Tổng hợp tiếng anh cho ngành thương mại kinh doanh

ENGLISH FOR INTERNATIONAL TRADE 1

Software CD “Business English 3” (installed with CD 1); & Textbook is “Business Transactions”

Unit 1: International Money Order.

Unit 2: Checques

Unit 3: Traveller’s cheques.

Unit 4: Letters of Credit; Invoices

Unit 5: Bills of Lading.

Unit 6: Letters of enquiries

Unit 7: Follow-up letters; sales letters

Unit 8: Letters of complaints

Examination:

Speaking

Listening

Writing: business letters, reports, essays

Translation: English – Vietnamese; Vietnamese – English

Unit 1

International Money Orders

  1. Money order
  2. Illustration
  3. Vocabulary
  4. Correspondences
  5. Exercises

Name: ………… Date: 29 August 2012

Glossaries

1) Money OrderLệnh rút tiền, lệnh phiếu
2) regularThường
3) in many aspectsXét theo theo nhiều góc độ
4) except thatNgoại trừ trường hợp
5) to resideCư trú
An international money order is very similar in many aspects to a regular money order except that it can be used to make payments abroad. With it, a buyer can easily pay a seller for goods or services if he or she resides in another country. International money orders are often issued by a buyer’s bank and bought in the currency that the seller accepts. International money orders are thought to be safer than sending currency through the post because there are various forms of identification required in order to cash an international money order often including a signature, and a form of photo identification.   

PLACEMENT TEST – Class: ……

Name:  ….Date of Birth: ….. Place of Birth: ………..

Date of Test: ……

PART 1: In brief answer the following questions

1) Do you have a computer?

2) Have you ever accessed the Internet to look up vocabulary in English?

3) Do you like to study English?

PART 2: Translate into Vietnamese.

PART 3: Underline the vowel where it is stressed in the word of two syllables or more.

I.    Money order

Money Order in the U.S.

                                                                                   20-00-28 BARCLAY BANK  International Money Order Issued by BARCLAY BANK LIMITED HIGH STREET CLAXTON   Date: .. Pay :………………………… £   To the order of (CEO of the Bank)……………. Amount ……………………………………                                                  NOT EXCEEDING FIVE HUNDRED POUNDS STERLING Sender     XYZ COMPANY LIMITED Negotiate through the world at the current rate for demand drafts. To: Barclay Bank Limited 33 Old Broad Street, London, EC2P M8 England                                              For                                                                          Barclays Bank International Limited                                                                  473726   20  00  28  782390009

Glossaries

Student’s name:

Date: 27 August 2012

1)alternative(n) sự lựa chọn, phương án
2)IMO= International Money OrderLệnh rút tiền QT, lệnh phiếu QT.
In the United States, a money order is a type of check intended to provide a safe alternative to sending cash in the mail. Money orders are typically sold by third parties such as the Postal Service, grocery stores, convenience stores, and financial service companies such as banksTại Mỹ, lệnh phiếu là một loại chi phiếu nhằm cung cấp phương thức gửi tiền mặt qua bưu điện an toàn. Lệnh phiếu thường do các bên thứ 3 bán ra chẳng hạn như dịch vụ bưu điện, cửa hàng thực phẩm, cửa hàng tạp hóa, và các công ty dịch vụ tài chính như ngân hàng.
A money order as purchased by a presenter typically consists of two portions: the negotiable check for remittance to the creditor, and a receipt he retains for his records. The amount is imprinted by machine or checkwriter on both portions, and similar documentation, either as a third hard copy or in electronic form, is retained at the issuer and agent locations.Lệnh phiếu được người cầm giữ xuất trình thường gồm có 2 phần: chi phiếu chuyển nhượng dung để thanh toán cho chủ nợ, và biên nhận người xuất trình dùng để lưu hồ sơ. Số lượng tiền do nơi phát hành in bằng máy trên cả 2 phần, và các chứng từ liên quan, giống như bản cứng thứ 3 hay có mẫu lập trình trin máy vi tính, được lưu giữ nơi phát hành hay các đại lý.
A money order is purchased for the amount desired. In this way it is similar to a certified check. The main difference is that money orders are usually limited in face value to some specified figure (usually under $1,000) while certified checks are not.   One of the reasons for the growing popularity of money orders is that, unlike a personal bank check, they are pre-paid and therefore cannot bounce. The only hypothetical reasons a money order could ever bounce are if the payment is stopped by the maker of the money order, if the issuing company goes bankrupt, or if the money order is fraudulent or counterfeit.Muốn mua Ngân phiếu có số lượng tiền bao nhiêu cũng được. Như vậy lệnh phiếu cũng giống như Séc có xác nhận. Khác nhau chủ yếu là lệnh phiếu thường có mệnh giá quy định( thường dưới 1000 dollar) trong khi chi phiếu có xác nhận muốn viết bao nhiều tùy ý.

Một trong những lý do lệnh phiếu được nhiều người ưa chuộng là vì, khác với chi phiếu cá nhân, người mua phải trả trước và do vậy không có trường hợp bị nhảy số thứ tự. Giả thuyết duy nhất có thể đặt ra khiến cho lệnh phiếu bị nhảy số (không được rút tiền mặt) là nơi phát hành lệnh phiếu ngưng thanh toán, đơn vị phát hành bị phá sản hay lệnh phiếu bị giả mạo hay tẩy xóa
Money orders are generally considered safer for payments from parties unknown to the payee, as opposed to a personal check drawn on the maker’s bank account. This is mainly because money orders are unlikely to bounce due to insufficient funds, since a money order is drawn on a bank’s funds rather than on an individual’s bank account like a personal check is. And while an individual’s checking account balance is susceptible to running out due to personal whims and incompetencies, a banking institution’s funds are not. In recent years, partly for this reason, money orders have become a preferred method  of payment by sellers of goods over the Internet, but are rapidly being replaced by electronic transfer services (such a Paypal) as the most popular methodNgân phiếu thường được xem là phương thức thanh toán an toàn cho người thụ hưởng không biết rõ người ký phát là ai, hoàn toàn trái ngược với trường hợp ký phát Séc cá nhân dựa trên tài khoản của người ký phát. Chủ yếu là bởi vì Ngân phiếu không thể nhảy số thứ tự để trả lại do không đủ tiền, kể từ khi một lệnh chuyển tiền được rút ra vào các quỹ của ngân hàng chứ không phải là trên tài khoản ngân hàng của một cá nhân như chi phiếu cá nhân. Và trong khi số dư tài khoản của một cá nhân kiểm tra dễ bị hết do whims cá nhân và incompetencies, một tổ chức quỹ của ngân hàng thì không. Trong những năm gần đây, một phần vì lý do này, thư chuyển tiền đã trở thành một phương pháp ưa thích thanh toán của người bán hàng qua Internet, nhưng nhanh chóng được thay thế bởi các dịch vụ chuyển tiền điện tử (như Paypal) là phương pháp phổ biến nhất
Money order in India In India, a Money Order is a service provided by the postal service. A payer who wants to send money to a payee, pays the amount and a small commission at a post office and gets a receipt from the post office. The amount is then delivered as cash to the payee after a few days by a postal employee, at the address specified by the payer. A receipt from the payee is collected and delivered back to the payer at his address. This is reliable and safer than sending cash in the mail.   This is a very valuable service for transferring funds to a payee who is in a remote, rural area, where banks may not be conveniently accessible or where most people may not use a bank account at all.Ngân phiếu ở Ấn Độ Ở Ấn Độ, ngân phiếu là 1 dịch vụ được cung cấp bởi Dịch vụ bưu điện. Người có ngân phiếu muốn gởi tiền đến Người thụ hưởng, cần đưa 1 số tiền mặt và phí thủ tục cho Bưu điện và nhận lại  1 biên nhận từ bưu điện. số tiền này sau đó được giao như là tiền mặt đến Người thụ hưởng sau 1 vài ngày bởi nhân viên bưu điện, theo địa chỉ đã được ghi rõ bởi người cầm Ngân phiếu. Biên nhận từ Người thụ hưởng được nhân viên bưu điện lấy lại và giao cho Người nộp tiền mặt tại địa chỉ anh ta. Đây cách gởi tiền mặt qua thư rất tin cậy và an toàn.     Đây là dịch vụ rất có ích cho việc chuyển tiền đến người thụ hưởng khi họ ở nơi xa xôi, vung nông thôn mà các ngân hàng không thể tới dễ dàng hay nơi mà hầu hết mọi người không thể sử dụng tài khoản ngân hàng.      
II.   Illustration Here is the introduction for using International Money Order on Italian Post Office website (Poste Italiane) International Money Order: To send money abroad, from all post offices   Features: According to the existing agreements with different countries, Poste Italiane offers two types of services: International money orders are payable at the post office listed on the money order itself, but they can also be cashed at another office. In this case, the beneficiary must pay 1.03 euro. The amount of the international money order is shown in the currency of the destination country or in an agreed upon currency, after having been converted from euro. FEATURES According to the existing agreements with different countries, Poste Italiane offers two types of services: ordinary international money orders: sent by post;the Eurogiro: sent via the IT network linking the countries belonging to the circuit.  International money orders enable to receive or send registered letters, insured letters and C.O.D. parcels from/to countries having underwritten a bilateral agreement with Italy.   Up to 154,94 euro From 154,95 euro to 258,23 euro From 258,24 euro to 516,46 euro From 516,47 euro to 1.032,91 euro From 1.032,92 euro euro  3,25 3,87 4,39 4,91 5,16   Euro Notice of receipt/payment          0,46 Certificate of issue/payment 0,57 Payment at alternative post office 1,03 Revalidation and duplication 1,29 Richiesta in visione vaglia pagato 1,29 Albania, Algeria, Belgium, Bulgaria, Burkina Faso. Canada, Cape Verde, Czech Rep., Taiwan, China, Cyprus, South Korea, Ivory Coast, Egypt,Ghana, Greece, Guinea, India*, Israel*, Mauritius, Latvia, Malta, Mauritania, Poland*, Romania, Senegal, Slovenia, Spain (including Andorra), South Africa, Thailand, Hungary. Uruguay, Vatican City, Yugoslavia Through France: Benin, Cameroon, Futuna Island, Gabon, New Caledonia, French Polinesia, Wallis Island Through South Africa: Lesotho, Namibia. Swaziland * Authorised solely to issue money orders (source: www.posteitaliane.com)  II. Minh họa Đây là sự giới thiệu để sử dụng Ngân phiếu quốc tế trên website của Bưu điện tại Italia. Ngân phiếu quốc tế: để gởi tiền ra nước ngoài, từ tất cả các bưu điện   Các đặc trưng: Theo như các thỏa thuận đã có với những quốc gia khác, bưu điện Ý cung cấp 2 loại hình dịch vụ như sau: IMO chỉ được thanh toán tại những bưu điện đã có tên trong danh sách của Ngân hàng Ý công bố. mọi người cũng có thể đổi tiền mặt tại các ngân hàng khác ngoài hệ thống nhưng họ phải tốn 1.03 euro. Số tiền của IMO được đổi thành đơn vị tiền tệ của quốc gia chấp nhận IMO hoặc đơn vi tiền tệ đã được thỏa hiệp sau khi đã chuyển đổi từ Euro.    Những đặc điểm khác: Theo như các thỏa thuận đã có với những quốc gia khác, bưu điện Ý cung cấp 2 loại hình dịch vụ như sau: IMO thông thường: được gởi bằng Bưu điện Mạng thanh toán điện tử Eurogiro: được gởi thông qua hệ thống IT kết nối với các quốc gia theo mạch. IMO có thể nhận hay gởi “Thư bảo đảm”, “thư khai giá” và bưu điện C.O.D từ đến những quốc gia đã ký hiệp định song phương với Italia.   Từ 154,94 euro trở xuống Từ 154,95 euro đến 258,23 euro Từ 258,24 euro đến 516,46 euro Từ 516,47 euro đến 1.032,91 euro Từ 1.032,92 euro trở lên     euro  3,25 3,87   4,39   4,91   5,16     Euro Thông báo nhận hay thanh toán           0,46 Chứng nhận ký phát hay thanh toán 0,57 Thanh toán tại bưu điện ngoài hệ thống 1,03 Xác nhận lại và sao chép 1,29   Yêu cầu Ngân phiếu đã được trả trước 1,29
In the United States, a money order is a type of check intended to provide a safe alternative to sending cash in the mail. Money orders are typically sold by third parties such as the Postal Service, grocery stores, convenience stores, and financial service companies such as banks.  Tại Mỹ, lệnh phiếu là một loại chi phiếu nhằm cung cấp phương thức gửi tiền mặt qua bưu điện an toàn. Lệnh phiếu thường do các bên thứ 3 bán ra chẳng hạn như dịch vụ bưu điện, cửa hàng thực phẩm, cửa hàng tạp hóa, và các công ty dịch vụ tài chính như ngân hàng.
A money order as purchased by a presenter typically consists of two portions: the negotiable check for remittance to the creditor, and a receipt he retains for his records. The amount is imprinted by machine or checkwriter on both portions, and similar documentation, either as a third hard copy or in electronic form, is retained at the issuer and agent locations.  Lệnh phiếu được người cầm giữ xuất trình thường gồm có 2 phần: chi phiếu chuyển nhượng dung để thanh toán cho chủ nợ, và biên nhận người xuất trình dùng để lưu hồ sơ. Số lượng tiền do nơi phát hành in bằng máy trên cả 2 phần, và các chứng từ liên quan, giống như bản cứng thứ 3 hay có mẫu lập trình trin máy vi tính, được lưu giữ nơi phát hành hay các đại lý.   
A money order is purchased for the amount desired. In this way it is similar to a certified check. The main difference is that money orders are usually limited in face value to some specified figure (usually under $1,000) while certified checks are not.     One of the reasons for the growing popularity of money orders is that, unlike a personal bank check, they are pre-paid and therefore cannot bounce hay không được rút tiền mặt. The only hypothetical reasons a money order could ever bounce are if the payment is stopped by the maker of the money order, if the issuing company goes bankrupt, or if the money order is fraudulent or counterfeit.Muốn mua lệnh phiếu có số lượng tiền bao nhiêu cũng được. Như vậy lệnh phiếu cũng giống như chi phiếu có xác nhận. Khác nhau chủ yếu là lệnh phiếu thường có mệnh giá quy định (thường dưới 1000 dollar trong khi chi phiếu có xác nhận muốn viết bao nhiều tùy ý. Một trong những lý do lệnh phiếu được nhiều người ưa chuộng là vì, khác với chi phiếu cá nhân, người mua phải trả trước và do vậy không có trường hợp bị nhảy số thứ tự. Giả thuyết duy nhất có thể đặt ra khiến cho lệnh phiếu bị nhảy số (không được rút tiền mặt) là nơi phát hành lệnh phiếu ngưng thanh toán, đơn vị phát hành bị phá sản hay lệnh phiếu bị giả mạo hay tẩy xóa.
Money orders are generally considered safer for payments from parties unknown to the payee, as opposed to a personal check drawn on the maker’s bank account. This is mainly because money orders are unlikely to bounce due to insufficient funds, since a money order is drawn on a bank’s funds rather than on an individual’s bank account like a personal check is. And while an individual’s checking account balance is susceptible to running out due to personal whims and incompetencies, a banking institution’s funds are not. In recent years, partly for this reason, money orders have become a preferred method  of payment by sellers of goods over the Internet, but are rapidly being replaced by electronic transfer services (such a Paypal) as the most popular method.  Ngân phiếu thường được xem là phương thức thanh toán an toàn cho người thụ hưởng không biết rõ người ký phát là ai, hoàn toàn trái ngược với trường hợp ký phát Séc cá nhân dựa trên tài khoản của người ký phát.

Security features of U.S. Postal Money Orders

  • PMOs are generally regarded as one of the more difficult financial documents to counterfeit
  • Watermarks. Telltale watermark when held up to the light should reveal images of Benjamin Franklin, repeated on the left side (top to bottom)
  • Dark security strip running alongside the watermark (top to bottom), just to the right. If held to the light, a microfiber strip will show tiny letters “USPS” along its length, facing backward and forward
  • Rainbow of inked patterns and tones.
  • Maximum value of $1000 for domestic (US) postal money orders, and $700 for International Postal Money Orders.

•           Denominations appear in two locations. If the denomination amounts are discolored, that indicates that they have been erased.

III. Vocabulary

1. Insert the correct words and phrases in the appropriate spaces in the text below

Balance          Beneficiary        Convenient        Currency          debit            Deposit              Encash      Fill in           identification       Levy      Mail    Negotiate          Refund      Service charge                   Transaction

International Money Orders are suitable for small transaction  such as subscription, gifts, order or small import orders. They are usually paid in sterling or US dollars. If you want to pay a person or a business abroad in any other currency , ask a bank official for advice.

When you fill in the request form you write your own name and the names of the Beneficiary, you should also state how you wish to pay: in cash, by cheques, or by debit to your account. You then receive the I.M.O., and you can mail it direct to the company or relative abroad.

The I.M.O is convenient because the bank makes all the arrangements for you and there is no delay. There is a small charge, however. This is also called a commission  charge.

Banks which negotiate IMOs have signs (called stickers) which they display on outside windows and inside on cashiers’ counters. Your beneficiary can obtain cash for his IMO or he can deposit it to his account. The beneficiary’s bank will levy a small commission charge, and will ask for suitable identification if they do not know him personally.

Only banks are allowed to encash I.M.O.s. They cannot be used in hotels, shops or airports.

If you lose an I.M.O. You can get immediate refund which is limited to £100 or US$250.

The balance is repaid after a short period.

International Money Orders are suitable for small………(1).. such as subscription, gifts, order or small import orders. They are usually paid in sterling or US dollars. If you want to pay a person or a business abroad in any other… (2)…, ask a bank official for advice.

When you …(3) ..the request form you write your own name and the names of the …(4)…… , you should also state how you wish to pay: in cash, by cheques, or by ………(5)..to your account.You then receive the I.M.O., and you can. ..(6)…it direct to the company or relative abroad.

The I.M.O is …(7)…because the bank makes all the arrangements for you and there is no delay. There is a small….(8)…, however. This is also called a commission  charge.

Banks which.. .(9)…IMOs have signs (called stickers) which they display on outside windows and inside on cashiers’ counters. Your beneficiary can obtain cash for his IMO or he can ….(10)…it to his account. The beneficiary’s bank will…(11)…a small commission charge, and will ask for suitable… (12)…. if they do not know him personally.

Only banks are allowed to …(13)….I.M.O.s. They cannot be used in hotels, shops or airports.

If you lose an I.M.O. You can get immediate …(14)…. which is limited to £100 or US$250.

The . ..(15)….is repaid after a short period.

Balance

2. Insert the correct phrases in the appropriate spaces below.

By cash/in cash                              By debit                        On the spot

By cheque                                      On your behalf

You can buy an I.M.O. at your local bank branches. The bank can fill in all the necessary forms On your behalf (1)…, so you don’t have to complete long application forms.

The most convenient method of payment is By debit (2)…., as you don’t have the risk of carrying notes and coins and the bank can simply reduce the amount in your account for you. If you have an account and a cheque book you can pay By cheque (3). Both of these methods are better than payment By cash.. .(4), which is inconvenient and risky.

If you have an account or cash, the bank can complete all the arrangements.. .(5)…, so there is no delay. You can then post the I.M.O. immediately.

You can buy an I.M.O. at your local bank branch. The bank can fill in all the necessary forms ….(1)…, so you don’t have to complete long application forms.

The most convenient method of payment is… .(2)…., as you don’t have the risk of carry notes and coins and the bank can simply reduce the amount in your account for you. If you have an account and a cheque book you can pay.. .(3). Both of these methods are better than payment On the spot.. .(4), which is inconvenient and risky.

If you have an account or cash, the bank can complete all the arrangements.. .(5)…, so there is no delay. You can then post the I.M.O. immediately.

IV. Correspondences

A company supplying a small order, such as a number of books or magazines, may send a letter to a buyer in England asking for payment before the goods are sent. This is necessary because the supplier does not know the buyer personally, or does not do regular business with him.

                                                        HP Company                                                       124-6 Le Loi str.                                                       Ward 10, dist. 1                                                       Ho Chi Minh City 2nd March, 2005   J.K. Harvey, 37 Winchester Str, London, SW34 KR.   Dear Mr. George,   Thank you for your order (Number CH243) for 300 copies of magazine from our publisher. We enclose the invoice, which gives you details of the cost. Payment must be made before we send the goods. The invoice Number is QS3458.   We would like to suggest that you pay by International Money Order. The amount of not (£137) is small, and the International Money Order is the quickest and cheapest method ft both of us. Your bank can help you to complete it, and you can then post it to our address.   We look forward to supplying the magazines as soon as we receive payment.   Yours sincerely,   C.A. Hines

Fill in each blank with a correct preposition, or write “NOTHING” where it is NOT needed.

Dear Mr. George,

Thank you for your order (Number CH243) (1)____ 300 copies (2)______ magazine from our publisher. We enclose (3)______ the invoice, which gives you details (4)______ the cost. Payment must be made before we send the goods. The invoice Number is QS3458.

We would like to suggest that you pay (5)_____ International Money Order. The amount (6)_____ (not (£137) is small, and the International Money Order is the quickest and cheapest method for both (7)of us. Your bank can help you to complete it, and you can then post it (8)to our address.

We look forward to supplying the magazines as soon as we receive payment.

Yours sincerely,

C.A. Hines

The English buyer can then go to his bank branch and purchase an International Money Order. Then he writes to the supplier.

  37 Winchester Str, London, SW34 KR.   8th March 2005   HP Company 124-6 Le Loi str. Ward 10, dist. 1 Ho Chi Minh City   Dear Sirs,   Thank you very much for your letter of the 2nd March 2005 enclosing your detailed bill.   I enclose an International Money Order (No.1075881) for USD 250,00 (two hundred fifty US dollars) which include charge your bank will levy for cashing it, or depositing it to your account.   I trust that this method of payment is convenient. If we reserve rooms in your hotel in the future, however, International Money Order may be inadequate, we hope to enjoy better prices.   We look forward to seeing you then.                                                              Yours faithfully,   J.K. Harvey  

V.   Exercises

  1. Write a letter to an English customer who has booked 25 rooms for a group of English tourists.
                                                          New World Hotel                                                           12-6, Le Lai Street                                                            Ward 7, District 1                                                            HCMC, Vietnam Ms Anderson Sales Manager J.K. Harvey 37 Winchester Str, London, SW34 KR.   2nd October, 2010     Dear Ms Anderson, Miss   Thank you for your booking 25 rooms for a group of English tourists.   We enclose the brochure, which gives you details of the cost. Deposit must be made before we arrange for preserving the rooms.   We would like to suggest that you pay by International Money Order. The amount of (£137) is small, and the International Money Order is the quickest and cheapest method for both of us. Your bank can help you to complete it, and you can then post it to our address.   We look forward to serving you and your group then.   Yours sincerely,   C.A. Hines
  • Reply to the above letter, enclosing an International Money Order for US$250.

J.K. Harvey,

37 Winchester Str,

London, SW34 KR.

2nd March, 2005  

Dear Sir,

Thank you for your order (No. CH243) for 300 copies of magazine from our publisher. We enclose the invoice, which gives you details of the cost. Payment must be made before we send the goods. The invoice No. is QS3458.

We would like to suggest that you pay by International Money Order. The amount of not (£137) is small, and the International Money Order is the quickest and cheapest method ft both of us. Your bank can help you to complete it, and you can then post it to our address.

We look forward to supplying the magazines as soon as we receive payment.

Yours faithfully,

C.A. Hines

Unit 2: Cheques

  1. History……………..
  2. Parts of a cheque
  3. Types of cheques
  4. Vocabulary………..
  5. Exercises………….

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A Cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specific demand account held in the maker or depositor’s name with that institution. Both the maker and payee may be natural persons or legal entities.  Chi phiếu là một công cụ có thể chuyển nhượng, chỉ thị cho một định chế tài chính thanh toán một lượng tiền cụ thể, rút ra từ một tài khoản vảng lai của người ký phát. Cả người ký phát và người thụ hưởng phải đến tuổi trưởng thành hay nhà pháp nhân.
During the first century C.E., banks in the Near East issued letters of credit known as Sakks. They are considered the basis for the modern cheque.     The cheque had its origins in the ancient banking system, in which bankers would issue orders at the request of their customers, to pay money to identified payees. Such an order was referred to as a bill of exchange. The use of bills of exchange facilitated trade by eliminating the need for merchants to carry large quantities of currency (e.g. gold) to purchase goods and services. A draft is a bill of exchange which is payable on demand of the payee.Vào thế kỷ thứ nhất sau Công nguyên, các ngân hàng ở vùng Cận Đông đã phát hành thư tín dụng được gọi là Sakks. Thư tín dụng được coi là cơ sở cho Séc hiện đại.   Séc có nguồn gốc từ hệ thống ngân hàng cổ xưa, theo đó chủ ngân hàng sẽ phát hành Ngân phiếu theo yêu cầu của khách hàng, để trả tiền cho người thụ hưởng đã xác định. Một Ngân phiếu như vậy được gọi là Hối phiếu. Việc sử dụng Hối phiếu tạo điều kiện thuận lợi trao đổi nhằm loại bỏ việc các thương gia mang quá nhiều tiền tệ(chẳng hạn như Vàng)để mua hàng hóa hay dịch vụ cho nhu cầu của họ. Từ Draft cũng được gọi là hối phiếu có lợi theo yêu cầu của người thụ hưởng.
The cheque was originally called a “check” in reference to the counterfoil used to check against forgery and alterations. The spelling “cheque” seems to have been introduced by J. W. Gilbart in 1828 {A practical treatise on banking, 2nd ed, 1828, Effingham Wilson, London). He explains in a footnote ‘Most writers spell it check. I have adopted the above form because it is free from ambiguity and is analogous to the ex-chequer, the royal treasury. It is also used by the Bank of England “Cheque Office”‘. According to Holden, the older spelling survived in some English” text-books in the 1920s (M J Holden, History of Negotiable Instruments in English Law, 1955, University of London Press, London).         The older spelling is more common in the USA, but the UK and most Commonwealth countries have adopted the newer form “cheque”.  Từ “cheque” ban đầu được gọi là “check” bì người ta dùng Cùi tập Séc để kiểm tra giả mạo và tẩy xóa. Việc đánh vần từ “Cheque” dường như đã được giới thiệu bởi JW Gilbart vào năm 1828 (trong sách” Luận thực tế về ngân hàng”, Tái bản lần thứ 2, năm 1828, Effingham Wilson, London). Ông giải thích rằng trong Lời chú thích cuối trang hầu hết các nhà văn đều đánh vấn là “Check”. Tôi đã chấp nhận từ đó vì nó không bị mơ hồ và tương tự với ex-checker nghĩa là kho bạc hoàng gia. Ngân hàng Anh cũng còn sử dụng cho văn phòng chi phiếu. Theo Holden, việc đánh vần cũ vẫn tồn tại ở một số sách tại nước Anh vào những năm 1920 (MJ Holden, “Lịch sử của các công cụ chuyển nhượng trong Luật tiếng Anh”, năm 1955, Đại học London Press, London).   Việc đánh vần cũ (check) rất phổ biến ở Mỹ, nhưng Vương quốc Anh và hầu hết các quốc gia thuộc Khối thịnh vượng chung đã áp dụng từ mới hơn chính là ”cheque”.
II) Parts of a cheque   A cheque shall contain: 1-Place of issue 2-Cheque number 3-Account number MICR 4-Date of issue 5-Payee 6-Amount of currency 7-Signature of the drawer A cheque is generally valid for six months after the date of issue unless otherwise indicated, but this varies depending on where the cheque is drawn. In Australia, for example, it is fifteen months  II) Các bộ phận của 1 tờ Séc   Một kiểm tra phải bao gồm: 1) Nơi phát hành Séc 2) Mã số Séc 3) Số tài khoản MICR 4) Ngày phát hành Séc 5) Người hưởng lợi 6) Số tiền ghi trên Séc 7) Chữ ký của người ký phát Séc Séc thường có hiệu lực khoảng 6 tháng sau ngày phát hành nếu không có thông báo khác, nhưng điều này còn thay đổi tùy thuộc vào nơi mà Séc được ký phát.ví dụ ở Úc là 15 tháng.

III. Types of cheques

III. Types of cheques In the United States, cheques are governed by Article 3 of the Uniform Commercial Code. •An order cheque – the most common form in the US – is payable only to the named payee or his or her indorsee, as it usually contains the language “Pay to the order of (name).”     •        A bearer cheque is payable to anyone who is in possession of the document: this would be the case if the cheque does not state a payee, or is payable to “bearer” or to “cash” or “to the order of cash”, or if the cheque is payable to someone who is not a person or legal entity, e.g. if the payee line is marked “Happy Birthday”.     In the United States, the terminology for a cheque varies with the type of financial institution on which it is drawn. In the case of a savings and loan association it is a negotiable order of withdrawal; if a credit union it would be a share draft. Cheques as such are associated with chartered commercial banks, but under Article 3, and thus in common usage, cheque is understood to mean any or all of these negotiable instruments.     Parties to regular cheques generally include a maker, the depositor writing a cheque; a drawee, the financial institution where the cheque can be presented for payment; and a payee, the entity to whom the maker issues the cheque. Ultimately there is also at least one indorsee which would typically be the financial institution servicing the payee’s account, or in some circumstances may be a third party to whom the payee owes or wishes to give money.     A payee that accepts a cheque will typically deposit it in an account at the payee’s bank, and have the bank process the cheque. In some cases, the payee will take the cheque to a branch of the drawee bank, and cash the cheque there. If a cheque is refused at the drawee bank (or the drawee bank returns the cheque to the bank that it was deposited at) because there are insufficient funds for the cheque to clear, it is said that the cheque has bounced.     When a maker directs the maker’s bank to deduct the funds for the amount of a cheque from the maker’s account, thus guaranteeing funds will be available for the cheque to clear, and the bank indicates this fact by making a notation on the face of the cheque (technically called an acceptance), the instrument is then referred to as a certified cheque.     A cheque used to pay wages due is referred to as a payroll cheque. Payroll cheques issued by the military to soldiers, or by some other government entities to their employees, beneficiants, and creditors, are referred to as warrants.   When a cheque is designed to allow the person signing it to make an unconditional payment to someone else as a result of paying the account holder for that privilege, it is referred to as a travelers cheque. As travelers cheques can usually be replaced if lost or stolen, they are often used by people on vacation in place of cash. The use of credit or debit cards has, however, rendered them less important than they previously were; there are few places that do not accept credit cards but do travelers cheques – in fact, nowadays, many places do not accept the latter.     A cheque sold by a post office or merchant such as a grocery for payment by a third party for a customer is referred to as a money order or postal order.     A cheque issued by a bank on its own account for a customer for payment to a third party is called a cashier’s cheque, a treasurer’s cheque or a bank cheque. A cheque issued by a bank but drawn on an account with another bank is a teller’s cheque.         In addition to issuing cashier’s and teller’s cheques, banks often sell money orders, and travelers cheques are usually purchased from banks.   Some public assistance programs such as the Special Supplemental Nutrition Program for Women. Infants and Children, or Aid to Families with Dependent Children make vouchers available to their beneficiaries, which are good up to a certain monetary amount for purchase of grocery items deemed eligible under the particular program. The voucher can be deposited like any other cheque by a participating supermarket or other approved business.III. Các loại Séc Ở Hoa Kỳ, Séc được chi phối theo Điều 3 của “Bộ luật thương mại thống nhất”.   • Séc theo lệnh – loại phổ biến nhất ở Mỹ, chỉ trả cho người thụ hưởng có tên hoặc người hưởng lợi của anh ấy/cô ấy,vì nó thường chứa ngôn ngữ”yêu cầu trả cho…(tên)”.     • Đối với Séc vô danh thì trả cho bất cứ ai sở hữu chứng từ này: Điều này sẽ xảy ra nếu Séc không khi rõ người hưởng lợi là ai, hoặc là trả cho “người vô danh” hoặc “đổi thành tiền mặt” hoặc “yêu cầu trả cho tiền mặt”, hoặc Séc trả cho 1 số người không phải là pháp nhân hay là người trưởng thành, ví dụ như nếu dòng người thụ hưởng được ghi là “Happy Birthday”.   Tại Hoa Kỳ, thuật ngữ cho 1 tờ Séc thay đổi với các loại hình tổ chức tài chính khi Séc được ký phát tại đó. Đối với trường hợp của Hiệp hội tín dụng và cho vay Séc là 1 tài khoản vãng lai, nếu là một Tổ chức tín dụng thì …. Như vậy Séc có liên quan với các ngân hàng thương mại được Chính phủ cấp phép, nhưng theo quy định tại Điều 3, và do đó sử dụng phổ biến, Séc được hiểu là  bất kỳ hoặc tất cả các công cụ chuyển nhượng.     Các bên đến những tấm Séc thông thường bao gồm cả người ký phát, người gửi tiền viết séc, người được ký phát, tổ chức tài chính là nơi Séc có thể được xuất trình để thanh toán; và người thụ hưởng chính là Pháp nhân, người ký phát phát hành Séc. Cuối cùng cũng có ít nhất một ngườI được lĩnh Séc thường sẽ là một cơ quan tài chính là đối tượng quản lý tài khoản của người thụ hưởng, hoặc trong một số trường hợp có thể là một bên thứ ba mà người thụ hưởng nợ tiền hoặc mong muốn trả tiền cho họ.   Người thụ hưởng chấp nhận tờ Séc thường sẽ gửi nó trong một tài khoản tại ngân hàng của người thụ hưởng(chính họ), và ngân hàng giải quyết tờ Séc . Trong một số trường hợp, người thụ hưởng sẽ đưa Séc cho chi nhánh ngân hàng của người được ký phát, và lĩnh tiền mặt (của tờ Séc) tại đó luôn. Nếu một séc bị từ chối tại ngân hàng của người được ký phát (hoặc ngân hàng đó trả về ngân hàng phát hành tờ Séc đó) bởi vì có các tài khoản không tồn tại, họ nói rằng tờ Séc không có tiền trong TK.   Khi người ký phát Séc yêu cầu ngân hàng của người ký phát trừ trực tiếp vào tài khoản của người ký phát khi trả tiền Séc, do đó tài khoản bảo đảm sẽ có hiệu lực cho các Séc để trừ, và ngân hàng cho thấy thực tế này bằng một ký hiệu trên mặt của tờ Séc(kỹ thuật được gọi là acceptance), phương tiện thanh toán đó được gọi là Séc được chứng nhận.     Một tờ Séc được sử dụng để trả lương nó được gọi là payroll check. Séc để trả lương ban hành bởi quân đội cho binh lính, hoặc một số tổ chức chính phủ khác trả lương cho nhân viên, người được hưởng lợi Séc và các chủ nợ, được gọi là bảo đảm.   Khi Séc được thiết kế để cho phép người ký nó thanh toán vô điều kiện cho người khác như là một kết quả của việc trả tiền của chủ tài khoản cho các đặc quyền đó, nó được gọi là Séc du lịch. Khi séc du lịch thường có thể được thay thế nếu bị mất hoặc bị đánh cắp, loại Séc này được sử dụng bởi những người đi nghỉ ở nơi có thể đổi thành tiền mặt. Tuy nhiên, việc sử dụng thẻ tín dụng hoặc thẻ ghi nợ, nó ít quan trọng hơn so với trước đây, có những nơi không chấp nhận thẻ tín dụng nhưng lại chấp nhận séc du lịch – quả thực trong thực tế ngày nay nhiều nơi vẫn không chấp nhận.     Một tờ Séc được bán bởi một bưu điện hoặc các thương gia như hàng tạp hóa hoặc cửa hàng để thanh toán bởi một bên thứ ba cho một khách hàng được gọi là Ngân phiếu hoặc ngân phiếu bưu chính phát hành.   Một tờ Séc được phát hành bởi ngân hàng trên tài khoản riêng của người ký phát cho một khách hàng để thanh toán cho bên thứ ba được gọi là Séc của nhân viên thu ngân, Séc của thủ quỹ hoặc Séc ngân hàng. Một tờ Séc phát hành bởi ngân hàng, nhưng được ký phát trên một tài khoản với ngân hàng khác là Séc thủ quỹ.     Ngoài việc phát hành Séc thu ngân và séc thủ quỹ, các ngân hàng cũng thường bán Ngân phiếu và séc du lịch.     Một số chương trình hỗ trợ công cộng như Chương trình bổ sung dinh dưỡng đặc biệt(SNAP) cho phụ nữ. Trẻ sơ sinh và trẻ em, hoặc chương trình AFDC làm voucher có sẵn cho những người hưởng lợi của chương trình, đó là lên đến một số lượng tiền tệ nhất định để mua các mặt hàng tạp hóa được coi là đủ điều kiện theo chương trình cụ thể. Voucher có thể được gửi như bất kỳ tờ Séc nào khác bởi một siêu thị tham gia hoặc doanh nghiệp được chấp thuận khác.

IV. Vocabulary

1. Insert the correct phrases into the appropriate spaces in the passage below.

In direct credit By direct debit In credit In payment In preference to In return Until further notice
Transferring into an account directly from another account Automatic payment by a bank of regular payments to e.g. an insurance company, etc. An account is in credit when you have money in the bank Please accept this cheque in payment I like to use cheques in preference to cash; it’s safer. You pay some of your salary into a deposit account, and in return you get some interest.    Until the instructions are changed  

Most people nowadays accept cheques (1) in payment of bills and debts. They accept cheques from creditors (2) In preference to cash because it is safer, especially with the crossed cheques system, and (3) in return they write cheques to their creditors. In addition, many people now have their salaries paid (4) In direct credit into their account.

If your account is (5)in credit. you can pay your bills by cheque at any time. Furthermore, you can pay regular monthly or quarterly (3 month) bills, such as insurance premiums (6) until further notice .. .The bank will do this for you for a small charge, and you can instruct your bank to continue these regular payments,(7)by direct debit .usually until the debt is paid.

2. Insert the correct phrases in the appropriate space in the passage below

balance                  cash                       Cheque book      Counterfoil        Credit slip

Crossed                 Drawer                   Interest                      Notice                        Overdraft

Payee                    Payments               Receipts                    Statement                  withdraw

Checking account  in debit

The big advantage of a current account is that you have a (1) Cheque book      …. and you can pay your bills, by cheque. You don’t have the risk of carrying (2)cash.…around with you.

The advantage of a deposit account is that your money earns (3)Interest.…, although the rate is usually not very high.                                                                                                                                         

You can (4) withdraw .money from your current account at any time, but with a deposit account you must usually give seven days'(5) notice

If you want to make payment to creditors you write their name on the cheque and sign it. Your creditor is described as the (6).payee..and you are described as the (7) drawer….You can find out how much you have in the bank by requesting a regular (8) statement….All transactions are included in this, both (9)….and / or debits and credits respectively. If your payments are greater than your receipts your account is overdrawn. You need the permission of your bank manger to have an (10) receipt in this way.

It is advisable to keep a record of all our payments on the (11)credit slip of your cheque book. If your credit entries (or receipts) are not paid by direct credit you should bring the cash, cheque or money order with you and fill in a (12)counterfoil .also called a paying-in slip if it is from your paying-in book.

If you send a cheque through the post, it must be a (13) crossed .cheque to make sure that it cannot be cased by a dishonest person. Sometimes it is necessary to write “Account Payee Only” between the crossed lines.

Finally, with a current account you should occasionally ask your branch how much you have in your account. This account is called the (14) balanced. which is the difference between your payments and receipts.

V.   Exercises

1. Write a letter to the branch of a bank in Central London

You wish to open a current account to enable you to pay the expenses of agents and representatives. You will make monthly payments into the account from your own bank branch; and other remittances, such as money orders and postal orders, will be paid into it. Include any other credit and debit entries you think necessary.

Dear Sir/ Madam,

I wish to open a current account to enable me to pay the expenses of agents and representatives.

I will make monthly payments into the account from my own bank branch; and other remittances, such as money orders and postal orders, will be paid into it.

I will also include other credit and debit entries I think necessary, such as customer’s accounts receivable, insurance premiums, power payments, etc.

I look forward to hearing from you soon

Yours faithfully.

2.   Write a letter to a customer asking him to pay a bill for a magazine subscription

You want him to pay by cheque to the magazine’s account. Give the address of the bank, the name of the payee, and the name and address of the bank branch.

  22 Nguyen Van Linh street District 7 Ho Chi Minh city   17 September 2012   Mr. Peters Brown Family Marketing company 43 Nguyen Thi Minh Khai District 1 Ho Chi Minh city   Dear Sir or Madam       → faithfully   I am writing to you in asking you to pay a bill of VND 300,000 (three hundred thousand dong)
for our magazine subscription.   I would like to pay by check to our account. The address of our bank is …………………………. and the name of the payee is ………………. From your residental place, you can contact…………………….. I would like to pay by check to our account. The address of our bank is …………………………. and the name of the payee is ………………. You are living in District 7, so you can contact …………………….. I think it is more convenient for you.   We look forward to hearing from you soon   Yours faithfully   Jonathan Smith Editor in chief  

3.         Write a letter to a representative

Requesting information on how to pay a sum of $US 115 which your firm owes him for his expenses as a representative. Your firm thinks it best to pay by cheque direct to his account in London. Suggest this to him, but include alternatives as well.

Viet tien company 14 Le Loi street District 1 Ho Chi Minh city   17 September 2012   Mr John Wayness 142 Road 1 London   Dear John,        → sincerely   I am writing to you in requesting information on how to pay a sum of $ US 115 (one hundred fifteen US dollars), which we own you for your expenses as a representative.   We think it best to pay by direct check to your account in London.   We have got your account number, however, please give us your confirmation.   We suggest this, but there are various alternatives as well. You can let us know which way is the most convenient for you.   I look forward to hearing from you soon.   Yours sincerely,   Miss Betty Douglas Secretary.  

Unit 3: Travellers’ Cheques

I.    Travellers’ Cheques

Definition

A traveler’s cheque is a preprinted, fixed-amount cheque designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer (usually a bank) for that privilege. As traveler’s cheques can usually be replaced if lost or stolen, they are often used by people on vacation in place of cash. The use of credit card has, however, rendered them less important than they previously were; there are few places that do not accept credit cards but do traveler’s cheques – in fact, nowadays, many places do not accept the latter.

Traveler’s cheques are available in several currencies such as U.S. dollars. Pound Sterling, Japanese Yen, and Euro; denominations usually being 20, 50, or 100 of whatever currency, and are usually sold in pads of five or ten cheques, e.g., 5 x €20 for €100. Traveler’s cheque do not expire, and unused cheques can be kept by the purchaser as long as he wishes until 1 ready to spend the money. The purchaser of a supply of traveler’s cheques effectively gives interest-free loan to the issuer, which is why it is common for banks to sell them “commiss free” to their customers. The commission, where it is charged, is usually 1% of the total fac value sold. The largest volume issuer of traveler’s cheques is American Express, the first to develop the product in the late 19th century.

Legal terms for the parties to a traveler’s cheque are the obligor or issuer, the organization that produces it; the agent, the bank or other place that sells it; the purchaser, the natural person who buys it, and the payee, the entity to whom the purchaser writes the cheque for goods and/or services. For purposes of clearance, the obligor is both maker and drawee.

Use and acceptance

Upon obtaining custody of a purchased supply of traveler’s cheques, the purchaser should immediately write his signature once upon each cheque, usually on the cheque’s upper portion. The purchaser will also have received a receipt and some other documentation that should be kept in a safe place other than where he carries his cheques.

When wanting to cash a traveler’s cheque while making a purchase, the purchaser should, in the presence of the payee, date and countersign the cheque in the indicated space, usually on the cheque’s lower portion (if at a restaurant, it may be helpful to ask the waitperson to watch and wait for this to be done).

Applicable change for a purchase transaction should be given in local currency as if the cheques were banknotes.

Security concerns

It is a reasonable security procedure for the payee to ask to inspect the purchaser’s picture i.d.; a driving licence or passport should suffice, and doing so would most usefully be towards the end of comparing the purchaser’s signature on the i.d. with those on the cheque. The best first step, however, that can be taken by any payee who has concerns about the validity of any traveler’s cheque, is to contact the issuer directly; a negative finding by a third-party check verification service based on an i.d. check may merely indicate that the service has no record about the purchaser (to be expected, practically by definition, of many travelers), or at worst that he has been deemed incompetent to manage a personal checking account (which would have no bearing on the validity of a traveler’s cheque).

Deposit and settlement

A payee receiving a traveler’s cheque should follow its normal procedures with it for depositing checks into its bank account: usually, endorsement by stamp or signature and listing of the cheque and its amount on the deposit slip. The bank account will be credited with the amount of the cheque as with any other negotiable item submitted for clearance.

In the United States, if the payee is equipped to process checks electronically at point of sale, they should still take custody of the cheque and submit it to a financial institution, particularly to avoid any confusion on the part of the purchaser.

Loss or theft

Loss or theft of traveler’s cheques should be reported immediately to the issuer and to the local police authority. The receipt issued when the cheques were purchased will expedite the refund process.

Remind you

Things to look out for when buying travellers’ cheques are the commission charged and the exchange rate.

High street banks charge between 1% and 2%, with minimum charges £2.50 and £4, but commission can be as high as 6%. You can save money by ordering them online. Nationwide charges no commission on online orders, but levies a delivery charge of £3.50. Thomas Cook also accepts online orders.

Bear in mind you will also be charged commission when you cash the cheques, although it is difficult to predict how much as it varies from country to country and outlet to outlet. In the UK, commission can be as high as 6%. Some overseas currency exchange outlets don’t chargi commission but offer a lower rate of exchange.

Try and buy your cheques from a retailer who will cash any unused cheques free of charge. Ii you buy them from your bank, check if you can pay them into your account for free.

Where you are heading for will determine the currency your travellers’ cheques should be in, but buying them in sterling is often the best option as it will be cheaper for you to cash any leftover cheques back when you return to the UK. However, euro travellers’ cheques can be a good idea for use within the European union.

If you are heading to remote areas or to developing countries, the currency exchange clerks may shake their heads at sterling travellers’ cheques. US dollar cheques are a safer bet, especially in areas like South America, so do check before you travel.

II.   Illustrations

Visa Travellers Cheques

Like a Visa card, Visa Travellers Cheques make excellent traveling companions. The cheque are accepted at millions of financial institutions and merchants around the world and are ~ issued in the most popular currencies, including U.S. Dollars, Pound Sterling, euro, Japanese Yen, and Canadian Dollars. In the U.S. they can be used as cash at retail locations, hotels and restaurants. Outside the U.S. they are usually exchanged for local currency at banks and foreign exchange bureaus, although, in some countries, large retailers and hotels may accept them as payment of goods or services. To find out where you can cash your Visa Travellers Cheques, log onto www.cashmycheques.com, or call the relevant toll-free number listed on this site.

As an added convenience, Dual-Signature Visa Travellers Cheques are available at selected locations. These are cheques that carry the signatures of two persons as original holders, but can be used independently by either of the holders.

So the next time you travel, ask your financial institution for Visa Travellers Cheques. They’] safe, secure, accepted around the world, and you can easily get a refund if your cheques are lost or stolen. Note that you are expected to safeguard, without negligence, all cheques as a prudent person would safeguard a like amount of cash. Certain restrictions apply which are contained within the purchase agreement.

Where can I get Visa Travellers’ Cheques?

You can purchase Visa Travellers Cheques at thousands of financial institutions and other locations around the world. To find the location nearest you. call the Visa Travellers Cheque Global Refund and Assistance Centre (numbers listed below).

What do I do if my Visa Travellers’ Cheques are lost or stolen?

Call the Visa Travellers Cheque Global Refund and Assistance Centre. If you’re traveling in the United States, Canada, Puerto Rico, or the U.S. Virgin Islands, call toll-free 1-800-227-6811.

Travellers’ Cheques Card

American Express® offers you the new Travellers Cheques Card – a great way to make your travelling life easier. It’s a new, safe and convenient way to carry money abroad, with the security of travellers cheques and the convenience of a payment card.

Special offer

The Travellers Cheque Card normally costs £20, but for Nat West customers, it’s just £15. And what’s more, for Advantage Premier, Advantage Gold, Student and Graduate customers, it’s FEE-FREE!

Key benefits

  • Security of travellers cheques with the convenience of a card
  • Prepaid and reloadable – no reload charges and funds never expire*
  • Balance returned if lost or stolen, usually within 24 hours
  • Accepted at millions of shops, restaurants and ATMs (where the American Express logo is displayed) worldwide.** Use the ATM locator to find them.
  • 24/7 customer service and Travellers Cheque Card Replacement
  • Free Passport and Credit/Debit Card Replacement Assistance
  • Order up to 4 Cards so family and friends can carry money safely too
  • Available in euro or US dollar

In the UK, the American Express Travellers Cheque Card is issued by American Express Bank Ltd. (“the Bank”). The Bank is authorised and regulated by the Financial Services Authority (“FSA”). The Bank is entered in the FSA’s Register and its Register number is 124583. The FSA’s Register can be accessed at www.fsa.gov.uk/register. The Bank’s registered VAT number is GB – 760440746. American Express Bank Ltd., 60 Buckingham Palace Road, London, SW1W 0RR (No.FC1863, BR301). Incorporated with Limited Liability in the State of Connecticut, USA and registered with the Secretary of State, Hartford, Connecticut, USA with its head office in New York, USA.

You can apply for Travellers Chueqiies on line by using Acrobat Reader to fullfil the form

Remember

*After 3 years, when the card expires, you can either redeem any remaining funds or transft them to a new Travellers Cheque Card.

** You can use the card to pay for car rental or hotel rooms. The card cannot be used to reserve or pick up a car at a car rental location. Nor can it be used to reserve a room or checl into a hotel or motel location; however, you can use your card to pay for a car rental or hotel room at the end of your rental or stay.

* * * Calls may be recorded. Lines open 9am-8pm weekdays and 9am-6pm weekends. The maximum call charge from a BT landline is 3p per minute. Calls from other networks may vary. View full terms and conditions.

Travellers cheques available

Australian dollars: A$20, A$50, AS 100, AS200 ..

Canadian dollars: C$20, C$50, C$100, C$500

Euros: €50, €100,_€200 (these can currendy be used in Austria, Belgium, Finland, France, Germany, Greece, Republic of Ireland. Italy ..Luxembourg, the Netherlands, Portugal and Spain).

Japanese yen: ¥10,000, ¥20,000, ¥50,000

Saudi Arabian rivals: SAR500,        SAR1000

South-African rand:”R10Q,’R26o, R500 1* Swiss francs: SF50, SFI00, SF200; SF500-UKpounds:£20,£50,£100,£200,£500

US dollars: US$20, US$50, US$100, US$500, US$1000

III. Vocabulary

TEST – Date: 26 October

Name: ……………………………….. DOB: ………POB: ……………….

PART 1: Insert the correct words or phrases in the passage below and then translate it into Vietnamese: (30 minutes)

Check                Current                   Draw

commission     Denominations   Endorse

Guarantee

Participate

Rate of exchange Subject to

A person who has a (1)…………. account with a bank can obtain cash in other countries in various ways. The most common method is the purchase of travellers cheques. He can also use his Eurocheques card as identification to (2)………… . his cheques. Or he can (3)……….. .on his account in his own country, which means that the cashier will have to telephone, email or fax his branch for confirmation. He will have to (4)…………the cheque, that is write his signature on the back. Most the major banks in Europe (5)…………in the Eurocheque scheme.

When cashiers handle travelers cheques, they must (6)………… that the countersignature is the same signature. The holder must then present his passport as identification.

When the formalities are completed, the cashier can issue banknotes and coins to the customer, using the current (7)……….. .to calculate how much to issue. Travellers cheques have the advantages of convenience and safety. They can be issued in . (8)………..of $10, $25, $50, $100 and $250, (9)………… exchange control regulations. They must pay a small (10)…………, or service charge as it is called in the USA.

Part 2: Give 5 words whose –ed is pronounced the same as that in issued.

1)………………..   2)………………..   3)………………..  

4)………………..   5)………………..

Give 5 words whose –s is pronounced the same as that in banknotes.

1)………………..   2)………………..   3)………………..  

4)………………..   5)………………..  

A person who has a (1) Current account with a bank can obtain cash in other countries in various ways. The most common method is the purchase of travellers cheques. He can also use his Eurocheques card as identification to (2) draw his cheques. Or he can (3)check .on his account in his own country, which means that the cashier will have to telephone, email or fax his branch for confirmation. He will have to (4)endorse the cheque, that is write his signature on the back. Most the major banks in Europe (5)participate in the Eurocheque scheme.

When cashiers handle travelers cheques, they must (6) guarantee that the countersignature is the same as the signature. The holder must then produce his passport as identification.

When the formalities are completed, the cashier can issue banknotes and coins to the customer, using the current (7) rate of exchange to calculate how much to issue. Travellers cheques have the advantages of convenience and safety. They can be issued in . (8) denominations of $10, $25, $50, $100 and $250, (9)subject to. exchange control regulations. They must pay a small (10) commissions, or service charge as it is called in the USA.

A person who has a Current account with a bank can obtain cash in other countries in various ways. The most common method is the purchase of travellers cheques. He can also use his Eurocheques card as identification to draw his cheques. Or he can check on his account in his own country, which means that the cashier will have to telephone, email or fax his branch for confirmation. He will have to endorse the cheque, that is write his signature on the back. Most the major banks in Europe participate in the Eurocheque scheme. ENDORSED

When cashiers handle travelers cheques, they must guarantee that the countersignature is the same as the signature. The holder must then present his passport as identification. Yours sincerely Yours faithfully

Endorse

When the formalities are completed, the cashier can issue banknotes and coins to the customer, using the current rate of exchange to calculate how much to issue. Travellers cheques have the advantages of convenience and safety. They can be issued in denominations of $10, $25, $50, $100 and $250, subject to exchange control regulations. They must pay a small commissions, or service charge as it is called in the USA.

Travelers cheques      Signature                          Correspond

advantages                    encashment                  convenient

The most common method of carrying money internationally is by using … .(1).. .They offer the ….(2)… of safety and convenience. They are safe because of the two signatures needed. When you buy them, you sign in the top left-hand corner, where it says “….(3).When you changed them for cash in other country you using again in the presence of the cashier (you “cash” or “encash” them). This time you sign where it says “countersignature” (bottom left). You also fill in the date of… .(4)… .(top right-hand corner). The cashier should inspect the travelers cheques to see if the signature and countersignature            ……(5)……..

They are safe for another reason, also. You can get a refund if you lose them. They are .. .(6)….because you can use them almost anywhere. You don’t need to go to a bank to cash them (although many people do this). They are acceptable as payment in restaurants, hotels, airlines, shops and so on.

IV. Exercises

1. Write this dialogue between an English customer and an Italian cashier.

The English customer wants to know if he can use his cheque book to draw some cash. He is not sure about the procedure. He has a credit card. Remember a request for identification and the current exchange rate in the dialogues is needed.

Italian cashier: Good morning. Can I help you?

English customer: Yes.   I want to know if I can use my cheque book to draw some cash.

Italian cashier: Yes, of course.

EC: Well .. I am not sure about the procedure but I have a credit card. Can you tell me how I can use my check book?

IC: ………………………………………………………………………

EC: Oh, it’s not very difficult to use checks. Thank you for your help.

IC: Not at all. I hope that you can find your check book very useful.

EC: Thank you very much again. Good-bye.

IC: Good-bye.

2. Write a letter from a bank to a customer who has written to you asking for advice on travelers cheques.

The customer has never been abroad before, so it is necessary to write the minor details and information the customer will need to have in a bank branch overseas.

ACB Bank

123 Nguyen Dinh Chieu Str.

District 3,    HCMC

21 September 2010

Mr. ….

……..

Dear Mr. Douglas,

Thank you for your letter of 14 September in which you asked for advice on travelers cheques.

As you know, because you have a (1) Current account with our bank, you can obtain cash in other countries in various ways. The most common method is the purchase of travellers cheques.

You can also use your Eurocheques card as identification to (2) draw your cheques. Or you can (3)check .on your account in your own country, which means that the cashier will have to telephone, email or fax your branch for confirmation. You will have to (4)endorse the cheque, that is write your signature on the back. Most the major banks in Europe (5)participate in the Eurocheque scheme.

When cashiers handle travelers cheques, they must (6) guarantee that the countersignature is the same as the signature. The holder must then produce your passport as identification.

When the formalities are completed, the cashier can issue banknotes and coins to the customer, using the current (7) rate of exchange to calculate how much to issue. Travellers cheques have the advantages of convenience and safety. They can be issued in . (8) denominations of $10, $25, $50, $100 and $250, (9)subject to. exchange control regulations. They must pay a small (10) commissions, or service charge as it is called in the USA.

I think the information above is very useful for you in traveling abroad. You need to bring your identification or Eurocheques card to present to a teller in a bank branch overseas.

I think it is not difficult to use checks. I hope that you can find your check book very useful.

Yours sincerely,

Gulliver’s travellers cheques

Unit 4: Letter of Credit

I.    Understanding

(It is) A letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase the bank will be required to cover the full or remaining amount of the purchase.

Often used in international transactions to ensure that payment will be received. Due to the nature of international dealings such as distance, differing laws in each country, and difficulty in knowing each party personally the use of letters of credit has become a very important aspect of international trade. The bank also acts on behalf of the buyer (holder of letter of credit) where the supplier will not be paid until the supplier confirms to the bank that the goods have been shipped.

A letter of credit, also referred to as an LOC or LC, is a document issued by a financial institution which essentially acts as an irrevocable guarantee of payment to a beneficiary. This means that if the applicant obtaining the LC fails to perform its obligations, the bank pays. The LC can also be the source of payment for a transaction, meaning that an exporter will get paid by redeeming the letter of credit. Letters of credit are used, nowadays, almost exclusively in international trade transactions of significant value, for deals between a supplier in one country and a wholesale customer in another. The parties to a letter of credit are usually an applicant who wants to send money, a beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advising bank of whom the beneficiary is a client. In executing a transaction, letters of credit incorporate functions common to giros/ gyros and travellers cheques.

How it works

Let’s imagine that a business called Acme Electronics from time to time imports computers from a business called Beijing Computers, which banks with the Shanghai Business Bank. Acme holds an account at Commonwealth Financial. Acme wants to buy £500,000 worth of merchandise from Beijing Computers, who agree to sell the goods and give Acme 60 days to pay for them, on the condition that they are provided with a 90-day LC for the full amount. The steps to get the letter of credit would be as follows:

  • Acme goes to Commonwealth Financial and requests a £500,000 letter of credit, with Beijing Computers as the beneficiary.
  • Commonwealth Financial can issue an LC either on approval of a standard loan underwriting process, or by Acme funding it directly with a deposit of £500,000 plus fees between 1% and 8%.
  • Commonwealth Financial sends a copy of the LC to Shanghai Business Bank, which notifies Beijing Computers that payment is ready and they can ship the merchandise Acme ordered with full assurance of payment.
  • On presentation of the stipulated documents in the letter of credit and compliance with the terms and conditions of the letter of credit, Commonwealth Financial transfers the £500,000 to Shanghai Business Bank, which then credits the account of Beijing Computers by that amount.
  • Note that banks deal only with documents under the letter of credit and not the underlying transaction.

If the stipulated documents are presented and the terms and conditions of the letter of credit are met, then the issuing bank is obliged to pay under the letter of credit, even if the underlying transaction is not fulfilled.

Also the bank is not required to pay if the stipulated documents are not presented or the terms and conditions of the letter of credit are not met, even if the underlying transaction was fulfilled.

Other information

Various conditions can be placed on a letter of credit, such as to pay parts of the sum on shipment and/or arrival, or for it to be used simply as a guarantee to obtain payment on an unpaid invoice, or for a revolving credit line where there are regular shipments from a supplier to a customer.               

Some letters of credit provide funding by means of drafts issued with the original, which operate like cheques. A beneficiary presented with an LC draft who has questions about it should contact the issuing bank.

The issuance and enforcement of letters of credit are normally subject to publications of the International Chamber of Commerce (ICC) such as UCP, eUCP, ISP 98 or ISBP; however, a letter of credit may state the conditions that govern its enforcement, including Article 5 of the  Commercial Code (typically used in the United States); but the extensive use of LC’s in international transactions mandates that one contemplating becoming a party to a transaction involving one be familiar with the laws of other countries which may have jurisdiction over a dispute.

The current ICC publications cover the following types of transactions.

  • UCP – Commercial letters of credit (The most current publication is the UCP 500, however letters of credit can be subject to this publication or earlier publications if so noted in the letter of credit.)
  • e-UCP – Commercial letters of credit that allow for electronic presentations
  • ISP 98 – Standby letters of credit (The UCP may also be used for standby letters of credit, but these practices are not as well suited for a standby letter of credit situation)
  • ISBP – This is actually a supplement to the UCP which attempts to standardize banking practices worldwide.

1. Importer applies for letter of credit.

2. Opening bank sends LC through correspondent or branch which advises exporter of receipt of LC.

3. Exporter sends goods and documents to freight forwarder.

4. Freight forwarder dispatches merchandise and provides documents to the advising bank.

5. Advising bank forwards documents to negotiating bank which checks documents against LC, and authorizes payment if no discrepancies are found.

6. The importer’s account is debited. Importer’s bank gives him the documents with which he can claim the merchandise.

Letter of Credit (L/C) transactional flow diagram_________________________________________

II.   Reading

If you are involved in import/export, then you have probably come across the term L/C (letter of credit). Although L/Cs can vary in type, this article will specifically discuss the commercial documentary letter of credit used for business transactions. This particular type of L/C is payable upon the presentation of specific documents.

An L/C can be thought of as a letter from an importer’s bank informing an exporter that they will be paid for a shipment upon presentation of the specified documentation. All communication takes place within banking channels and documentation must not contain discrepancies.

For example, if you wanted to import a shipment of clothing and the seller (exporter) hi asked for an L/C. If you accept the exporter’s terms you will need to apply for an L/C from your bank in favor of the seller. L/C’s usually state a time period and manner in which the exporter must provide documentary proof that they have shipped the goods. Other obligations may also be included.

Obtaining an L/C is not as simple as just asking for one. As your bank is pledging to pay the exporter on your behalf, you will be required by your bank to demonstrate that they will be able to recover their funds from you.

Once it has agreed to open an L/C, the opening bank (the importer’s bank) will transmit the L/C to its branch or correspondent (the advising bank) closest to the exporter. The advising bank will notify the exporter that credit has been established in their name on they have received the L/C.

Exporters should make sure that they are capable of meeting the terms and conditions i an L/C upon receiving it. This is very important, as if the shipment does not match that described in the L/C; payment will in most cases be delayed until the discrepancy has been resolved.

After shipment and presentation of the necessary documentation to the advising bank, no discrepancies are found, the exporter is due payment. The paying bank could be the advising bank and thus the exporter can receive payment very quickly. If the opening bank is the paying bank, payment may take a few days. Both importers and exporters may request that the paying bank be in their country as they are looking to the L/C to
protect their interests.

Importers can ask for any legal terms to be included within and L/C and exporters mu provide documentary evidence to prove that such terms have been met. As most L/C; are irrevocable, once an L/C has been opened and advisement has been made, they ca be altered or cancelled with the consent of the exporter.

On the occasion where an exporter doubts the solvency of an opening bank, they can request to have the L/C confirmed by the advising bank. This means that if the opening bank is responsible for making payment and cannot do so, the confirming bank will pay. For a cost of approximately 1% of the cost of the L/C an exporter receives a fair amount of added assurance.

In summary, an L/C is:

  • A formal document of payment
  • Opened by a party wishing to import
  • Communicated through banking channels
  • Paid by the opening bank within a specified timeframe upon presentation of stipulated documentation

The cost of an L/C to an importer is often a fixed fee plus a percentage or a percentage with a minimum commission. Additionally, exporters will be required to pay a variety of costs. Where an L/C is not payable on sight, costs increase. This is also the case where more than two banks are involved, exporters request confirmation of credit and when discrepancies are found within the documentation or additions/changes to the L/C are necessary.

III. Vocabulary

Put the verbs in the brackets into the correcto passive form

A bank (instruct) by its clients when Letter of Credit (issue). Details of time, place and currency (include). Normally the currency of the exporter’s country (use) for payment.

Details of insurance and freight (agree) between importer and exporter. The Letter of Credit (confirm) when the agent bank in the exporter’s country agrees to pay the amount which (state) on the Letter of Credit.

The exporter’s Bill of Exchange (submit) against the credit, and this draft (accept) by the agent bank. In this way credit (give) to the importers, and the exporter’s draft (discount) for cash if necessary.

Insert the correct words in the appropriate spaces in the passage below

Abbreviation                 Cancel                  Credit                    Draw                     Issue

Agent                          Carry out               Document              Finance                 Payment

Bill of Exchange      Confirmed        Documentary      Irrevocable        Valid

An L/C [a letter of credit] is a very important (1) Document..in international trade. It is safe and convenient for the seller, who is sure to receive (2) Payment. It is also helpful to the buyer, because the seller must (3) Carry out his instructions.

The buyer asks his bank to (4) Issue the L/C. The bank writes to its (5) Agent, or correspondent bank in the seller’s country. The L/C will ask the seller to hand in the Bill of Lading, copies of the Commercial Invoice, and the Insurance Certificate to the agent bank. An L/C which demands this is called a (6) Documentary L/C.

In addition, the seller will ask for an (7)irrevocable.L/C, which means that the buyer cannot change his mind and (8) cancel.the credit. When the agent bank accepts responsibility for the credit, the L/C is (9)confirmed.The bank will usually accept a (10) Bill of Exchange, or draft, from the seller. This document will allow the buyer 30,60, or 90 days before he must pay the seller. The usual (11)abbreviation .for the period (the number of days) is d/s.

In this way the L/C can be form of (12)credit for the buyer, and a safe method of obtaining payment for the seller, who can (13)draw on the credit in the agent bank. The seller should always present the draft while the credit is (13) valid,    however. If he doesn’t do this, the credit may be unavailable, or out of date.

For these and many other reasons in the L/C is an essential document in international (15)finance.

An L/C is a very important (1)……….in international trade. It is safe and convenient for the seller, who is sure to receive (2)……….It is also helpful to the buyer, because the seller must (3)……….his instructions.

The buyer asks his bank to (4)……… the L/C. The bank writes to its (5)………, or correspondent bank in the seller’s country. The L/C will ask the seller to hand the Bill of Lading, copies of the Commercial Invoice, and the Insurance Certificate to the agent bank. An L/C which demands this is called a (6)………….. .L/C.

In addition, the seller will ask for an (7)…….. .L/C, which means that the buyer cannot change his mind and (8)……… .the credit. When the agent bank accepts responsibility for the credit, the L/C is (9)……….The bank will usually accept a (10)………., or draft, from the seller. This document will allow the buyer 30,60, or 90 days before he must pay the seller. The usual (11)…….. .for the period (the number of days) is d/s.

In this way the L/C can be form of (12)…….. .for the buyer, and a safe method of obtaining payment for the seller, who can (13)…….. .on the credit in the agent bank. The seller should always present the draft while the credit is (14)………….    however. If he doesn’t do this, the credit may be unavailable, or out of date.

For these and many other reasons in the L/C is an essential document in international (15)……….

IV. Exercises

1.   Write a letter to inform your suppliers that your bank has opened an L/C for them.

The L/C is to cover a consignment of 250 men’s jackets. The order No is 57381. Your bank is the General Commercial Bank. The amount for $8000. Your agent bank is the Merchant Bank in London. They will confirm the credit, but they demand the shipping documents. They will accept a draft for 90d/s.

  • Write a letter to your bank instructing them to open the credit described in exercise 1

The L/C is to cover a consignment of 250 men’s jackets. The order No is 57381. Your bank is the General Commercial Bank. The amount for $8000. Your agent bank is the Merchant Bank in London. They will confirm the credit, but they demand the shipping documents. They will accept a draft for 90d/s.

Dear Mrs Bush,

I am writing to open the credit covering a consignment of 250 men’s jackets. The order No is 57381. The correspondant bank is the General Commercial Bank. The amount for $8000. Your agent bank is the Merchant Bank in London. They will confirm the credit, but they demand the shipping documents. They will accept a draft for 90d/s.

I look forward to hearing from you as soon as possible.

Yours sincerely,

  • Write a letter to inform an English supplier that your bank has opened an L/Cfor them. Choose suitable consignment, bank, agent, and Bill of Exchange conditions.

Class: 08CTM2

GROUP “ROSE”

Group Leader: ……………………….

Member 1: ……………………………

Member 2: ……………………………

Member 3: ……………………………

PART 1: Why do you choose that name for your group?

PART 2: Translated Text

PART 3: Key answers to the exercises

Unit 5: Invoice

I.

Definition

– Invoice is a commercial document issued by a seller to a buyer, indicating the products, quantities and agreed prices for products or services that the Seller has already provided the Buyer with. An Invoice indicates that, unless paid in advance, payment is due by the Buyer to the Seller, according to the agreed terms.   – The Invoice usually contains: PO #, Date, Billing Address, Shipping Address, Terms of Payment, List of products with quantities and prices. Invoices are often called Bills.     -If the buyer returns the product, the seller usually issues a Credit Memo for the same or lower amount than the invoice, and then refunds the money to the buyer.   -Invoices for hourly services work (such as by lawyers and consultants) often pull data from a timesheet.   -The term invoicing is also used to refer to the act of delivering the baggage to a flight company in the airport before taking the flightHóa đơn là chứng từ thương mại do bên bán phát hành gởi cho bên mua, trong đó ghi rõ tên sản phẩm, số lượng và giá cả do 2 bên thỏa thuận mà bên bán cung cấp cho bên mua kèm theo hợp đồng ghi rõ trừ khi đã được thanh toán trước, thường người mua thanh toán chậm cho bên bán theo các điều kiện của hợp đồng đã ký.   Hóa đơn gồm có: số hộp thư, ngày lập Hóa đơn, địa chỉ lập hóa đơn, địa chỉ địa chỉ giao hàng, phương thức giao hàng, danh mục sản phẩm với số lượng và giá cả. Hóa đơn thường được gọi là Bills.   -Nếu người mua trả lại sản phẩm, người bấn thường phát hành phiếu báo Có cho 1 số lượng giống y hay ít hơn hóa đơn và sau đó trả lại tiền.   Hóa đơn là 1 dich vụ hàng giờ (chẳng hạn bởi Luật sư và cố vấn) rút bỏ đi số liệu theo lịch làm việc.   Thuật ngữ Xuất hóa đơn cũng được sử dụng ám chỉ đến hành đông giao hành lý cho 1 công ty bay tại phi trường trước chúng ta lên máy bay

.

A sample of Commercial Invoice

Exporter:………………………  Date:………………………….……….       PO Number:……………………

                                               Order Number:………………….……      Terms:……………………………..

Ultimate Consignee:………….  Commercial Invoice Number:………….   Pro-forma Invoice Number:………….

                                                Consignee Phone Number: …………      Customer Account Number: …………

Intermediate Consignee:……..  Exporting Carrier: ………………………  Loading Pier/ Terminal: ………………..

                                                Point of Origin (FTZ No.): …………….   Ultimate Destination: ……………………

 Qty.Product DescriptionHomonized CodePriceSub-total
      
      
      
      
      
      
      
      
      

Ex-work Value:

Inland Freight Fees:

Handling Fees:

Consular Fees:

insurance Fees:

Other Charges:

USD Total

Title:……………………………………………….. Authorized Signature:………………………………

Invoice diagram:

Sales Department  
To customer  

                 4 invoice copies

II.   Correspondence

Letters accompany invoices

1. The invoice as a statement, when the buyer has an open account with the seller.

Date: 2nd April 2004 Dear Sir, We enclose a statement for the quarterly invoices up to the end of March 2004. Any payment sent by you which has not reached us will form a credit entry for the next quarter. The balance is $450. The standard 5% discount will be deducted if payment is made before the end of this month. Please check the entries and if you cannot pay $450.- in settlement of this account, kindly carry forward the balance to the next quarterly account. Your faithfully, (Dịch) Ngày: 2 tháng 4 2004 Thưa ngài, Chúng tôi kèm theo đây Phiếu báo số dư cho các hóa đơn trong quý tính đến cuối tháng 3 năm 2004. Thanh toán gởi đến chúng tôi chưa nhận được khi thực hiện thông báo này sẽ được ghi Có cho quý tới. Như vậy số dư hiện có của quý ông là 450 Đô la Nếu quý ông thanh toán số dư nợ vừa nói trước vào cuối tháng này, theo như thông lệ chúng tôi sẽ khấu trừ khoản chiết khẩu 5% cho quý Ngài. Xin vui lòng kiểm tra lại các mục mà chúng tôi đã ghi trong phiếu báo, và nếu quý ông không thanh toán 450 đô, xin vui lòng chuyển khoản nợ này sang quý sau cũng được. Trân trọng kính chào,

(A reply)

Date: 12th April, 2005

Dear Sir,

Thank you for your statement sent to us on 2nd April, 2004. We enclose a money order ft $450.- in settlement of our account with you.

Kindly adjust the next quarterly statement to include a credit entry covering the 5% discount.

Yours faithfully,

(Dịch)

Ngày: 12 tháng 4 2004

Thưa Ngài,

Cảm ơn Ngài về Phiếu báo số dư đã gởi cho chúng tôi vào ngày 2 tháng 4 2004. Chúng tôi kèm theo đây 1 Ngân phiếu trị giá 450 Đô – thanh toán cho khoản nợ hiện có.

Xin vui lòng điều chỉnh số dư chúng tôi cho quý tới, trong đó gồm cả khoản chiết khẩu 5% mà chúng tôi được hưởng.

Trân trọng kính chào,

2. Price and discount queries and request for credit notes

22nd July, 2004

Dear Sirs

There appears to be a mistake in your invoice (No. 12345) sent to us on the 10th July.

According to your latest price list the wholesale price of the S4 folding chairs which you sent us was $12.50 each, but you have invoice them as $15.50.

Kindly inform us as soon as possible of the correct price, as we must begin to sell them soon.

Yours faithfully,

■=> A reply

Date 2nd August, 2004 Dear Sirs,

Thank you very much for your letter of the 22nd July, in which you queried the price v\ stated on the invoice for S4 folding chairs.

We regret the inconvenience and apologise for the error.

We quoted you the price for our larger type S4 chairs on the invoice.

We have checked this against our copy of the invoice in the Accounting Department.

We enclose a credit note for the difference in price, and we shall credit the amount to the next quarterly statement.

Yours faithfully,

III. Reading

Better Invoices for Better Business

from Kevin Potts

What your invoice should include

Invoices are a critical component of every business. They serve as a bill of services, closure for projects, a legal paper trail and an opportunity to strengthen the rapport between you and your customer.

Invoices that obfuscate information, incorrectly state terms or arrive incomplete can be a massive headache for all parties. These mistakes will only delay the payment process, so it is critical you produce invoices that clearly deliver information your client (or their accounts payable department) will need. Strategic timing and attractive presentation are also important, as they can help “soften the blow” by making your invoice seem less like a stale demand for money and more like a friendly letter.

Invoice Contents

Invoices have many small bits of important information. They should always contain the following:

  1. The word “invoice.” Obvious enough, but don’t let the client mistake it for anything other than a bill that needs to be paid. Make it big and bold and put it at the top of the page.
  2. Your Employer Identification Number (EIN), or Social Security Number if you do not have an EIN. This is important come tax time, when the client starts putting together W-2s.
  3. Similar to the EIN, some clients may assign outside contractors a unique Vendor ID. This practice is usually found in larger companies. If you have been given one_be sure it appears conspicuously.
  4. Names and addresses of both client and contractor. Make a clear distinction between the “to” party and the “from” party.
  5. Date everything. Date the invoice (the day it goes out, not the day you write it), and list the dates of when items on the invoice were completed. In the terms, list the due date and penalty dates. If something ever goes to small claims court, the judge will look favorably on your scrupulous attention to detail.                             
  6. A clear, itemized list of services rendered. Descriptions should be short and to the point, and all delivery dates indicated. Next to each item, list the hourly rate, hours worked and subtotal amount.
  7. The total amount owed. On the bottom, labeled explicitly, bolded if needed.
  8. The terms of the invoice. At the very least, this should include when the invoice is due; for instance, if you expect payment within thirty days (fairly standard), simply put “30 Days.” (You could also put “15 Days” or even “Immediate” if you don’t particularly like the client.)

Setting Your Terms

The terms section of an invoice can be as simple or complex as you would like, dependent on your billing standards. You might offer a 1-2% discount for invoices paid within 15 days similarly, you might penalize late payments. The amount is up to you. If you do set term: beyond 30 days, spell out exactly what the penalty will be for each level of delinquency, instance, say you bill a client for $1,000. The bottom of your invoice may look like this:

Payment Time: 15 Days 30 Days 60 Days

Adjustment: – 5% 0 + 5%

Adjusted Total: $950 $1000 $1050

Delivery

You can send an invoice through e-mail or the post office, and each method has advantages and disadvantages.

Mailed invoices are more professional, and generally recommended over e-mail. The elk appreciates a physical bill that can be filed, photocopied and passed along, and has less c of getting lost. (If you send them a PDF, chances are they are going to print it out and do these things anyway.) Taking the time to prepare, print and mail the invoice will only reinforce your professional image – especially valuable for new clients.

E-mailed invoices (PDF format is the best) often work better for regular monthly billings ongoing creative (similar to an advertising agency) or maintenance fees (like regular web updates).

Personalize the invoice with a small note. A quick “thank you” is often appropriate and appreciated, and makes your business seem less like a faceless corporate billing machine

Designing & sending your invoice Timing

There is a certain strategy in the timing of an invoice delivery. For down payments, the fi invoice should be in the client’s hands immediately after the contract is signed. For miles points and the final deliverable, invoices should be sent within 48 hours, while your fantastic work is still fresh in their mind. Never send an invoice prematurely, unless it is explicitly agreed upon between you and your client. No one wants to pay for unfinished work.

Instead of attaching invoices to the actual deliverables, exercise courtesy by creating a wholly separate communiqué. Your invoice will be more impressionable (and therefore remember and acted upon) sent alone rather than buried in other documents and files.

Avoid having your invoice arrive on a Friday. No one wants to see that before heading to the beach, and it will be long forgotten by Monday. If you’re e-mailing the invoice, do it in the morning when the person is more likely to be working, and when they will be more inspired to act on it.

Aesthetics

Most freelancers and small companies use accounting software, which may or may not give you control over the design. If yours does, or if you draft your own invoices from scratch, try to escape the stale corporate output of QuickBooks and family by adjusting colors and fonts to reflect your personal brand. At the very least, get your logo on there.

Above all, ensure the information is clear and readable. Your client may appreciate your refined design sensibilities, but the accounts payable department just wants to find the big number at the bottom.

Conclusion

Armed with these tips, you’re set to bill the world in style. Be sure to keep hard copy and PDF backups of every invoice that goes out, even for the two-page website for your sister-in-law’s hair salon. Invoices are one of the most critical links the paper trail chain, so take the time to ensure the information is triple-check perfect. (And if that information arrives in style, even better.)

Business Management Tip

From Susan Ward

Avoid Collection Problems with Action Invoices

Having the money you’re owed sitting in someone else’s bank account can seriously interfere with your business’ cash flow. If many of the clients or customers you invoice are slow payers, maybe it’s time to look at your invoices; they could be contributing to your collections problem.

Does the invoice you’re sending out encourage action or inaction? For example, many invoices are simply marked, “Payable upon receipt”. Invoices so labeled are saying to your customers or clients, “Pay me when it’s convenient for you,” instead of “Pay me now.” Those inclined to be slow payers will find the built-in excuse especially convenient; we’ve all heard the line “The cheque’s in the mail!”

Worse, some invoices have boxes such as “current”, “30 days”, “60 days”, “90 days”, and “over 90 days” that broadcast the aging of the account that’s due. Using an invoice that’s formatted this way is also broadcasting to those inclined to be slow payers that you’re willing to serve as a creditor; there’s no reason to pay you right away.

Instead of using invoices that encourage inaction, use invoices that encourage prompt payment. All of the invoices you send out should state a specific date of payment, such as “Due on November 30, 2001”, rather than “Payable upon receipt”, or “Due in 30 days”. People are much more likely to pay attention to a specific payment date, and you eliminate the possibility of misunderstanding or loose interpretation.

You can also encourage prompt payment of invoices by offering an incentive to pay on time. Many businesses, for instance, offer a small discount for paying within 10 days of an invoice date. A discount of two per cent for payment within ten days is common.

Don’t let your invoices contribute to collections problems and make your prompt payers fee if they’re being unfairly treated. Using invoices that state specific dates that payment is expected and offer an incentive to pay promptly encourages action – and will help get the money you’re owed flowing into your bank account.

IV. Exercises

  1. Write a letter enclosing a Pro-forma Invoice to an English buyer. The buyer wants to order 200 electric cookers, each costing $165. There is a discount of 5% for the other over $20,000. The buyer wants to know the cost of freight and insurance.

Dear Ms Catherine,

Thank you for your letter dated 26 September inquiring about our electric cookers.

I am enclosing a Pro-forma Invoice for your reference. As you can see unit price is $165. However there is a discount of 5% for the other over $20,000. Thus our price seems to be very competitive while quality is superior.

As for the cost of freight and insurance, I provide you with the quotations of Vinaship Co. and Bao Viet Insurance Company. Freight from New Port, HCMC Vietnam to London costs according to the level of cargo. The same also happens to insurance policy. I will not tell you the exact numbers until you place a trial order.

We are very pleased to serve you and hope that our business relationship will be strengthened.

We look forward to your order.

Yours sincerely,

  • Write a letter accompanying a quarterly invoice which is made out in the form of statement. The buyer has paid $275 since your last correspondence. Inform him of latest entries in his statement, the balance which must be paid, and the cash discount he pays within a certain period.

Dear Ms Catherine,

Thank you for your letter dated 16 September informing us of your payment.

I am enclosing a quarterly invoice which is made out in the form of statement. You have paid $275 since your last correspondence so I would like to inform you of latest entries in this statement: the balance which must be paid is $735.00 (seven hundred thirty five US dollars only). Also, the cash discount you pays within 90 days is US$ 90.015 (ninety dollars zero one five)

It is based on our filing in the computer. If there is any doubtful figure, could you let us know immediately?

We look forward to hearing from you as soon as possible.

Yours sincerely,

Unit 6: Bill of Lading/ Air Waybills

I.    Understanding

A Bill of Lading (B/L) is a document which is issued by the transportation carrier to the shipper acknowledging that they have received the shipment of goods and that they have been placed on board a particular vessel which is bound for a particular destination and states the terms in which these goods received are to be carried. Separate bills of lading are issued for the inland or domestic portion of the transportation and the ocean or air transportation, or a through bill of lading can be obtained covering all modes of transporting goods to their destination.

Bills of lading, whether inland or ocean, can be issued in either non-negotiable (straight) form or in negotiable form. If the bill of lading is specified as being non-negotiable, the transportation carrier must deliver it only to the consignee named in the bill of lading. Thus the bill of lading acts both as a receipt of goods and as an agreement to transport these goods to a specific destination and consignee in return for payment of the transportation charges. If the bill of lading is specifically labeled as being negotiable, ownership to the goods and the right to reroute the shipment are with the person who has ownership of the bill of lading properly issued or negotiated to it. Such bills of lading are issued to shipper’s order, rather than to a specific, named consignee.

Where collection and payment is through banking channels, such as under a letter of credit or documentary collection, negotiable bills of lading are required (except for air shipments). Khi nào thanh toán và thu ngân phải thông qua các kênh ngân hàng, chẳng hạn như theo phương thức L/C hay thu ngân chứng từ, chúng ta cần phải có vận đơn chuyển nhượng (ngoại trừ không vận đơn).The exporter must endorse the bill of lading and deliver it to the bank in order to receive payment. Nhà nhập khẩu phải ký hậu vận đơn và giao cho ngân hàng nhận thanh toán.

There are four types of bills of lading: inland, ocean, through, and air waybill.

Inland Bill of Lading – this is a contract between a shipper and transportation company used when transporting goods overland to an exporter’s international carrier. Vận đơn trong nước – đây là hợp đồng giữa người gửi hàng và công ty vận chuyển sử dụng để vận chuyển hàng trong nước đến giao cho một công ty vận chuyển quốc tế của nhà xuất khẩu.

Ocean Bill of Lading- this is a contract between an exporter and an international carrier for transport of merchandise to a specified foreign market overseas. Vận đơn tàu biển – đây là hợp đồng giữa nhà xuất khẩu và công ty quốc tế vận chuyển hàng đến một thị trường ngoài nước. 

Through Bill of Lading – A document that establishes the terms between a shipper and a transportation company covering both the domestic and international transport of export goods between specified points for a specified charge. Vận đơn suốt – chứng từ này xác lập các điều kiện giữa người gửi hàng và một công ty chịu trách nhiệm vận chuyển hàng xuất khẩu giữa hai địa điểm bao gồm trong nước và quốc tế theo yêu cầu và tính chi phí tổng hợp. 

For example, an air shipment can be covered with a through bill of lading; however, ocean shipments require both an inland bill of lading (for domestic transport) and an ocean bill of lading (for international transport).

 Air Waybill – An airway bill is a bill of lading which covers both domestic and international flights transporting goods to a specified destination. It establishes the terms between a shipper and an air transportation company for the transport of goods. Included in the document are the conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges. In addition, the air waybill is a non-negotiable document which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions.

See sample B/L below:

  Ocean Bill of Lading Exporter (Name and Address including ZIP code:      Document Number:      Booking Number: …………………………………………………………      …………………….       …………………. …………………………………………………………     Export references: Consigned to:                                                              Forwarding Agent (Name and Address) …………………………………………………………     ……………………………………………… Notify Party                                                                  Point (State) of Origin or FTZ Number ……………………………………………………….        Domestic Routing Instructions Pre-carriage by                      Place of Receipt By Pre-Carrier Exporting Carrier                   Port Loading Export Foreign Port of Unloading      Place of Delivery By On-Carrier    Type of Move Number of Packages Description of Commodities in Schedule & Detail Gross Weight (Kilos) Measurement          There are: …. Pages, including attachments to the Ocean Bill of Lading Freight rates, charges, weights and/or measurement I certify that the above information is true and correct to the best of my knowledge.  

Bill of Lading diagram:

                                                                                                                                 Exporting country

                 2 copies of B/L

Bank  
Importer  

                                                                                                                                               Importing Country

II.   Vocabulary

Insert the correct words in the appropriate spaces in the passage below

Accept                       Endorsing                   Present                      Shipped

Airmail                       In blank                      Receipt                      Title

Consignee                  Law                           Responsibility             Transfer

Discharge                  negotiable                   Packing                      Unclear

The B/L is important in international finance, insurance, and law .It is the legal title to ownership of the goods described on the B/L. The consignee cannot accept delivery of his consignment unless he possesses a copy.

You can describe a B/L in one way by saying that it is a receipt signed by the captain of the ship, stating that he has received the goods on board his ship. A B/L signed by the captain after he receives and inspects the goods on board ship is called a shipped B/L. If the goods are damaged before they reach the ship the captain or the ship-owners issue an unclean B/L (sometimes called “dirty” or “foul”). If the captain receives the goods on board in good condition, the full title of the document he signs is a “clean, shipped on board B/L”. Banks usually demand shipped B/L before they accept responsibility for the credit.

The holder of a B/L can transfer possession of the goods to another person or company by endorsing or signing on the back of it. In other words, the B/L unlike the Air Waybill, is a negotiable document. If the buyer or a bank asks the seller not to restrict the negotiability of the B/L, they demand that it should be endorsed in blank.

The details printed on the B/L must include the port of loading and the port of discharge. The type of packing must also be stated. Examples of this are cases, crates, and boxes.

When the B/L is completed, copies are sent by airmail on separate days, so that if one is lost, the other may reach the importer. The importers, or consignee as he is described on the B/L, can then present the B/L to the shipping company and accept delivery of his goods.

The B/L is important in international finance, insurance, and (1)…………… .It is the legal (2)            to ownership of the goods described on the B/L. The (3)…………….cannot accept delivery of his consignment unless he possesses a copy.

You can describe a B/L in one way by saying that it is a (4)……………..signed by the captain of the ship, stating that he has received the goods on board his ship. A B/L signed by the captain after he receives and inspects the goods on board ship is called a (5)…………..B/L. If the goods are damaged before they reach the ship the captain or the ship-owners issue an (6)……………..B/L (sometimes called “dirty” or “foul”). If the captain receives the goods on board in good condition, the full title of the document he signs is a “clean, shipped on board B/L”. Banks usually demand shipped B/L before they accept (7)……………….for the credit

The holder of a B/L can (8)…………possession of the goods to another person or company by (9)…………..or signing on the back of it. In other words, the B/L unlike the Air Waybill, is a (10)…………document. If the buyer or a bank asks the seller not to restrict the negotiability of the B/L, they demand that it should be endorsed (11)…………..

III. Exercises

1.        Write a letter to a buyer informing him that you have posted two B/Ls by separate mails.

They are for a consignment of tomatoes and are packed in crates which have marks and numbers on them.

                                                Lien A Company                                                9/1 Phan Van Hon                                                District 12                                                Ho Chi Minh City 9 October 2010   Mr Yoshito Yamaha Sales director Japan Food Company 1-2 Toshido-ku Tokyo  Japan   Dear Mr Yamaha,   I am writing to inform you that I posted two B/Ls by separate mails this morning.     They are for your consignment of tomatoes including 5 MT of Vietnamese tomatoes grade 1, and 500 kg of tomatoes grade 2. All of those tomatoes  are packed in crates which have the mark “VIETNAM PRODUCE !!! JP FOOD CO” and the number “1234/AB/43” on each of the crates.   As I know, these two copies will take you 1 week and they may arrive at your office by 16 October or so. Our tomatoes are the best of taste and fully organic; your customers will like them and your sales will certainly increase quickly.   I hope you will receive them soon.   Yours sincerely,  
  • Write a letter of reply to the letter in exercise 1
Dear Mr Tam Thanks you for your letter in which you inform us that you posted two Bill of Lading by separate mails Our consignment of tomatoes including 5 MT of Vietnamese tomatoes grade 1 and 500 kg of tomatoes grade 2 is in accordance with our order. I feel safe when all of those tomatoes are packed in crates which have the mark “VIETNAM PRODUCE!!! JP FOOD CO” and the number “1234/AB/43” on each of the crates. I hope the two copies will arrive at our office before 16 October. Quality and organic proof are always the highest requirement of ours; it is certain that our customers will take them. I thank you very much again for your prompt attention. I look  forward to putting our hands on your premium potatoes soon Your sincerely
  • Write a short report on the uses of a B/L. Include information on its uses in law, insurance and finance.

IV. References

Bill of Lading

Terms and Conditions

In this Bill of Lading the word:

1. DEFINITIONS

‘Carrier’ Means the party named in the Signature Box on the face hereof.

‘Merchant’ Includes any Person who at any time has been or becomes the Shipper, Holder, Consignee, Receiver of the Goods, any Person who owns or is entitled to the possession of the Goods or of this Bill of Lading and any Person acting on behalf of any such Person.

‘Holder’ Means any Person for the time being in possession of (or entitled to the possession of) this Bill of Lading.

‘Person’ Includes an individual, group, company or other entity.

‘Sub-Contractor’ Includes (but is not limited to) owners and operators of any vessels (other than the Carrier), stevedores, terminal and groupage operators, road, rail and air transport operators and any independent contractor employed by the Carrier in performance of the Carriage and any sub-sub-contractors thereof.

‘Indemnify’ Includes defend, indemnify and hold harmless whether or not the obligation to indemnify arises out of negligent or non-negligent acts or omissions of the Carrier, his servants, agents or Sub-Contractors.

‘Goods’ Means the whole or any part of the cargo received from the Shipper and includes the packing and any equipment or Container not supplied by or on behalf of the Carrier.

‘Container’ Includes any container, trailer, transportable tank, flat or pallet, or any similar
article used to consolidate goods and any ancillary equipment.                                   

‘Carriage’ Means the whole or any part of the operations and services undertaken by the Carrier in respect of the Goods covered by this Bill of Lading.

‘Port of Loading’ Means any port at which the Goods are loaded on board any Vessel
(which may not necessarily the Vessel named overleaf) for Carriage under this B/L                        

‘Port of Discharge’ Means any port at which the Goods are discharged from any Vessel (which may not necessarily the Vessel named overleaf) after Carriage under this Bill of Lading.

‘Vessel’ Means any waterborne craft used in the Carriage under this Bill of Lading which may be a feeder vessel or an ocean vessel.

‘Combined Transport’ Arises if the Place of Receipt and/or the Place of Delivery are indicated on the face hereof in the relevant spaces.

‘Port to Port’ Arises if the Carriage is not Combined Transport.

‘Shipped on Board’ Relates only to the Container into which the Goods are manifested.

‘Freight’ Includes all charges payable to the Carrier in accordance with the applicable Tariff and this Bill of Lading.

‘Hague Rules’ Means the provisions of the International Convention for the Unification Certain Rules relating to Bills of Lading signed at Brussels on 25th August, 1924 and includes the amendments by the Protocol signed at Brussels on 23rd February, 1968, but only if such amendments are compulsorily applicable to this Bill of Lading. (It is expres: provided that nothing in this Bill of Lading shall be construed as contractually applying said Rules as amended by said Protocol).

2.     CARRIER’S TARIFF

The terms and conditions of the Carrier’s applicable Tariff are incorporated herein. Particular attention is drawn to the terms and conditions therein relating to container and vehicle demurrage Copies of the relevant provisions of the applicable Tariff are obtained from the Carrier or his agents upon request. In the case of inconsistency between this Bill of Lading and the applicable Tariff, this Bill of Lading shall prevail.

3.     WARRANTY

The Merchant warrants that in agreeing to the terms and conditions hereof he is, or has tl authority of, the Person owning or entitled to the possession of the Goods and this Bill o Lading

4.     SUB-CONTRACTING AND INDEMNITY

  • The Carrier shall be entitled to sub-contract the Carriage on any terms whatsoever.
  • The Merchant undertakes that no claim or allegation shall be made against any Perso whomsoever by whom the Carriage is performed or undertaken (inciuding all Sub-Contractors of the Carrier), other than the Carrier, which imposes or attempts to impose on any such Person, or any vessel owned by any such Person, any liability whatsoever ir connection with the Goods or the Carriage of the Goods, whether or not arising out of negligence on the part of such Person and, if any such claim or allegation should nevertheless be made, the Merchant will indemnify the Carrier against all consequences thereof. Without prejudice to the foregoing every such Person or vessel shall have the

_ benefit of every rights defence, limitation and liberty of whatsoever nature herein contaii or otherwise available to the Carrier (including, but not limited to, Clause 24 hereof) as i such provisions were expressly for his benefit and, in entering into this contract, the Carrier,-to the extent of these provisions, does so not only on his own behalf but also as agent and trustee for such Persons or vessel.

(3)     The provisions of Clause 4 (2), including but not limited to the undertakings of the
Merchant contained therein, shall extend to claims or allegations of whatsoever nature
against other Persons chartering space on the carrying Vessel

(4) The Merchant further undertakes that no claim or allegation in respect the Goods shall be made against the Carrier by any Person, other than in accordance with the terms and conditions of this Bill of Lading, which imposes or attempts to impose upon the Carrier any liability whatsoever in connection with the Goods or the Carriage of the Goods, whether or not arising out of negligence on the part of the Carrier and, if any such claim or allegation should nevertheless be made, to indemnify the Carrier against all consequences thereof.

5. CARRIER’S RESPONSIBILITY
Port-to-Port Shipment

If Carriage is Port-to-Port, the liability (if any) of the Carrier for loss, damage or delay to the Goods occurring from and during loading onto any Vessel up to and during discharge from that Vessel or from another Vessel into which the Goods have been transhipped shall be determined in accordance with any national law making the Hague Rules compulsorily applicable to this Bill of Lading, or in any other case in accordance with the Hague Rules, Articles 1-8 inclusive only.

Unless Clause 25 applies, the Carrier shall be under no liability whatsoever for loss, damage or delay to the Goods, howsoever occurring, if such loss, damage or delay arises prior to loading onto or subsequent to discharge from a Vessel. Notwithstanding the above, in case and to the extent that any applicable law provides for any additional period of responsibility, the Carrier shall have the benefit of every right, defence, limitation and liberty in the Hague Rules as applied by this clause during that period, notwithstanding that the loss, damage or delay did not occur at sea.

In the event of the Goods being discharged at a port other than the Port of Discharge nominated in this Bill of Lading and forwarded to the nominated Port of Discharge by whatever means, the Hague Rules as referred to in chapter 1 of this clause shall continue to apply until delivery at the nominated Port of Discharge (or elsewhere), notwithstanding that Carriage may not be by sea.

6. CARRIER’S RESPONSIBILITY
Combined Transport

If Carriage is Combined Transport, the Carrier undertakes to perform and/or in his own name to procure performance of the Carriage from the Place of Receipt or the Port of Loading, whichever is applicable, to the Port of Discharge or the Place of Delivery, whichever is applicable, and, save as is otherwise provided for in this Bill of Lading, the Carrier shall be liable for loss, damage or delay occurring during the Carriage only to the extent set out below.

(1) If the stage of the Carriage during which loss, damage or delay occurred is not known

(a) Exclusions If the stage of the Carriage during which the loss, damage or delay occurred is not known, the Carrier shall be relieved of liability for any loss, damage or delay if such loss, damage or delay was caused by:

(1)  an act or omission of the Merchant, (ii) insufficiency of or defective condition of packing or marking, (iii) handling, loading, stowage or unloading of the Goods by or on behalf of the Merchant (See Clause 8), (iv) inherent vice of the Goods, (v) strike, lock-out stoppage or restraint of labour, from whatever cause, whether partial or general, (vi) a nuclear incident, (vii) any cause or event which the Carrier could not avoid and the
consequences whereof he could not prevent by the exercise of reasonable diligence, (viii) any act or omission of the Carrier the consequences of which he could not reasonably have foreseen, (ix) compliance with instructions of any Person entitled to give them.

(b)  Burden of Proof The burden of proof that the loss, damage or delay was due to one or more of the causes or events specified in this Clause 6 (1) shall rest upon the Carrier, save that if the Carrier establishes that, in the circumstances of the case, the loss, damage or delay could be attributed to one or more of the causes or events specified in Clause 6(1) (a) (ii), (iii) or (iv), it shall be presumed that it was so caused. The Merchant shall, however, be entitled to prove that the loss, damage or delay was not, in fact, caused either wholly or partly by one or more of these causes or events.

(c)        Limitation of Liability Except as provided in Clauses 7(2), 7(3), and 27, if Clause 6(1) operates total compensation for loss or damage shall in no circumstances whatsoever and howsoever arising exceed 2 SDR?s per kilo of the gross weight of the Goods lost or damaged. (SDR means Special Drawing Right as defined by the International Monetary Fund). Limitation of liability for delay shall be as provided in the applicable international convention or national law, in the absence of which the Carrier accepts no liability
whatsoever for delay, howsoever caused (see Clause 7 (4)).

(2)  If the stage of the Carriage during which the loss, damage or delay occurred is known

Notwithstanding anything provided for in Clause 6 (I) and subject to Clauses 15 and 16, if it is known during which stage of the Carriage the loss, damage or delay occurred, the liability of the Carrier in respect of such loss, damage or delay shall be determined:

(a) By the provisions contained in any international convention or national law which provisions:

(i) cannot be departed from by private contract to the detriment of the Merchant; and (ii) would have applied if the Merchant had made a separate and direct contract with the Carrier in respect of the particular stage of the Carriage during which the loss, damage or delay occurred and received as evidence thereof any particular document which must be issued in order to make such international convention or national law applicable; or

  • If no international convention or national law would apply by virtue of Clause 6 (2) (a) by the Hague Rules, Articles 1 -8 inclusive, only if the loss, damage or delay is known to have occurred during waterborne Carriage; or
  • by the provisions of Clause 6 (1) if the provisions of Clause 6 (2) (a) and (b) above do not apply.

For the purposes of Clause 6 (2), references in the Hague Rules to carriage by sea shall be deemed to include references to all waterborne Carriage and the Hague Rules shall be construed accordingly.

(3) If the Place of Receipt or Place of Delivery is not named on the face hereof.
Subject to Clauses 5 and 25,

  • If the Place of Receipt is not named on the face hereof, the Carrier shall be under no liability whatsoever for loss, damage or delay to the Goods, howsoever occurring, if such loss, damage or delay arises prior to loading onto a Vessel.
  • If the Place of Delivery is not named on the face hereof, the Carrier shall be under no liability whatsoever for loss, damage or delay to the Goods, howsoever occurring, if such loss, damage or delay arises subsequent to discharge from a Vessel.

(4) Notice of Claim

Unless Clause 25 applies, the Carrier shall be deemed prima facie to have effected timely delivery of the Goods as described in this Bill of Lading unless notice of loss, damage or delay to the Goods, indicating the general nature of such loss, damage or delay, shall have been given in writing to the Carrier or to his representative at the Place of Delivery (or the Port of Discharge if no Place of Delivery is named on the face hereof) before or at the time of removal of the Goods into the custody of the Person entitled to delivery thereof under this Bill of Lading, or, if the loss or damage is not apparent, within three working days thereafter.

(5) Time-bar

Unless Clause 25 applies, the Carrier shall be discharged of all liability whatsoever in respect of the Goods, unless suit is brought and notice thereof given to the Carrier within nine months after delivery of the Goods or, if the Goods are not delivered, ten months after the date of issue of this Bill of Lading.

7. SUNDRY LIABILITY PROVISIONS

(1)  Basis of Compensation

Unless Clause 25 applies, compensation shall be calculated by reference to the value of the Goods at the place and time they are delivered to the Merchant, or at the place and time they should have been delivered. For the purpose of determining the extent of the Carrier’s liability for loss, damage or delay to the Goods, the sound value of the Goods is agreed-to be the FOB/FCA invoice value plus freight and insurance if paid.

(2)  Hague Rules Limitation

If the Hague Rules are applicable by national law, the liability of the Carrier shall in no event exceed the limit provided in the applicable national law. If the Hague Rules are applicable otherwise than by national law. in determining the liability of the Carrier the liability shall in no event exceed 100 sterling per package or unit.

(3)  Ad Valorem

The Merchant agrees and acknowledges that the Carrier has no knowledge of the value of the Goods, and that higher compensation than that provided for in this Bill of Lading may not be claimed unless, with the consent of the Carrier, the value of the Goods declared by the Shipper prior to the commencement of the Carriage is stated in this Bill of Lading and extra Freight paid, if required. In that case, the amount of the declared value shall be substituted for the limits laid down in this Bill of Lading. Any partial loss or damage shall be adjusted pro rata on the basis of such declared value.

(4)  Delay

  1. Unless Clause 25 applies, the Carrier does not undertake that the Goods shall arrive at the Port of Discharge or Place of Delivery at any particular time or to meet any particular market or use. Besides, the Carrier shall in no circumstances whatsoever and howsoever arising be liable for direct, indirect or consequential loss or damage caused by delay.
  2. However, if Clause 25 applies, unless a latest date of delivery is shown on the face hereof and any required premium paid, timely delivery shall be considered to have been made if the Goods are made available to the Merchant at the Port of Discharge or Place of Delivery, as the case may be, within 60 days after the date published in the P&O Nedlloyd Inbound Schedule against the Port of Discharge nominated therein for the relevant ocean Vessel. The Carrier shall be entitled to all the defences, exceptions and limitations provided in the applicable international convention or national law and this Bill of Lading.

(5)  Scope of Application

  • The terms and conditions of this Bill of Lading shall at all times govern all responsibilities of the Carrier in connection with or arising out of the supply of a Container to the Merchant, not only during the Carriage, but also during the periods prior to and/or subsequent to the Carriage.
  • The rights, defences, limitations and liberties of whatsoever nature provided for in this Bill of Lading shall apply in any action against the Carrier for loss or damage or delay, howsoever occurring and whether the action be founded in contract or in tort and even if the loss, damage or delay arose as a result of unseaworthiness, negligence or breach of a fundamental term of this contract.
  • Save as is otherwise provided for in this Bill of Lading, the Carrier shall in no circumstances whatsoever and howsoever arising be liable for direct or indirect or consequential loss or damage or loss of profits.

(6)  Inspection by Authorities

If by order of the authorities at any place, a Container has to be opened for the Goods to be inspected, the Carrier will not be liable for any loss, damage or delay incurred as a result of any opening, unpacking inspection or repackaging. The Carrier shall be entitled to recover the cost of such opening, unpacking, inspection and repackaging from the Merchant.

8. SHIPPER-PACKED CONTAINERS

If a Container has not been packed by or on behalf of the Carrier,

(I) The Carrier shall not be liable for loss, damage or delay to the Goods caused by matters beyond his control, including inter alia, without prejudice to the generality of this exclusion.

(a) the manner in which the Container has been packed, or (b) the unsuitability of the Goods for Carriage in the Container supplied, or (c) the unsuitability or defective condition of the Container or the incorrect setting of any temperature controls thereof: provided that, if the Container has been supplied by or on behalf of the Carrier, this unsuitability, defective condition or incorrect setting could have been apparent upon inspection by the Merchant at or prior to the time when the Container was packed, or (d) packing temperature controlled Goods that are not at the correct temperature for Carriage.

  • The Shipper is responsible for the packing and sealing of all Shipper-Packed Containers and, if a Shipper-Packed Container is delivered by the Carrier with its original seal as affixed by the Shipper intact, the Carrier shall not be liable for any shortage of Goods ascertained at delivery If, nevertheless, a claim for shortage is made against the Carrier by any Person whomsoever, the Merchant agrees to indemnify the Carrier against the cost of any such claims plus any costs incurred in respect thereof.
  • The Merchant shall indemnify the Carrier against any loss, damage, liability or expense whatsoever and howsoever arising caused by one or more of the matters referred to in Clause 8 (I), save that, if the loss, damage, liability or expense was caused by a matter referred to in Clause 8 (1) (c), the Merchant shall not be liable to indemnify the Carrier in respect thereof unless the proviso referred to in that Clause applies.

9. INSPECTION OF GOODS

The Carrier or any Person to whom the Carrier has sub-contracted the Carriage or any Person authorized by the Carrier shall be entitled, but under no obligation, to open any Container or package at any time and to inspect, weigh and/or measure the Goods and/or weigh the Container.

10. CARRIAGE AFFECTED BY CONDITION OF GOODS

If it appears at any time that, due to their condition, the Goods cannot safely or properly be carried or carried further, either at all or without incurring any additional expense or taking any measure in relation to the Container or the Goods, the Carrier may, without notice to the Merchant (but as his agent only), take any measure and/or incur any additional expense to carry or to continue the Carriage thereof, and/or sell or dispose of the Goods, and/or abandon the Carriage and/or store them ashore or afloat, under cover or in the open, at any place, whichever the Carrier, in his absolute discretion, considers most appropriate, which abandonment, storage, sale or disposal shall be deemed to constitute due delivery under this Bill of Lading The Merchant shall indemnify the Carrier against any additional expense incurred.

11. DESCRIPTION OF GOODS

  • This Bill of Lading shall be prima fade evidence of the receipt by the Carrier from the Shipper in apparent good order and condition, except as otherwise noted, of the total number of Containers or other packages or units indicated in the box on the face hereof entitled, “”Total No of Containers/Packages received by the Carrier’.
  • Except as provided in Clause 11 (1), no representation is made by the Carrier as to the weight, contents, measure, quantity, quality, description, condition, marks, numbers or value of the Goods, and the Carrier shall be under no responsibility whatsoever in respect

of such description or particulars, which are unknown to him.

It is agreed that, whilst he retains the right so to do at his sole discretion, the Carrier is no at any time under any obligation to weight any Container or open any Container to make any check on the Goods therein or their stowage (see Clause 9).

(3) If any particulars of any Letter of Credit and/or Import Licence and/or Sale Contract and/or Invoice or Order number and/or details of any contract to which the Carrier is not i party are shown on the face of this Bill of Lading, such particulars are included solely at the request of the Merchant for his convenience. The Merchant agrees that the inclusion c such particulars shall not be regarded as a declaration of value and in no way increases th Carrier’s liability under this Bill of Lading. The Merchant further agrees to indemnify the Carrier against all consequences of including such particulars in this Bill of Lading. The Merchant acknowledges that, except when the provisions of Clause7 (3) apply, the value the Goods is unknown to the Carrier.

12. SHIPPER’S/MERCHANT’S RESPONSIBILITY

  1. All of the Persons coming within the definition of Merchant in Clause 1 shall be jointly and severally liable to the Carrier for the due fulfillment of all obligations undertaken by the Merchant in this Bill of Lading and remain so liable throughout Carriage, notwithstanding their having transferred this Bill of Lading and/or title I the Goods to another party.
  2. The Shipper warrants to the Carrier that the particulars relating to the Goods as se out overleaf have been checked by the Shipper on receipt of this Bill of Lading and that such particulars, and any other particulars furnished by or on behalf of the Shipper, are adequate and correct. The Shipper also warrants that the Goods are lawful goods and contain no contraband. If the Container is not supplied by or on behalf of the Carrier, the Shipper further warrants that the Container meets all ISO and/or other (inter-) national safety standards and is fit in all respects for Carriage by the Carrier.
  3. The Merchant shall indemnify the Carrier against all claims, losses, damages, fin< and expenses arising or resulting from any breach of any of the warranties in Clause 12(2) hereof or from any other cause in connection with the Goods for which the Carrier is not responsible.
  4. The Merchant shall comply with all regulations or requirements of Customs, port and other authorities, and shall bear and pay all duties, taxes, fines, imposts, expenses or losses (including, without prejudice to the generality of the foregoing Freight for any additional Carriage undertaken) incurred or suffered in respect of the Goods, and shall indemnify the Carrier in respect thereof.
  5. If Containers supplied by or on behalf of the Carrier are unpacked at the Merchant’s premises, the Merchant is responsible for returning the empty Containers, free from labels etc., with interiors brushed, clean, odor free and in every respect fit for immediate reuse, to the point or place designated by the Carrier, his servants or agents, within the time prescribed Should a Container not be returned as required above within the time prescribed, the Carrier is entitled to take such steps as he considers appropriate for the account of the Merchant and the Merchant shall be liable for any detention, loss or expense incurred as a result thereof.

6. Containers released into the care of the Merchant for packing unpacking or any other purpose whatsoever are at the sole risk of the Merchant until redelivered to the Carrier. The Merchant shall indemnify the Carrier for all loss and/or damage to such Containers occurring during such period The Merchant shall also indemnify the Carrier for any loss, damage, injury, fines or expenses caused or incurred by such Containers whilst in his control.

13. FREIGHT

  • Freight shall be deemed fully earned on receipt of the Goods by the Carrier and shall be paid and non-returnable in any event
  • The Merchant’s attention is drawn to the stipulations concerning currency in which the Freight is to be paid, rate of exchange, devaluation and other contingencies relative to Freight in the applicable Tariff.
  • Freight has been calculated on the basis of particulars furnished by or on behalf of the Shipper. If the particulars furnished by or on behalf of the Shipper are incorrect, it is agreed that a sum equal to double the correct Freight less the Freight charged shall be payable as liquidated damages to the Carrier.
  • All Freight shall be paid without any set-off, counter-claim, deduction or stay of execution before delivery of the Goods.

14. LIEN

The Carrier shall have a lien on the Goods and any documents relating thereto for all sums payable to the Carrier under this contract. The Carrier shall also have a lien against the Merchant on the Goods and any documents relating thereto for all sums due from him to the Carrier under any other contract. The Carrier may exercise his lien at any time and at any place at his sole discretion, whether the contractual Carriage is completed or not. In any event, any lien shall extend to cover the cost of recovering the sums due and for that
purpose the Carrier shall have the right to sell the Goods by public auction or private treaty, without notice to the Merchant at any time and at any place at the sole discretion of the Carrier.                     *

15. OPTIONAL STOWAGE AND DECK CARGO

  • The Goods may be packed by the Carrier in Containers and consolidated with other goods in Containers
  • Goods, whether or not packed in Containers, may be carried on deck or under deck, at the sole discretion of the Carrier, without notice to the Merchant All such Goods whether carried on deck or under deck, shall participate in general average and shall be deemed to be within the definition of goods for the purposes of the Hague Rules and shall be carried subject to those Rules.
  • Notwithstanding Clause 15 (2), in the case of Goods which are stated on the face hereof as being carried on deck and which are so carried the Hague Rules shall not apply and the Carrier shall be under no liability whatsoever for loss, damage or delay, howsoever arising, whether or not caused by negligence on the part of the Carrier, his servants, agents or Sub-Contractors.

16. LIVE ANIMALS

The Hague Rules shall not apply to the Carriage of live animals, which are carried at the sole risk of the Merchant. The Carrier shall be under no liability whatsoever for any injury, illness, death, delay or destruction to such live animals howsoever arising. Should the Master in his sole discretion consider that any live animal is likely to be injurious to any other live animal or any person or property on board, or to cause the Vessel to be delayed or impeded in the prosecution of its voyage, than such live animal may be destroyed and thrown overboard without any liability attaching to the Carrier. The Merchant shall indemnify the Carrier against all or any .extra costs incurred for any reason whatsoever in connection with the Carriage of any live animal.

17. METHODS AND ROUTES OF CARRIAGE

(1)  The Carrier may at any time and without notice to the Merchant:

(a) use any means of carriage whatsoever; (b) transfer the Goods from one conveyance to another, including but not limited to transhipping or carrying them on a Vessel other than that named on the face hereof; (c) unpack and remove the Goods which have been packed into a Container and forward them in a Container or otherwise; (d) proceed by any route in his discretion (whether or not the nearest or most direct or customary or advertised route), at any speed, and proceed to or stay at any place or port whatsoever, once or more often and in any order; (e) load or unload the Goods at any place or port (whether or not such port is named overleaf as the Port of Loading or Port of Discharge) and store the Goods at any such place or port; (f) comply with any orders or recommendation given by any government or authority, or any Person acting or purporting to act as or on behalf of such government or authority, or having under the terms of any insurance on any conveyance employed by the Carrier the right to give orders or directions; (g) permit the Vessel to proceed with or without pilots, to tow or be towed, or to be dry-docked, with or without Goods and/or Containers on board.

  • The liberties set out in Clause 17 (1) may be invoked by the Carrier for any purpose whatsoever, whether or not connected with the Carriage of the Goods, including but not limited to loading or unloading other goods, bunkering, undergoing repairs, adjusting instruments, picking up or landing any persons, including but not limited to persons involved with the operation or maintenance of the Vessel and assisting vessels in all situations Anything done in accordance with Clause 17 (1) or any delay arising therefrom shall be deemed to be within the contractual Carriage and shall not be a deviation.
  • By tendering Goods for Carriage without any written request for Carriage in a specialised Container, or for Carriage otherwise than in a Container, the Merchant accepts that Carriage may properly be undertaken in a general-purpose container, carried on or under deck at the Carrier’s sole discretion. .           _

18. MATTERS AFFECTING PERFORMANCE

If at any time the Carriage, the Vessel or other goods on board the Vessel are or are likely to be affected by any hindrance, risk, delay, difficulty or disadvantage of any kind (other than the inability of the Goods, due to their condition, safely or properly to be carried or carried further) and howsoever arising (even though the circumstances giving rise to such hindrance, risk, delay, difficulty or disadvantage existed at the time this contract was entered into or the Goods were received for Carriage), the Carrier (whether or not the Carriage is commenced) may, without prior notice to the Merchant and at the sole discretion of the Carrier, either:

(a) Carry the Goods to the contracted Port of Discharge or Place of Delivery, whichever is applicable, by an alternative route to that indicated in this Bill of Lading or that which is usual for Goods consigned to that Port of Discharge or Place of Delivery. If the Carrier elects to invoke the terms of this Clause 18 (a) then, notwithstanding the provisions of Clause 17 hereof: he shall be entitled to charge such additional Freight as the Carrier may determine; OR (b) Suspend the Carriage of the Goods and store them ashore or afloat upon the terms of this Bill of Lading and endeavour to forward them as soon as possible, but the Carrier makes no representations as to the maximum period of such suspension of Carriage. If the Carrier elects to invoke the terms of this Clause I 8 (b) then, notwithstanding the provisions of Clause 17 hereof: he shall be entitled to charge such additional Freight as the Carrier may determine; OR (c) Abandon the Carriage of the Goods and place them at the Merchant’s disposal at any place or port, which the Carrier may deem safe and convenient, whereupon the responsibility of the Carrier in respect of such Goods shall cease. The Carrier shall nevertheless be entitled to full Freight on the Goods received for Carriage, and the Merchant shall pay any additional costs of the Carriage to, and delivery and storage at, such place or port;

If the Carrier elects to use an alternative route under Clause 18 (a) or to suspend the Carriage under Clause 18(b) this shall not prejudice his right subsequently to abandon the Carriage.

19. DANGEROUS GOODS

  • No Goods which are or may become dangerous, inflammable, damaging or injurious (including radio-active materials), or which are or may become liable to damage any property whatsoever or injure any person whomsoever, shall be tendered to the Carrier for Carriage without his express consent in writing and without the Container as well as the Goods themselves being distinctly marked on the outside so as to indicate the nature and character of any such Goods and so as to comply with any applicable laws, regulations or requirements. If any such Goods are delivered to the Carrier without such written consent and/or marking, or if in the opinion of the Carrier the Goods are or are liable to become of a dangerous, inflammable, damaging or injurious nature, they may at any time be destroyed, disposed of, abandoned, or rendered harmless without compensation to the Merchant and without prejudice to the Carrier’s right to Freight.
  • The Merchant undertakes that such Goods are packed in a manner adequate to withstand the risks of Carriage having regard to their nature and in compliance with all laws or regulations, which may be applicable during the Carriage. In particular but without prejudice to the generality of this Clause 19(2), if the Goods are not packed into the Container by or on behalf of the Carrier, the Merchant undertakes that incompatible Goods are not packed in the same Container.
  • Whether or not the Merchant was aware of the nature of the Goods, the Merchant shall indemnify the Carrier against all claims, losses, damages or expenses arising in consequence of the Carriage of such Goods.
  • Nothing contained in this Clause shall deprive the Carrier of any of his rights provided for elsewhere.

20. NOTIFICATION AND DELIVERY

(1)  Any mention herein of parties to be notified of the arrival of the Goods is solely for information of the Carrier, and failure to give such notification shall not involve the Carrier in any liability nor relieve the Merchant of any obligation there under.

 (2)       The Merchant shall take delivery of the Goods within the time provided in the Carrier applicable Tariff (see Clause 2). If the Merchant fails to do so the Carrier shall be entitled without notice, to unpack the Goods if packed in Containers and/or to store the Goods ashore, afloat, in the open or under cover, at the sole risk of the Merchant. Such storage shall constitute due delivery here under, and thereupon the liability of the Carrier in respect of the Goods stored as aforesaid shall wholly cease, and the costs of such storage (if paid or payable by the Carrier or any agent or Sub-Contractor of the Carrier) shall forthwith upon demand be paid by the Merchant to the Carrier.

(3)        If the Merchant fails to take delivery of the Goods within thirty days of delivery becoming due under Clause 20 (2), or if in the opinion of the Carrier they are likely to deteriorate, decay, become worthless or incur charges whether for storage or otherwise in excess of their value, the Carrier may, without prejudice to any other rights which he may have against the Merchant, without notice and without any responsibility whatsoever
attaching to him, sell, destroy or dispose of the Goods and apply any proceeds of sale in reduction of the sums due to the Carrier from the Merchant

  • Refusal by the Merchant to take delivery of the Goods in accordance with the terms of this Clause and/or to mitigate any loss or damage thereto shall constitute a waiver by the Merchant to the Carrier of any claim whatsoever relating to the Goods or the Carriage thereof
  • In the event of the Carrier agreeing to a request of the Merchant to amend the Place of Delivery stated herein without stipulating any particular terms and conditions to apply during said amended Carriage, to the extent provided by the applicable Tariff the terms and conditions of this Bill of Lading shall continue to apply, but only until the Goods are delivered by the Carrier to the Merchant at the amended Place of Delivery Once the applicable Tariff ceases to provide for the continued application of the terms and conditions of the Bill of Lading or, if the Carrier declines to extend the Bill of Lading terms to the amended Place of Delivery, then the Carrier shall act as agent only of the Merchant in arranging for delivery of the Goods to the amended Place of Delivery but shall then be under no liability whatsoever for loss, damage or delay to the Goods, howsoever arising, for the period of amended Carriage.

If the Carrier agrees to make multiple point deliveries of an FCL Container, this contract terminates upon presentation of the sealed Container at the first place of delivery. Thereafter the Carrier acts as agent only to arrange any further deliveries.

  • If, at the place where the Carrier is entitled to call upon the Merchant to take delivery of the Goods under Clause 20(2) the Carrier is obliged to hand over the Goods into the custody of any Customs, port or other authority, such hand-over shall constitute due delivery to the Merchant under this Bill of Lading.
  • This Bill of Lading shall not be a negotiable document of title unless consigned ‘to order’, ‘to the order of’..’ or’ to bearer’. If not so consigned but instead consigned directly to a nominated party, this shall be a ‘Straight’ Bill and, at the sole discretion of the Carrier, delivery may be made to the nominated party only upon proof of identity, as if this Bill of Lading were a Waybill. Such delivery shall constitute due delivery hereunder.

21. FCL MULTIPLE BILLS OF LADING

  • Goods will only be delivered in a Container to the Merchant if all Bills of Lading in respect of the contents of the Container have been surrendered authorising delivery to a single Merchant at a single Place of Delivery In the event that this requirement is not fulfilled the Carrier may unpack the Container and, in respect of Goods for which Bills of Lading have been surrendered, deliver them to the Merchant on an LCL basis Such delivery shall constitute due delivery hereunder, hut will only be effected against payment by the Merchant of LCL Service Charges and any charges appropriate to LCL Goods (as laid down in the Tariff) together with the actual costs incurred for any additional services rendered.
  • If this is an FCL multiple Bill of Lading (as evidenced by the qualification of the tally acknowledged overleaf to the effect that it is ‘One of… part cargoes in the Container”), then the Goods detailed overleaf are said to comprise part of the contents of the Container indicated. If the Carrier is required to deliver the Goods to more than one Merchant and if all or part of the total Goods within the Container consists of bulk Goods or unappropriated Goods, or is or becomes mixed or unmarked or unidentifiable, the Holders of Bills of Lading relating to Goods within the Container shall take delivery thereof (including any damaged portion) and bear any shortage in such proportions as the Carrier shall in his absolute discretion determine. Such delivery shall constitute due delivery hereunder.

22. GENERAL AVERAGE & SALVAGE

  • In the event of accident, danger, damage or disaster before or after the commencement of the voyage, resulting from any cause whatsoever, due to negligence or not, for which, or for the consequences of which, the Carrier is not responsible, by statute, contract or otherwise, the Merchant shall contribute with the Carrier in general average to the payment of any sacrifices, losses or expenses of a general average nature that may be made or incurred, and shall pay salvage and special charges incurred in respect of the Goods.
  • Any general average on a Vessel operated by the Carrier shall be adjusted according to the York/Antwerp Rules of 1994 or any subsequent amendment thereto authorised by the CMI at any port or place and in any currency at the option of and by an adjuster appointed by the Carrier, with the test of reasonableness in the Rule Paramount being made on the basis of what was known at the time of the general average act and not subsequently with the benefit of hindsight. Any general average on a Vessel not operated by the Carrier (whether a seagoing or inland waterways vessel) shall be adjusted according to the requirements of the operator of that Vessel. In either case the Merchant shall give such cash deposit or other security, as the Carrier may deem sufficient to cover the estimated general average contribution of the Goods. Any security, other than cash deposits, must be given by a party acceptable to and with assets in a jurisdiction nominated by the Carrier. Such security must be provided before delivery if the Carrier so requires or, if the Carrier does not so require, within three months of the delivery of the Goods, whether or not at the time of delivery the Merchant had notice of the Carrier’s lien. The Carrier shall be under no obligation to exercise any lien for general average contribution due to the Merchant.
  • Conversion into the currency of the adjustment shall be calculated at the rate prevailing

on the date of payment for disbursements and on the date of completion of discharge of the Vessel for allowances, contributory values, etc.

  • If a salving vessel is owned or operated by the Carrier, salvage shall be paid for as full as if the salving vessel or vessels belonged to strangers.
  • In the event of the Master in his sole discretion or in consultation with owners considering that salvage services are needed, the Merchant agrees that the Master may act as his agent to procure such services to Goods and that the Carrier may act as his agent to settle salvage remuneration, without any prior consultation with the Merchant in both cases.
  • If the Merchant contests payment of contribution to general average, salvage, salvage charges and/or special charges to Goods on any grounds whatsoever or fails to make payment of contribution within three months of the issue of the adjustment thereof, whether or not prior security has been provided, the Merchant shall pay interest for the period in excess of three months on the contribution due at two percent per annum above the base lending rate of the central bank of the country in whose currency the adjustment i issued, in addition to the contribution due.
  • In the event of any general average credit balances due to Merchants still being unclaimed 5 years after the date of issue of the adjustment, these shall be paid to the Carrier, who will hold such credit balances pending application by the Merchants entitled thereto.

23. VARIATION OF THE CONTRACT

No servant or agent of the Carrier shall have the power to waive or vary any of the terms i this Bill of Lading, unless such waiver or variation is in writing and is specifically authorised or ratified in writing by the Carrier.

24. LAW AND JURISDICTION

  • Unless Clause 25 or 27 applies, any claim against the Carrier under this Bill of Lading shall be determined only according to English law and exclusively in the High Court of Justice in London. The Merchant irrevocably submits to this jurisdiction.
  • The Carrier shall be entitled to pursue any claim against the Merchant in London   ^ according to English Law or in any jurisdiction in which the Merchant has assets but then in accordance with the local law of that jurisdiction.
  • Nothing herein shall prevent the parties to any claim or dispute under this Bill of Lading from agreeing to submit the claim or dispute to arbitration by mutually acceptable arbitrator(s) on mutually acceptable terms at a mutually acceptable venue.

25. VALIDITY

In the event that anything herein contained is inconsistent with any applicable international convention or national law, which cannot be departed from by private contract, the provisions hereof shall to the extent of such inconsistency but no further be null and void.

26. LIMITATION OF LIABILITY

For the avoidance of doubt, it is hereby agreed by the Merchant that the Carrier qualifies and shall be regarded as a person entitled to limit liability under the relevant Convention on the Limitation of Liability for Maritime Claims, notwithstanding that the Carrier may have procured space on board the Vessel concerned by means of a Slot Charter party, Bill of Lading or some other contract of carriage.

Except to the extent that mandatory law to the contrary applies in the appropriate jurisdiction (in which case said law shall apply), the size of the fund to which the Carrier may limit liability shall be identical to that proportion of the limitation fund by which the actual carrier is entitled to limit which is (or would be) available for the Carrier’s claims against the actual carrier.

27. USA CLAUSE PARAMOUNT (if applicable)

  • If Carriage includes Carriage to, from or through a port in the United States of America, this Bill of Lading shall be subject to the United States Carriage of Goods by Sea Act 1936 (US COGS A), the terms of which are incorporated herein and shall be paramount throughout Carriage by sea and the entire time that the Goods are in the actual custody of the Carrier or his Sub-Contractor at the sea terminal in the United States of America before loading onto the vessel or after discharge therefrom, as the case may be.
  • The Carrier shall not be liable in any capacity whatsoever for loss, damage or delay to the Goods while the Goods are in the United States of America away from the sea terminal and are not in the actual custody of the Carrier. At these times the Carrier acts as agent only to procure Carriage by Persons (one or more) under the usual term and conditions of those Persons. If: for any reason, the Carrier is denied the right to act as agent only at these times, his liability for loss, damage or delay to the goods shall be determined in accordance with Clause 6 hereof.
  • If US COGSA applies the liability of the Carrier and/or the Vessel shall not exceed US$ 500 per package or customary freight unit (in accordance with Section 1304(5) thereof). Unless the value of the Goods has been declared on the face hereof in which case Clause 7(3) shall apply.
  • Notwithstanding the provisions of Clause 24, if Carriage includes Carriage to from or through a port in the United States of America, the Merchant may refer any claim or dispute to the United States District Court for the Southern District of New York in accordance with the laws of the United States of America.

Unit 7

Letters of enquiry

Replies to enquiries

I.    Business Letter Writing: Enquiries – Asking for Information ……………………..52

II.   Business Letter Writing: Responding to Enquiries and Requests for

Information………………………………………………………………………………………………55

III.   Exercises…………………………^………………~…………………………………………………….58

I. Business Letter Writing: Enquiries – Asking for

Information

We write an enquiry when we want to ask for more information concerning a product, service or other information about a product or service that interests us. These letters are often written in response to an advertisement that we have seen in the paper, a magazine, a commercial on television when we are interested in purchasing a product, but would like more information before making a decision.

Remember to place your or your company’s address at the top of the letter (or use your company’s letterhead) followed by the address of the company you are writing to. The date can either be placed double spaced down or to the right.

Important Language to Remember

• The Start: Dear Sir or Madam

To .Whom It May Concern – (very formal as you do not know the person to whom you are writing)

• Giving Reference: With reference to your advertisement (ad) in…

Regarding your advertisement (ad) in …

• Requesting a Catalogue, Brochure, Etc.: After the reference, add a comma and continue -…,

would (Could) you please send me …

• Requesting Further Information: I would also like to know …

Could you tell me whether…

• Signature: Yours faithfully – (very formal as you do not know the person to whom you are writing)

An example letter

Kenneth Beare

2520 Visita Avenue

01ympia,WA 98501

Jackson Brothers

3487 23rd Street

New York, NY 12009

September 12, 2000

To Whom It May Concern:

With reference to your advertisement in yesterday’s New York Times, could you please send me a copy of your latest catalogue. I would also like to know if it is possible to make purchases online.

Yours faithfully

(Signature)

Kenneth Beare

Administrative Director

English Learners & Company

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address   ‘                                         

City, State Zip

Dear Mr. Hutton:

The majority of our employees hold personal accounts with your bank and have been inquiring about direct deposit of their monthly paychecks.

Please send us more information concerning your direct deposit option.

Đa số nhân viên của chúng tôi có tài khoản cá nhân tại ngân hàng của quý Ngài và muốn biết cách thức ký gửi trực tiếp chi phiếu lương tháng của họ. Xin vui lòng cho chúng tôi biết chi tiết hơn về thủ tục ký gửi trực tiếp ở ngân hàng của quý Ngài.

Specifically, we are interested in determining your fees, if any, to the depositor, as well as the stipulations and monthly paperwork required to release funds for direct deposit.

Cụ thể chúng tôi muốn biết các loại phí, nếu có, tính cho khách hàng ký gửi là bao nhiêu, cũng như các quy định và các chứng từ cần thiết phải cung cấp hằng tháng để giải ngân khoản ký gửi trực tiếp.

We look forward to receiving the information, as we are anxious to provide this convenient service to our employees. Your prompt response would be greatly appreciated.

Chúng tôi mong nhận được giải thích thấu đáo, vì chúng tôi rất muốn nhân viên của chúng tôi sử dụng dịch vụ này vì lý do tiện lợi. Chân thành cảm ơn và mong quý Ngài sớm hồi âm.

Trân trọng kính chào.

Sincerely,

Company Name or Letterhead

Address                          

City, State Zip

Date

Addressee

Address

City, State Zip

Dear Dr. Crispin:

Our business office is interested in applying the latest technology to become more effective and efficient. However, we do not have the expertise to manage a variety of new software on one common structure. In addition to the initial set-up, we need employee workshops to ensure effective use of the software. Please send us more information about your computer consulting services. A list of services, fees, and references would be appreciated.

Thank you for your time.

Sincerely,

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City,State Zip ——-         

Dear Ms. Alexander:

We are in the process of setting up a new office in Hyattsville and would like to compare prices from the local office furniture companies.

We will need 12 desks and 24 chairs, six metal filing cabinets, a 2.5′ x 4′ dry erase board, and a conference table that seats eight. The conference table and eight of the chairs should be high quality wood. As the office is opening on February 15, we would need the furniture delivered by the 13th. We are looking to spend no more than $4000.00.

If you would like to offer a quote or discuss our needs in more detail, please call me. We hope to have all our quotes by next Friday.

Sincerely,

II. Business Letter Writing: Responding to Enquiries and Requests for Information

It is very important to make a good impression when responding to enquiries from potential customers. Of course, the best impression will be made by providing the materials or information that the perspective client has asked for, this positive impression will be improved by a well written response.

Remember to place your or your company’s address at the top of the letter (or use your company’s letterhead) followed by the address of the company you are writing to. The date can either be placed double spaced down or to the right. You can also include a reference number for correspondence.

Important Language to Remember

• The Start:

Dear Mr, Ms (Mrs, Miss VERY IMPORTANT use Ms for women unless asked to use Mrs or Miss)

• Thanking the Potential Customer for His/Her Interest:

Thank you for your letter of… enquiring (asking for information) about…

We would like to thank you for your letter of… enquiring (asking for information) about …

• Providing Requested Materials:

We are pleased to enclose …    

Enclosed you will find …

We enclose…

•  Providing Additional Information:

We would also like to inform you …

Regarding your question about…

In answer to your question (enquiry) about …

• Closing a Letter Hoping for Future Business:

We look forward to … hearing from you / receiving your order / welcomingyou as our client (customer).

•  Signature:

Yours sincerely (remember use ‘Yours faithfully’ when you don’t know the name of the person you are writing and ‘Yours sincerely’ when you do.

An example letter

Jackson Brothers

3487 23rd Street

New York, NY 12009

Kenneth Beare

Administrative Director

English Learners & Company

2520 Visita Avenue .

01ympia,WA 98501

September 12, 2000

Dear Mr Beare

Thank you for your enquiry of 12 September asking for the latest edition of our catalogue. Cảm ơn thư hỏi ngày 12/9 của quý Ngài về ấn bản catalog mới nhất của chúng tôi.

We are pleased to enclose our latest brochure. We would also like to inform you that it is possible to make purchases online at http:\\jacksonbros.com.      Chúng tôi rất vinh dự gửi kèm theo đây ấn bản mới nhất để quý Ngài tiện tham khảo. Chúng tôi cũng muốn thông báo quý khách có thể mua hàng trên mạng tại địa chỉ http:\\jacksonbros.com.                   

We look forward to welcoming you as our customer.

Chúng tôi hân hạnh được phục vụ quý khách.

Yours sincerely

(Signature).

Dennis Jackson

Marketing Director

Jackson Brothers

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City, State Zip

Dear Ms. Allyson:

Thank you for your interest in our gravel prices.

As of January 16 our prices for gravel are the following:

Grade                    Price Per Ton

Fine                         $210.99

Medium                   $185.99

Coarse                    $170.99                                      :

Orders over 7 tons receive a 5 percent bulk-rate discount.

Please be aware that our prices often fluctuate as mining, processing, and transportation costs change. You should request a price update before making purchases, either by calling Bruce Coglin at 555-3711 or emailing us at sandandgravel@unionsuppliers.com.

Sincerely,

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City, State Zip

DearMrs.Mueller:     

Thank you for inquiring about our advertising rates. You will find that the Lake-wood

Herald’s advertising rates are the most reasonable in Nashua:

Size and Color

1.5″x3″    B&W

Daily Rate

$16.00

(business card size)

1.5″ x 3″ color                 $19.00

4″x4″b&w                       $25.00

4″ x 4″ color                   $30.00

12″xl3.5″b&w                    $150.00  (full page)

12″ x 13.5 ” color              $175.00

Every seventh day we run your ad is free. Our in-house graphic designers would be happy to create your eye-catching advertisement for a reasonable fee.

Please call us if you have any other questions or would like to place an ad.

Sincerely,

III.   Exercises

1. Write a letter of first enquiry, using the following words and phrases:

Date, 17th April, 2005

Dear Sirs,

We / see / display / Leipzig Trade Fair / 12th April.

We / interest / range / small cameras. We / wish / supply / customers / the / Sony model

Please / send / catalogue /price-list /all small cameras. Enclose / detailed information / the “Sony” model, /as / this /the camera / our customers / most interested.                       T

Yours faithfully,

2. Write a letter of reply to the letter in exercise 1, using the following words and phrases

Date 24* April, 2005

Dear Sirs,

Thank/………./you requested/a catalogue……………….

We enclose/………………………………………………………….,……..

All prices / quote / F.O.B London.

We / look forward / received / your order. 117 require / additional information, / please / inform. We / send / an experienced salesman / you wish.

Yours faithfully

3. You work for a company which supplies computers. You receive a letterofenquiry asking for details of your new ‘Apple” model.

Send a letter of reply to the correspondent, A Franco, Purchasing Dept., Office System Ltd., 237 Wincester Road, Bristol, providing details of prices, and enclosing a brochure.

Unit8: Follow-up Letters

Sales Letters

I. Follow-up Letters

Stand out and get noticed with a well-written follow-up letter. Be sure to show your interest and explain the benefits your contribution will make.

Follow-up letters remind others of important events and occurrences, and they can help you accomplish what you need to.

9 Tips/or Writing Follow-Up Letters:

1. Send reminders about meetings and appointments in advance so that the recipient has sufficient time to prepare or fulfill assignments. You may send other reminders as the need arises. The message should be brief and clearly stated to avoid misunderstandings.

2. Take advantage of follow-up letters to reiterate the positive aspects of your service or product, and gently urge your potential client to take the next step in negotiating a sale. If the reader has already expressed interest in your business, give a firm sales pitch, highlighting the benefits of your product or service, without pushing too hard.

3. Don’t duplicate previous sales pitches, but offer something new, such as more information or a special discount.

4. Send your follow-up letter promptly, especially after an interview (usually within 24 hours; 48 hours at the most).                        

5. When following up after an interview, indicate that you are willing to provide additional information or references (if applicable).

6. Send a follow-up letter to remind others of an important meeting or other event that was scheduled several weeks or months in advance. Include in the letter the date, time, and location of the meeting, along with any other important information.

7. Indicate to the recipient of the letter whether or not you need a response, and specify how the person can respond to you: via phone, e-mail, in person, or by mail.

8. If you do not receive a response from an initial follow-up letter, you may want to write a second letter. Include a copy of the previous follow-up letter with your new one, or repeat the message. Reiterate the importance of receiving a response.

9. Avoid negative remarks. If you do not receive a response after a first letter, do not imply in later letters that the reader is forgetful, thoughtless, or negligent, as this will likely make him or her feel defensive. Showing your frustration will usually make the situation worse.

With a well-written follow-up letter you can:

1. Remind individuals who attended a meeting of the decisions and assignments that were made, thereby helping to move the work along.

2. Establish or renew a relationship.

3. Thank an interviewer and remind him or her of your name and qualifications (after applying for a position with his or her company).

4. Show appreciation for a contribution made, for the opportunity to interview with a company, for exceptional work done on a project, and so forth.

5. Add important information that did not come up during an interview and remind the interviewer of your interest in the position.

6. Remind a customer or potential customer of your continued willingness to serve him or her.                                                          

7. Emphasize the advantages of doing business with your company, and propose a course of action that the customer can take.

8. Thank a customer or announce a special sale or limited-time offer. (A follow-up letter keeps your company’s name before the customer and reinforces the impression that you are a good person to do business with.)

9. Remind an interviewer of some aspect of an interview that went well, briefly elaborate on an idea brought up in the interview, or work to repair any damage that may have been done during the meeting.

10. Reiterate your interest in a position or organization.

11. Send information the employer may have asked you to provide during an interview.

12. Show that you are courteous and professional, and gain an edge over job applicants who do not send thank-you or follow-up letters (many do not).

Follow-up Letter after a meeting

Dear Sirs, Our meeting on September 17 proved to be a very productive step toward strengthening the University’s General Education program. In addition to getting a better understanding of why the program needs strengthening, we were successful in organizing three important subcommittees to get the work going. Suzanne Johnson will head the subcommittee responsible for handling student and faculty surveys, while Jane Doe will head the subcommittee that will draft the initial proposal for the Academic Vice President’s office. In addition, John Doe will head a subcommittee that will evaluate the effectiveness of alternate tracks. We will meet again on October 18 for these committees to present their initial reports. Let me say that I sincerely appreciate the good will and willingness to serve that I sense from each of you. Cuộc họp của chúng ta vào ngày 17/9 cho thấy có nhiều tiến bộ nhằm củng cố chương trình đào tạo giáo dục đại cương cho trường đại học. Ngoài việc hiểu rõ hơn lý do tại sao chương trình đó cần được củng cố, chúng ta cũng đã tổ chức thành công 3 tiểu ban phụ trách xúc tiến chương trình. Suzanne Johnson sẽ làm trưởng tiểu ban chịu trách nhiệm thực hướng dẫn những cuộc nghiên cứu của sinh viên và khoa, trong khi Jane Doe sẽ làm trưởng tiểu ban dự thảo đề án đầu tiên cho văn phòng Phó hiệu trưởng đào tạo. Ngoài ra, John Doe sẽ làm trưởng tiểu ban thẩm định tiến độ thực hiện. Chúng ta sẽ gặp lại lần nữa vào ngày 18/ 10 để các tiểu ban này trình bài báo cáo sơ bộ của họ. Cho phép tôi được nói rằng tôi thành thật cảm ơn thiện chí và thái độ sẵn sàng phục vụ mà tôi cảm nhận được ở mọi người.    Yours Sincerely,

Follow-up letter after sales

Dear John, I just wanted to thank you for allowing us to serve you. I hope you are enjoying your new printer. Tôi rất muốn cảm ơn quý Ngài đã cho phép tôi được phục vụ. Tôi hy vọng quý Ngài sẽ thích máy in của quý Ngài. Let me show my appreciation by offering you a special offer. For the next 90 days if you need any ink cartridges or paper, I’ll give you 1 extra FREE for every 3 you buy. Buy 3 and Get 1 Free! Cho phép tôi được gửi đến quý Ngài lời chào mời đặc biệt. Trong 90 ngày tới đây, nếu quý Ngài cần hộp mực hay giấy, tôi sẽ tặng 1 khi quý Ngài mua 3. There’s no limit on this offer as long as you purchase during the next 90 days. Số lượng mua sẽ không giới hạn nếu quý Ngài mua trong thời gian có hiệu lực 90 ngày kê từ ngày có thư chào này. The reason I’m making you this offer is to get you into the habit of ordering your computer supplies from us. Lý do tôi chào mời quý Ngài là nhằm tạo thói quen đặt hàng thiết bị vi tính tại cửa hàng của chúng tôi. I know that once you’ve shopped here a few times, you’ll want to order from us over and over again. Tôi biết một khi quý Ngài đến thăm cửa hàng của chúng tôi một vài lần, quý Ngài sẽ đặt mua hàng của chúng tôi nhiều lần sau đó. We want pleased customers. Chúng tôi cần làm vui lòng khách đến, vừa lòng khách đi. Sincerely,  

Follow-up letter after no response to earlier correspondence

Dear Sirs, I know that this is a busy time for contractors, but I have not yet received a response to my letter dated September 5, in which I documented the water damage that the faulty plumbing caused to our hardwood floor. Tôi biết rằng vào thời điểm này các nhà thầu rất bận rộn, nhưng tôi vẫn chưa nhận được hồi âm cho thư đề ngày 5/9 của tôi, trong đó tôi có đủ chứng từ để khiếu nại các đường ống kém chất lượng, nên nước đã tràn ra làm hỏng sàn nhà bằng gỗ quý của chúng tôi. It is a clear case of negligence on the part of one of your subcontractors, and we are eager to have it repaired. Since our home is still covered by your builder’s warranty, we expect that you will absorb the cost of repairing the floor. Vụ việc rõ ràng là do tinh thần thiếu trách nhiệm của một trong những thầu phụ của quý Ngài gây ra, và chúng tôi rất mong quý Ngài thực hiện sửa chữa. Vì nhà của chúng tôi vẫn còn trong thời hạn bảo hành của thầu xây dựng của quý Ngài, chúng tôi mong quý Ngài chịu chi phí sửa lại sàn nhà của chúng tôi. Although my first letter seems to have been misplaced in all of your correspondence, I trust that you will now give your immediate attention to this repair so we can get settled in the new home that we otherwise enjoy very much. Mặc dù thư đầu của chúng tôi hình như bị lẩn lộn trong các thư từ giao dịch của quý Ngài, nhưng chúng tôi tin rằng quý Ngài sẽ sớm giải quyết sửa chữa cho chúng tôi để chúng tôi có thể ổn định mọi thứ trong ngôi nhà mới mà chúng tôi rất thích nếu như không có sự cố xãy ra. Yours truly,

II. Sales Letters

WHAT IS A SALES LETTER?

A sales letter is a document designed to generate sales. It persuades the reader to place an order; to request additional information; or to lend support to the product or service or cause being offered. It influences the reader to take a specific action by making an offer-not an announcement—to him. To sell, the sales letter must be specific, go to the right audience, appeal to the readers needs, and it must be informative.

PART OF THE SELLING PACKAGE:

The job of the sales letter is to sell, not to tell. The letter alone does not always do the entire selling (persuading) job. Other pieces of support literature that amplify the selling points, illustrate the product or service, or provide technical information, may be needed.

Supplement the letter with a brochure or product sheet if necessary, and if you do, mention it in the body of the letter.

RESEARCH:                      

Preparing your sales letter means you need to understand the product or service being offered, the market, and the readers needs. There is no substitute for product or service knowledge. Any source of information should be considered. On-Line resources, ads, brochures, articles, books, reports, newsletters and newspapers, and in-person interviews, are good sources.

THE PRODUCT OR SERVICE. THE MARKET and THE READER:

What does the product or service do for the one who needs it? What can the reader gain from buying it? What is unique selling point of the product or service? To answer these questions begin by distinguishing the benefits from the features: Persuade your reader to buy based on the grounds of what the product or service does for him or her (benefit), not what the product or service is (feature)!

A benefit is what the product or service does, and what the buyer gains from the feature. A benefit is the specific outcome of the feature. A feature is something the product or service already has. Benefits are what motivate people to buy. A car, for example, has four tires (feature). If those tires are HP 90’s, and are proven to reduce accidents by hugging wet roads, then we have the benefit of those tires. Stress that the reader is less likely to have an accident, if he buys the tires. Or, for example, consider the Michelin Tire ad on TV: it promises to protect children, if you have them on your car.

How do you plan to market the product or service? Through the Internet, direct mail, Email, direct sales, print advertising, etc.? Do you need other advertising or literature to support the sales letter? Who is your competition? How are they marketing this product or service? What is your advertising budget? Are your marketing hopes realistic?

Who is your prospective buyer? What motivates a person to buy this item? The experts say that the emotion most often used to manipulate people to buy is fear, and the thousand variations of it. Walk a mile in the buyers’ shoes. Does your offer appeal to the readershot buttons, AKA emotional needs? Can you transform him from prospect to buyer?

ELEMENTS OF A SALES LETTER, SIMILAR TO MOST ADS:

Keep these basic components in mind: The image, if used, is near the headline. It helps to catch the reader’s eye. The headline is usually 3 – 30 words long. It grabs the reader’s attention, and tells him what the ad (sales letter) is about. It makes a promise regarding what the item you are selling will do for him. The sub-headline or lead paragraph is optional. Sometimes it’s used to expand the headline. (More on the sub-heading later.) The

body: it expands the theme, fills in details, offers proof, and shows how you plan to fulfill the promise you made in the headline. The closing, or call to action, urges the reader to take the next step you want him to take.

ON THE IMAGE:

If you have a logo or design for your business do not use it in the sales letter unless it is truly relevant to what you are offering. You are not selling your business name, or logo, you are selling benefits that the buyer will realize if he buys your product or service. Use a specific image that is germane to your headline, lead, and theme, or do not use one at all.

Stay with words.

ON FORMATTING THE SALES LETTER:                  

Use your business or a personal heading or nameplate, minus the logo. The next component is the headline. Type the headline in a few short lines where the inside name and address would go. Or, you could consider centering the headline or putting it in a text box to grab attention. You may want to add color or shading to the box for more attractiveness.

You can follow the headline with an inside name and address block of the reader, and another way to do this is to use a form letter without an inside name and address block using a general greeting that represents the readers’ interests. “Dear Tire Purchaser,” would be valid if you were selling HP 90’s. (One inch margins all the way around are fine.)

The important thing is the sequence, not nameplates and inside address block. Again it goes like this:

a) Your business or personal nameplate,

b) image and headline,

c) inside address block, if you use one,

d) greeting,

e) lead paragraph,

f) body,

g) closing.

JOB OF THE HEADLINE:

Ideally, the job of the headline is to:

a) get the readers attention,

b) target the audience,

c) list a benefit,

d) make a promise.

This draws the reader into the rest of the copy. Headlines of 10 words or more tend to generate more orders or leads. Headlines that promise a benefit also tend to sell more. (The example of a recent AOL ad, given below, passed these criteria.) Lead with one of the unique selling points.

Always shoot your big gun first: use your main selling point in the headline. Remember you only get 7-10 seconds to hook the reader. If the biggest benefit of what you are selling is cost, then list that first. This morning, when I signed on to AOL, they hit me with an ad. It read: “Long distance, for AOL members, only $.09 per minute. No monthly fees.”

The next screen, a collateral piece, expanded the headline and gave information on how the offerworks.

Remember: The headline has a benefit and makes a promise. The promise should be unique to what you are selling, and one that your competitors are currently not talking about. Use “power words” in the headline. Try: “You.11 “Free.” “Proven.” “Imagine.” “How To.” “Fast.” “Cheap.” “Enjoy.” “Now.” “Learn.” “Introducing,” and so forth. In the body of the sales letter you will begin to offer proof.

7 SUGGESTIONS ON HOW TO START:

There are many possibilities for opening your sales letter, that could persuade the reader to buy. Here are some that I have used. Experiment, and create one that is right for your offer. If you have trouble identifying your product or service’s unique selling point, or beginning your letter, consult a competent copy writer.

• Tell a story that the reader can identify with, in conversational tone

• Make an announcement of a new product or service, a one of a kind event, or important news, showcasing your unique selling point

• Address the reader as your equal: “Dear fellow tire purchaser…”

• You could go with something provocative, perhaps a quote

• You could open by identifying the readers problem, one that your product will solve

• Ask a question

• Let the reader in on some secret or little known information

SUB-HEADLINE OR LEAD PARAGRAPH:

This part of the sales letter is optional. It can be used to expand the promise made in the headline or used to deliver a 2nd major benefit of the product or service. A sub-headline can also be used as the second part, to answer a question posed in the headline. For example. Part 1 could say: “Want to double your part-time income during the next 90 day period?” Part 2 could say: “Well, here’s how to …”

BODY OF THE LETTER;

Here, using the same tone and staying with the spirit of the headline, you begin to give details of your unique selling point. You continue talking about the benefits and offer proof of the claim you made early on. You share the details of the benefits. You prove your case or claim. Remember, by the end of the body, the goal is to create an emotional response that will cause the reader to do what you are now going to tell him to do.

CLOSING OR CALL TO ACTION:

If you ask the reader to order, support, or to contact you for the specified reason you must make it easy for him to reply. Support the sales letter with a post card or prepaid envelope, and an order form. If not appropriate, supply a toll free telephone number, an Email link, and or your URL. Always close with a thank you and use a signature at the end of the letter. Save one of the best points for last: Always use a Post Script. For example, “If you order before March 1, we will include a free …” Or “Money back guaranteed .. .” Or “Discount is good until …”

A FINAL SUGGESTION:

Remember: Getting the reader to show you his money is the challenge-period. The best way to tell if you are close to accomplishing this challenge is to use test readers. When composing a successful sales letter there is no substitute for test readers. When you give your letter to a test reader ask him or her what is missing, how you could improve the offer, and if they would buy.

Samples of Sales letters: sales introduction letter

(Company name, address, date and your reference)   Dear Mr Smith New ‘Sales Activator®’ Sales Training System The Sales Activator® is the best new sales training and selling development system for decades (source: businessballs.com). It is now used by leading companies such as Shell, Barclays, Zurich Life, and DHL, because it offers significant advantages over conventional sales training. Sales Activator® là hệ thống phát triễn bán hàng và đào tạo nhân viên bán hàng loại mới có chất lượng tốt nhất trong nhiều thập niên (nguồn: businessballs.com). Hiện nay nó được nhiều công ty hàng đầu như Shell, Barclays, Zurich Life, và DHL sử dụng, bởi vì nó có nhiều ưu điểm hơn hẳn phương thức đào tạo bán hàng truyền thống.   For a cost equating to just a few hundred pounds per sales team per year, your sales people and managers can each participate in at least 70 hours leading-edge sales training and development per year – and what’s more they will enjoy doing it. The remarkable ‘Sales Activator’ system uses a participative team-game quiz format to develop : Với chi phí chỉ bằng vài trăm Bảng cho mỗi nhóm bán hàng hằng năm, quản lý và nhân viên bán hàng của quý Ngài có thể tham gia ít nhất là 70 giờ phát triển và huấn luyện bán hàng độc đáo hàng năm – và còn hơn thế nữa họ sẽ rất thích thực hành trong thực tế. Hệ thống ‘Sales Activator’ nổi tiếng sử dụng phương thức câu đố dành cho tập thể tham gia trả lời để phát triễn:   •  leading-edge sales skills                                                   •  effective selling processes • peer-to-peer sales coaching • motivational sales management skills, and • shared best practice and team building If you’d like to assess the effectiveness of the Sales Activator® for your sales organisation, you can arrange a no-obligation, free one hour Sales Activator experience – with an approved facilitator – for one of your sales teams at your next team meeting. I’ll call you soon, or please feel free to contact me to arrange it.   Yours sincerely, etc. (Signature and name)                                                       „ P.S. You can see more details about the Sales Activator®, and download a free Sales  

Performance Report showing the five critical factors that deliver most sales

improvement at the Sales Activator® page on www.businessballs.com.

Sales Letter to introduce catalogues, brochures

Dear Sirs,

After a long day at the office, no one feels like spending a lot of time cooking, but you can’t neglect your family’s nutrition! Don’t despair! We have a recipe collection featuring delicious low-fat dinners that includes techniques for cooking poultry, fish, beef, breads, vegetables and desserts in less than thirty minutes. This fantastic collection is now available to you.

Enclosed you will find our “fast and light” cooking brochure and five free recipes. You will notice that each recipe card includes a beautiful color photo of the prepared dish. Each recipe is given in an easy step-by-step format to help you achieve flawless results every time. You will be amazed at how quickly and easily you can prepare a nutritious mealthat your family will love.

Just look through our brochure and decide which series of recipes suits your family’s taste best. Then call our toll-free number to place your order. It’s that simple. Adapt this sample letter – use it as a template guide – to suit your own situation.

Yours sincerely,

Sales Letter to invite a prospective customer to a sales presentation

Dear Sirs,

Thank you for your time last week. As I mentioned, I am especially eager to introduceyouto a new product that will make mealtimes much more enjoyable. If you have ever beenhungry but have not wanted to take the time to fix something, or if you have even, beendiscouraged by the clean-up that follows, you won’t want to miss this new product.

I am demonstrating our revolutionary system at the home of Jane Doe Saturday morning, June 5, at 10:00 a.m., and hope you can join us. If this time is inconvenient, please call me at the Springfield store or at home (555-5555) and we will work out another schedule. I hope to see you soon.

Yours sincerely,

Announce a change of business address

Dear (name),

When I contacted you last month for help in finding a new career opportunity, I had no idea that one would turn up so quickly! I want to thank you for your support and let you know that I have been offered the position of Sales Manager for Doe Industries.

As you may know, Doe Industries employs over 500 people locally. Of the businesses that offer paper products. Doe is by far the largest and most efficient.

One of the things I’ve learned in this transition is the importance of staying in touch with friends and business associates. Therefore, I wanted to give you my new address and telephone number, with the hope that I will have an opportunity to be of assistance to you and your company.

(Give your name, new address, and phone)

Again, I want to thank you for your help and encouragement. I look forward to staying in touch with you.

Sincerely,

III.   Exercises

1. Write a letter to the Exporter Manager of a British company which specialized

in the production of leather motorcycle gloves.

You wish to place an order for a bulk purchase of the gloves, which should be black in color. You want a variety of sizes, also. The address is Motoleather Ltd., 159 Roman Way, Chelmford, SQB 159T, Essex, England.

2. You work for a firm which supplies computers to various British companies.

Write a follow-up letter to a first enquiry, giving details of an improved 15% discount for purchases over $15,000. Often any other services (demonstration, visit) you think suitable.

3. Acknowledge an order from a British buyer.

Micro Electronics have ordered 5,000 small electric light bulbs from your company. They have asked you for a Pro-Forma Invoice, and have asked their bank to issue a Letter of Credit in your favour. They also insist on a penalty clause for delivery after the 26th March.

Their letter is dated 2nd February. Their address is Cavendish Rd, London E75QT.

Unit 9

Letters of Complaints

I. Instructions to Write Good Complaint Letters

In order to get your problem resolved, put your complaint in writing! A respectful, yet firm, complaint letter may help you accomplish what you want.

Complaint letters can be a very effective way of making your voice heard.

How to write a complaint letter:

1. Keep in mind that most errors are unintentional, and realize that most businesses and organizations want to address and clear up complaints quickly in order to have satisfied customers or members.

2. Be brief. Keep your letter to one page, and write short paragraphs, rather than long ones.

3. Be honest and straightforward, and include sufficient detail to back up your claim and to show that you have thoroughly researched the subject. However, omit irrelevant details. Keep your letter concise and professional.

4. Maintain a firm but respectful tone, and avoid aggressive, accusing language.

5. Send only photocopies of receipts and other documents, and retain all originals. Keep a copy of the letter for your records.

6. In many cases, you can increase the effectiveness of your letter by getting several others to sign it with you. This is particularly the case when trying to influence or change legislation, denouncing material from the media, and so forth.

7. If a company has repeatedly given you bad service and refuses to correct the situation and you feel that your only recourse is to pursue legal action, voice your feelings in a tactful but firm way. However, don’t threaten legal action unless you are willing to follow through with it.

8. If your letter focuses on a single individual, avoid making generalizationsabout the company or organization.

9. If you need to make a complaint to or about people that you will still have contact with on a regular basis, your letter needs to accomplish its purpose without destroying the relationship. Use tact, and be direct, but respectful.

10. Include your contact information (name, address, phone number, and email address), if desired, so that the person(s) can reach you to discuss any questions or concerns.

11. If a first letter does not bring action, assume a stronger but still respectful tone in the next one. If two or three letters do not resolve the problem, send one to the president or CEO of the company or entity. In each case, be firm but polite.

With a well-written complaint letter you can:

1. Clearly make your complaint to the person(s) involved.

2. State plainly and directly your reason(s) for making the complaint.

3. Indicate what the reader can or should do to address your complaint, and specify how long you are willing to wait to have your complaint resolved. (Be reasonable.)

4. Communicate clearly, but respectfully, that you are dissatisfied with the service you have received.

5. Explain why your suggestion or request for retribution should be granted (if you made one).

6. Make your concerns known to politicians and bureaucrats. (Note: Your letter is more likely to be answered if you discuss specific concerns rather than political issues.)

GENERAL TIPS

Try to make sure your letter is sent to the right person or department

Try and keep your letter short

Be polite as sarcasm or rudeness wiIl not help your cause!

Say what you want for your complaint to be resolved.

Give a reasonable timetable for action to be taken before you will consider other options

Keep a copy of letters you write

Complaining about Poor Service. Defective or Inferior Products

Guidelines and Alternate Phrases

Summarize the problem briefly, specifically, and clearly. Include all information basic to the problem or resolution such as complete names, addresses, phone numbers, full description of the product or service, dates, places, amounts, methods of payment, previous correspondence, and file numbers. Include enough detail so a previously uninvolved reader can understand what has happened, but do avoid irrelevant detail that will only obscure the real issues.

State the facts of your complaint in an organized, easy-to-follow format. A bulleted list is an effective way to give specifics. In most situations, a once-upon-a-time format is not an appropriate arrangement of facts or issues.

Decide what specific action you want and firmly stick with it Don’t sound wishy-washy in what you will accept as restitution.

Please remove the $48 charge from my account.

Please send a replacement tray by overnight mail.

I will appreciate receiving an explanation and an apology from theservice representative.

Please send a replacement part immediately.

We ask you correct the situation by closing the old account and establishing an entirely new one.

We suggest you discuss with your staff the importance of a prompt response in such emergency situations.

In the future, please send all the authorizations directly to me for my signature before beginning any work projects on our behalf.

We have written you about these subscriptions on two previous occasions.

If the changes cannot be made by the next issue (March), please cancel all three subscriptions.

If we can make these two changes in the printed form, I’m confident we can reduce our internal costs by as much as 50 percent.

Be firm about any agreed-upon deadline with regard to any delayed response you have been promised.                              

I’ll expect to hear from you by Friday.

As you confirmed, I will be looking for the replacement shipment within 10 days.

As you suggested. I will wait to hear from Mr. Cox on August 15 about what adjustments he make on the price.

Sound factual, not emotional.

My calls have not been returned. (Not: The return calls have never materialized.)

As you know, we have a $200,000 investment in this equipment, and we musthave it operate dependably 24 hours a day. (Not: We have a $200,000 investment in this equipment; we would like to have it work occasionally.)

Assume a confident tone about a suitable resolution. Avoid aggressive or sarcastic statements. Assume the reader will give you a fair deal until he or she proves otherwise.

I know you will want to correct the situation immediately.

I was sure if I pointed out the difficulties to you personally, you would make every effort to solve the problem.

I hope you can restore our confidence in your product and service.

You have given us excellent service in past years, and we want to continue to depend on you for our data processing needs.

We feel confident you can correct the structure with minimal expense.

You have always been fair in your dealings with our organization, and we have every confidence you will decide to make an adjustment in this situation.

If we haven’t heard from you by August 5, we will assume you prefer to cancel the project altogether. I hope that’s not the case.

We appreciate your attention to this detail.

We are eager to hear how you think the problem can be corrected.

Let us know if you need further information to verify the claims we have presented here.

We are looking forward to continuing our relationship on future projects.

We believe we can count-on your best efforts in this regard.

Thank you for your usual attention to our concerns.

If follow-up tetters become necessary to gain the reader’s cooperation, become stronger in stating your next course of action while maintaining an objective tone.

If we don’t hear from you by August 6, we will be turning the problem over to our legal department.

We will be forced to cancel our account with your firm if we do not have a suitable resolution by August 6.

Be sure to attach any necessary documentation for your claims such as invoices,

receipts, canceled checks, order numbers, authorizations, and so forth.

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City, State Zip

Dear Mr. Winger:

We are experiencing problems with several of Hobart’s valets recklessly driving in our garage-problems such as spinning tires, speeding, and driving with car doors open. Todate, there have been no accidents or injuries reported by our tenants, but we want to notifyyou formally of your responsibility in this situation. .

Please see your valets are reminded of the safety hazards involved. Also, we ask that you no longer park cars in more than one entrance ramp on week days and you leave at least one entrance ramp open at all times during the weekend.

I have every confidence these problems can be remedied with both your attention and mine.

Sincerely,

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City, State Zip      —      -,—_-—-——-.-          —

Dear Mr. Hightower:

We are very concerned about the quality of the plumbing fixtures and the condition of the drain lines at our St. Louis offices. Chúng chúng tôi rất quan tâm đến chất lượng của sản phẩm ống nước và điều kiện của hệ thống thoát nước tại các cơ sở của công ty St. Louis. On two previous occasions, our offices have been flooded because of leaks. Các cơ sở của chúng tôi dã 2 lần phải chịu ngập nước do đường ống bị rò rỉ. On March 9, a third leak occurred that caused considerable damage to our printing operations. Vào ngày 9-3, lại tiếp tục rò rĩ lần thứ ba làm hỏng khá nhiều tài liệu in ấn của chúng tôi. The total repair and replacement costs amounted to $3,459. Chúng tôi phải mất 3.459$ để sữa chửa, thay thế.

We have attached all the invoices for your reimbursement. Chúng tôi gửi kèm theo đây tất cả các hóa đơn yêu cầu quý ông hoàn tiền do lỗi hàng của quý ông gây ra. Please let us know immediately if you prefer we follow some other procedure for handling the damage claims. Xin vui lòng cho chúng biết ngay nếu quý ông thấy có cách nào khác để giải quyết bồi thường cho chúng tôi.

Additionally, as a matter of precaution against a recurrence and possible injury to our employees, we ask you do the following: replace the old drain lines above our printing operations and recheck the newer lines in other locations. Ngoài ra, để đề phòng sự việc tương tự sẽ lập lại, gây thương tích cho nhân viên của chúng tôi, xin quý ông thay thế hệ thống thoát nước đã cũ đặt bên trên các ấn phẩm của chúng tôi và kiểm tra lại các đường ống mới ở các địa điểm khác.

Would you please notify us immediately when the work is complete and let us know of other precautions that you plan to take? Xin vui lòng thông báo cho chúng tôi khi hoàn tất công trình và cho chúng tôi biết các biện pháp đề phòng mà quý ông yêu cầu phải thực hiện.

Sincerely,

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City, State Zip

Dear Martin:

One of my employees, Winston Walkman, attended your June 6 class in St. Louis and was very disappointed with the quality of the course. Specifically, the content did not match the course outline in your advertisements. Although the agenda listed three topics having to do with conflict resolution, less than half an hour was spent addressing those issues.

Additionally, the instructor’s knowledge was inadequate to deal with the technical

questions from the class.

I spoke to the instructor briefly at the end of the class, and he agreed the questions and customer situations brought up in class were beyond his experience.

In light of the expectations raised by your course announcement, I think we are entitled to a refund of our $350 registration fee. A copy of that registration form is attached.

Should you need to discuss the class situation with me or Mr. Walkman in more detail, you may reach us at 346-2209.

Sincerely,

Complaining About Product Quality

Guidelines

Set a friendly tone while explaining that you are dissatisfied with the product or service.

Explain in detail the nature of your complaint, citing specific instances and providing any supporting documentation.

State what action you expect to be taken as a result of your letter.

Offer possible solutions for rectifying the problem.

Ask for a prompt response.

Company Name or Letterhead

Address

City, State, Zip

Date

Addressee

Address

City, State, Zip

Dear Mr. Martin:

On July 8, 1995, we purchased the Electrica 500 phone system, model number 4358 for our office. Unfortunately, the system has repeatedly disconnected callers during transfers to specific offices. Our receptionist has used the Electrica system at her previous job; in fact, it was she who suggested your company to us. Due to her extensive experience with your system, we feel it is unlikely the disconnections are occurring due to human error.

Our service contract states we are entitled to free service calls for the first three months after installation of the Electrica phone system, but we have been unable to reach anyone in order to schedule a service call.

Because of the difficulties with both the phones and the support services, we have decided to purchase a different phone system. Our service contract states that should we decide to terminate usage of the Electrica 500 within the first two weeks of service, we are entitled to a full refund. We are therefore attaching a copy of our invoice so we may receive our full refund of $2,500. Please contact us concerning the removal of the system.          _

Sincerely,

•Company Name or Letterhead

Address

City, State, Zip

Date

Addressee

Address

City, State, Zip

Dear Ms. Young,

On July 2, we purchased an Ultimate Brand color printer (serial number 867541) from your store. We have enjoyed wonderful results, until yesterday, when an odd problem occurred.

We had been printing a three-color graph of blue, red and green. However, the graph came out black, pink and purple. We have checked our ink cartridge and can find nothing obviously wrong. We have also been unable to locate anything in the manual which tells how to correct this problem.

As we are new users of Ultimate Brand, we are unsure of what else to check on the printer, or what else we should try to do. Any suggestions you could give us would be most welcome. We can be reached at (567) 423-4343. •

Sincerely,

II. Responding to Complaint Letters

Know how to respond to complaints—and keep your customer’s goodwill

Responding to complaint letters can be a very sensitive matter. When handling complaints, it is important to know all of the facts and to respond to the complaint in a timely and tactful manner.

6 Tips/or Responding to Complaint Letters

1. Use a polite, understanding tone, and keep your letter short and to the point.

Don’t argue. Even if you do not agree with the complaint, and can do nothing about it, a considerate response will often help soothe an irate client.

2. Write your response letter as soon as you have received and investigated the complaint, especially if you realize that an adjustment needs to be made or that you have made a mistake. Keep in mind that it takes less effort to satisfy a current customer than to attract a new one.

3. If you don’t have enough information to respond to the complaint immediately, you should ask the customer for more information or inform the customer that you are collecting more information from another source before responding. This lets the customer know that you take the complaint seriously.

4. When the company is not at fault, but you agree to grant the customer’s request either partially or fully, inform the customer of his or her error, if any, so it will not happen again. Do this tactfully, without accusation. The letter should show that the company values both fairness and customer goodwill.

5. If you are not willing to make an adjustment or correct the perceived error, explain why you cannot grant the request, and at the same time seek to retain the customer’s business and favor. The denial will probably disappoint the customer, so be tactful.

6. When responding to a complaint letter of discrimination or sexual harassment, your letter must show that you take the complaint very seriously and that you are taking appropriate steps to resolve the situation. This letter must be serious and professional.

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City, State Zip                          .                                               _

Dear Mr. Majors:

We were sorry to hear about the damaged tile in your last shipment from Ceramic Works Tile, Inc. Although we pack each box with care, movement during shipping can often cause packages to fall.                                                        

We are happy to ship an additional 10 boxes of the Simple Beige 6×6 ceramic kitchen tile.

You will receive the tile via special delivery service.

Again, we regret the inconvenience and are taking measures to better protect our product during shipping. Thank you for contacting Ceramic Works Tile, Inc. for all your tile needs.

Sincerely,

Company Name or Letterhead

Address

City, State Zip

Date

Addressee

Address

City, State Zip

Dear Mr. Florentine:

We sincerely apologize for the late arrival of your holiday rum cakes. Christmas is our busiest time of year, and this year was even busier than projected.

Our records indicate that your order was placed on November 8, and shipped six weeks later on December 20.

Your satisfaction is important to us. Although we cannot provide a full refund, we would like to offer you a gift certificate for $50 off your next order. Please review the enclosed catalog where you will find a large selection of cakes for all occasions. Thank you for your patronage.

Sincerely,

Dear Sirs,

Thank you for your letter alerting us to the problem you have been having with our store in Springfield. I am sorry you have been subjected to such a frustrating series of events. We pride ourselves on responding to customers’ concerns very quickly, so what you have experienced is inexcusable.

I have spoken with our manager in Springfield and have instructed him to give you a full refund plus 20% off your next purchase. I extend my own apologies for the inconvenience this problem has caused you. It is apparent that we need to train our holiday help more thoroughly.                                                                  

I wish you an enjoyable holiday season.

Yours sincerely,

III. Exercises

1. Write a letter of complaint, using the following words and phrases

Date 4th May, 2005

Dear Sirs,

Wee refer / our order No 139D / men’s woolen socks / consigned by you / 19th April /and we received / 29th April.

We regret / inform / you / two cases, numbers 8 and 12/ broken. 37 pairs of socks / missing. We / informed / the Loyed’s agent investigating the matter.

We / check / the invoice / the packing lists. There / a discrepancy / the two.

We / ask / arrange / dispatch / replacements / the missing socks / at once, / as we /meet / a delivery date / our own customers.

Yours faithfully,

2. Your company has received a consignment of 500 bathroom towels, packed in ten cases.

Case No 7, however, contains towers which your company didn’t order. They are the wrong size and color. Write to the suppliers, Abtrang Ltd,. 129 Chelton Ave. London,

SW23 INP, complaining about the mistake, which was part of an order which arrived on board the M/V Lowerstill at the port of Athens on the 1st April, 2005.

3. A consignment of 15,000 motor car tyre is three weeks late      

Write a letter to the suppliers, Manro Ltd, 24 Edward Square, Glassgow, complaining about the delay and insisting on immediate dispatch.                          ~

4. Your company order 1,000 transistor radios from the International Electrics Company

You gave very clear packing instructions, but you found that three crates were broken when the consignment arrived. Write a letter of complaint to I.E.C

  No. 1234           Drawn under Credit Number 01/765/NWB/2A                           of Traders Bank of Japan, Tokyo, Japan, dated 1 November 1984                             19th November   1984      for  £100,000                          At     SIGHT                 Pay this   SOLE  of EXCHANGE           …………………………………………………………………….to the Order        of   OURSELVES …._……………………_____             THE SUM OF ONE HUNDRED THOUSAND POUNDS STERLING          Value RECEIVED …….. which place to Account                                                                     UNITED KINGDOM SELLER LIMITED          To  NATIONAL WESTMINSTER BANK PLC                   25, OLD BROAD STREET                   LONDON EC12    Drawer  Drawee  

Specimen

Bill of Exchange

Source:   Nat West International – Documentary Credits

National Westminster Bank Trade Finance Services, 1985

                                                                                                                                                                                                                                                                           13, Le Loi Street                                                                                    Ward 10, District1 Class: ………….                                                                                           Tel.: …………..                                                                                                   Date:  10 September 2012        Reg: REQUESTING LEAVE OF ABSENCE   Dear Mr. Nghiem;   I am requesting a leave of absence of ………….. (length of time) …………. (family emergency/health reasons/ to attend another school), which …….….. (has occurred/or will occur / occurs or begin) on …………(date).   I am enclosing supporting documents (physician’s statement/information on school) for your review and consideration.   My absence will commence on ………….. (date), with an anticipated return date of …………..(date you expect to resume your duties/position). I promise to borrow my friend’s notes to recover the missing lessons.   I appreciate your prompt consideration of and response to this request.   Sincerely;   Name in full:………………………

3.1  Listen to the message and fill in each blank of the following notes with missing information.

Submit a check __request__today.

Have accounting __cut__a check for $15,000.

Make the check __payable__to ARad.

He wants check __postdated__with Friday’s date.

Request that the funds be __transferred_from savings.

Verify information before __forwarding_it to AdRad.

Check __exceeds__ $10,000.

Write memo on check and __in the books__

Give current __balances__of both accounts.

He’ll be back on _Tuesday__.

SCRIPT

Good morning, Dianna.

I’d like you to submit a check request today.

And have the accounting cut a check for $15,000 payable to AdRad. I want the check  postdated with Friday’s date.

Request that the funds be transferred from savings to accounts payable. Please verify all information about the check before forwarding it to AdRad. See whether the check exceeds $10,000. Remember that it will require 2 signatures.

Write memo on check and in the books increasing the “Spokesperson” campaign.

Please also ask the accountant to give me the current balances of both the checking and savings accounts.

Betz, I’ll be back on Tuesday. See you then.

3.2 Read the following statement and answer the questions below

CENTRAL COMERCIAL BANK 10 MONEY Street Chicago, Illinois 46182   STATEMENT Statement for International Toys                               Checking Account 00-00000-000A 40 Children’s Way                          Tax ID Number: 00-0000000 Divertido, CA 90210   FOR THE PERIOD MARCH 15 to APRIL 14 Opening Balance:                                $154,352.23 Total Deposits (credits) and other additions: $ 26,494.91 Total Withdrawals (debits) And other subtractions:           $ 46,307.60 Closing Balance this Statement:         $134,539.54   CHECK SEQUENCED 1056                1057                *1061 *Indicates gap in the sequence   DATE             DESCRIPTION                     AMOUNT 3/15                             Opening balance                                          $154,352.23 3/16                             1056                                        $ 15,233.12 3/17                             1057                                        $   8,320.45 3/19                             Deposit                                                       $ 10,293.54 4/01                             1061                                        $   1,221.03 4/02                             Deposit                                                           $    5,803.86 4/02                             Automated withdrawal                                     Payroll Account          $  21,533.00 4/12                             Deposit                                                           $    9,893.54 4/14                             Interest earned                               $       503.97 4/14                             BALANCE                                     THIS STATEMENT                        $134,539.54

QUESTIONS

  1. Whose bank account does this statement refer to?

(A) It refers to the checking account of International Toys (B) The statement is for Central Commerce Bank’s savings account

(C) It’s the checking account of Divertido Toys, Inc.

  • How much money was in the account on March 15th?

(A) $154,352.23 (B) $46,307.60 (C) $21,533.00

  • When was check number 1056 processed by the bank?

(A) on March 16th (B) on April 1st (C) on the 17th of March

  • Which check cleared the bank on March 17th?

(A) check number 1057 (B) number 1056 (C) check 1061

  • What does the amount $503.97 represent?

(A) This represents the interest earned. (B) It stands for the total deposits. (C) It shows the closing balance.

3.3 Talk with Bank Personnel

DEAN: Good morning. I’m Dean Oliver.

CINDY: Good morning, Mr Oliver. We spoke on the phone this morning. I’m Cindy Metz.

DEAN: Nice to meet you, Ms. Metz. Please sit down.

CINDY: Thank you.

DEAN: So, as I understand it, you’ve had some trouble using our ATM.

CINDY: Yes, I put my card in, punched in my PIN number and tried to withdraw $200. But the machine ate my card. I’d like my card back.

DEAN: I’m afraid it isn’t as simple as that. There seems to be a problem with your accounts.

CINDY: What kind of problem?

DEAN: After you called, I checked your file, and according to our records, you have insufficient funds in your checking and savings accounts.

CINDY: That’s ridiculous. There’s plenty of money in both accounts, I assure you. There must be a mistake in your records.

DEAN: I printed out your most recent statement. As you can see, neither account has enough money to cover your withdrawal.

CINDY: Yes, I can see that. I can also see that these accounts belong to someone who spells her name M-E-T-T-S. My name is Metz, one “t”, one “z”.

DEAN: Oh, dear. When you called, I typed that name into the system and the information came up. I assumed it was you.

CINDY: Well, it’s not. Now, may I have my card back?

DEAN: Of course. Let me just check your accounts.

CINDY: How long will this take? I have an appointment at 11.

CINDY: I’m just printing out your account statement. Just a moment. … You’re right, you have sufficient funds in both accounts.

CINDY: What is this $10 charge here?

DEAN: Let me see. Hmm. That appears to be a fee for a returned check?

CINDY: You’re saying I bounced a check?

DEAN: It appears that that’s what happened.

CINDY: I’ve never bounced a check in my life. This can’t be right.

DEAN: This statement was mailed to you two weeks ago. Didn’t you see it then?

CINDY: I haven’t had time to read my personal bank statements.

DEAN: Well, if you wish to contest it, you can take it up with Mr. Manso, our accounts manager.

CINDY: Never mind, I don’t have time. I just want my ATM card back.

DEAN: Certainly. Here it is.

CINDY: Do you have any idea why the machine ate it?

DEAN: Well, my guess is that you entered the wrong PIN number. If you enter the wrong number three times, the machine withholds your card.

CINDY: That could be it. I can never remember the number.

DEAN: If you like, we can change it, perhaps to something easier to remember?

CINDY: Thanks, but I don’t have the time right now. Thank you for your help.

DEAN: Thank you, Ms Metz. Here’s my card. Please let me know if I can be of further assistance.

CINDY: I will. Good-bye.

DEAN: Good-bye. Have a nice day.

1

Why is Cindy Metz meeting with DeanOlivei?

Cindy is Dean’s assistant.

She wants to check on hex accounts.

Cindy had trouble with the ATM.

2

What does Ms. Metz want Mi. Oliver to do?

She wants Mr Olivet to give her$200.

Ms. Meti wants him to print out her most recent statement

She wants him to give her ATM card back to her.

3 What can you say to politely point out someone else’s error?

“Don’t be ridiculous!’

“You made a stupid mistake here, see?”

“There must be some mistake.”

4

Why does Mr. Oliver have the wrong information about the accounts?

 He forgot Cindy’s PIN number.

He spelled Ms. Metis name wrong.

He put the wrong ATM card in the machine.

5 What is the fee for bouncing check at this bank?

The fee is $200

There’s a $10 fee

It’s $20

1

Where are Dean and Cindy meeting?

Cindy and Dean are meeting in Cindy’s office.

They’re in the Hoi Polloi office.

They’re meeting at a bank.

1

How does Tiffany want to pay for the wire transfer?

She’s using a letter of credit from her other bank.

She wants to withdraw the money from her account.

She’s going to write a check for it.

2

Why hasn’t she filled in the amount on hex withdrawal slip?

She doesn’t know how to fill in the amount.

She needs to find out how much the fee is so she can include it.

She hasn’t decided how much money she wants to send.

3

What is the name of hex friend’s bank in Spain?

It’s the Maria Jesus Aragon bank.

We don’t know because she doesnt say it

She’s not suie but she thinks it’s called Banco de

Tauste.

4

What does the woman in Spain have to do in order to pick up her money?

The woman has to present a letter of credit and pay a fee

She must wait for the bank to notify her.

She has to identify herself at the bank and pay a fee.

5

How much is the fee for sending this wire transfer?

It comes to $500 plus tax.

The fee is $542

It is $42

3.4 REQUEST A WIRE TRANSFER

(OPEN ACCOUNT)

TIFFANY: Good morning. They told me at the front desk to see you about wire transfer. I’d like to send $500 to Spain.

DEAN: Do you have an account with us?

TIFFANY: Yes, I do.

DEAN: Are you paying by check, or would you like us to withdraw it from your account?

TIFFANY: Please withdraw it from my account. I have the withdrawal slip right here.

DEAN: You haven’t filled in the amount.

TIFFANY: I want to include the fee in the withdrawal, but I didn’t know how much it would be.

DEAN: OK, we can fill that in momentarily. Where do you want to send it?

TIFFANY: Tauste. It’s a small town near Zaragona.

DEAN: And what is the name and address of the bank to which you’d like to send the money?

TIFFANY: I’ve written it all down here on this piece of paper.

DEAN: I see. And who is the recipient?

TIFFANY: Maria Jesus Aragon.

DEAN: Could you spell that, please?

TIFFANY: I’ve written that down as well. Right here.

DEAN: I see.

TIFFANY: I need to get the money there as soon as possible.

DEAN: Once we send it, your friend should be able to pick it up within the hour, assuming the bank is open.

TIFFANY: The bank is closed by now. But she’ll be able to pick it up first thing in the morning?

DEAN: Yes. Please fill out this form and sign it at the bottom.

TIFFANY: What does she need to do to pick up the money?

DEAN: She’ll have to identify herself to the satisfaction of the local bank.

TIFFANY: That won’t be a problem. It’s a small town. They know her.

DEAN: It used to be that way here, too, but this town’s grown so I hardly know any of the customers anymore.

TIFFANY: Here you are. I hope she remembers that I’m sending it. What happens if she doesn’t pick it up?

DEAN: They’ll hold the money until she comes in. If she doesn’t come in within a couple of days, I imagine they’ll notify her that it’s there.

TIFFANY: Good. I called and told her it was coming, but sometimes she forgets.

DEAN: With the fee, that comes to $542.

TIFFANY: Here you are. Will my friend have to pay anything?

DEAN: The local bank will charge something for the service, although I don’t know exactly how much.

TIFFANY: It won’t be a lot, will it?

DEAN: No, I don’t think so. Here’s your receipt. The money will be there when your friend goes to the bank in the morning.

TIFFANY: Good. Thank you for your help. Good-bye.

DEAN: Good-bye. Have a nice day.

1) Who is the recipient of the money?

(A) The recipient is an American woman named Tiffany.

She’s a friend of the woman who sends the money.

She’s a Spanish women named Tauste.

2) What should you take with you when you go to pick up money from a wire transfer?

(A) You should take your checking account statement.

You should have your spouse or a close friend with you.

Take some form of identification.

3) What is Dean’s attitude toward Tiffany?

(A) He appears to be angry with her.

He’s patient but not very polite at all.

He seems polite and patient.

4) What can you say if you need help understanding someone’s name?

(A) “Speak faster, please.”

“Could you spell that, piease?”

  • What is the slip of paper the woman puts in her purse just before she says good-bye?

(A) It’s a check for $542

She puts the withdrawal slip in her purse.

It’s the receipt.

7) How does Tiffany want to pay for the wire transfer?

8) Why hasn’t she filled in the amount on her withdrawal slip?

9) What is the name of her friend’s bank in Spain?

10) What does the woman in Spain have to do in order to pick up her money?

11) How much is the fee for sending this wire transfer?

3.5 REQUEST A LETTER OF CREDIT

CINDY: Well, George, I think we can make a deal.

GEORGE: So do I, Cindy. Your toys have been such a hit in the United States that I’m sure they’ll do just as well in my stores in Paris and Madrid.

CINDY: I love the idea that kids all over the world will be playing with our toys.

GEORGE: And parents all over the world will be buying them.

CINDY: I love that, too.

GEORGE: I hope that this is just the beginning. If your toys sell as well as I think they will, we’ll be back to order more.

CINDY: Here’s hoping! Now, what else do we have to work out?

GEORGE: Well, for starters, how do you want to be paid?

CINDY: Our usual practice is to require a letter of credit for the full amount.

GEORGE: OK. Do you have specific requirements?

CINDY: It’s pretty standard. We do require that it be confirmed and irrevocable.

GEORGE: That’s reasonable. What about the date of payment?

CINDY: Well, most of our letters of credit stipulate payment at sight.

GEORGE: Well, I’m not sure that’ll work for us. We prefer at least 60 days.

CINDY: George, we’re a small company. We can’t wait that long.

GEORGE: Well, I’ll have to discuss it with my team. What about delivery?

CINDY: Tell you what: Let work out the delivery and the rest of the details over lunch. I’m starving.

GEORGE: Good idea. I’m hungry, too. If we can work out some sort of agreement, I can call the office when we get back and get the ball rolling.

CINDY: Terrific. Let me get my coat and I’ll be right with you.

QUESTIONS:

1) What deal are George and Cindy making?

(A) George plans to sell Cindy’s hit music all over the world.

(B) Cindy’s going to sell George’s toys in the United States.

(C) George is going to sell Cindy’s toys in Europe.

2. What point do George and Cindy disagree about?

(A) whether or not to make the letter of credit irrevocable.

(B) the payment amount.

(C) the date of payment.

3.4 READ A LETTER OF CREDIT

CENTRAL COMMERCE BANK Irrevocable Straight Letter of Credit May 10, 1999 Mail to:                                               All drafts must be marked:   Dear Sir or Madam:   At the request of George Elder, importer of toy products for International Toys, and for the account of same, we hereby issue in your favor our Irrevocable Letter of Credit for a sum not to exceed a total of US $118,000, available by your draft(s) drawn at sight from our bank and accompanied by the following documents: 1) British Customs invoice (original and two copies) 2) Certificate of Origin stating that the customs invoice covers “Toy Products.” This Letter of Credit must accompany all draft(s) and documents. When presenting your draft(s) and documents, please mention the reference number shown above. This Letter of Credit is subject to the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP) in effect on the date this Letter of Credit is issued. Charles Spears CEO, Central Commerce Bank.  

QUESTIONS

1. What type of letter is this?

(A) It’s an invoice.      (B) This is an order for toys.  (C) It’s a letter of credit.

2. Why would you ask for an irrevocable letter of credit?

(A) I would be able to change it myself if I needed to.

(B) An irrevocable letter is safer because it cannot be changed.

(C) My customer would be able to change the terms of the letter.

3. Who will receive the money indicated in this letter?

(A) Hoi Polloi Toy Company

 (B) George Elder of International Toys

(C) the International Chamber of Commerce

4. From whose account will the money be taken?

(A) from the account of International Toys at Central Commerce Bank

(B) from Hoi Polloi’s account at Central Commerce Bank

(C) from the account of Charles Spears at Central Commerce Bank

5. What documents would you need to bring with you to get the money for this letter?

(A) a British Customs Invoice and a Certificate of Origin

(B) an International Chamber of Commerce document and a credit card

(C) a bank statement from Hoi Polloi Toy Company and George Elder’s business card

6. What amount of money can the bank pay, according to this letter?

(A) exactly $118,000  (B) more than $118,000                      (C) $118,000 or less.

7. Who is Charles Spears?

(A) He owns Hoi Polloi Toy Company.

(B)  Mr. Spears is the CEO of Central Commerce Bank.

(C) He’s an imp orter of toy —   products.

8. If you took this letter to the bank today, when could you get your money?

(A) right away, becaus e it says “drawn at sight”

(B) after 5 days, because it says, “in effect on the date”

(C) on May 10th, because this is the date of the letter

9. What is the reference number of this letter of credit?

(A) The referenc e number is $118,000.

(B) It’s 94410

(C) It’s number 10-4450010-TOY.

10. In which of the following situations is a letter of credit most likely to be used?

(A) when a company buys goods from another company

(B) when one needs to charge business dinner at a restaurant

(C) when one needs cash but the ATM machine is broken

3.7 DISPUTE A FEE

3.5 REQUEST A LETTER OF CREDIT

1. What phrase can you use to introduce yourself in a phone message?

(a)You should say, “Thank you for calling.”

(b)No introduction is necessary when using the phone.

(c)You can use the words, “This is…”

2. Why is Cindy Metz calling Dean Oliver?

(a)Cindy wants to pay the $10 charge over the phone.

(b)She wants him to explain a fee on her bank statement.

(c)She wants her ATM card back.

3. What does Cindy expect Dean to do?

(a)She expects Dean to pay the $10 charge.

(b)Candy expects him to wait for her to call him again.

(c)She wants him to return her call.

4. Why does Cindy use the phrase, “first thing tomorrow morning”?

(a)She’s happy to wait until Dean calls her.

(b)Cindy wants to talk to Dean as early as possible.

(c)She’s meeting Mr. Oliver for breakfast.

5. When you leave a phone message, what is a good way to end it?

(a)Say,”This is…” and give your name.

(b)Give your phone number and say good-bye.

(c)You should say, “Thank you for calling.”

3.6 Read the L/C

Central Commerce Ba nk Chicago, Illinoi846182 Irrevocable Straight Letter of Credit   May 10, 1999 Mail to:      All drafts must be marked:”Original”   HoiPolloi Toy Co. FNN: Ref. 10-4450010-TOY P.O. Box 332 Toy Lane Chicago, IL 46177   Dear Sir or Madam   At the request of George Elder, importer of toy products for International Toys, and for the account of same, we hereby issue in your favor our Irrevocable Letter of Credit for a sum not to exceed a total of U.S. $118,000, available by your draft(s) drawn at sight from our bank and accompanied by the following documents: 1. British Customs invoice (original and two copies) 2. Certificate of Origin stating that the customs invoice covers “Toy Products.”   This Letter of Credit must accompany all drafts) and documents. When presenting your draft(s) and documents, please mention the reference number shown above. This Letter of Credit is subject to the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits in effect on the date this Letter of Credit is issued.   Charles Spears   CEO, Central Commerce Bank  

3.7 Dispute a fee

1) What phrase can you use to introduce yourself in a phone message?

You should say, “Thank you forcalling.”

You can use the words, “This is…”

No introduction is necessary when using the phone

2) Why is Cindy Metz calling Dean Oliver?

Cindy wants to p ay the $ 10 charge over the phone.

She wants him to explain a   fee on her bank statement.

She wants her ATM card back.

3)What does Cindy expect Dean to do?

She expects Dean to pay the —   $10 charge.

i—i She wants him to return her y   call.

Cindy expects him to wait for her to call him again.

4)Why does Cindy use the phrase, “first thing tomorrow morning”?

Cindy wants to talk to D e an as early as possible.

She’s meeting Mr. Oliver for breakfast.

She’s happy to wait until Dean calls her.

5)When you leave a phone message, what is a good way to end it?

Give your phone number and say good-bye.

You should say, “Thank you for c ailing.”

Say, “This is …” and give your name.

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