Practice Training Skill Training Summary of Project
《商务英语函电》 Unit 9 Letter of Credit
Knowledge Objective
Knowledge Objective Skill Objective
Warm Up
1．Learn the definition of L/C and the parties concerned with an L/C
《商务英语函电》 Unit 9 Letter of Credit
Specimen Letters
Knowledge Objective Skill Objective
1．Urging the establishment of an L/C Sample
Warm Up
Business Situational Design
Warm Up
Business Situational Design
Specimen Letters Notes
Trade Terms and Typical Sentences
Practice Training
Situation: Dalian Cathay Petro Co. Ltd is an exclusive company dealing with crude oil import and export business. In April 2011, it signed a new contract with Abu Shaati Oil Company of Saudi Arabia in importing 100,000 barrel of crude oil. In the contract, both parties agreed that the L/C should be opened no later than August 30, 2011．However considering the tight budget, Cathay Petro Company finds it is impossible to fulfill its commitment of opening the L/C on time.
《商务英语函电》 Unit 9 Letter of Credit
Warm Up
Knowledge Objective Skill Objective
Items to be checked
Checking standards
Buyer’s and seller’s names and addresses Correct or not
Trade Terms and Typical Sentences
Practice Training
Skill Training
2．Practice the ability of finding out the discrepancies and amending as well as extending L/C
Business Situational Design
Specimen Letters Notes
Trade Terms and Typical Sentences
Practice Trainingnd their usage
3．Master the expressions and the words of urging, amendment and extension of L/C
Unit 9 Letter of Credit
《商务英语函电》
Content
Knowledge Objective Skill Objective Warm Up Business Situational Design Specimen Letters Notes
Trade Terms and Typical Sentences
Skill Training
Summary of Project
4．Master the letter components of urging, amendment and extension of L/C
《商务英语函电》 Unit 9 Letter of Credit
Skill Objective
Summary of Project
3．Practice writing skills relating to the establishment, urging, amendment as well as extension of L/C
《商务英语函电》 Unit 9 Letter of Credit
《商务英语函电》 Unit 9 Letter of Credit
Trade Terms and Typical Sentences
Practice Training
Skill Training
Summary of Project
Business Situational Design
Knowledge Objective Skill Objective
Specimen Letters Notes
Trade Terms and Typical Sentences
Practice Training
Skill Training
Summary of Project
Dear Sirs, RE: L/C covering Order No. 123 The laptop computers against your Order No. 123 have been ready for shipment, and we promised that the shipment can be made immediately after receiving your L/C by the end of February. But until now we have not received your L/C, please promptly instruct your banker to have the irrevocable L/C at sight established so that we can effect the shipment in time. If your L/C fails to reach us within 15 Days, we are afraid that we might not ship the goods as agreed upon. We are looking forward to your earliest reply. Yours faithfully,
Description of goods
Shipment terms Items to be checked Insurance and payment Shipping, expiration date Required documents Unacceptable conditions The issuing bank
Skill Training
Summary of Project
Task: Suppose you are the manager of Import Department in Cathay Company, and you would send an E-mail to Ali Hussein the executive manager of Abu Shaati Oil Company to explain the current difficulty met by your company and at the same time ask for an extension of the L/C until September 15, 2011. You’d better write this letter with great care and polite so as to maintain a sound cooperation relationship between two companies.
Whether in conformity with contract
Whether in conformity with contract Checking standards Whether in conformity with contract Leaving enough time to effect the shipment Whether it could be obtained or not If any, ask for amendment Good reputation and credit standing
Warm Up
Knowledge Objective Skill Objective
Warm Up
Business Situational Design
Specimen Letters Notes
Trade Terms and Typical Sentences
Practice Training
Skill Training
Knowledge Objective Skill Objective
Warm Up
Business Situational Design
Specimen Letters Notes
1．Get familiar with words and expressions concerning with L/C
Summary of Project
A letter of credit, which can also be called an L/C, is a written undertaking made by the issuing bank given to the seller(exporter or beneficiary), at the request of the buyer(importer or applicant), to pay at sight or at a future date up to a stated sum of money. An L/C can be generally divided into following types. 1．Irrevocable and revocable An irrevocable credit is a credit that cannot be amended or canceled without the permission from the beneficiary of the credit. A revocable credit is a credit that can be amended or canceled without the permission from the beneficiary of the credit. 2．Confirmed and unconfirmed A confirmed credit is guaranteed by a bank other than the issuing bank. An unconfirmed credit is a credit which is not guaranteed by a bank other than the issuing bank Meanwhile, an L/C can also have other forms: revolving L/C; standby L/C; transferable L/C, etc. The following list contains several items for great attention when an exporter checks the L/C.