The buyer informs the seller of discrepancies in the documents

INTERMEDICINA Moscow Sadovaya 37
	Our ref. Your ref. 31 August 20__ D.Marlow & Co. Ltd. Prince of Wales Road Sheffield S9 4EX UK   Dear Sirs,   Yesterday we received a letter from City Bank NA, New York, advising us of several discrepancies in the documents forwarded by you to the bank blocking payment out of L/C No. C/25 for $231,000.00 opened by us.   We cannot agree to accept documents, which do not comply with the credit requirements and ask you to settle the problem with the bank without delay, as the validity of the L/C expires on the 15 September and it will be cancelled.   Your early reply will be greatly appreciated.   Yours faithfully, R.Vagapov R.Vagapov Chief Buyer

THE BUYER ADVISES THE SELLER OF PAYMENT AND ASKS TO COMPLY WITH THE REQUIREMENTS OF THE CREDIT

INTERMEDICINA Moscow Sadovaya 37
	Our ref. Your ref. 12 September 20__ D.Marlow & Co. Ltd. Prince of Wales Road Sheffield S9 4EX UK   Dear Sirs,   Our bank has advised us that the proceeds of our letter of credit No. C/25 have been credited to your account. We thank you for settling the problem with the bank promptly.   We should greatly appreciate it if you would present documents in strict compliance with the requirements of credits as we have signed three new contracts which provide for payment by letter of credit.     Yours faithfully, R.Vagapov R.Vagapov Chief Buyer

THE BANK ADVISES THE BUYER OF PAYMENT

Barnley’s Bank Ltd. Queens Building Cathays Park Cardiff CF1 9UJ
	Our ref. Your ref. 14 May 20__ OAO MIM Russia Kursk Lenin st. 24   Dear Sirs,   In accordance with your instructions of yesterday’s date we have accepted a draft for 70,000.00 euros drawn by Teletrans Inc., against surrender of shipping documents in compliance with the requirements of the L/C.   We have debited your account with the amount plus our charges. The documents will be handed to you at your earliest convenience.   Yours faithfully, T.Snowland T.Snowland Credit Department

FOCUS 2. Comprehension questions

PART I

? What is documentary credit intended for?

? What are the stages in documentary credit operations?

? What are the advantages of documentary credit?

THE EXAMPLE OF AN IRREVOCABLE LETTER OF CREDIT

? Name the Seller and the Buyer.

? Who has given instructions to issue a L/C?

? In whose favour is this L/C issued?

? Name the issuing and the advising banks.

? On what condition is the L/C available?

? What do you know about documentary credit? Are L/Cs widely used in foreign trade?

LETTER 1.1

? What request does the letter contain?

? What document is enclosed with the letter?

? What information does the application form contain?

? What information does the importer need?

LETTER 1.2

? In what way will the payment out of the L/C be effected?

? Which party is to bear transportation charges?

? Which party is to cover insurance and bank commission?

LETTER 1.3

? What do the Sellers confirm by this letter?

? What are the terms of payment mentioned?

? When will the Sellers start making up the order?

LETTER 1.4

? What are the terms of payment stipulated in the letter?

? What is enclosed with the letter?

? Is partial shipment allowed?

LETTER 1.5

? What is the Sellers’ request to the Bank?

? What is enclosed with the letter?

PART II

LETTER 2.1

? What is the Sellers’ request to the Buyers?

? Why is the L/C to be prolonged?

? What solution is put forward?

? Which party is to bear bank charges for the amendment to the L/C?

LETTER 2.2

? In what way is the L/C amended?

? Which party to the contract is to bear expenses for the amendment?

LETTER 3.1

? What problem is raised in the letter?

? What solution to the problem do the Buyers offer?

LETTER 3.2

? What information is provided in the letter?

? What request does the letter contain?

LETTER 4

? What does the Bank advise the Buyer of?

? When will the documents be released?

Дата добавления: 2015-10-30