外 贸 英 语 函 电
Business English Correspondence
主编
项伟峰
Content Structure
 Learning Goals
Job Competency
 Learning Task 1
Job task
 Learning Task 2
Job task
 Module Assessment
Exercises
 Module Conclusion
Summary
Module Six Letter of Credit
1
Learning Goals (Job competency)
2
Learning Task 1
3
Learning Task 2
4
Module Assessment
5
Module Conclusion
Learning Goals
be able to apply for an L/C as per the
contract
be able to urge the establishment of L/C
be able to notify establishment of L/C
be able to understand and examine an L/C
be able to ask for extension or request for
amendment to an L/C
Module Six Letter of Credit
1
Learning Goals (Job competency)
2
Learning Task 1
3
Learning Task 2
4
Module Assessment
5
Module Conclusion
Learning task 1 Open an letter of credit
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Lead in
Situation: Guangzhou Yada Imp. & Exp. Co. enters
into a contract with Soenla Imports Co. Ltd. on LED
modules. Mr. Smith from Soenla is applying for an
L/C on behalf of Soenla as per the Contract.
Questions:
What’s an L/C?
What role does a contract
play in issuing an letter of
credit?
When should the L/C be
opened? Why is it the most
important concern of the
Keys
1. An letter of credit is a document issued by a bank which
provides a guarantee of funding for a business. Letters of credit
are used particularly in overseas transactions, where a
company in one country wishes to purchase goods or services
from a company in another company. The bank reviews the
buyer's credit and provides a guarantee of payment in case of
default by the buyer. The person receiving the letter of credit is
considered the "beneficiary."
2. L/C is opened against a contract. Upon it is accepted, it
becomes an independent document and will not be subject to
the contract any more. Therefore, the exporter, on receipt of the
letter of credit from the advising bank, should first of all go
through all the clauses set forth in the L/C to make sure they are
in full conformity with the terms stipulated in the sales contract.
It is extremely essential to put this step in an important position.
3. The latest arrival time of an L/C usually should be a month
before the time of shipment. If the seller can receive the L/C at
an early stage, he will have time to make enough preparation
such as making the goods ready and booking shipping space,
checking the L/C and making amendments.
Learning task 1 Open an letter of credit
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
1.1 What's an letter of credit?
A document issued by a bank which provides
guarantee of payment.
a payment undertaking given by a bank
(Issuing bank) on behalf of a buyer (applicant)
to pay a seller (beneficiary) a given amount of
money.
on presentation of specified documents
representing the supply of goods
within specified time limits
these documents conforming to the terms and
conditions set out in the letter of credit
the documents to be presented at a specified
place
1.2 The characteristics of the L/C
Primary liabilities for payment: issuing
bank provides the guarantee of
payment;
Self-sufficient instrument: The L/C is a
separate document from the contract;
Pure document transaction: The bank
deals only with the documents.
1.3 L/C payment process
Applicant
2
Issuing Bank
3
1
Advising
Bank
5
4
7
8
Beneficiary
6
Negotiating
Bank
1.4 Writing Guide
Urge opening an L/ C:
Notify the importer what arrangements
have been made and tell him that goods will
be delivered as soon as their L/C comes.
Ask for the opening of the covering L/C. In
the request, some important points agreed
upon in the related contract may be
reiterated so that no important points may
be neglected.
1.4 Writing Guide
Advise an L/C:
Advise the seller of the establishment of the
L/C
Ask the seller to effect shipment in strict
accordance with the time stipulated
List required documents if necessary
Learning task 1 Open an letter of credit
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Letter 1 Requesting an L/C
Dear Mr. Smith,
We are providing the following instructions as a
guideline to be used when opening an letter of
credit to us. Please ask your bank to open the
L/C accordingly.
1. The letter of credit is to be irrevocable and
subject to the Uniform Customs and Practice for
Documentary Credits (UCP600, 2007 Revision)
by the International Chamber of Commerce.
2. The Beneficiary is to be shown as:
GUANGDONG GUANGZHOU YADA
ELECTRONICS TECHNOLOGY CO., LTD
Letter 1 Requesting an L/C
3. The letter of credit is to be payable upon
presentation of drafts drawn at sight
4. The letter of credit is to be available by
negotiation with any bank.
5. Partial shipments are permitted.
All bank charges will be paid by the Applicant.
Looking forward to your L/C.
Yours faithfully,
(Signature)
Letter 1 Requesting an L/C
Comments:
To avoid problems and delays in payment, it is
recommended that the exporter convey in
writing some guidelines to the buyer as to what
terms the credit should contain, the complete
name and address of the bank to which the
letter of credit should advised by the opening
bank, and details of shipment terms. If these
are spelled out in advance of the issuance of
the credit then costly amendments may not be
required.
Analysis:
Para.1 State the intention straightly.
Para.2 Terms and conditions that the buyer
need to pay attention to.
Para 3 End with a friendly message.
Letter 2 Urging establishment of L/C
Dear Sirs,
We refer to your order for 1000 LED tubes and
our sales confirmation No. 051.
We would like to remind you that the delivery
date is approaching and we have not yet
received the covering letter of credit.
We would be grateful if you would expedite
establishment of the L/C so that we can ship the
order on time.
Letter 2 Urging establishment of L/C
In order to avoid any further delay, please make
sure that the L/C instructions are in precise
accordance with the terms of the contract.
We look forward to receiving your response at an
early date.
Yours faithfully,
(Signature)
Letter 2 Urging establishment of L/C
Comments:
The customer is causing a delay by not issuing
the requisite letter of credit. The letter is polite
but conveys the correct note of urgency. There
can be no progress until the L/C is delivered.
Analysis:
Para. 1 Identify the references and goods.
Para. 2 State the problem.
Para. 3 Ask for action.
Para. 4 Foresee any further problems and give
instructions so that they will be avoided.
Para. 5 End with a friendly message.
Letter 3 Advising an L/C
Dear sirs,
Thank you for your letter of April 18 enclosing details of your
terms.
We are pleased to inform you that the Mercantile Bank, New
York has already opened L/C No.2043 dated May 2, 2010 by full
telex, valid until August 14, for contract No.051.
Please effect the shipment in early July or even earlier if possible,
and inform us by fax when the order has been executed.
With best regards
Yours faithfully,
(Signature)
Letter 3 Advising an L/C
Comments:
Given the detailed instructions by the seller,
the buyer is able to issue an L/C in time. Now
the buyer is urging the Seller to effect
delivery before the L/C expires. The letter
conveys the urgency of the situation.
Analysis:
 Para.1 Refer to the previous letter
 Para.2 Inform the issuance of L/C
 Para.3 Request the prompt shipment
 Para.4 Polite ending
Learning task 1 Open an letter of credit
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Core Phrases and Sentence Patterns
1. To establish/open/issue an L/C through/with. . .
bank; instruct . . . (bank) to open an L/C通过...银
行开立信用证
advise an L/C through . . . (bank)由某银行通知
confirm an L/C by . . . (bank) 由某银行加保兑
in your favor 以你方为受益人
2. To expedite /rush an L/C加速开立信用证
3. L/C should/must be opened/reach us/due to
arrive here . .. . . (time/time limit)信用证应/必须
于某期限开立/开到
Core Phrases and Sentence Patterns
4.L/C covering/against Order No... /Sales
Contract No...某订单/合同项下的信用证
5. L/C covering (for) , . . (commodity) 某项货物的
信用证
6. To conform strictly to...; in strict/precise/exact
accordance with 与.......严格相符/一致
7. L/C available/valid until . . . (date)
（信用证）到某日有效
8. L/C be quite in order（信用证）一切妥善
9. Delay of L/C；delay in opening L/C
延迟开立信用证
Core Phrases and Sentence Patterns
10. (time limit for the arrival of L/C) be
approaching/drawing near 来证限期日益临近
11. (goods) be ready for shipment/have (got)
goods ready ahead of schedule (in advance
of contracted time)
货物备妥待运/已将货物提前备妥
12. Goods to be arranged for/be put to
production only after receipt of L/C 收到信用
证以后再安排发货/生产
Group Activity: Recite and Interpretation
Step 1 Read aloud the Core Phrases and
Sentence Patterns.(In and after class, 5
minutes in class)
Step 2 Memorize and Recite
Setp 3 Interpretation: One student read
English and another student translate it into
Chinese without looking at the textbook and
then Chinese into English; Take turns to
interpretate this part.
Learning task 1 Open an letter of credit
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Simulation Workshop
Situation: Mr. Smith from Sloena signed a
Sales Contract on LED modules with Yada. The
time for shipment is approaching, however, he
has heard nothing from Yada. Please write a
letter to urge the establishment of L/C on behalf
of Mr. Smith.
Keys
Dear Sirs,
With regard to your S/C No.427 for 100,000 LED modules, we
regret to tell you that we have not received any further information
from you, not to mention the L/C in question.
We would like to remind you that the shipping date is coming and
your efforts to establish the L/C in time will ensure your prompt
dispatch of your order.
We hereby request you to expedite establishment of the L/C so
that we can execute the order within the prescribed time.
Looking forward to receiving your response.
Yours truly,
(Signature)
Learning task 1 Open an letter of credit
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Summary
Letter of Credit is a kind of written document issued
by a bank on application of the importer in which the
bank promises to pay on certain conditions.
L/C is opened against a contract.
When urging establishment of L/C, the first message
sent should be a polite note saying that the goods
ordered are ready but the relevant L/C has not yet
come to hand. If the first message bring no reply, a
second one will be sent. This one, though still
restrained, will express disappointment and surprise.
If the L/C is established in time, the buyer should
advise the seller of the establishment of the L/C so as
to facilitate the seller’s preparation for the goods.
Module Six Letter of Credit
1
Learning Goals (Job competency)
2
Learning Task 1
3
Learning Task 2
4
Module Assessment
5
Module Conclusion
Learning task 2 L/C Amendment & Extension
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Lead in
Situation: The Guangzhou Yaning Imp.& Exp.
Co. has received the Letter of Credit opened
by Soenla Imports Co. Ltd. within the
specified time. Mr.Jiang examines the L/C
upon receipt it and tries to find whether there
are some discrepancies.
Questions:
1. What types can Letter of Credit be
classified?
2. What should the exporter pay attention to
when examing an L/C?
Keys
1. Letter of Credit may be classified from different
angles such as time of payment, commitment of
banks, special purpose of credit, etc. Generally
speaking, it includes the following types:
revocable and irrevocable L/C, confirmed and
advised L/C, negotiable L/C and sight L/C.
2. The exporter should examine the terms and
conditions of the L/C to see whether it complies
with the sales contract or not. For example, the
exporter should pay attention to the quality,
quantity, packing, names and addresses,
currency and amount and transportation, etc..
Learning task 2 L/C Amendment & Extension
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
1. Type of Letter of Credit
SIGHT OR TERM/USANCE
REVOCABLE OR IRREVOCABLE
UNCONFIRMED OR CONFIRMED
2. Letter of Credit Examination
On the quality, quantity and packing
On names and addresses
On currency and amount
On transportation
On others
3. Writing Guide
L/C Amendment or Extension
Express thanks for the prompt opening of the
L/C.
Put forward amendments or extensions and
give explanations
State desired action and wish a prompt reply
Learning task 2 L/C Amendment & Extension
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Letter 1 L/C Amendment
Dear Mr. Smith,
Thank you for your L/C No.1022 covering 1000 packs
of LED modules.
However, when we check the L/C with reference to
our Contract No.3100, we find some discrepancies:
1. The name of beneficiary should be GUANGZHOU
YADA IMP. & EXP. CO.
2. The L/C expiry place should be in China, not in
UK.
3. Please kindly amend your L/C to include the
wording: “5% more or less” under the item of
Letter 1 L/C Amendment
4. Please amend the L/C to be “partial shipment and
transshipment allowed”.
You are requested to make the necessary
amendments without any delay so that we may
effect the shipment within the contracted delivery
time.
With best regards
Yours faithfully,
(Signature)
Comments & Analysis
Comments:
The Seller does not wish to infringe the terms of the
L/C, therefore, he requests the amendment to
protect himself. His request is logical and
acceptable to the buyer. In addition, the letter
conveys the urgency of the situation, hinting that he
may not effect the shipment unless he gets the L/C.
Analysis:
Para.1 Identify the reference
Para.2 State the problems
Para.3 List the discrepancies
Para.4 Request the appropriate action
Letter 2 Extension of the L/C
Dear Mr. Smith,
Thank you for your letter covering your
order for 1000 packs of LED modules.
We are regretful that owing to a delay on the
part of our suppliers, we will not be able to
get the shipment ready before the end of
June. As a result, we sent you a fax
yesterday.
We expect that the consignment will be
ready for shipment before July, 30th. We are
Letter 2 Extension of the L/C
arranging to ship it per steamer “Dong
Feng” sailing from Shenzhen on or about 10
July.
We are looking forward to receiving your
extension to the above L/C so that we can
effect the shipment.
Your cooperation will be appreciated.
Sincerely,
(Signature)
Comments & Analysis
Comments:
When there is a delay in shipment, the relevant
letter of credit may need to be extended. In this
letter, the Seller explains the reason for the
delay which is not his fault. The letter also
outlines the new arrangement and apologizes
for the delay.
Analysis:
Para.1 Identify the reference
Para.2 Outline the delay and the reasons for it
Para.3 State new delivery arrangement & date.
Para.4 Urge the extension to the L/C
Learning task 2 L/C Amendment & Extension
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Section 4 Core Phrases and Sentence Patterns
1. on/upon/after perusal/examination/checking
up/going over/going through…, find
discrepancy between…/….be not in
conformity with…经检查/审阅/核对条款，我方
发现…与…不符/不一致
2. amend; make amendment 修改
amend… to read…; amend…as…;将…改为…
amend … to allow ….请修改…允许…
3. add/delete/strike off…
(wording/clause/stipulation) 增加/取消…(表述/
条款/规定)
Section 4 Core Phrases and Sentence Patterns
4. increase L/C amount by/to…将信用证金额增
加某数/增加到某数
5. word(s)/wording…missing/omitted 漏….字样
6. extension to/of L/C延展信用证
extend. . . to/until延长至……
extend….for…(time) 延长…时间
7. for one’s account 由某人负担/支付
Group Activity: Recite and Interpretation
Step 1 Read aloud the Core Phrases and
Sentence Patterns.(In and after class, 5
minutes in class)
Step 2 Memorize and Recite
Setp 3 Interpretation: One student read
English and another student translate it into
Chinese without looking at the textbook and
then Chinese into English; Take turns to
interpretate this part.
Learning task 2 L/C Amendment & Extension
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Writing
Situation: Suppose Mr.Jiang from Yaning Imp. & Exp. Co. has
found some discrepancies between the L/C and the Contract.
Now he needs to request Soenla to amend the L/C. Please
write an amendment letter on behalf of him, based on the
following examination results.
1. The form of documentary credit is incorrect. That should
be irrevocable and confirmed.
2. As per the Contract, the expiry date should be June, 15th
not June 5th.
3. The place of negotiation and expiry should be in Shanghai,
China.
4. The insurance coverage is not in conformity with the
Contract. That should be 120% not 110%.
5. The shipment time is too tight. It’s better to be 15 days
rather than 5 days.
Keys
Dear Sirs,
We thank you for your L/C No.3948 issued by the Bank of
Cyprus. On examination, we find that there are some
discrepancies:
1. The form of documentary credit is incorrect. That should be
irrevocable and confirmed.
2. As per the Contract, the expiry date should be June 15th
not June 5th.
3. The place of negotiation and expiry should be in Shanghai,
China.
4. The insurance coverage is not in conformity with the
Contract. That should be 120% not 110%.
5. The shipment time is too tight. It’s better to be 15 days
rather than 5 days.
Please kindly amend the L/C. I believe this amendment will
meet with your approval and we shall appreciate it very much
if you can fax the amendment without delay.
Best wishes,
(Signature)
Learning task 2 L/C Amendment & Extension
Section 1 Lead in
Section 2 Business Compass
Section 3 Work Samples and Analysis
Section 4 Core Phrases and Sentence Patterns
Section 5 Simulation Workshop
Section 6 Summary
Section 6 Summary
Letter of Credit may be classified from different
angles such as time of payment, commitment of
banks, special purpose of credit, etc. Normally
each letter of credit has a combination of
sight/usance, unconfirmed and confirmed, etc.
A credit is irrevocable even without some
indication to that effect under UCP 600’s Article 3.
Upon receiving the L/C, the exporter should
check if any terms and conditions of the L/C
comply with the sales contract; for discrepancies,
the exporter should request the importer to
amend it.
Module Six Letter of Credit
1
Learning Goals (Job competency)
2
Learning Task 1
3
Learning Task 2
4
Module Assessment
5
Module Conclusion
Module Six Letter of Credit
1
Learning Goals (Job competency)
2
Learning Task 1
3
Learning Task 2
4
Module Assessment
5
Module Conclusion
Module Conclusion
《外贸英语函电》 ISBN 978-7-303-14749-6