Vocabulary Revision

Translate the following sentences:

1. Как правило, договор о продаже оговаривает одно из одиннадцати условий доставки.

2. Какое условие представляет максимальное обязательство для покупателя?

3. Покупатель должен покрыть все расходы и взять на себя все риски по доставке груза на склады.

4. Продавец платит за транспортировку груза в порт отправки.

5. Передача риска происходит, когда груз уже доставлен на причал.

6. При каком условии продавец и покупатель делят расходы?

7. Вы должны были оплатить страховку и фрахт.

8. Кто оплачивает доставку груза до границы?

9. Покупатель должен только оплатить пошлину.

10. Я высылаю вам всю необходимую информацию по условиям транспортировки груза.

11. Мы предложили вам очень выгодные условия доставки.

12. Грузы доставляются на условиях ФОБ до английского порта.

13. Передача риска происходит, когда груз перешел через леер в порту отгрузки.

14.Данные инкотермc применимы для морских перевозок.

15.Покупатель организует и оплачивает транспортировку и страховку.

Topic 3: Terms of payment

There are 4 basic terms of payment in foreign trade.

1)      payment in advance (down payment)

2)      payment by means of L/C

3)      payment against documents D/P

4)      payment after delivery (cash against documents)

Payment in advance

is usually effected by a mail or telegraphic transfer from the buyer’s account to the seller’s banking account.

a)      In the export trade payment in advance is the most favourable for the seller because the risk of non-payment for the goods is totally excluded. But payment in advance is not too frequent in foreign trade because the buyers are generally unwilling to pay for the goods before they can lay hands on them. If they agree to it they insist on a special discount on the price.

b)      In the import trade on the other hand payment in advance is the least advantageous of all terms of payment because it is a credit transaction with all its risks.

A letter of credit – L/C

Is the most current and one of the best means of payment. The buyer instructs his bank to open an account with a bank in the seller’s favour. The seller may draw it against presentation of certain documents stated in the L/C – called shipping documents. The L/C is opened for a fixed sum and its validity may be extended. Irrevocable L/C means that it cannot be recalled before the date of expiry ...

In foreign trade payments are usually made by irrevocable L/C against shipping documents. There are 2 kinds of L/C:

a)      personal L/C is available against the signature of the owner and against presentation of his passport or identity card. It is used mostly by travellers.

b)      documentary L/C is called so because it is available against presentation of shipping documents.

D/A – Documents against Acceptance, the buyer receives the documents after his accepting a Bill of exchange drawn on him for the price, at a given period may be 30, 60, or even 90 days.

D/P – documents against payment means cash against documents. The specified documents with a copy of the invoice are handed over to the buyer on payment of the full price in cash.