are given to a banker to pay a stated sum of money to a named recipient. In a sense, the check can be regarded as a special form of bill of exchange.
8.1 Payment Instruments
8.1.1 Bill of Exchange
B. The Content of Bill of Exchange.
Drawer Requests Drawee/Payer
To pay Payee
Classification Criteria Drawer?
LISTENING PRACTICE TWO
Now listen to a short passage and fill in the blanks.
M/T refers to the transfer made between banks by mail, with the advantages of low charges. T/T refers to the transfer made by telecommunication system such as telex or telegraph. Under D/D, the importers buys a check from a bank in the importing country, called a banker’s demand draft, and sends it to the exporter so that the exporter can get money by presenting the demand draft to a bank in the exporting country. D/D is transferable, which is different from M/T and T/T.
Documentary draft Clean draft
Time of payment? (tenor?)
The payer must pay when the Sight draft bill of exchange is presented.
The payer must pay at a fixed Time draft future time.
Maker of the promissory note
Promises to pay
The recipient of the promissory note
cashier’s order commercial promissory note
8.1.3 Promissory Note
SAMPLE
PROMISSORY NOTE US$10,000.00 New York, January 12th, 2014 At 30 days after date I promise to pay John Smith or order the sum of TEN THOUSAND US DOLLARS for value received. James Brown (signature)
8.1 Payment Instruments 2.The 1. Exchange
amount
5.The drawing date
8.1.1 Bill of Exchange
B. The Content of Bill of Exchange.
4.The payee
3.The drawee
6.The signature of drawer
Drawer Orders His bank To pay Payee
8.1.3 Promissory Note
The promissory note contains a promise to pay a certain sum of money to a named person, to order, or to the bearer on demand or at a fixed or determinable future time.
Bill of Exchange Check Promissory Note The difference between the three payment instruments:
Drawer or Maker Payer a bank a person organization a bank a person organization drawer payer payee Generally two originals a bank depositor A bank a bank a person organization a bank a person organization maker payee One single original