- •Banking 1 documentary credit
- •1.1 The importer applies to the bank for opening the credit
- •1.2 The buyer places an order and informs the seller of the opening of the l/c
- •1.3 The seller receives the order and confirms it
- •1.4 The bank advises the seller that the credit is available (I.E. Confirms the credit)
- •1.5 The seller sends the documents to the bank
- •Documentary credit part II
- •2.1 The buyer replies to the seller’s request to prolong the time of delivery and discusses amendments to the l/c
- •2.2 The buyer advises the bank of the amendment agreed upon with the seller
- •3.1 The buyer informs the seller of discrepancies in the documents
- •3.2 The buyer advises the seller of payment and asks to comply with the requirements of the credit
- •4 The bank advises the buyer of payment
- •Part II
- •Vocabulary
- •Part II
- •Part II
Part II
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prolongation surrender convenience to block to debit discrepancies credit requirements to comply proceeds to accept to expire charges to amend |
16. If you undertake to pay the charges we will agree to your request and advise our bank … the L/C.
17. Our bank has advised us that the … of our letter of credit No. C/25 have been credited to your account.
18. The documents will be handed to you at your earliest ….
19. The validity of the L/C … on the 15 September and it will be cancelled.
20. This … of the L/C means that we will have to bear extra … as all charges connected with any amendment of this L/C are for our account.
21. We … your account with the amount plus our charges.
22. We cannot agree … documents, which do not … with the credit requirements and ask you to settle the problem with the bank without delay.
23. We have accepted your draft against … of the shipping documents in compliance with the requirements of the LC.
24. We should greatly appreciate it if you would present documents in strict compliance with the ….
Yesterday we received a letter from our bank advising us of several … in the documents forwarded by you to the bank … payment out of the L/C.
FOCUS 5. Fill in the gaps with prepositions/particles where necessary.
PART I
1. Documentary credit is an undertaking made ... a bank ... the request ... the applicant ... the credit to pay a specified amount ... an agreed currency ... a beneficiary.
2. The bank checks the documents ... credit.
3. If the documents comply ... the requirements ... the credit the bank will make payment ... ... LC.
4. The documents are released ... the buyer ... payment.
5. The importer places an order ... the exporter, who will obtain payment ... the bank ... presenting … the documents stipulated ... the credit.
6. If agreed ... seller and buyer, the arrangement could be ... the agent bank to accept a draft drawn ... the seller ... the agent bank.
7. We hereby issue ... your favour this Irrevocable Documentary Credit … … details stated ..., available ... negotiation ... your drafts ... 30 d/s drawn ... the applicant ... the full invoice value ... the shipment.
8. We instruct you to open an irrevocable LC ... $10,000.00 ... favour ... JKL Ltd.
9. We are attaching ... the letter your application form ... all the relevant details completed. Please keep us informed ... the passage ... the documents.
10. The credit will be confirmed … General Bank, London, who will accept your draft ... them ... 60 days ... the amount ... your invoice.
11. The sum ... the credit is sufficient to cover CIF shipment and bank commission ... the draft.
12. When we receive confirmation ... this credit ... General Bank, London, we will make ... your order and await … despatch instructions ... your agent.
13. You are authorized to draw 60 days’ bill ... us ... this credit ... the amount ... your invoice as soon as you provide evidence ... shipment.
14. The sum should include our discount commission ... 5%, any other charges ... your account.
15. We have included all charges ... our invoice, which amounts ... $45,000.00.
16. Our draft ... you ... this amount is enclosed, and we ask you to discount it, ... acceptance, ... the agreed rate.
17. Kindly remit the net amount ... our account ... the bank.