М инистерство общего и профессионального

образования Российской Федерации

Российская Экономическая Академия

имени Г.В. Плеханова

Центр международных образовательных программ

Международная программа IBS-Plekhanov

ДЕЛОВАЯ КОРРЕСПОНДЕНЦИЯ

BUSINESS LETTER

Часть 3

Москва 2000

Составители: Л.Б. ФИЛИППОВА

Л.П. ТИМОШЕНКО

Деловая корреспонденция (Business Letter)/ Сост. Л.Б. ФИЛИППОВА, Л.П. ТИМОШЕНКО. М.: Рос. Экон. Акад., 1999. Ч.3.

Содержит тексты и задания по деловой переписке к темам «Методы международной оплаты», «Запрос и предоставление банковского кредита» и «Инкассо».

Предназначены для студентов факультета IBS.

Unit 9

Methods of International Payment

I. Discussion topics.

1. Discuss with your group-mates the problems that may arise in international trade as compared to domestic trade.

2. What methods of international payment do you know?

II. Reading.

Economy of most countries is heavily dependent upon foreign trade for satisfying the needs of its population, and providing markets for its products. Many industries could not survive in their present form without imports of raw materials or customers in other countries. At the same time firms trying to sell abroad face several special difficulties which do not apply to domestic sales. These may refer to:

• language barriers

• tastes and habits

• obtaining information and distributing goods and services

• credit risks

• laws and regulations

• protectionism used to restrict imports

• currency changes

There are greater dangers of non-payment for exports than for domestic trade. Checks can be used, but the exporter may not be prepared to accept these in case of default. There are therefore special methods of payment, most of which use banks as intermediaries between exporter and importer.

Method I. Bills for collection (1). This method is usually only used with creditworthy customers.

Sale Agreement – Exporter and Importer agree sale

Exporter – Prepares goods for shipment

Prepares shipping documents

Draws Bill of Exchange (2) on Importer

Ships goods and receives Bill of Lading (3) from shipping line

Gives 1) Bill of Lading and other documents, and 2) Bill of Exchange to his bank

Exporter’s Bank – sends 1) shipping documents, and 2) Bill of Exchange to Importer’s bank

Importer’s Bank – pays Bill of Exchange

Gives shipping documents to Importer

Importer – Passes shipping documents (via customs) to shipping line

Shipping Line – Releases goods to Importer

Method II. Letter of Credit (4). This is the safest method of getting payment. It is often used with new customers. Here is one way the Letter of Credit is used (variations are possible).

Notes:

Sale Agreement – Exporter and Importer agree Sale

Importer – Asks own bank to open credit in favor of the exporter, with a Letter of Credit

Importer’s Bank – Sends a Letter of Credit to exporter’s bank

Exporter’s Bank – Tells Exporter that Letter of Credit has arrived and confirms a Letter of Credit

Exporter – Ships goods and receives Bill of Lading from Shipping Line

Gives 1) Bill of Lading and other documents, and 2) Bill of Exchange to own bank

Exporter’s Bank – If documents are 100% correct, pays Exporter (immediately for sight draft (5), later for Term Bill (6))

Sends 1) shipping documents, and 2) Bill of Exchange to importer’s bank

Importer’s Bank – Pays back exporter’s bank

Gives shipping documents to Importer

Shipping Line – Releases goods to Importer

Notes:

1. Bills for Collection – платеж против документов (cash against documents).

Exporter ships goods and gives documents to own bank thus confirming both shipment of goods and transfer of ownership. Simultaneously exporter advises own bank to give documents against payment to importer through importer's bank.

For all types of payment there exist generally accepted terms elaborated in 1978 by International Chamber of Commerce, as well as general terms for collection.

Here are the main terms:

• D/P – documents against payment (документы против платежа) – exporter gives documents to importer only against payment in cash or by bank transfer;

• D/A – documents against acceptance (документы против акцепта) – importer's bank has the right to give documents to importer in case importer accepts Bill of Exchange (see below) drawn on him by exporter. This accepted bill of exchange either remains with importer's bank till the day of payment or is sent to exporter through his bank.

• Irrevocable undertaking (безотзывное обязательство произвести платеж) – exporter gives documents to importer against irrevocable confirmation of the importer. The account is settled on a fixed day.

• Paperless collection (инкассо без документов) – if the cargo is sent by the exporter by air, train or ship it may happen that it comes to a destination point earlier than the documents sent by mail. In this case documents are sent together with cargo to the address of importer's bank. This bank receives advice from exporter's bank through telex, fax, or electronic mail (EM).

2. Bill of Exchange (B/E) – переводной вексель, тратта.

Bill of Exchange may allow credit to the buyer for a particular period. If the bill is payable "on sight" there is no credit, and payment must be made immediately. The bill of exchange is drawn up by the exporter and sent to the importer for agreement. Once it is signed by the importer it is a legally binding agreement to pay.

Bills of Exchange

Bills of Exchange have been in use for hundreds of years. They enable the importer to receive and possibly sell the goods before he has to pay for them. They allow the exporter to be paid for the goods as soon as he has sent them to the importer. There are three parties to a bill.

• the drawer – the company that prepares the bill and is owed money, that is the seller of the goods. His signature is on the bill.

• the drawee – the company whom the bill is sent and who will pay, that is, the buyer of the goods. He accepts the bill by signing it. Banks also accept bills on behalf of their customers.

• t

  WHICH PLACE TO ACCOUNT

  FOR AND ON BEHALF OF

  Techno Products Plc

  30 Thorpe Way

  Manchester

  UK

  Signed: M Corbelt

  he payee – the company to whom payment is made. Usually the same as the drawer.

T

EXCHANGE FOR $100,000 27^th June 1998

At 60 days after sight pay this sole BILL OF EXCHANGE

TO THE ORDER OF ourselves

One hundred thousand United States dollars

VALUE Goods

TO Marlin Electronics

Atlantic Square

Toronto

Ontario Canada

M4V 2Z2

his bill shows that Techno is Exporting goods to Marlin.

3. Bill of Lading – транспортная накладная, коносамент.

This is a document giving full details of goods being shipped, the name of the vessel, and ports of departure and arrival. The holder of the bill is the legal owner of the goods for the time being.