1. Trang chủ
  2. » Giáo Dục - Đào Tạo

(Tiểu luận FTU) five steps in negotiating payment

20 22 0

Đang tải... (xem toàn văn)

Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Định dạng
Số trang 20
Dung lượng 273,26 KB

Nội dung

1 Export pricing strategies 1.1 How to calculate export price .1 1.2 Factors affecting the pricing strategies Five steps in Negotiating Payment .3 2.1 Mode of Payment 2.2 Timing 2.3 Place of Payment 2.4 Delay 2.5 Results of Delay THIRD – PARTY SECURITY FOR PAYMENT 3.1 EXPORT CREDIT INSURANCE .6 3.2 GUARANTEE 3.3 Export credit insurance and Bank Guarantee The Letter of Credit (L/C) 4.1 Letter of Credit: The Ground Rules 4.2 Some forms of Letter of Credit: 11 4.3 Advantages and disadvantages of the Letter of Credit 13 4.4 The letter of credit and its associated documentation 15 4.5 Negotiating the terms of ann L/C 16 4.6 Documentary Credit Application Form 17 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In negotiations, price and payment are very important To gain more benefits and avoid “traps”, the exporter should understrand them thoroughly Therefore, we decided to choose the subject “Negotiating price and payment” to have a good knowledge of export price and payment in an international transation Although we have tried our best, mistakes are not avoided We hope you will have sympathy and correct for us LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Export pricing strategies In many negotiations, as soon as the exporter states a price, the buyer begins to demand concessions about delivery time, method of payment, and so on, concessions that can quickly make the deal unprofitable How can the exporter avoid the “price trap”? 1.1 How to calculate export price In a market that is free (and, for our present purpose, stable), a manufacturer calculates export prices by adding:  The cost of making the goods in the factory  An appropriate portion of the overhead costs of the factory (e.g, if the export deal is worth 2% of annual sales, the export price should include roughly 2% of annual overhead costs)  The extra costs associated with exporting (e.g, the cost of international faxes and telephone calls, additional freight costs, the administrative cost of preparing the full export documentation, the cost of waiting perhaps ninety days for payment rather than the usual thirty, and so on)  A profit margin (high enough to make a fair profit, but low enough to make the goods competitive in the intended market) The resulting price is a fair reflection of the manufacture’s costs, plus a reasonable expectation of profit 1.2 Factors affecting the pricing strategies Order size When the buyer agrees or disagrees with the size of the goods, the seller can make points: - increase the transport costs on a smaller order - the unit price will increase on a smaller order Specification A Product Specification is a document that provides critical defining information about a product and can include identification of the manufacturer; a list of rules, size, color, bans and standards that apply to the item Packaging LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com The buyer and seller will togother determine the branding, packaging and labeling requirement Incoterms Two parties agree method of delivery, an export price that is CIF,FOB called Incoterms known as special international trade terms Terms of payment Two parties agree method of payment, by cash in advance, letter of credits or open account Date of Delivery The final date by which the underlying commodity for a future contract must be delivered in order for the terms of the contract to be fulfilled The maturity date of a currency forward contract Warranty Period The time period in which a purchased product may be returned or exchanged; may be extended through extended warranty plans purchased from Seller So if you ask for much time warranty, the price is more costly Example of export pricing strategies Dorm trading exports canned foods from France Dorm is negotiating export of 600 cases of apricot jam by road to a neighboring country Dorm’s price per case is $20 The price is based on delivery FCA with no special packaging The jam has a six-month expiry date stamped on the label Payment will be by irrevocable, confirmed, at-sight letter of credit Delivery is two days after the opening of the credit Some changes will increase the price per case:   Size of order: reduction of the order from 600 cases to 300 cases Specification: replacement of single flavor (apricot jam) by a range of 10 flavors, some of which are “exotic”  Packaging: change of labeling to show exact nutritional values and ingredients (not normally supplied by Dorm)  Term of payment: change of payment from letter of credit to open account, payment due to 45 days from date of invoice  Delivery: replacement of a single delivery with delivery in ten installments of 60 cases over a period of one year  Warranty: increase of the expiry period from six months from date of manufacture to two years Some change will decrease the price per case:  Incoterm: delivery EXW (exporter must have the goods ready for collection in his warehouse) LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Five steps in Negotiating Payment 2.1 Mode of Payment Definition The way that a buyer chooses to compensate the seller of a good or service that is also acceptable to the seller Typical payment methods used in a modern business context include cash, checks, credit or debit cards, money orders, bank transfers and online payment services such as PayPal Modes of payment  Cash in advance/Prepayments - Avoid credit risk - Wire transfer and credit cards are the most commonly used cash-in-advance options available to exporters - Requiring payment in advance is the least attractive option for the buyer - Lose to competitors  Letters of credit - They are one of the most secure instruments available to international traders - An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the LC have been met, as verified through the presentation of all required documents - An LC protects the buyer  Documentary collections/Drafts/Bills of Exchange - A documentary collection (DC) is a transaction whereby the exporter entrusts the collection of a payment to the remitting bank (exporter’s bank), which sends documents to a collecting bank (importer’s bank), along with instructions for payment - Funds are received from the importers and remitted to the exporters through the banks involved in the collection in exchange for those documents - D/Cs involves using a draft that requires the importer to pay the face amount either at sight or on a specified date - The draft gives instructions that specify the documents required for the transfer of title to the goods Although banks act as facilitators to their clients, D/Cs offer no verification process and limited resource in the event of non-payment - Drafts are generally less expensive than LCs LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com  Open account - An open account transaction is a sale where the goods are shipped and delivered before the payment is due - This option is the most advantageous one to the importer in terms of cash flow and cost - Foreign buyers often press exporters for open account terms since the extension of credit by the seller to the buyer is more common abroad - The exporter can offer competitive open account terms while substantially mitigating the risk of non-payment by using of one or more of the appropriate trade finance techniques Example: + In the event that the Buyer fail to open L/C four days after receiving confirmation from Vietcombank then the Seller shall collect Performance Bond from Vietinbank and then the Contract is automatically cancelled +The Seller shall be paid by an irrevocable L/C opened by Vietinbank Hanoi and advised to the Seller through Indosuez Bank in Singapore payable at sight against first presentation of full set of shipping documents 2.2 Timing LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In negotiating any cash-against-invoice payment, wwhether secured or not – it is important to consider the time/payment structure The importer often wants to delay the time of payment but the exporter suffers from delay because late payment is subject to payment of interest so most sellers offer discount for early payment This helps the buyer save on the invoice price and the seller quickly collects his money The date of payment may be regulated date or a chain of dates It is also calendar dates or interval times Example: + The Buyer shall pay the Seller the purchase price of the goods amounting EUR ……… (here in after referred to as the "Purchase Price") + The Purchase Price shall be due upon the invoice issued and sent by the Seller not later than 10 days from delivery and collection of Goods by the Buyer The invoice shall be payable not later than 21 days from the issue of the invoice by Seller + If the Buyer fails to pay the purchase price, the Seller shall have the right to default interest at the rate of 0,1% of outstanding amount for each day of default without prejudice to any claims for damage pursuant to the Article 74 of the Convention 2.3 Place of Payment This is the step that determines where the money must be when payment is to be completed There are several risks that might occur if the two parties don’t specify this condition: ➢ It is very easy to be mistaken ➢ It could cause disputes if not made clearly ➢ Delay payment often triggers compensation with a lot of money In order to AVOID the dangers of slow payment, exporters try to protect themselves with this clause: Payment shall be deemed to have been made only when the contract sum is paid into the Seller’s bank account and is at the Seller’s full disposal - Difficulties in negotiating place of payment: • The banks are able to make foreign transfers • Differences in trade Law and customs between countries • Conflicts of interest LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2.4 Delay Delay in payment may be excused during a grace period (not common) or a force majeure event (more common) But most exporters not want to excuse these delays and any payment made after the agreed date of payment is in delay Example: + Client shall be entitled to withhold payment if any of contracter’s invoices not include the supporting documentation required by client 2.5 Results of Delay - When delay in payment happens the exporter is usually compensated for losses due to late payment - The exporter may ask for a payment guarantee which makes sure payment is made on time - The best solution to get rid of delay is to create a payment article in the sale contract which makes late payment is impossible Example: + If payment of any sum payable is delayed, the Seller shall be entitled to receive interest on the amount unpaid during the period of delay The interest shall be at an annual rate three percentage points above the discount rate of the central bank in the Seller’s country THIRD – PARTY SECURITY FOR PAYMENT Accepting a personal check and trading on open account are dangerous for the exporter On the other hand, prepayment bring more risks to the buyer Therefore, the third – party security appears to reduce the risks for the exporters or buyers depending on each payment method 3.1 EXPORT CREDIT INSURANCE What is Export credit insurance? It is a guarantee of payment for the exporter from a third party, an insurance company, which issues an export credit insurance policy covering the risk of non-payment The exporter has to pay the costs for that guarantee The insurance company will pay the exporter in case the buyer fails to so Some limitations of Export Credit Insurance LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com  There is always a long wait between the time when the buyer fails to pay and the time when the insuarance company compensates the exporter, says six months typically  When compensates is paid, it is unlikely to cover 100% of the original invoice price So with export credit insurance, the export is covered against the worst 3.2 GUARANTEE What is a Guarantee? Benefici Princ The principle make a promise i to pay the contract price p ary The principle asks the guarantor to The Guarantor promises to issue a guarantee pay money to the Beneficiary if the Principal breaks its promise Princ i p Example: I promise to pay you $1000 You are not sure that I have the money, so you tell me to find a bank, to make a second promise: the bank will pay you if I fails to keep the original promise If you don’t get the $1000 from me, you will get it from the bank The relationsip is a triangle Some common guarantees in business  For the risk of non-payment: Payment guarantee A payment guarantee makes sure that the exporter will receive payment It commits the bank to pay if the buyer defaults The payment guarantee is usually for 100% of the contract price  For the risk of revocation: Tender guarantee This type of guarantee is used in case that the exporter who bids on a contract to supply goods or materials to a government department or agency is withdrawn A normal figure for tender guarantee is usually from 1.5% to 5% of the contract price  For the risk of non-performance: Performance guarantee LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Performance guarantee makes sure that if the exporter works badly or not at all, the guarantor will pay, within stated limits, the costs of the exporter’s failure to perform A figure for performance guarantee is from 5% to 10% of the contract price  For the risk of losing prepayment: Prepayment guarantee This guarantee promises the buyer that the bank will return advance payments if the exporter fails to deliver The guarantee is often for 100% of the prepayment Unconditional Guarantee (Demand Guarantee) and Conditional Guarantee  Unconditional Guarantee - Demand Guarantee  Payment will be made as soon as the bank receives the first demand of the beneficiary and considers it a payment order that does not require attached documents  Guarantors cannot cite any reason to refuse payment  This guarantee is very popular because of the convenience and advantages for the beneficiaries and in accordance with the traditions and practices of commercial banks in the world  However, the downside is that the claim is subjective, so fraud may even occur if the beneficiary is a dishonest partner  Conditional Guarantee  If the beneficiary wants to be paid, he must present the document of the third party or the Court to prove the breach of the contractual obligations of the partner  This guarantee causes a delay in payment of compensation to the beneficiary  Banks are also reluctant to issue these guarantees because they can participate in disputes that arise between the parties within the contractual relationship  Due to the lack of flexibility and not in accordance with banking transaction practices, conditional guarantee is rarely used in commercial banking operations 3.3 Export credit insurance and Bank Guarantee  The same: Both of them are guarantee of payment from a third party, providing the exporter with some level of security in terms of payment  The differences:  For export credit insurance, the exporter has to pay for that insuarance while it is the buyer who pays for a bank guarantee  The third party offering export credit insurance is the insurance company while the bank offers a bank guarantee The Letter of Credit (L/C) The Letter of credit is the most widely used instrument of international banking Letters of Credit are issued in many forms for many purposes Some offer LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com first class security for the exporter; some are little better than a personal check Therefore, the exporter should try to negotiate the ideal letter of credit terms for him A letter of credit is a binding agreement by a bank to pay a certain sum of money when the exporter presents the necessary documents to the bank In a letter of credit situation, documents are exchanged for money, so they are formally called documentary credits The letter of credit is the bank instrument that assures the person selling merchandise of payment if he makes the agreed-upon shipment On the other hand, it also assures the buyer that he is not required to pay until the seller ships the goods It is thus a catalyst that provides the buyer and the seller with mutual protection in dealing with each other 4.1 Letter of Credit: The Ground Rules The letter of credit is the bank instrument that assures the person selling merchandise of payment if he makes the agreed-upon shipment On the other hand, it also assures the buyer that he is not required to pay until the seller ships the goods It is thus a catalyst that provides the buyer and the seller with mutual protection in dealing with each other Documents are exchanged for money Firstly, The buyer requests his bank to issue a letter of credit in favor of the exporter The issuing bank is in the country of the buyer, so it normally instructs a bank in the country of the exporter – the advising bank – to advise the exporter that the letter of credit has been opened The letter says , in essence, to the exporter: “We, the bank, promise that we will pay you when you submit certain documents evidencing that you have made the agreed – upon shipment” The advising bank will also handle all the necessary paperwork when the exporter tries to collect payment Next, the exporter ships the goods and passes them to the carrier and receives shipping documents from the carrier.Then,he presents these documents to the bank as evidence that the goods have been shipped The bank checks the correctness of the documents and sets the payment procedure in motion The amount of the letter of credit: The amount of the letter of credit depends on whether the buyer or the exporter is paying for the freight and insurance If the price is quoted F.O.B, then 10 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com the exporter is obliged to pay only the charges (freight and insurance) necessary to put the goods on board the vessel; freight and insurance from then on are to be paid by the buyer If the price is quoted C.I.F, then the exporter must prepay the freight and insurance costs to the underlying contract Two principles that make a letter of credit watertight: Letters of credit are made safe for exporter and buyer by two principles: autonomy and strict compliance Principle 1: Autonomy The letter of credit is an agreement by a bank to pay money against documents; It is a separate agreement from the sale contract and is unconnected with it This means the bank is obliged to pay whatever the disputes between the buyer and the exporter are For example, Tan A Records bought phonograph records from an exporter Payment was by Letter of credit issued by Vietcombank The exporter delivered a mix of cassettes and other non-contractual goods Tan A Records tried to get an injunction to stop Vietcombank from paying under the Letter of credit The court refused Principle 2: Strict compliance The bank will pay only if the shipping documents are exactly in line with the buyer’s instructions In case of discrepancies in one or some aspects of the documents presented, the bank will refuse to pay In this situation, to proceed payment, the exporter can: - Provide missing payper or correct errors - Ask the buyer to instruct the bank to change the terms of the letter of credit - Ask the bank to process the letter of credit with the discrepancies but to pay only when and if the issuing bank permits payment If the letter of credit is near its expiry date and there may be no time for the exporter to provide the missing pieces, he (or the advising bank) must contact the buyer asking the buyer to instruct the issuing bank to extend the date of credit These are some common discrepancies reported by banks: Problems with the Letter of Credit   Documents required by the credit are missing Documents required to be signed are not signed 11 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com      The credit amount is exceeded The credit has expired Documents are not presented within the required time Shipment was short Shipment was late Problems with the Bill of Lading       The bill of lading is "unclean"—it has comments on it relating to damage to or other deficiencies in the goods A marine bill of lading is required, but the bill does not state that the good were "shipped on board" a named vessel The bill of lading shows shipment-between ports other than those specified in the credit The bill of lading shows that the goods were shipped on deck This is normally forbidden unless the credit expressly allows it The bill of lading offers no evidence that freight was paid by the exporter (if this was required) There is no endorsement (if endorsement is necessary) Problems with Insurance      The insurance document is not of the type specified in the credit (e.g., a certificate of insurance is produced while the credit calls for a policy) The insurance risks are not those specified in the credit Insurance cover is expressed in a currency other than that of the credit This is forbidden unless the credit expressly allows it The sum insured is below the figure required Insurance cover does not begin on or before the date of the transport document Inconsistencies among the Documents    Description of the goods on the invoice and in the credit are different Weights differ between two documents Marks and numbers differ between two documents 4.2 Some forms of Letter of Credit: The ideal type of payment from the exporter’s point of view is the irrevocable, confirmed, at-sight letter of credit So what these terms mean? Letter of Credit: Revocable and Irrevocable In theory at least, letters of credit may be either “recovable” or “irrevocable”, but the latter is used more frequently A revocable letter of credit can be cancelled at any time by the buyer or the issuing bank without prior notice to the benificiary Therefore, it carries a risk to the exporter Few exporters will accept such an agreement, so the plain expression “letter of credit” generally means the irrevocable kind The irrevocable letter of credit can neither be amended nor 12 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com canceled without agreement of all parties That is a reason why the exporters prefer the irrevocable letter of credit An example of the irrevocable letter of credit: The letter of credit above is irrevocable: that is clear from the title: Irrevocable Documentary Credit Letter of credit: Confirmed and Unconfirmed A confirmed Letter of Credit is understood as the letter of credit to which a confirmation is added by a nominated confirming bank Confirming bank means the bank that is asked to confirm the credit by an issuing bank By adding its confirmation to an L/C, it has an absolute obligation to pay the exporter according to the terms of credit The payment are made without recourse, which means that if the issuing bank finds a problem with the documents and refuses to send funds to cover the payment, the confirming bank has no way of recovering the money it has paid to the exporter It is different from an advising bank which always makes payment with recourse if it agrees to pay the value of the credit over the counter This helps the advising bank get its money back from the exporter if the problems occur Sometimes, problems can arise when very small banks or banks in countries with severe foreign currency shortages try to instruct a bank in exporter’s country 13 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com to confirm a letter of credit The issuing banks may delay in sending funds to cover the payment The sign of a confirmed letter of credit is usually the cross in the “confirmation box” The At-sight Letter of Credit and the Alternatives Settlement by sight Payment Under this method of payment, if the documents the exporter presents are in order, the paying bank immediately pays the full face value of the letter of credit Settlement by Deferred Payment In settlement by deferred payment, the letter of credit is not payable until a number of days after delivery The seller presents the documents to the paying bank, and the paying bank agrees to pay the seller the face value of the credit when it matures If the exporter needs ready money, he can exchange the letter of credit for cash (at a discount) with any agreeable bank Settlement by Acceptance The seller presents to the accepting bank the documents and a bill of exchange (time draft) drawn usually on the buyer, and the bank will accept the bill of exchange and agree to pay it at full face value when falls due This is obviously a danger for the seller A bill of exchange that is accepted can be sold at a discount to an agreeable bank if the seller needs money immediately Settlement by Negotiation Negotiation means the selling of a financial instrument to a bank for (usually) less than its face value In this method of settlement, the seller presents to the negotiating bank the documents and a bill of exchange drawn usually on the buyer, and the negotiating bank negotiates the bill 4.3 Advantages and disadvantages of the Letter of Credit The advantages of payment by Letter of credit:  Protect the exporter: The bank assures that the expoxter will be paid if he makes the agreed-upon shipment  Protect the buyer: + the bank assures the buyer that he is not required to pay until the seller ships the goods 14 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com + the bank will pay only if the shipping documents are exactly in line with the buyer’s instructions The disadvantage of payment by Letter of credit: Banks deal only in documents, not in goods They have no legal obligation to inspect the actual merchandise They is obliged to pay whatever the disputes between the buyer and the exporter 15 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 4.4 The letter of credit and its associated documentation There are associated documents the L/C requires:     Commercial invoice Transport documentation Insurance document Other documents such as: certificate of origin, certificate of analysis, packing list, weight list, phytosanitary certificate, etc Commercial invoice Commercial invoice must be made out to the applicant for the L/C  The description of the goods on the invoice must confirm with that in the L/C  The amount shown on the invoice should not be more than that in the L/C; if it is, the bank may refuse to accept the invoice  Sometimes the buyer requires that the invoice must be certified or notarized Transport documentation Transport documentation is the document issued by the carrier to the exporter, and includes five types: sea transport, air transport, rail transport, road transport and combined transport The type required is stated in the L/C Special problems related to particular transport documents: There are some problems arising in specific circumstances when transport document is used as follows: Shipment by sea: The carrier could issue a marine bill of lading, or a sea waybill to the exporter And in some case some types of sea transport are not allowable without the agreement by the parties and being worded in the L/C In case the buyer does not plan to resell the goods during shipment, a sea waybill can be the alternative of a negotiable marine bill of lading Shipment by air: The air waybill ( or air consignment note) which is issued in originals and copies is required by the L/C That the L/C calls for “a full set of original air waybill” is a mistake because it is an impossible demand Also, a correctly completed waybill can not show the date of the flight, so the L/C should not require this information in the air waybill, or else it may cause the seller to face with troubles when his air waybill is refused by the bank, which exactly follows the wording of the L/C 16 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Shipment by rail: The carrier could issue a Rail consignment note L/C, in this method of transportation, must not demand the original of a rail consignment note, otherwise it can delay the payment Insurance document Insurance document is usually required when the shipment is made on CIF or CIP terms If the L/C does not state otherwise, insurance coverage must be for 110% of the CIF or CIP value of the goods Other documents include Certificate of Origin, Certificate of Inspection and Special Requirements Certificate of origin: is required for imports to the buyer’s country under a preferential tariff or other agreement Certificate of Inspection: can make importing easier The parties should make a note in their contract if this document is required The parties must clear that details in inspection certificate must correspond exactly with the details in the transport document and the commercial invoice, or else, discrepancies will almost certainly delay payment Special Requirements: should be agreed exactly about what and who should issue and shown clearly in the L/C When wording in the L/C, the parties should not use unspecific words such as “appropriate”, it could make difficulty in satisfying the bank for the payment 4.5 Negotiating the terms of ann L/C AGREE M ENT The e x p o rte r a n d th e buyer d is c u s s a n d lis t a ll re q u ire d docum ent a tio n IN C O R P O R A T IO N T h e lis t is in c o rp o tie d in to th e c o n tra c t S P E C IF I C A T IO N The buyer a p p lie s f o r th e le tte r o f c re d it s p e c ify in g th e a g re e d docum ent a tio n V E R IF IC A T IO N The e x p o rte r checks th e c re d it to s e e th a t rq u ire d docum ent a tio n is a s a g re e d COM PLI ANCE T he e x p o r te r rig o ro u sl y checks docum ent a tio n a n d s u b m its it to th e bank 17 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com STEPS IN NEGOTIATING A LETTER OF CREDIT 4.6 Documentary Credit Application Form Segment 1: Applicant: full name, address, account number with issuing bank of the buyer Segment 2: Issuing bank: name (can be left blank) Segment 3: Application date: the date on which the application form is submitted to the bank (can be left blank) Segment 4: Date and place of expiry: + The last date for presentation of documents to the bank + The place of expiry: often “at the counter of the confirming bank” Segment 5: Beneficiary: full name, address (the exporter in most cases) Segment 6: Method of issue: +Issue by mail: slower +Issue by teletransmission (normally telex) + Issue by mail and brief advice by teletransmission Segment 7: Transfer of the Credit - In case the exporter wants to hide the actual supplier - In principle, a L/C is not transferable unless it is permitted Segment 8: Confirmation: Exporters prefer confirmation Segment 9: Amount +the amount of the credit is expressed both in figures and in words +The currency of the credit: using the ISO currency code Eg: USD, DEM, GBP + “About”, “Approximately”: the actual payment can be +/- 10% the stated amount +Mixed payment: must state what percentage of the invoice price is covered by the credit Segment 10: Partial Shipment In principle, partial shipments are allowed unless the “not allowed” box is crossed Distinguish carefully between “partial shipments” and “shipment in installments” Segment 11: Transshipment Transshipment means moving the goods from one conveyance to another Normally transshipment is allowed except for goods travel by sea under a sea waybill or marine B/L or some other special reasons for prohibition Segment 12: Availability 18 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com “Credit available with…” – this is sometimes followed by the name of the advising bank chosen by the exporter or left blank, and the issuing bank is free to decide a bank will act for it in the exporter’s country The various types of payment are “by sight payment”, “by acceptance”,etc Segment 13: Insurance covered by the Buyer The box is normally checked when the delivery term is FOB, CFR Segment 14: Transport Information Shipment from (precise places – habors, airports…) To (precise places – habors, airports…) We hope our research will help you have a clear view about negotiating price and payment in international transactions 19 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... at sight against first presentation of full set of shipping documents 2.2 Timing LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In negotiating any cash-against-invoice payment, wwhether... case:  Incoterm: delivery EXW (exporter must have the goods ready for collection in his warehouse) LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Five steps in Negotiating Payment. .. shipping documents are exactly in line with the buyer’s instructions The disadvantage of payment by Letter of credit: Banks deal only in documents, not in goods They have no legal obligation to inspect

Ngày đăng: 11/10/2022, 06:39

TÀI LIỆU CÙNG NGƯỜI DÙNG

TÀI LIỆU LIÊN QUAN