商务英语阅读_Unit 6国际支付

Section A
Introduction In international business, terms of payment have
been the key parts in the contracts all the time. It involves how exporters collect the pay for their goods in time and guarantees the normal and orderly development of their business. In international trade, both the exporter and importer face risks in an export / import transaction as there is always the possibility that the other party may fail to fulfill the contract. In order to guard against such possibilities, different methods of payment have been developed. As circumstances vary, the choice of payment terms is also flexible.

Documentary Collection Documentary collection is a means of ensuring that the goods are only handed over to the buyer when the amount shown on a draft is paid or when the customer accepts the draft as a commitment to pay by a specified time in the future. Payment by a draft or a bill of exchange has experienced many years in the history. It was the most popular means of payment before a letter of credit was introduced. The seller thinks it advantageous because he is assured that the buyer will not be able to get hold of the goods until he has either accepted a time draft or paid a sight draft. As collection seeks no guarantee from the bank, the documents, especially the draft, have the extraordinary role in the operation. A draft, also called a bill of exchange, is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future a certain sum of money to the order or to the bearer.
Pre-reading
Before reading the following passage, answer
the question: How can we guard against the possibility that the other party may fail to fulfill the contract in an export / import transaction?
Unit Six
International Payment
Objectives
Get the students to be familiar with the
international payment. Cultivate the students’ ability of problemsolving. Help the students overcome the vocabulary barrier in reading.

Open Account The procedure of this term is rather simple. The exporter dispatches the goods; prepares all the documents (mainly the commercial invoice), and sends both the goods and documents to the customer, while title to the goods passes from seller to buyer from that moment, and then waits for payment. The payment is not made at the time when the goods are delivered or when the documents are presented, but at the time specified in the contract. On due date, it is up to the customer to arrange payment, so it is a good idea to arrange with each customer to remit his payment by Cable Transfer, or Telegraphic Transfer to the exporter’s bank, quoting the bank code, full name and address and account number. This term is seldom used where both parties are not in fairly good harmony with each other, and where there are strict exchange restrictions to complicated settlement. This term is used where there is complete trust between the seller and the buyer.
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Text International Payment

In general, there are several basic methods of payment in international trade. Payment in Advance By insisting on cash in advance the seller obviously has complete assurance of obtaining payment. This method is often used in cases where the exporter is not familiar with the buyer’s credit standing. Cash in advance may also be appropriate when the political and economic conditions in the buyer’s country make payment uncertain. This method places the burden for financing the transaction entirely on the buyer

In documentary collection the bank acts on the instructions of the exporter and the exchange of the documents to title takes place at the buyer’s place of business. Once the exporter has dispatched his goods to the customer, the exporter collects the shipping documents, which give title to the goods. He draws a bill of exchange on the buyer. This merely means that he fills in a bill of exchange with all the relevant details relating to the particular shipment. This is made out to be payable either on sight or on demand or within a specified time. The exporter sends the draft and other shipping documents to the remitting bank, which forwards them to the collecting bank in the buyer’s country. If the draft is a sight bill and money is actually paid when the bill is presented, this arrangement is known as document against payment (DP). It is known as document against acceptance (DA) when the draft is a time bill and the money is paid within a specified time. The exporter takes a risk when he sells on the basis of DA. The buyer may refuse to pay or accept the bill. When a bill is dishonored, the bank refuses to give the buyer the bill of lading giving title to the goods. The bank seeks instructions from the exporter on how it should act.