Irrevocable letter of credit - безотзывный аккредитив
Give short answers to these questions about the text:
1.Was Peter paid immediately for the cloth?
2.Who applies for a L/C, the importer or the exporter?
3.Who issues a L/C?
4.If a L/C is not irrevocable, who might not pay?
5.If a L/C is not confirmed, who might not pay?
6.Can you discount a L/C?
7. Do you think an exporter would rather be paid by B/E D/P or by L/C?
8. How many reasons can you think of why importers or banks might not pay a B/E or an unconfirmed revocable L/C?
6. Translate the request to open a L/C:
| OLD AUSTRALIAN BANK Pty REQUEST TO OPEN INTERNATIONAL DIVISION DOCUMENTARY CREDIT I7 MAIN STREET Date29 July 2000 MELBOURNE Please open for my/our account a Documentary Credit, in accordance with the undermentioned particulars. Signed BRUCE SMITHHarbour Imports Pty, Billabong St., Melbourne | |
| Entries must not be made in this margin | *Delete as necessary |
| Type of credit Method of advice Advising bank Name & address of beneficiary Amount Availability Documents required Quantity & Description of goods Price per unit Terms & relevant port or place Dispatch/Shipment Documents to be presented Special instructions | *'Irrevocable i.e. cannot be cancelled without beneficiary's agreement * |
Translate and answer the question:
This is the Letter of Credit Bruce's bank issued for the consignment from Clothco. Unfortunately the bank clerk mixed up his request with another request. How many mistakes can you find in the L/C?
| NAME OF ISSUING BANK Old Australian Bank Pty International Division 17 Main Street Melbourne | REVOCABLE DOCUMENTARY CREDIT Number 15927 |
| Place and date of issue Melbourne, 2 August 2000 | Place and date of expiry 30 September 2000 at counters of advising bank |
| Applicant Clothco Ltd, Cotton Lane, Manchester, UK. | Beneficiary Harbour Imports Pty Billabong Street Melbourne |
| Advising bank Ref no. Counts Bank plc Old Street Manchester | Amount £ 600 (six hundred pounds sterling) |
| Shipment/dispatch from Melbourne for transportation to Liverpool | Credit available with Counts Bank, Manchester By √ PAYMENT ACCEPTANCE against presentation of documents detailed herein and of your draft(s) at 90 days drawn on Harbour Imports Pty |
| Commercial Invoice in two copies. Air Consignment Note for goods dispatched to Harbour Imports Pty Billabong Street, Melbourne marked 'Freight payable at destination'. Import Licence No. FNPJ 77 2000 covering 9 cartons cloth Insurance Certificate covering all Risks C & F Melbourne | |
| Documents to be presented within 17 days after date of issue of shipping documents | |
| We hereby issue this Documentary Credit in your favour. James Fletcher Old Australian Bank Pty International Division 17 Main Street Melbourne This document consists of 1. signed page |
Corrections: Bruce wrote to the bank telling them of the mistakes in the L/С and giving them the correct information. Complete these sentences with “should have been” or should not have been”, like this:
The L/C ………….. irrevocable.
The L/C should have been irrevocable. It should not have been revocable.
1.The date of expiry…….30 September 2000.
2.The applicant …….Clothco Ltd.
3.The beneficiary………Clothco Ltd.
4.The amount…………..
5.The shipment ………..dispatched from Liverpool to Melbourne.
6.The shipping document………..an air consignment note.
7.The B/L……..marked “Freight paid”.
8.The import license number………
9.The terms…………….C&F.
Write a description of these transactions as if you are the exporters and importers. In each case, describe the transaction which is better for you:
1. GLM sent a consignment of micro-processors from Liverpool to BJT in Australia. The price was 1,000. BJT paid with a Bill of Exchange, D/P.
2. BOS London sent a consignment of stationery to DOM in Japan. The price was 750. DOM paid with a Bill of Exchange, D/A.
Start: (name of company) loaded the (type of goods) on board ship in (name of port) and received the Bill of Lading. They then wrote the Bill of exchange…..etc.
Or: We loaded the (type of goods) on board ship in (name of port) and……etc.