Lee Boat Builders Ltd.

Dock 23, Mainway, Hong Kong

Telephone: 385162 Telex: 349512 Fax: 662553 Cable: LEBATS

International Crafts Ltd., 6 May 20—

Thameside,

Walworth,

London SE3 2EL

UNITED KINGDOM

Dear Mr Valour,

Order No. 90103

We are pleased to inform you that the above order has been loaded on to the SS Orient which sails tomorrow and is due in Tilbury (London) on 3 June.

The dinghies and their equipment have been packed in polystyrene boxes in ten separate wooden crates marked 1-10, and bearing our brand A.

The shipping documents (see list attached) have been handed to Cooper & Deal, Hong Kong, with our draft for £7,293.50 at 60 d/s. This covers all charges and discounting. Cooper & Deal will forward the documents to Northern City Bank Ltd. who will advise you within the next few weeks.

We are sure you will be extremely pleased with the consignment. We noticed that you require a certificate of origin, and have supplied one. However, we wondered if this was for re-exporting purposes. We should point out that your customers will have the same guarantee as yourself only if the boats are not modified in any way, as this will be outside the terms of the guarantee.

Thank you for your order, and we hope you will contact us again in the future. Meanwhile, please confirm delivery, when you receive the consignment.

Yours sincerely,

J. Lee Director

9.10

Points to remember

1. Merchant banks and commercial banks in the UK offer similar services, but commercial banks encourage private account holders to use their facilities, as well as commercial concerns.

2. Commercial bank facilities include current accounts, deposit accounts, credit cards, standing orders, loans, and overdrafts.

3. The two main methods used in settling overseas accounts - bills of exchange and documentary credits – involve banks at home and abroad.

4. Bills of exchange can be at sight, i.e. payable on presentation, or after sight, payable at a stipulated date in the future. The exporter can send the bill to the importer direct, or to his bank with the documents and will obtain either payment on presentation, or acceptance against the bill. The advantage of a bill is that the exporter can get money immediately if the bill is discounted, and the importer can obtain credit if the bill is not a sight draft. The disadvantage is that the bill can be cancelled, or not paid on the due date.

5. A confirmed irrevocable documentary credit cannot be cancelled (unlike a revocable credit), and the importer's bank and its agent can guarantee payment. The importer is protected by the bank checking documents and can get a certificate of quality to ensure that the goods are up to standard. The exporter is assured of payment, and, with discounting facilities, does not have to wait for his money if the bank agrees that he can draw against the credit.

9.11

Words to remember

a commercial bank

a merchant bank

to open an account

a current/deposit/savings/budget

account

a specimen signature

a balance

a transaction

Giro system

a cheque/Eurocheque/traveller's

cheque

a cheque card

cash card

cash dispenser

a credit card

to honour a cheque

to cancel a cheque

to stop a cheque

a paying-in/withdrawal/transfer slip

notice of withdrawal

a counterfoil

a cashier

negotiable securities

a guarantor

a loan

an overdraft

to overdraw

overdraft facilities

to call in an overdraft

interest

minimum lending rate (MLR)

inflation

bank charges

a standing order

a direct debit

overseas customer

credit status

confirming houses

new issue/bullion/Euro-bond market

shipping/insurance/foreign exchange

market

a bill of exchange

a drawer

a drawee

a sight draft/bill

days after sight (d/s)

documents against payment (D/P)

documents against acceptance (D/A)

a foreign bill

an inland bill

a clean bill

to discount a bill

to endorse a bill

a dishonoured bill

to protest a bill

a letter of credit (L/C)

a revocable/irrevocable letter of credit

an importer

an exporter

an agent

confirmed credit

commission

confirming bank

Date: 2016-01-03; view: 1141