Why?
A: No. It involves additional cost as a result of the confirmation. If the establishing bank is a reliable prime bank, confirmation may not be necessary.
5. What is the advantage of a sight letter of credit to the beneficiary?
A: It gives the beneficiary better security and helps him speed up his capital turnover.
6. What does the beneficiary do in the case of a usance credit if he wishes to get
payment before the maturity of the draft?
A: If the beneficiary wishes to get payment before the maturity of the draft, he can ask the bank to discount the acceptance, and immediately pay him the net proceeds.
7. How many times and to how many parties can a credit be transferred?
A: A credit can be transferred only once. There are two parties involve: the first beneficiary and the second beneficiary.
8. In what situation is a revolving letter of credit most useful?
A: It is particularly useful when the buyer and seller have regular trading relationship and deal in a specific quantity of goods each month or any particular period of time.
9. Can the letter of credit provide absolute security for the contracting parties?
What losses may the seller or the buyer still sustain?
A: It cannot provide absolute security for the contraction parties. The seller may sustain losses because of the buyer’s delay or even failure in the establishment of credit. The buyer may suffer losses as result of the documents presented by the seller which do not truly represent the goods shipped. And it is not absolutely avoidable that the bank may become insolvent or bankrupt.
10. What is a non-draft credit? How many types can it be classified into?
A: The credit that payment of to be made by presentation of the documents without the formality of drawing and presenting a draft.
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Translate the following sentences into English:
1. 信用证按其作用、形式和机制分作不同的种类。
Letters of credit are classified into different types according to their function, form and mechanism.
2. 光票信用证主要用于非贸易结算，而在商品贸易中一般使用跟单信用证。 Clean letters of credit are mainly used in non-trade settlement, while the documentary credits are generally used in commodity trade.
3. 在即期信用证情况下，提示汇票和正确无误的单据后便立即付款。
In the case of sight credits, payment can be made promptly upon presentation of draft and impeccable documents.
4. 远期信用证显然要使用远期汇票。付款期限可为30天、60天甚至可长达180
天。
A usance credit obviously calls for a time draft, and the usance varies from 30, 60, to as long as 180 days.
5. 如果信用证可以由原受益人转让给另一个或几个人，那么这种信用证即为可
转让信用证。原受益人称作第一受益人，接受转让的人称作第二受益人。 A little of credit is called transferable if it can be transferred by its original beneficiary to one or more parties. The original beneficiary is called the first beneficiary and the party (or parties) the credit is transferred to is called the second beneficiary.
6. 对于一笔具体交易来说，信用证不一定是最理想的付款方式。缔约双方应根
据具体情况做出最好的选择。
The letter of credit may not be the most ideal method of payment for a particular transaction, and the contraction parties should make their best choice according to the specific conditions.
Lesson 13
Major Documents Required in World Trade
Business Knowledge:
(1) The importance of correct documentation (2) Major types of documents A. Commercial Invoice
a. Major contents b. Points to be noted B. Packing list
a. Major contents
b. Documents with similar function: specification list; weight list (weight note;
weight memo)
C. The bill of lading
a. 3 major functions b. Major contents
c. Clean on board bill of lading d. Airway bill and cargo receipt
D. Insurance policy and insurance certificate
a. Major contents
b. The difference between the two E. Various certificates Terms:
1. Documents单据
2. Documentation单据的制作或使用 3. Take delivery of提（货） 4. Commission佣金 5. Discount折扣
6. Shipping marks唛头、运输标记 7. Bill of lading提（货）单
8. Carrier承运人: The shipping company 9. Shipper货主、托运人、发货人
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10. Consignor托运人 11. Carriage运输，运费 12. Consignee收货人
13. Notify party到货通知人、被通知人 14. Payable应支付的、可支付的 15. Airway bill空运（提）单 16. Railway bill收货单（铁路）
17. Insurance policy保险单（大保单） 18. Insurance certificate保险单（小保单） 19. Cargo receipt铁路运单、货运收据
20. Commercial invoice商业发票: The document is the general description of the
quality and quantity of the goods and the unit and total price. The contents: Invoice number and the date; name and address of the buyer and the seller; contract number and credit number; description of the goods including name of the commodity, quantity, specifications, etc.; unit price, total price, price terms, and commission and discount if any; terms of delivery and terms of payment; packing, shipping marks, etc.; and seal or signature of the exporter. 21. Legal holder合法持有人 22. Customs invoice海关发票 23. Consular invoice领事发票 24. Consular visa领事签证 25. Shipping advice装船通知 26. Certificate of quality品质证书 27. Certificate of weight重量证书 28. Certificate of quantity数量证书 29. Certificate of health健康证书
30. Certificate of disinfection消毒证书 31. Certificate of origin产地证书 32. Veterinary certificate兽医证书
33. Packing list装箱单: The documents gives information such as the number, date,
name and description of the goods, shipping marks, packing, number of packages,
specific contents of each package and its net with and gross weight etc.
34. Straight bill of lading记名提单: It is made out so that only the named consignee
is entitled to take delivery of the goods under the bill. 35. Port of shipment发货港、装运港、起运港
Answer the following questions:
1. What are the possible consequences of incorrect documentation?
A: If the documents are not eh correct ones, the importer will have difficulties in taking delivery of the goods.
2. What factors decide the types of documents required for a particular
transaction?
A: Different documents are required for different transactions, depending on the nature of the deal, the term of delivery, the type of commodity, stipulations of credit, regulations and practices in different countries, etc.
3. What is a commercial invoice? What is the relation between the commercial
invoice and other documents? Mention some of the major contents to be included in a commercial invoice.
A: A commercial invoice is the general description of the quality and quantity of the goods and the unit and total price. It constitutes the basis on which other documents are to be prepared, and the banks check the conformity between credit terms and documents and the conformity between the documents. The contents: Invoice number and the date; name and address of the buyer and the seller; contract number and credit number; description of the goods including name of the commodity, quantity, specifications, etc.; unit price, total price, price terms, and commission and discount if any; terms of delivery and terms of payment; packing, shipping marks, etc.; and seal or signature of the exporter.
4. Mention 2 types of shipping documents that are similar in function to the
packing list. What is the difference between them and the packing list?
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A: Specification list that emphasizes the description of the specifications of the goods. The weight list, weight note, or weight memo that put emphasis on the weight of the goods and are generally used for goods that are based on the weight for price calculation.
5. What are the 3 major functions of the bill of lading?
(1) B/L serves as a cargo receipt signed by the carrier and issued to the shipper
or consignor.
(2) B/L constitutes a contract of carriage between the carrier and the consignor. (3) B/L is a document of title to the goods, and the legal holder of it is the owner
of the goods it covers.
6. What is a clean on board bill of lading? Is a foul (not clean) bill of lading
acceptable?
A: The clean bill of lading is one that states that the goods have been shipped in apparent good order and condition. A foul bill of lading is not acceptable for negotiating.
7. Give the names of the counterparts of the ocean bill of lading in the case of
air transportation and railway transportation.
A: For air transportation the document is called airway bill, and in railway transportation is called cargo receipt.
8. In what currency should the goods be insured? Where are insurance claims
to be settled?
A: The currency of the amount insured should be the same as that of the credit. The port of destination is taken as the place for settling claims.
9. Is it acceptable for the date of the insurance document to be later than the
date of the Bill of Lading? Why?
A: No, it is not accepted. Because if the date is later than the B/L means the goods is not covered by the insurance in this period.
Translate the following sentences into English:
1. 在国际贸易中使用正确的单据很重要，否则进口商提货时会遇到困难。 It is very important to use the correct documents in international trade; otherwise the importer will have difficulties in taking delivery of the goods. 2. 商业发票，一般称“发票”，这种单据对货物的质量和数量以及单价和总价
进行概括性的描述。
The commercial invoice, generally called the invoice makes a general description of the quality and quantity, unit price and total value of the goods.
3. 货物在运输过程中可能发生风险损失，需要办理货物保险。
It is necessary to insure the goods against the possible risks they are exposed to in the course of transportation.
4. 已装船提单表明货物已实际转上开往目的港的承运船只。
An on board bill of lading indicates that the shipment has been actually loaded on the carrying vessel bound for the port of destination.
5. 清洁提单指货物在表面良好的情况下装船，这意味着提单上未加任何有关包
装或货物外表不良的批注。
A clean bill of lading refers to one that indicates the goods have been shipped in apparent good order and condition, which means that it is devoid of any qualifying remarks about the packing and the outer appearance of the goods.
Lesson 14
International Transportation
Business Knowledge:
(1) Definition of transportation and freight transportation (2) The five major modes of transportation (3) Three types of carrier ownership
A. Common carriers B. Contract carriers
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C. Private carriers
(4) Importance, role and contribution of transportation
(5) The four factors that are substantially changing transportation
A. Transportation deregulation B. Just-in-time inventory systems
C. Competition based on high levels of customer service D. Globalization of business Terms:
1. Finished products制成品 2. Deregulation放松管制 3. Productivity生产率
4. Cost economies节约成本、成本节约 5. Intermediate products中间产品、半成品 6. Natural product province自然产品领域 7. Inventory存货、库存 8. Logistics物流
9. Just-in-time inventory system零库存
10. Common carrier公共承运人: It is privately or publicly owned companies
committed to performing a movement service of the same quality for all shippers on an equal basis and without discrimination.
11. Contract carrier契约承运人: Individual contracts may be arranged between
transportation users and carriers (the transportation company). 12. Private carrier自有承运人
13. Representative carriers代表性的运载工具 14. Production approach生产方式
15. Transportation and freight transportation运输和货物运输: In broad sense,
transportation is defined as movement of freight and passengers from one location (place) to another. In a formal sense, freight transportation is defined as the economic movement of commodities and products and the effects of such movement on the development and advancement of business. 16. Carrier承运人
17. Shipper托运人= Consigner 18. Consignee收货人
Answer the following questions:
1. What are the major modes of the modern freight transportation system?
A: The five major modes of the modern freight transportation system are water, rail, truck, pipeline, and air.
2. What is the most important contribution of transportation to the society? A: The most important contribution that transportation has made to the production process is that, by widening the market areas that a producer can reach, it has encouraged the introduction of more efficient, larger-scale production techniques.
3. What is the difference between domestic transportation and international
transportation mentioned in the text?
A: Movements between countries are accompanied by many more documents than is the case for domestic shipments.
4. What are the factors that determine the amount of documentation required? A: The product being shipped, its origin, and its destination determine the amount of documentation required.
5. What are the major reasons for the trend among business firms to provide
their own transportation capability?
A: Peculiarities in operations, desires for total distribution control, cost economies, and stringent service requirements are the major reasons for this trend.
6. Can you summarize briefly the factors that have caused the changes in the
transportation industry?
A. Transportation deregulation B. Just-in-time inventory systems
C. Competition based on high levels of customer service D. Globalization of business
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7. What is the meaning of transportation deregulation? Give one of the results
of the deregulation.
A: Before deregulation, government regulatory agencies, in effect, controlled carriers rates and the service offerings that carriers made available to the public. Innovation was not encouraged.
8. The globalization of business has not only made transportation more
important but also promoted the development of this industry. Do you agree to the above statement? Could you give some examples to illustrate the viewpoint?
A: Yes. More and more companies purchase their production inputs anywhere in the world where the best quality for the price can be found. For all the companies the need to competitively serve world markets will require a more sophisticated logistics system.
9. The six criteria that choosing a transportation.
A: In choosing a transportation mode for a particular product, shippers consider as many as six criteria: speed, frequency, dependability, capability, availability and cost.
Translate the following sentences into English:
1. 毫无疑问，一个没有先进的运输系统的社会仍然是一个原始落后的社会。 There is no doubt that a society without an advanced transportation system remains primitive.
2. 这些方式在运作特点和性能方面不同，从而使它们各有比较优势和劣势。五
种运输方式分别是：水路、铁路、公路、管道及航空。
The modes differ in terms of operating characteristics and capabilities, giving them comparative advantages and disadvantages. The five major modes are water, rail, truck, pipeline, and air.
3. 过去10年，公司自己提供运输能力的倾向越来越大。
The past decade has seen an increasing tendency among business firms to provide