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Foreign trade terms about payment

Posted by: Jenny | 2016-08-29 10:27:16

In the foreign trade business, from quotation to the payment terms, to urge the opening letters of credit, to foreign exchange receipts and then later, it involves a lot of jargon. So I sort out some following relevant terminology, which can help you.

1.Terms of payment

(1)Our usual way of payment is the confirmed and irrevocable letter of credit with our company as the beneficiary and full amount which should be paid when see it. The L/C should be opened by the bank that is recognized by the seller.  


(2)For payment,we require 100% confirmed and irrevocable letter of credit with partial shipment and transhipment allowed clause, available immediate payment against the draft by the negotiating bank. 


(3)The letter of credit should be established with its clauses in confirmation with the terms and conditions of the contract. 


(4)We usually accept payment by L/C at sight or by T/T in advance. We never accept C.O.D. 


2.Pressing for L/C

(1)As the goods against your order No.111 have been ready for shipment for quite a long time, it is imperative that you take immediate action to issue the L/C as soon as possible. 


(2)We repeatedly requested you by fax to issue the relative L/C so that we can arrange the shipment. But after three months passed, we haven't received the L/C. 


(3)We hope that you will take commercial reputation into account in all seriousness and open L/C at once, otherwise the extra cost caused by that will be bear by yourside.


(4)The shipment time for your order is approaching,but we have not yet received the L/C. Pls try your best to open the L/C at the end of this month so that the goods can be shipped on time. 


3.Amendment to L/C

(1)Pls amend the foregoing L/C from the length in 30 yards instead of 40 yards. 


(2)We would draw your attention to the fact that the construction of our Art.No.3100S is 32X32 78X65 whereas your credit calls for 30X30 78X65.Therefor,you are requested to amend the credit according to the stipulation of the contract. 


(3)Pls extend the shipment date and the validity of your L/C No.111 to the end of Jan. and Feb.15,2006 respectively,and send the amendment adivce to us before the end of Dec.2005. 


(4)We have received your L/C No.111 covering the above -mentioned contract.But on checking up its clauses,we find that it calls for shipment to be effected not latter than Nov.10,2005, whereas the contract stipulates shipment is Dec.2005.Please extend the shipment date to the Dec.15th 2005 and validity to the 31st of Dec.

Tags: Payment Terms, Payment, Foreign Trade, L/C

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