Situational Dialogue 1

Kate from Black Diamond is talking with John from ABC Chemical Company about price and terms of payment.

A: Kate, what are the quotations of the two types you're recommending?

B: Well, under which terms do you wish to enquire, FOB or CIF? And which port?

A: FOB Shanghai. We have our own forwarder.

B: Another question, may I know your potential consumption? As you know, the      quotations for FCL and LCL are a little different for the freight cost.

A: I want to know your quote at 1*20FCL. Our annual consumption on these two      types are about 30 mts each. 

B: In this condition, the prices for these two types are US$21/kg for PowCarbon®D and US$13.5/kg for PowCarbon®1000G. The quotations are made according to your consumption.

A: Then how about the payments?

B: We only accept payment by confirmed and irrevocable letter of credit at sight.

A: Wow, that's demanding. As you know, we’re still looking for long-term      cooperation, not just one order.

B: That's how we work with all of our clients.

A: I wonder if you would accept D/A or D/P.

B: I'm afraid our financial department would not approve such terms. L/C at sight is what we require for all our clients about their initial orders.

A: To be frank, using L/C would increase our cost. We have to pay a deposit when      opening an L/C with a bank, which will tie up our fund and increase our cost.

B: But an L/C would give both of us equal protection and guarantee. I have to say we cannot accept D/A or D/P as the terms of payment.

A: All right. If you insist, so be it. We hope that you can give us more favorable      discounts in future cooperation.

B: Thank you very much for your understanding.

对话文本翻译参考：

A: 凯特，您推荐的两种型号的产品报价是多少？

B: 嗯，您想询什么价，FOB价，还是CIF价？哪个港口？

A: FOB上海港。我们有自己的货运代理。

B: 另一个问题，您能告诉我你们的潜在消费量吗？您也知道，整装和拼装运费是稍有不同的。

A: 我想知道一个20英尺整箱的报价。我们对于这两个型号产品的年消费能力大约是每种30公吨。

B: 这样的话，这两种型号的价格分别是炭黑D每千克21美元，炭黑1000G每千克是13.5美元。这个价格是根据你们的消费量报的。

A: 付款条件是什么样的？

B: 我们只接受保兑的、不可撤销的即期信用证付款。

A: 哇，这真是太苛刻了。您知道，我们在寻找长期合作伙伴，而不仅仅是下一次订单。

B: 这就是我们与所有客户合作的方式。

A: 我想知道你们是否接受承兑交单或付款交单。

B: 恐怕我们的财务部门不会同意这样的条件。对于我们所有客户的首次订货，我们要求他们开具即期信用证。

A: 坦率地说，使用信用证会增加我们的成本。我们在银行开立信用证时必须付保证金，这将占用我们的资金，增加我们的成本。

B: 但是信用证会为我们双方提供平等的保护和保证。我得说我们不能接受承兑交单或付款交单作为付款方式。

A: 好的。如果你坚持，那就这样吧。我们希望在今后的合作中你方能给我们更优惠的折扣。

B: 非常感谢您的理解。

Situational Dialogue 2

After Kate receives the L/C, she is calling to ask John for amendment to the L/C.

A: Hello, John. It's Kate.

B: Hello, Kate. How can I help you?

A: We have received your L/C No. 5079 issued on Jan 2th. Shall we talk about it?

B: Of course. Is there anything wrong?

A: After careful examination of the L/C, we have found some discrepancies which      are not in conformity with the terms stipulated in our Contract No.0128. So  we request you to amend the L/C.

B: Oh, really? Let me check the L/C.

A: You can see that the L/C amount is not correct. The total amount in our contract is US$63000. But the amount in your L/C is US$60300.

B: OK. We will check the contract amount and make the corresponding amendment in the L/C.

A: What's more, we find the beneficiary wrongly spelled. Our company is "Black     Diamond Material Science Co., Ltd." rather than "Back Diamond Material Science Co., Ltd."

B: I've noted it down and I'm sorry for that. We will revise it as soon as possible.

A: One more question. Partial shipment is not allowed in your L/C. Can you accommodate us in this respect?

B: It is our usual practice to ship goods in one lot.

A: I think it would be to our mutual benefit if you allow partial shipment. In this way, we could ship immediately whatever is ready instead of waiting for the whole shipment to be completed.

B: I am sorry that this is unacceptable. Allowing partial shipments will cause us inconvenience, so I hope you can prepare all the goods at one time.

A: That's OK if you really insist. Please amend the L/C according to what we agreed on above so that we can effect shipment in time.

B: I will go to the bank as soon as possible.

A: Your early amendment to the L/C will be highly appreciated. 

对话文本翻译参考：

凯特收到信用证后，打电话给约翰要求修改信用证。

A: 你好，约翰。我是凯特。

B: 你好，凯特。我能帮你什么吗?

A: 我们已收到你方1月2日开出的第5079号信用证。关于这个我们可以谈谈吗？

B: 当然可以。有什么问题吗？

A: 在仔细检查了信用证后，我们发现一些与0128号合同条款不符的地方。所以我方要求你方修改信用证。

B: 哦，真的吗？我来查一下信用证。

A: 你可以看到，信用证金额不对。我们合同中的总金额是63000美元，但是你方信用证上的金额是60300美元。

B: 好的。我们将检查合同金额并在信用证中进行相应的修改。

A: 另外，我们发现受益人的拼写错误。我们公司是“Black Diamond Material      Science Co., Ltd.”，而不是“Back Diamond Material Science Co., Ltd.”。

B: 我记下来了，很抱歉。我们会尽快修改的。

A: 还有一个问题。你方信用证不允许分批装运。能在这方面为我们提供方便吗？

B: 我们的惯例是整批装运。

A: 我想如果你方允许分批装运，对我们双方都有利。这样，我们就可以立即装运所有准备好的货物，而不是等着整批装运完成。

B: 很抱歉，这是不能接受的。允许分批装运会给我们带来不便，所以我希望你们能一次准备好所有的货物。

A: 如果你真的坚持的话，没关系。请根据我们上面的协定修改信用证，以便我们能及时装运。

B: 我会尽快去银行。

A: 请早日修改信用证，不胜感激。

Situational Dialogue 3

Six months later, John is calling Kate, trying to persuade her to adopt different terms of payment for their second deal.

A: This is our repeat order, Kate. I hope you can accept more convenient terms of      payment. Last time we paid by L/C, it was troublesome and expensive.

B: I believe you must be aware that the L/C gives us the additional protection of the banker's guarantee.

A: I know. Since we have already traded once, I believe that you find us trustworthy. It will help me greatly if you could accept D/A this time. 

B: We have no precedent for acceptance of D/A, which is too risky for exporters.

A: What about D/P?

B: Well, to show our sincerity, I suggest that we meet half way, 70% by L/C and the      balance by D/P at sight.

A: Oh. Every time we have to pay a high service charge to the bank.

B: I see what you mean. But, this is the best we can do. I’m afraid no more concession can be made. The profit you get from selling our products will cover the cost.

A: OK. Deal. So, when do I have to open the L/C if I would like the goods to be delivered next month?

B: The L/C should be opened one month before the shipment.

A: All right. I’ll arrange for the L/C to be opened in your favor as early as possible.

B: That would be fine.

A: I am glad that our discussion has been very pleasant and fruitful. I sincerely hope our business relationship will develop steadily.

B: Me, too.

对话文本翻译参考：

A: 这是我们的续订单了，凯特。希望你们能接受更方便的付款方式。上次我们用信用证付款，又麻烦又贵。

B: 我想你一定知道，信用证为我们提供了银行担保的额外保护。

A: 我知道。既然我们已经交易过一次，我相信你觉得我们是值得信赖的。如果你这次能接受承兑交单，将对我方帮助很大。

B: 我们没有接受承兑交单的先例，这对出口商来说风险太大了。

A: 付款交单怎么样?

B: 为了表示我们的诚意，我建议各让一半，70%用信用证付款，其余的用即期付款交单。

A: 哦。每次我们都要向银行支付高额的服务费。

B: 我明白你的意思。但是，我们只能做到这些了。恐怕不能再让步了。你销售我们产品获得的利润会弥补你的成本。

A: 好的，成交。那么，如果我想在下个月交货的话，需要在什么时候开立信用证?

B: 信用证应该在装船前一个月开出。

A: 好的。我会尽快安排开立以你方为受益人的信用证。

B: 那太好了。

A: 很高兴我们的讨论非常愉快，富有成果。衷心希望我们的业务关系能稳步发展。

B: 我也是。

Situational Dialogue 4

Words and Expressions

（1）deposit     定金

（2）confirmation      确认书

（3）purchase order (PO)    订购单

（4）balance payment       尾款

（5）B/L (Bill of Lading)    提单；提货单

Alice is an oversea sales clerk and now she is making a negotiation on terms of payment with her customer at a meeting.

(A=Alice   D= David)

A: Well, David. Since we have reached the agreement on product price and other items then let's go to the payment terms.

D: Great! By the way, what's your common way of payment for other customers?

A: According to my company's request we would like customers to pay 30% deposit upon confirmation of official purchase order, then the balance 70% payment against copy of B/L.

D: Balance payment against copy of B/L? Say, a couple days after cargo delivery but not yet arrived at the destination?

A: Exactly, since we can get the original B/L after few days of delivery, we will fax the copy of it to your side soon for the further payment.

D:  OK. Sounds reasonable, but if you can allow 20% deposit, then it would be great!

A: Well, David, I am very delighted to have your cooperation on business. However, regarding with the payment, I am afraid that's the best I can do since we have to make the factory and production run when orders come from all customers.

D: Mh, I fully understand your point and then let's follow the term you offered.

A: Thank you so much for the understanding.

D: No problem, and thank you for your hard work. Please send me the PO then.

A: Ok, I will do it later, enjoy your time!

D: Thank you, too!

Situational Dialogue 5

Words and Expressions

（1）D/P (Document against Payment)       付款交单

（2）it won't do      那不行，这不合适

（3）customary practice   惯例

（4）confirmed    adj. 保兑的

（5）irrevocable    adj. 不可撤销的

（6）sight L/C (Letter of Credit) 即期信用证

（7）regular customer    常客；老客户

（8）time L/C     远期信用证

（9）raise    v. 筹集

（10）down payment      预付款

（11）T/T (telegraphic transfer)   电汇

（12）international practice    国际惯例

Bill is the sales assistant from a garment company and he is confirming the payment details with his customer Alice.

(B= Bill   A=Alice)

A: We're pleased to exchange ideas with you about payment terms. What would you say to payment by D/P?

B: I'm afraid that it won't do. It has been our customary practice to require payment by confirmed, irrevocable and sight L/C.

A: But I know sometimes you accept D/P, don't you? Opening an L/C causes us a lot of expenses because it requires a certain sum of deposit in the bank.

B: Yes, we do accept D/P, which is only for regular customers and small amounts involved in the deals. This is not the case with you.

A: I understand payment by L/C provieds gurantee to both the sellers and the buyers. Considering the large amount, is a time L/C, say 60 days after sigh, acceptable? You see, we are making a concession. You should leave us some time to raise money.

B: It should have been all right. But as you said just now, it is not a small order, which means we have to bear great cost in production and preparing the goods for shipment. So I need 20% down payment by T/T.

A: Anyway, payment in advance is regarded as an international practice for a substantial order like this. We agree to do so. But would you lower the down payment to 15%? 20% is not a small sum for us.

B: OK, I understand your position. So it will be 15% down payment by T/T and the balance by 60 days L/C.

A: Quite right. I believe such arrangement is good to both of us. That's a deal.

Situational Dialogue 6

A:   Well, we've settled the question of price, quality and quantity. Now what about the terms of payment?

B:   We only accept payment by irrevocable letter of credit payable against shipping documents.

A:    I see. Could you make an exception and accept D/A or D/P?

B:    I'm afraid not. We insist on letter of credit. 

A:    To tell you the truth, letter of credit would increase the cost of my import. When I open a letter of credit with a bank, I have to pay a deposit. That'll tie up my money and increase my cost.

B:   Consult your bank and see if they will reduce the required deposit to a minimum.

A:   Still, there will be bank charges in connection with the credit. It would help me greatly if you would accept D/A or D/P.

B:   Well, Mrs. Wang, you must be aware that an irrevocable letter of credit gives the exporter the additional protection of the banker's guarantee. We always require L/C for our exports. And the other way round, we pay by L/C for our imports.

A:   To meet you halfway, what do you say if 50% by L/C and the balance by D/P?

B:   I'm very sorry, Mrs. Wang. But I'm afraid I can't promise you even that. As I've said, we require payment by L/C.

Situational Dialogue 7

A:   Well, Mr. Brown, we've settled everything in connection with this transaction except the question of payment in yen. Now can you explain to me how to make payment in yen?

B:   Many of our business friends in England, France, Switzerland, Italy and Germany are paying for our exports in Japan currency. It is quite easy to do so.

A:   I know some of them are doing that. But this is new to me. I've never made payment in yen before. It is convenient to make payment in pound sterling, but I may have some difficulty in making payment in yen.

B:   Many banks in Europe now carry accounts in yen. They are in a position to open letters of credit and effect payment in yen. Consult your banks and you'll see that they are ready to offer you this service.

A:  Do you mean to say  that I can open a letter of credit in yen with a bank in London or Bonn?

B:   Sure you can. Several of the banks in London, such as the National Westminster Bank and Barclays Bank are in a position to open letters of credit in yen. They’ll do so against our sales confirmation or contract.

A:   I see.

Situational Dialogue 8

Demanding Payment by D/A or D/P

Mr. Field: Mr. Zhou, let's come to the terms of payment.

Mr. Zhou: OK. That's what I am going to say. As usual, our terms of payment are by confimed, irrevocable L/C at sight draft against presentation of shipping documents.

Mr. Field: Could you agree to payment by D/A? This is only a sample order.

Mr. Zhou: I am afraid we can not accept the D/A. As you know letter of credit is the normal terms of payment university adopted in international business. We must adhere to this customary practice.

Mr. Field: Payment by L/C involves additional expense for us. This leaves no margin and profits at the terms of payment.

Mr. Zhou: Mr. Field, you know quite well that the article you are interested in is greatly in demand and it sells especially well. The quick turnover will of course not only offset your L/C expenses, but also give your factory satisfactory profits.

Mr. Field: As far as I know, you sometimes grand your clients such terms as D/A and D/P, don't you?

Mr. Zhou: Yes, occasionally we do. But it is only at the very special circumstances that we agree to other payment terms.

Mr. Field: Ours is not a normal case, is it? I doesn't pay to adopt L/C terms for order as small as ours.

Mr. Zhou: Um, well, in order to finalize the business, we agree to D/P at sight as the best we can do.

Mr. Field: Thanks for you consideration. As you know, I am a middle man, I need some time to find the reliable clients after I receive your bill. It would help me a lot if D/P after sight is accepted, even 60 days will do.

Mr. Zhou: I am afraid no further concession can be made.

Mr. Field: It seems I have to take things as they are. Let's put it into contract.

Mr. Zhou: Mr. Field, I should mention we accept such terms only once. Once goods were dispatched, we will show you a signed draft against you which would be sent together with the shipping documents through our remitting bank to the collecting bank at your end.

Mr. Field: I see. Thank you for your consideration.

Situational Dialogue 9

Background

Kulong Co., Ltd. is a key player in Chinese home appliance market, specializing in manufacturing quality air-conditioners. It has large sales volume in export during the  last decade. Chen Guofeng, sales manager of Kulong is now negotiating with Ms. Amanda, a purchasing manager from Exxon Corporation, USA, who is interested in the products of Kulong and satisfied with the quality. The focus of the negotiation is placed on terms of payment.

Task Description

Mr. Chen and Ms. Amanda are holding a meeting to discuss the terms of payment after the matters of price, quality and quantity have already been settled.

Topic: Negotiating on payment 

Who:  A ( Ms. Amanda), B ( Mr. Chen)

Where:  in the meeting room

When:   in the morning

What:  negotiating on terms of payment

Conversation:

A:  There is still one more thing we need to discuss, Mr. Chen, that is the terms of payment. Could you tell me what terms of payment you usually accept?

B:  Well, Ms. Amanda, I suggest payment by documentary L/C for the present transaction. If we can complete this order smoothly and establish mutual confidence,  we may consider doing business on more favorable payment terms in future.

A:  You know, to open an L/C will add to the cost of our imports. Is it possible to find alternative payment terms for this order? Say D/P or D/A?

B:  I'm afraid not, Ms. Amanda. We insist on a letter of credit.

A:  When I open a letter of credit with a bank, I have to pay a deposit. That'll tie up our capital and weaken our cash flow.

B:  I can't be of any help in this respect, but letter of credit is the only term of payment we can accept when we deal with new clients. You know, safety is our first priority.

A: OK, it’s understandable. So do you accept a time L/C, say, 15 days after sight?

B: Thank you for your understanding, Ms. Amanda. We could consider your request.

A:  Well, I'll open the L/C 30 days before the date of shipment. And it should be valid for 15 days after the date of shipment.

B:  Could you tell me what documents we ought to provide?

A:  Just as we do in common practice, a complete set of B/L, three commercial invoices, an export of license, six packing lists, an insurance policy, a certificate of quality inspection and a certificate of origin are all the documents needed in the deal.

B: Got it. Thank you, Ms. Amanda!

A: You're welcome!

Words & Expressions

1. documentary L/C  跟单信用证

2. D/P  document against payment 的缩写，意为“付款交单”

3. D/A  document against acceptance 的缩写，意为“承兑交单” 

4. L/C 15 days after sight  15 天付款远期信用证

5. B/L  bill of lading 的缩写，意为“提单”

Notes

1.  Is it possible to find alternative payment terms for this order? Say D/P or D/A? 有无接受其他支付方式的可能性，比如付款交单或者承兑交单？

2.  That'll tie up our capital and weaken our cash flow.  这样会占压资金，影响我方的现金流。

3.  B/L （提单），commercial invoice （商业发票），export of license （出口许可证），packing list（装箱单），insurance policy （保险单），certificate of quality inspection （质检单），certificate of origin （原产地证明）等单据在跟单信用证操作流程中都是不可或缺的重要依据。在实务操作中应严格遵循“单单相符、单证相符”的8 字原则。

Situational Dialogue 10

Background

As a world supplier of electronic products, Neo Tech Company, China is expanding market in Africa. Its export sales manager Carl Ding is now on the phone with Mr.  Martin, a regular client of Neo Tech, in South Africa. They are talking about the terms of payment for an order of a newly-launched MP3.

Task Description

Considering the small amount of the present transaction, Mr. Martin tries to persuade Carl Ding to adopt the payment in collection.

Topic: Accepting D/P at Sight

Who:  A (Mr. Martin), B (Carl Ding)

Where:   on the phone

When:  in the afternoon

What:  negotiating on terms of payment

Conversation:

A:   Good afternoon, Mr. Ding. The purpose of my calling is to talk with you on which terms of payment we shall adopt this time.

B: Well, Mr. Martin, what do you suggest then?

A:  As you know, MP3 Model Number 802 is a new product this year, and this is a sample order less than USD 4,000 in value, so would you kindly make your payment terms easier for us?

B:  As our long-term partner, Mr. Martin, you surely know that the regular practice of Neo Tech Company is documentary L/C.

A:  Exactly, Mr. Ding. Well, as you see, L/C is a kind of mode more suitable for relatively large orders, but the present order is a different case, isn't it? I'm wondering if it is possible for you to do us a special favor and exceptionally entertain payment by D/A. So far as I know, you did sometimes agree to such mode of payment, didn't you?

B:  You are really well-informed, Mr. Martin. But I'm sorry to tell you that we cannot  accommodate you there. It's true that we did sometimes accept D/A in practice, but it was only  under  very  rare  circumstances.  However, your order this time is an  entirely normal case.

A:  OK, then how about D/P at sight? You know, as for us importers, L/C will add to the cost. Moreover, it doesn't pay for an order of such small amount.

B:  Maybe you are right. Well, I think we can make an exception for you this time. We will, as a special case, accept D/P at sight for this sample order.

A:  Thank you so much, Mr. Ding. If the goods sell well in South Africa, we will surely place a larger order then, of course, with the payment in L/C.

B: That will be fine.

Words & Expressions

1. sample order         样品性订单

2. well-informed     a.  消息灵通的

3. accommodate     v.  适应，此处意为“通融” 

Notes

The  purpose  of  my  calling  is  to  do…  这是个很实用的句型，可以进行套用，例如：The purpose of my coming here is to inquire the possibility of establishing business  relationship with you. ( 我此行的目的是为了和你方建立贸易合作伙伴关系。)

Situational Dialogue 11

Background

Zhongyang  Agriculture  Co.,  Ltd.,  Shandong is a leading supplier of canned fruit  in East  sia. Sun Chenggong, export sales manager of Zhongyang Agriculture, is  currently negotiating with Park Jun-woo,  a client from South Korea. They are talking  about the issue of payment.

Task Description

Mr. Park is planning to suggest that Mr. Sun accept terms of payment in D/P or  D/A. However, Mr. Sun insists that L/C is the only way acceptable.

Topic: Insisting on Payment by L/C

Who:  A (Sun Chenggong), B (Park Jun-woo)

Where:  in the meeting room

When:  in the morning

What:  discussing on terms of payment

Conversation:

A：Mr. Park, it is great for us to expand the market in South Korea.

B: Actually that's beneficiary for both sides. And we sampled your canned oranges and yellow peaches yesterday.

A: How do you think? (你们觉得怎么样) 

B：Pretty tasty! I bet that your products are second to none in the Asian market.

A: So glad to hear that, Mr. Park. If you have decided, please let us know the quantity, and we will quote you the most favorable price.    (我们会给贵方做最优惠的报价)

B：OK. What mode of payment do you accept? (你方接受怎么样的付款方式)

A：Letter of credit at sight.

B: Mr. Sun, we are old friends and this time the quantity we'll order may be two times larger than our previous order. I'm wondering that is D/P or D/A is acceptable. (我在想你方是否可以接受付款交单或者是承兑交单)

A: I'm sorry, Mr. Park. But you know L/C at sight is the normal way of payment for our exports, and we can hardly make an exception.

B: If that's the case, we have no choice but to accept. (我们别无选择只能接受了)

A：Thanks for your understanding and cooperation.

Words & Expressions

1. canned fruit           罐装水果

2. expand the market          开拓市场

3. sample         抽样检查

4. second to none           第一的，最好的

5. make an exception          破例

Notes

1. Actually that's beneficiary for both sides. 实际上这对于双方都有利。

2. … we can hardly make an exception. 我们无法破例。

Notes:

1. forwarder: 货运代理

2. FCL: 整箱货（full container load）

3. LCL: 拼箱货（less than container load）

4. confirmed: 保兑的

5. irrevocable: 不可撤销的

6. D/A: 承兑交单（document against acceptance）

7. D/P: 付款交单（document against payment）

8. deposit: 保证金，押金

9. amendment: 修改

10. discrepancy: 不符，差异

11. stipulate: 规定，保证

12. beneficiary: 受益人

13. accommodate: 照顾

14. precedent: 先例

15. concession: 让步