Материал: 4542

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-Mr. …, you promised to reconsider the total contract price taking into account our request to increase the share of locally produced equipment in the volume of deliveries to the project.

-Да, мы приняли во внимание вашу просьбу. Наша новая цена …

-Oh, it seems too high to us.

-А что предлагаете вы?

-Half the sum.

-Извините, г-н …, но вы не принимаете во внимание последние международные котировки. Цены на химическое оборудование выросли в последнее время. Мы можем подтвердить наши цены конкретными материалами, а вы?

-So do we. Here is a contract, signed with a Hungarian firm.

-Мы знаем этот контракт, но он не может служить доказательством правильности ваших цен, г-н … Он был подписан 5 лет тому назад.

-В принципе, мы не возражаем, но мы не успели подготовить полную разбивку цены контракта. Мы готовы обсуждать сегодня групповые цены.

-All right. May we have your calculations of group prices to compare them with ours, please.

-Пожалуйста.

-Well, your group prices differ from ours. We’ll have to compare them more carefully.

Could we keep your materials?

-Да, пожалуйста.

-Let’s resume our talks in 3-4 days.

4. Make up a dialogue to discuss the prices and total value of the Contract.

TERMS OF PAYMENT

In this clause Parties to the contract agree upon method of payment and period of time payments to be effected.

Payment in international trade may be made in cash and on credit. There are different methods of cash payments:

1.By cheque (but it is not practicable as a cheque is payable in the country of origin and its use is time wasting to say the least. That’s why cheques are mostly used for payment in home trade).

2.By telegraphic or telex transfers or post (mail) remittance which is made from the

Buyers’ bank account to the Sellers’ in accordance with the Buyers’ letter of instruction.

Actually this method of cash payment may sometimes take several months, which is naturally very disadvantageous to the Sellers. The transfer is carried out at current rates of exchange.

3.For collection (Payment for collection does not give any advantages to the Exporter because it does not give any guarantee that he will receive payment in time or at all. That’s why the Exporter usually requires that the Importer presents a guarantee of a first class bank that payment will be effected in due time. Also, there is a long period of time between the delivery of the goods and actual payment. But it is advantageous to the Importer because there is no need to withdraw from circulation big sums of money before actually receiving the goods.).

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The costs involved in effecting payment for collection are twice or three times lower than those by letter of credit.

4.The most popular method of payment in cash is by letter of credit (L/C, LoC). A letter of credit is a letter from one bank to another bank, by which a third party, usually a customer, is able to obtain money. Here are some types of letter of credit:

circular L/C: a letter of credit which is addressed to all branches, correspondents and agents of the issuing bank as opposed to a direct L/C;

confirmed L/C: a letter of credit to which the payment bank has added its guarantee that payment will be made against presentation of certain documents;

direct L/C: a letter of credit which the issuing bank addresses to one particular branch as opposed to a circular L/C;

documentary L/C: a letter of credit to which a number of other documents such as a bill of lading, an insurance certificate, etc. have been joined by the exporter to obtain payment from the bank;

irrevocable L/C: a letter of credit that can only be cancelled with the agreement of the person expecting payment;

limited L/C: a circular letter of credit which can only be used in a certain number of places;

traveller’s L/C: a document issued by a bank to a traveller whereby the traveller may receive money up to a stated amount from all the bank’s agents abroad, when the traveller’s letter of credit is used up it should be sent back to the issuing bank;

unconfirmed L/C: a letter of credit which the issuing bank gives no promise that it will accept bills drawn upon it.

Thus, a confirmed irrevocable letter of credit guarantees the payment for the goods being exported. Besides, all letters of credit can be valid within a stipulated period of time, after the expiry of which the payments can be made only with the consent of the parties concerned. A letter of credit is safe in business transactions as it provides for the payment to be effected only against shipping documents: Invoice, original Bill of Lading, a copy of a Waybill, shipping specification, packing sheet, Certificate of Quality, Certificate of Origin, Insurance Policy/Certificate.

The most popular credit terms are:

1.by drafts (by Bills of Exchange B/E) – the Exporter credits the Importer which is advantageous to the latter. A draft (a bill of exchange) is an order in writing from a Creditor to a Debtor to pay on demand or on a named date a certain sum of money to a company named on the Bill, or to their order. It is drawn by the Sellers on the Buyers and is sent through a bank to the Buyers for the acceptance (i.e. for acknowledging the debt). The draft becomes legally binding when signed and dated by the Buyers on its face (front) and is to be met when due, i.e. 30, 60 or 90 days after presentation. The draft may be

negotiable, i.e. it may be used by the Sellers to pay their own debts, but in this case the Sellers are to endorse it by signing it on its back, then they can pass it on to the new holders.

If the exporter wants immediate payment, he can discount the draft in return for a cash advance with a bank for a commission, i.e. sell it to a bank for its face value less interest, and by supplying a document (a letter of hypothecation) giving the bank the legal right to claim the goods if necessary. Besides, he may leave it with a bank as security for a loan. All this makes the Draft a very practical method of payment in foreign trade. To sum up its advantages one should say that it simplifies the financing of export and import foreign trade and cuts down innumerable movements of currency.