Business English(Lecture 5).pdf



 Acknowledging an order





Order Sheet

Order by letter

Signing offer

acknowledgement of an order

⇒

acceptance or confirmation of an order

■ using a standardized form of contract

■ drawing up sales contracts in duplicate

■ buyer countersigning the final offer

presented by the seller

■ sales contract can be replaced by the

order sheet with the seller's

confirmatory signature at the bottom

_Remittance

Remittance 送金

 Advanced payment : 사전송금 事前送金

(cash with order)

 Deferred payment : 사후송금 事後送金

(Delivery first, payment afterwards)

▶

Telegraphic Transfer!!

Workflow of

advanced payment

Workflow of

deferred payment

- banks providing safeguard for parties

involved

- banks guarantee payment to the exporter

and goods to the importer

▶ These goals can be accomplished by the use of a document called

documentary letter of credit (L/C)

 negotiate: 매입 買入

 issuing bank: 발행은행 發行銀行

(also called opening bank or establishing bank) 개설은행 開設銀行

= importer’s bank

 advising bank: 통지은행 通知銀行

(also called negotiating bank) 매입은행 買入銀行 = exporter’s bank

 bill of exchange: 환어음 換於音

 documentary bill: 화환어음 貨換於音  beneficiary: 수익자 受益人 = exporter

L/C is issued in favor of the exporter

 applicant: 신청인申請人 = importer

(1) The applicant requests the issuing bank to establish L/C in favor of

the beneficiary after a sales contract has been made.

(2) The issuing bank sends the L/C

(3) The advising bank notifies

the exporter of the arrival of L/C. (4) The exporter confirms the L/C

and picks it up.

(5) The exporter draws B/E and attaches to the bill documents required in L/C, such as invoice, packing list, B/L,

insurance policy and certificate of origin after the shipment has been completed.

(6) The exporter requests his bank to negotiate the documentary bill or

draft(貨換於音)

▶ documentary bill:

bill of exchange with various documents attached to it

(7) The negotiating bank checks if all the documents are presented as stipulated

in the L/C and if there are any errors in

the documents drawn up.

And if they find that everything is OK, they pay the exporter.

Irrevocable L/C

Confirmed L/C

At sight L/C

Two types of L/C

according to payment time