FINANCE & MARKETING UNIVERSITY

Academic Years 2011-2012

ENGLISH for Business Transactions

By BRENDAN MOORE

Only for Internal Use!!!

-TEXTBOOB: ENGLISH FOR BUSINESS TRANSACTIONS CD ENGLISH
FOR BUSINESS 3
-Lessons:
1. International Money Orders 2. Checks
3. Travelers checks 4. Letters of Credit
5. Invoices 6. Bill of Lading
7. Letters of Enquiries 8. Follow-up Letters/ Sales Letters
9. Letters of Complaints

The form you may use

13, Le Loi Street

Ward 10, District1
Class:
Tel.: ..
Date: 10 September

Re: REQUESTING LEAVE OF ABSENCE

Dear (name of department head or supervisor):

I am requesting a leave of absence of .. (length of time) due to

. (family emergency/health reasons/ to attend another school),
which ... (has occurred/or will occur 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 appreciate your prompt consideration of and response to this request.

Sincerely,

Name in full:
 THIS PART IS USED FOR CD 3

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 Fridays 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.
Hell be back on _Tuesday__.
SCRIPT
Good morning, Dianna.
Id 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
Fridays 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, Ill 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 Childrens 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 Banks savings account
(C) Its the checking account of Divertido Toys, Inc.
2) How much money was in the account on March 15th?
(A) $154,353.23 (B) $46,307.60 (C) $21,533.00
3) When was check number 1056 processed by the bank?
(A) on March 16th (B) on April 1st (C) on the 17th of March
4) Which check cleared the bank on March 17th?
(A) check number 1057 (B) number 1056 (C) check 1061
5) 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. Im Dean Oliver.
CINDY: Good morning, Mr Oliver. We spoke on the phone this morning. Im Cindy Metz.
DEAN: Nice to meet you, Ms. Metz. Please sit down.
CINDY: Thank you.
DEAN: So, as I understand it, youve 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. Id like my card back.
DEAN: Im afraid it isnt 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: Thats ridiculous. Theres 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, its 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: Im just printing out your account statement. Just a moment. Youre 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: Youre saying I bounced a check?
DEAN: It appears that thats what happened.
CINDY: Ive never bounced a check in my life. This cant be right.
DEAN: This statement was mailed to you two weeks ago. Didnt you see it then?
CINDY: I havent 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 dont 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 dont have the time right now. Thank you for your help.
DEAN: Thank you, Ms Metz. Heres 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.
4
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.
4 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.
4
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.
4
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.
5
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. Id 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 havent filled in the amount.
TIFFANY: I want to include the fee in the withdrawal, but I didnt know how much it would be.
DEAN: OK, we can fill that in momentarily. Where do you want to send it?
TIFFANY: Tauste. Its a small town near Zaragona.
DEAN: And what is the name and address of the bank to which youd like to send the money?
TIFFANY: Ive 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: Ive 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 shell 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: Shell have to identify herself to the satisfaction of the local bank.
TIFFANY: That wont be a problem. Its a small town. They know her.
DEAN: It used to be that way here, too, but this towns grown so I hardly know any of the customers
anymore.
TIFFANY: Here you are. I hope she remembers that Im sending it. What happens if she doesnt pick
it up?
DEAN: Theyll hold the money until she comes in. If she doesnt come in within a couple of days, I
imagine theyll notify her that its 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 dont know exactly how
much.
TIFFANY: It wont be a lot, will it?
DEAN: No, I dont think so. Heres 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 Deans 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 someones name?
(A) "Speak faster, please."
"Could you spell that, piease?"
6) 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 hasnt she filled in the amount on her withdrawal slip?

9) What is the name of her friends 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 Im sure theyll 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, well be
back to order more.
CINDY: Heres 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: Its pretty standard. We do require that it be confirmed and irrevocable.
GEORGE: Thats reasonable. What about the date of payment?
CINDY: Well, most of our letters of credit stipulate payment at sight.
GEORGE: Well, Im not sure thatll work for us. We prefer at least 60 days.
CINDY: George, were a small company. We cant wait that long.
GEORGE: Well, Ill 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. Im starving.
GEORGE: Good idea. Im 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 Ill be right with you.
QUESTIONS:
1) What deal are George and Cindy making?
(A) George plans to sell Cindys hit music all over the world.
(B) Cindys going to sell Georges toys in the United States.
(C) George is going to sell Cindys 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) Its an invoice. (B) This is an order for toys. (C) Its 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.
7. 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
8. From whose account will the money be taken?
(A) from the account of International Toys at Central Commerce Bank
(B) from Hoi Pollois 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) Hes 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)Shes happy to wait until Dean calls her.
(b)Cindy wants to talk to Dean as early as possible.
(c)Shes 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

9) What phrase can you use to introduce yourself in a phone message?
You should say, "Thank you for calling."
You can use the words, "This is..."
No introduction is necessary when using the phone

9) 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.
9)What does Cindy expect Dean to do?
She expects Dean to pay the $10 charge.
ii She wants him to return her y call.
Cindy expects him to wait for her to call him again.
9)Why does Cindy use the phrase, "first thing tomorrow morning"?
Cindy wants to talk to D e an as early as possible.
Shes meeting Mr. Oliver for breakfast.
Shes 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.

THIS PART IS USED DURING THE COURSE

1. INTERNATIONAL MONEY ORDERS

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

-account (n.): A continuous arrangement with a bank for keeping money, receiving cheques, and
posting statements.
- balance. The difference between payments and receipts in a bank statement; how much a depositor
has (or does not have) in his account.
-beneficiary. The person named on an International Money Order, and other documents, who must be
paid the sum written on the document.
- commission charge. A sum of money charged by a bank for handling cheques, International Money
Orders, travellers cheques and so on
-counter. The place in a bank, shop, etc. where business is transacted
cover (v.) Here, to include
debit (v.) To reduce; a sum of money is deducted (debited) from a bank account
encash: To hand cash over the counter for travellers cheques, etc.
exchange control: The method and organisation for controlling the amount of a country's currency which
can be sent, or taken abroad funds Sums of money; a supply or source of money
identification: A means of showing, or proving who you are (e.g. a passport) invoice (n.) A document
which gives a statement of a business transaction
involving the sale of goods; it includes the quantity, the description, the price, the total price, discounts
levy (v.) To charge prevailing. Here, the present or most common rate of exchange The amount of
another currency that a unit of your own currency will buy.
 Refund To repay money subscription Money paid for membership of a club or trade union, or purchase
of magazines, newspapers, etc. transaction A piece of business completed; a business deal

A QUICK AND INEXPENSIVE WAY TO SEND MONEY ABROAD: International Money Order
If you want to send money abroad (in amounts up to 500 or U.S. $1,000), ask for a Barclays
International Money Order.
For a small service charge you can obtain one from most branches of the Barclays Group and mail it
direct abroad to pay accounts or subscriptions or to send a cash gift to a relative or friend.
Barclays International Money Orders are simple to buy, convenient to use, and are accepted by major
banks throughout the world. Easily refunded or replaced if lost.
Please ask at the counter for full details.

SOME QUESTIONS AND ANSWERS CONCERNING THE BARCLAYS INTERNATIONAL

MONEY ORDER
1) For what purposes are I.M.O.s best suited?
The I.M.O. is ideal for:
- Cash gifts to relatives or friends in other countries
- Remittance of funds to dependants living abroad
- Mail orders
- Payments of subscriptions
- Purchase of books and magazines
- Deposits for hotel bookings
- Imports
(If you wish to send an exact sum in a currency other than Sterling or U.S. Dollars, an I.M.O. is not
suitable and an alternative form of remittance should be used -please ask at the counter.)

Where and how do I buy an I.M.O.?

I.M.O.s may be purchased at most offices of the Barclays Group where a counter official will
complete an application form on your behalf.

How do I pay for an I.M. O. ?

You pay either by cash, by cheque, or by debit to your account.

Are there any restrictions governing the transfer of funds to another country?
Exchange Control Regulations must be satisfied and the bank will advise you on this.

Can I buy an IM.O. for any amount?

Yes, an I.M.O. may be purchased for any amount up to 500 or U.S. $1,000 and is not restricted to
fixed units.

Will there be a delay before the I.M.O. is issued?

The I.M.O. will be completed and handed to you within a few minutes.

Is there any limit to the number of I.M.O.s which may be sold to one person?
Provided the purchaser complies with Exchange Control regulations, there is not limit to the number
of I.M.O.s which may be bought.

Why is the I.M.O. so convenient?

The I.M.O. is convenient because it is completed on the spot it is handed to you personally and you
post it yourself, thus eliminating delay.
How can the beneficiary tell which banks will accept the I.M.O.? All of the banks providing
encashment facilities for I.M.O.s have been supplied with a sticker for display on outside windows
and inside on the teller's counters, but he may well find other banks willing to accept I.M.O.s.

How does the beneficiary obtain payment of the I.M.O.?

Major banks throughout the world will negotiate I.M.O.s either for cash against suitable
identification or for deposit to an account.

Will the beneficiary receive the full value of the I.M.O. when it is encashed or deposited to an
account?
Banks will generally negotiate the I.M.O. at the prevailing rate of exchange for that day and will
usually levy a small commission charge to cover their expenses.

Can the I.M. O. be used to make purchases in shops, etc. ?

No, the I.M.O. may only be negotiated by banks and cannot be used in shops, hotels, airports, etc.

What happens if the I.M.O. is lost, stolen, damaged or destroyed?

`Provided the purchaser is able to satisfy certain simple conditions, an immediate refund up to
100/U.S.$250 may be obtained, any balance being repaid within a very short period.
(page 4) You can buy an International Money Order at most banks branches. You ask for a request
form (or application form). The bank official will complete this form for you at the counter. He will
ask you how you want to pay for the I.M.O. You can pay in cash, by cheque or by debit to your
account. The I.M.O. is usually paid in sterling and US dollars. If you want to make payment in
another currency, it is better to ask your bank for an alternative method.
You must fill in another form if you are sending the I.M.O. to a beneficiary outside the 'Scheduled
territories'1. This is necessary because the Exchange Control Act (1947) demands it. Exchange
Control Regulations are different for countries in the Overseas Sterling Aiea2. Beneficiaries in these
areas can receive cash gift allowances of 1,000 but not more. Beneficiaries in countries outside the
Overseas Sterling Area and the Scheduled territories (excluding Rhodesia) can receive not more than
300 in cash gifts. If you wish to make payments above these limits, you must ask the Bank of
England, through your local branch.
When the bank completes the I.M.O., the bank official will hand it to you and you can then post it
yourself.
A. COMPREHENSION
Tick (the correct responses.
1) You can use an I.M.O. for large transactions over 500. TRUE FALSE
2) You can pay for an I.M.O. in cash. TRUE FALSE
3) You can only send 500 or $ 1,000 by LM.O. each year. TRUE FALSE
4) The beneficiary in the correspondence on page 5 is Mr. J. K. Harvey. TRUE FALSE
5) The advantages of an I.M.O. are speed and convenience. TRUE FALSE
6) You can buy as many I.M.O.s as you like if you comply with exchange control regulations. TRUE
FALSE
7) The beneficiary will receive the full amount stated on the I.M.O. TRUE FALSE
8) The beneficiary can deposit the I.M.O. to his account. TRUE FALSE
9) The beneficiary can use his I.M.O. to pay his hotel and restaurant bills. TRUE FALSE
10) I.M.O.s are used mainly for private transactions. TRUE FALSE
1
That is, the United Kingdom, the Isle of Man, the Channel Islands, the Republic of Ireland and
Gibraltar.
2
Which at present includes the British Commonwealth, but not the United Kingdom, Canada.
Gibraltar and Rhodesia, Islands. Oman, Pakistan, Qatar, South Africa, South West Africa, the United
Arab Emirates and the People Democratic Republic of Yemen.
(page 5) B. CORRESPONDENCE
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.
J.K. Harvey,
37 Winchester St.,
LONDON, SW4 3KR.
2nd March, 19..
Dear Sir,
Thank you for your order (No. CH271) for 300 of our magazines. We enclose the invoice, which
gives you details of the cost. Payment must be made before we send the goods. The invoice No. is
QS3759.
We would like to suggest that you pay by International Money Order. The amount of money
(135.75) 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 supplying the magazines as soon as we receive payment.
Yours faithfully, C.A. Hines
The English buyer can then go to his bank branch and purchase an International Money Order.
Thank you for your order (No. CH271) for 300 of our Cm n n t hng s CH271 ca qu Ngi
magazines. We enclose the invoice, which gives you mua 300 quyn tp ch. Chng ti km theo y
ha n nhm cung cp cho qu Ngi mi chi tit
details of the cost. Payment must be made before we v gi c. Thanh ton phi c thc hin trc
send the goods. The invoice No. is QS3759. khi chng ti chuyn bo cho qu Ngi. S ca
We would like to suggest that you pay by International ha n l QS3759.
Money Order. The amount of money (135.75) is small, Chng ti xin ngh qu Ngi thanh ton bng
and the International Money Order is the quickest and IMO. 135,75 Bng ch l s tin nh, nn IMO l
phng thc thanh ton nhanh v r nht cho c
cheapest method for both of us. Your bank can help you i bn. Ngn hng s gip qu Ngi mi th tc
to complete it, and you can then post it to our address. mua, v sau xin gi n a ch ca chng
We look forward to supplying the magazines as soon as ti bng bu in.
we receive payment. Chng ti mong c cung cp s tp ch ni trn
Yours faithfully, ngay khi chng ti nhn thanh ton.
Trn trng knh cho.
C.A. Hines.

He then writes to the supplier.

8th March, 19..
Dear Sirs,
Thank you for your letter of the 2nd March 19.. enclosing your invoice (No. QS3759). I enclose an
International Money Order (No. 10753881) for 140, which includes the charge your bank will levy
for cashing it, or depositing it to your account.
Most banks will accept International Money Orders. You can either deposit the I.M.O. to your
account, or the bank will cash it for you if you provide some identification. I assume that you will
deposit it to your account.
I trust that this method of payment is convenient. If we place orders in future, however, the
International Money Order may be inadequate, as we hope to buy your magazines in much bigger
quantities.
We look forward to receiving the magazines.
Yours faithfully,
J.K. Harvey

C. LANGUAGE PRACTICE
1. You can give extra information by using these words or phrases:
in addition as well as this
furthermore *also
* Note that 'also' comes between the auxiliary and the main verb: 'We can also pay for small import
orders by I.M.O.'
A You can use an I.M.O. for sending cash to relatives in other countries. B In addition, you can pay
for small import orders by I.M.O.
Make sentences similar to B for the following:
1) A An I.M.O. is suitable for the payment of subscriptions.
B ........;......................................................................................
2) A An I.M.O. is convenient because you can pay for it by cash.
B ...............................................................................................
3) A If you lose an I.M.O., you can get an immediate refund of 100 or U.S.$250.
B...............................................................................................
4) A An I.M.O. is suitable for paving small import orders.
B ..............................................................................................
5) A An I.M.O. is convenient because there is no delay.
B..............................................................................................
6) A . You have to pay a small commission charge to buy I.M.O.s in your own bank.
B .....................

(page 7) 7) A An I.M.O. is acceptable to banks in the United Kingdom..

B......................................................................
8) A You can pay cash to companies overseas by I.M.O.
B ......................................................................
9) A You sign a request form for an I.M.O.
B ......................................................................
10) A You can pay for a hotel booking by I.M.O.
B ......................................................................

2. You can describe limits by using these words and phrases:

But in spite of this however nevertheless
A You can use an I.M.O. to send cash to relatives in other countries.
B However, you cannot use it for large import orders.__
Make sentences similar to B for the following:
1) A An IMO is suitable for small import orders.
B ..
2) A The beneficiary can obtain payment of an IMO through a bank.
B..
3) A An IMO is used for small orders.
B..
4) A There is no limit to the number of IMOs you can buy.
B..
5) A IMOs are simple to buy and simple to use.
B..
6) A An IMO is convenient when you pay for magazines.
B..
7) A A bank will give cash to the beneficiary if they know him.
B..
8) A An IMO is convenient payment for a transistor radio.
B..
9) A An IMO can be used to pay deposits for hotel bookings for small groups.
B ..
10) A An IMO is a very useful method of payment in international commerce.
B..

3. You can describe conditions with the following words:

if unless
If you go now, you'll arrive on time. Unless you go now, you'll be late.
(page 8) Use the correct word in the spaces below.
1) You won't get cash for an I.M.O..........you present it in a shop.
2) You won't get cash for an I.M.O..........you present it in a bank.
3) .........you don't post the mail now. you'll miss the last post.
4) You can't receive payment.........you provide suitable identification.
5) You can't obtain a registered letter.........you sign for it.
6) .........you comply with the exchange control regulations, there is no limit to the
amount of I.M.O.s you can buy.
7) .........the I.M.O. is lost or stolen, you can obtain a refund.
8) .........you report a theft immediately, there is not much the police can do about it.
9) Correspondence with a foreign supplier is easier.........you both speak the same
language.
10) Payment by I.M.O. is convenient.........you are ordering in bulk (that is. in large
quantities).

International Money Order Request Form

Customer's Name...........................................................................
I.M.O. No.
I.M.O. payable to
FUNDS EX if foreign currency Sterling
EXTERNAL A/C order (Equivalent)..............
AUTHORIZED ....|......
BY E.C. NOTICE RAT AMOUNT AND Commission .......
EXCHANGE E CURRENCY ............|......
CONTROL
FORM NO. CREDIT I.M.O. ............ |.......
A/C _ 2008637

Please supply International Money Order as detailed above. Payment is to be made

by: Debit to my/our Current/Deposit account; Cash; Cheque. (Delete as appropriate).

D. VOCABULARY
1. Insert the correct words and phrases in the appropriate spaces in the passage below.
balance deposit mail beneficiary encash negotiate
convenient fill in refund currency identification
service charge debit levy transactions
International Money Orders are suitable for small
transactions
, such as subscriptions, gifts, mail orders 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 name of the beneficiary . You should also
state how you wish to pay: in cash, by cheque, 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 I.M.O.s have signs (called stickers)
which they display on outside windows and inside on
cashiers' counters. Your beneficiary can obtain cash for his
I.M.O. 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 an 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

subscriptions, gifts, mail orders 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 name
of the 4......... You should also state how you wish to pay: in cash, by
cheque, or by 5......... to your account. You then receive the I.M.O., and you
can ......... 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......... I.M.O.s have signs (called stickers) which they display
on outside windows and inside on cashiers' counters. Your beneficiary can
obtain cash for his I.M.O. 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 an immediate 14........., which is limited to
100 or US$250. The 15.........is repaid after a short period.
2. Note these phrases:
by cash / in cash You can pay by / in cash, (with notes and coins') by cheque You can pay by cheque,
(by signing a cheque)
by debit You can pay by debit to your account. (The bank pays for you, and
reduces the amount in your account.) on your behalf A bank official will complete an application
form on your behalf.
(for you)
on the spot The I.M.O. is convenient because it is completed on the spot. (immediately)
Insert the correct phrases in the appropriate spaces below.
You can buy an International Money Order at your local bank branch. The bank
can fill in all the necessary forms ........., 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
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 3..........
Both of these methods are better than payment4........., 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.
(page 10) E. EXERCISES
GROUPWORK REPORT
I/ Group Name: ..........................
Company; Address)
II/ Group Leader: .......................
Member 1: .......
(8 members at most - At least 1 male - 1 female in
each group)
III/
1. Write a letter to an English customer who has booked
25 rooms for a group of English tourists.
You work for a travel agency. You require a deposit of
150 from Miss Carol Levander for the booking, and you
want her to pay by I.M.O. Explain to her that this is the
cheapest and quickest method of payment for her.
2. Reply to the above letter, enclosing an I.M. O. for
151.50.
Explain that the extra amount is for the beneficiary's
commission charge, which his bank will levy. Advise
your correspondent how he can receive cash for the
I.M.O., or deposit it to his account.

UNIT 2: Cheques / General Banking

Advance: A general term for bank lending, which includes loans and overdrafts balance The sum of money left
in a depositor's account
Bank Giro: A system of credit transfer, where a payer gives the names of the payee, his bank and account
number
counterfoil stub: The section of a cheque book, usually at the left of the book, which allows a depositor to keep a
personal record of his payments by cheque
crossed cheque: A cheque which must be paid into a bank account
draw (v.) (also withdraw) To take money out of an account
drawer With a cheque, it is the person who signs a cheque; he is the debtor. (Note: there is a difference in Bills
of Exchange.)
entry: One item, either in the payments or receipts columns of a statement
hire purchase A method of buying, especially used for durable goods, such as washing machines. A deposit is
paid, and the rest of the money is paid in small amounts every week or month,
instalments: The weekly or monthly repayments used in hire purchase
interest: A sum of money, or premium, paid for borrowing or using money
loan: A method of borrowing from a bank, building society or other credit institution
Money Order: A method of payment provided by the Post Office for sending sums of money abroad. See
International Money Order, notice (n) Information, usually in writing, about some future action
open cheque: A cheque which can be cashed at the drawer's bank
overdraft: A method of borrowing from a bank; permission to write cheques up to a certain amount. Interest is
paid only on the amount overdrawn,
payee: The person to whom a cheque is made out; he is the creditor.
Postal Order: A method of payment for small sums, using the Post Office to send these sums, which can be
cashed at Post Offices. Used to send money to people who do not have bank accounts,
Premium: The annual, or monthly sum of money paid for an insurance policy rate of interest See interest. This
sum of money expressed as a percentage,
Rates: A form of tax paid to local authorities rent Sum of money paid for renting a house, flat or room
statement The document sent by a bank to a depositor which includes all details of payments, receipts, and the
balance

There are two main types of bank account in the UK: current accounts and deposit accounts. A current account allows you
to use a cheque book, but your money doesn't earn interest. There are bank charges for current accounts, but if your
account remains in credit you need to pay no charges at all. You must keep a certain amount in credit in your current
account to avoid charges. This amount changes from time to time.
(page 12) A deposit account earns interest, but it doesn't allow you to use a cheque book. The rate of interest fluctuates
(in one year it dropped from 11% to 3%, for example). You can withdraw money from a deposit account by giving notice to
a bank. This notice is usually seven days.
A current account (also called a cheque account) is a convenient and safe method of handling money. Your salary can go
straight into your current account, and these days more and more people are paid by direct credit instead of in cash.
Direct credit means that your employer, or anyone else who wishes to pay you money, can pay the money straight out of
their account into yours. Cheques, postal orders and money orders (including International Money Orders) can be paid
direct to your account also.
You can pay your bills by cheque in shops, hotels, airports, restaurants and most other places (but not in taxis, for
example). You can pay regular bills by direct debit from your account. These regular bills include insurance premiums,
rent, rates and hire purchase instalments. These regular bills must be for sums of money where the amount remains the
same every month during a certain period.
You can tell your bank, for example, to 'pay Monarch Insurance Co. 10 per month on the 21st of every month from now
till further notice'. The bank will pay this for you automatically, by banker's order (also called standing order) or direct debit.
You don't have to remember every month; you don't have to post the cheque to Monarch Insurance Co.; you don't have to
travel to their office.
With a current account you have the advantage of a cheque book service, which means that you don't
have the risk of carrying large amounts of cash with you. You also know where your money goes and
where it comes from because you get a regular statement from your bank, showing debit and credit
entries (or payments and receipts respectively), and the balance. Nowadays banks in the UK do not
return your cheques with each statement, so it is advisable to keep a record of transactions on the
counterfoil or stub.
DIFFERENT TYPES OF CHEQUES
WHAT IS A CHEQUE?
In very simple terms, a cheque is an order signed by a customer, addressed to his or her bank, to pay the amount
indicated to the person or company named.

OPEN CHEQUES
This is an open cheque:
(page 13)

6th December 1978 20-99-93

BARCLAYS BANK LIMITED
High St. Claxton
Pay ...............................................................or Order
Ten pounds only ............................ 10
. J.R. LAWSON

J.R. LAWSON

540683 ,| 20 9993 40324965

Transferred to Mr. John Douglas (Endorsement)
(Signed)

A customer has completed it (and the counterfoil for record purposes) so that he can withdraw 10 in cash from his account.
This again, is an open cheque, but one which a customer has completed and given to someone he wishes to pay:

6th December 1978 20-99-93

BARCLAYS BANK LIMITED
High St. Claxton
Pay .P.G. Weaver. ...............................................or Order
Seven pounds 50 p ............................ 7.50
.J.R. LAWSON

J.R. LAWSON

540683 ,| 20 9993 40324965

You will notice that the standard practice of rewriting the amount of the cheque in words does not extend to the pence.
These can be rewritten in figures.
Because it is an open cheque, the payee (the person to whom the cheque is payable) could, if he or she wished, take it to
Claxton branch and obtain cash. However, if the cheque were to fall into the hands of someone dishonest posing as the
payee, such a person also might be able to cash it.
So, unless you expect to be issuing a lot of cheques to people who will want to go to your branch to obtain cash for them,
it is preferable, and very much safer, to use crossed cheques.
CROSSED CHEQUES
Crossed cheques have two parallel lines drawn vertically across them and are safer than open cheques (see left) because
they can only be paid through somebody's bank account.
This means they can't be exchanged for cash over a bank counter. (There is an exception to this rule, and we will deal
with it in a moment.)
If you only have open cheques then you can always cross them by drawing two lines yourself, thus:

6th December 1978 20-99-93

BARCCLAYS BARCLAYS BANK LIMITED
High St. Claxton
Pay...................................................................... or Order

J.R. LAWSON

540683 ,, 20 9993 40324965

Whenever you send cheques by post, always ensure that they are crossed (if your bill states 'cross the cheque -
Account Payee Only' or something similar, write the required words between the two lines).
The cheques which we provide, and which have the crossing already printed on them, look like this:

6th December 1978 20-99-93

BARCLAYS BARCLAYS BANK LIMITED
High St. Claxton
Pay........................................ .........................or Order

J.R. LAWSON

540683 || 20 9993 40324965

We mentioned an exception to the rule that we don't give cash for crossed cheques. If you have a crossed cheque book
and want to obtain money at your branch, we will cash your cheque and in certain cases pay cash over to other people
provided that they are known to us and we are completely satisfied that they are obtaining the cash on your behalf. But
first you should 'open the crossing', by writing 'pay cash' and sign your name over the crossing, thus:

6th December 1978 20-99-93

BARCLAYS BARCLAYS BANK LIMITED
High St. Claxton
Pay........................................ .........................or Order
15
J.R. LAWSON
J.R. LAWSON
540683 || 20 9993 40324965

THE NUMBERS ON YOUR CHEQUES

You will notice that each cheque has a variety of numbers printed on it. This is what they mean:
1. The cheque serial number enables our computers to record and print the details on a customer's statement against the
amount of the cheque. It is repeated on the counterfoil so that you can check it against your statement.
2. The code number of the branch of Barclays where your account is kept (Claxton in this case). Every bank branch in the
country has its own code number.
3. The code number again, like the serial number, enables our computers to sort the cheque quickly, and ensure that it is
forwarded to the correct bank and branch.
4. Finally, the customer's account number which enables our computers to sort the cheque to the right account.
2

6th December 1978 20-99-93

BARCLAYS BARCLAYS BANK LIMITED
High St. Claxton
Pay P.G. Thesbald. .........................or Order
14 85
J.R. LAWSON
J.R. LAWSON
540683 || 20 9993 40324965
(page 16) Cheques / General Banking
A. COMPREHENSION
Tick (V) the correct responses.
1) The main advantage of a current account is that your money earns interest. TRUE FALSE
2) The main disadvantage of a deposit account is that you cannot use a cheque book to pay your bills.
TRUE FALSE
3) Payments like salaries and money orders can be paid by direct credit into your current account.
TRUE FALSE
4) The bank can pay regular bills such as insurance premiums for you by direct debit. TRUE
FALSE
5) You can withdraw money from a deposit account without giving the bank notice. TRUE FALSE

6) You can pay your electricity bill by standing order. TRUE FALSE
7) It is advisable to keep a record of your payments on the counterfoil of your cheque book. TRUE
FALSE
8) A statement from your bank tells you the balance, but not how much you have received or paid.
TRUE FALSE
9) The drawer in the cheque on page 13 is P.G Weaver. TRUE FALSE 10) The payee in the
cheque on page 13 is J.R. Lawson. TRUE FALSE
B. LANGUAGE PRACTICE
1. Note the use of 'to have something done':
T have my suit cleaned by Presto Laundry.'
means 'Presto Laundry cleans my suit for me. I don't do it. I ask them to do it for me.'
Do the same for these. Begin each sentence with T.
1) I don't pay my insurance premiums every month. The bank does it for me. I ask them to do it.
2) I don't repair the typewriter. The technician does it for me. I ask him to do it.
3) I don't photocopy the application forms. Someone else does it for me. I ask him to do it.
4) I don't pay my rent directly. The bank does it for me by direct debit. I ask them to do it.
5) I don't renew my passport. A government department does it for me. I ask them to do it.
6) I don't debit my account for regular payments by standing order. The bank does it for me at my
request.
7) I don't deliver heavy goods to customers. A transport company does it for me. I ask them to do
this.

(page 17) ENGLISH FOR THE OFFICE

8) My employers pay my salary into my account by direct credit. I request this.
9) I can't send regular statements of my account. My bank sends them to me at my request.
10) I don't pay the instalments on my hire purchase agreement. My bank does it for me by banker's
order, at my request.
2. Notice the use of 'make out' and 'payable' when you are giving or asking instructions about
what to write on cheques.
When you wish to draw cash from your bank branch by cheque, the cashier says: 'Make your cheque
out to cash', (or. 'Make out your cheque to cash') Or she can say:
'Make your cheque payable to cash'. In a Department Store, an assistant says:
'Make your cheque out to Marks and Spencer' (or: 'Make out your cheque to Marks and Spencer') Or
she can say:
'Make your cheque payable to Marks and Spencer'.
Using these words and phrases tell someone else what to write on their cheque, using the
information below:
Cash ...
Make your cheque out to cash. (Make out your cheque to cash) Make your cheque payable to cash.
1) John Smith............
2) Universal General Stores............
3) Banco di Roma............
4) Barclays Bank............
5) Monarch Insurance Co.............
6) The Inner London Education Authority............
7) The Grand Hotel............
8) Standard Office Equipment Ltd.............
9) Boma Tyres............
10) The Post Office............
11) Mondiale Travel Ltd.............
12) J.M. Dillon............
Asking for instructions about what to write on cheques:
Shall I make the cheque out to cash?
Shall I make the cheque out to Marks and Spencer?
Shall I make the cheque payable to Marks and Spencer?
Make similar questions for numbers 1-12 above.
22
(page 18)
(page 19) Cheques /General Banking.
3. The following letter arrives at the home of an English customer from the Accounts
Department of a company in Singapore.
20th May, 19..
Dear Sirs,
We would like you to arrange payment for the goods which we have ready to send to you. We must receive payment
before we deliver the goods.
We would like you to pay by cheque through your bank. It is better if your bank arranges this, and there will be a small
charge for their service.
Your bank should make the cheque payable to AFC Electronics. The bank is the Hongkong and Shanghai Bank. The
branch is in Bukit Timah Road, Singapore. The account number is 402 393 69. Make the cheque payable to us and
crossed 'Account Payee Only'. Your cheque will then be credited to our account.
If you have any further questions. I am sure your bank branch will help you. I look forward to receiving your remittance, as
we can then send the goods you ordered as soon as possible.
Yours faithfully,

The English customer replies.

2nd June, 19..
Dear Sirs,
Thank you for your letter of the 20th May.
I have asked my bank to pay your bill1 for me. I gave them the name and address of your bank and the cheque should
arrive before the end of the week.
' A 'bill' in Britain means a debt (usually a regular debt, such as an electricity bill) which must be paid. It usually arrives in
the form of an invoice.
In the USA a bill' is also used to mean a bank note, and they write and say 'a dollar bill', for example.
My bank is making the payment and debiting it to my account. There was a small commission charge, but it is quicker and
cheaper than a bank's transfer for this transaction.
I look forward to receiving the goods I ordered from you, as soon as you can arrange it.
Yours faithfully,

4. Note the use of the words 'debit' and 'credit' as verbs:

We will send the cheque to your bank branch and they will credit it to your account.
I will ask my bank to send the cheque to your bank branch. My bank will then debit it to my
account._ __
Use the verb 'credit' when you receive payment from others. Use the verb 'debit' when you make
payment to others.
Give instructions to your bank for the following, using 'debit' or 'credit'.
1) I am receiving a cheque for 50 for the goods I delivered. They are posting the cheque to you. Can
you receive it for me?
2) I want to send a 20 cheque to a magazine in Germany to pay for my subscription. Can you send
the cheque from my account?
3) I am receiving my salary by cheque, and I have asked my employers to pay direct into my
account. Can you receive it for me?
4) I want to pay the expenses of our agent in London from my account in your branch. Can you send
the cheque to him and adjust my account? The cheque is for 35.
5) Please send a cheque to Mr Kenneth Macaulay of 17 High Street, Claxton, Essex, London. The
cheque is for 45, and should be paid from my current account.
Inform payees that various remittances are being paid directly into their account, or directly from
your account.
1) The cheque for 50 in your favour will be paid directly into your account in Athens.
2) I shall pay by cheque. My bank will pay for me from my current account.
3) The cheque will go straight into your account.
4) The cheque wilt be paid from my current account.
5) The International Money Order will go straight into your account.
(page 20) Cheques/ General Banking-
C. VOCABULARY
1. Note these phrases:
(6) by direct credit: Transferring into an account directly from another account
(4) by direct debit: Automatic payment by a bank of regular payments to e.g. an
insurance company, etc.
(5) in credit: An account is in credit when you have money in the bank,
(1) in payment Please accept this cheque in payment.
(2) in preference to: I like to use cheques in preference to cash; it's safer,
(3) in return: You pay some of your salary into a deposit account, and in return you get interest.
(7) until further notice: Until the instructions are changed.
Insert the correct phrases into the appropriate spaces in the passage below.
Most people nowadays accept cheques 1......... of bills and debts. They accept cheques from creditors ".........cash
because it is safer, especially with the crossed cheque system, and3.........they write cheques to their creditors. In addition,
many people have their salaries paid4.........into their account.
If your account is 5........., 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.........The bank will
do this for you for a small charge, and you can instruct your bank to continue these regular payments 7......... usually until
the debt is paid.
2. Insert the correct phrases in the appropriate spaces in the passage below.
balance crossed payee
cash drawer payments
cheque book interest receipts
counterfoil notice statement
credit slip overdraft withdraw
The big advantage of a current account is that you have a 1........., and you can pay your bills by cheque. You don't have
the risk of carrying 2.........around with you. The advantage of a deposit account is that your money earns 3........., although
the rate is usually not very high. You can 4.........money from your current account at any time, but with a deposit account
you must usually give seven days'5.......... 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......... and you are described as the 7......... You can find out how much you
have in the bank by requesting a regular 8.........All transactions are included in this, both 9.........and 10........., or debits and
credits respectively. If your payments are greater than your receipts, your account is overdrawn. You need the permission
of your bank manager to have an 11.........in this way.
It is advisable to keep a record of all your payments on the .........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 13........., 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 14.........cheque to make sure that it cannot be cashed 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 at your branch how much you have in your account. This
amount is called the 15........., which is the difference between your payments and receipts.
D. 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. Include any other credit and debit entries you think necessary.

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.
3. Write a letter to a representative
requesting information on how to pay a sum of 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.
24
(page 22) Eurocheque / Travellers Cheques
3 Eurocheque / Travellers cheques
bill (USA) A bank note (e.g. a dollar bill) bill (UK) A debt, an invoice
cashcard A small plastic card with a code number, which can be put into machine
called a dispenser, which then gives out the required amount of cash cashier A bank official who gives out
cash for cheques, etc.
countersignature The act of handwriting a signature in the presence of a bank cashier
denomination Here, the value of the units of a currency or travellers cheques which are issued dispenser The
machine which supplies cash to cashcard holders duty-tree Goods which can be imported without the payment
of any duty (import tax)
endorse To sign on the back (of a cheque, etc.)
security A form of guarantee required by a bank that a borrower has something of value, such as a life
assurance policy, which can be used to repay a loan or overdraft in an emergency
signature A person's normal way of handwriting his name
specimen (n.) An example (e.g. of a signature)
A cheque guarantee card is a small plastic card with the name of the bank printed on it, a specimen of the user's
signature, the number of the card, and the expiry date (e.g. 05/79 means the card cannot be used after the end of May
1979). It is also used to draw cash from branches of a bank where the holder is unknown, and it is used as a guarantee for
cheques made out to shops, garages, restaurants and other places.
A credit card is often used by those who have a cheque account and whose credit is good. It can be used directly to pay
bills at airports, hotels, restaurants, shops, garages and any other place which displays the credit card sign. The account
is with the credit or organisation, such as Barclaycard, Access, and American Express. Credit cards can also be used as a
cheque guarantee, mainly as identification. You can pay bills or draw cash up to 50 for any one transaction, but the limit
is 30 in the Eurocheque system in banks in European countries.
Many cheque guarantee and credit cards have the distinctive red and blue Eurocheque sign. This means that holders of
these cards can use their cheque books with the credit card to draw cash from banks which participate in the Eurocheque
system throughout Europe. British holders make out the cheque in sterling, present their cheque book and credit card, and
their passport as well, to the bank cashier. They receive foreign currency at the current rate of exchange, and there is a
small commission charge.
25
(page 23) ENGLISH FOR THE OFFICE
The cashcard is used with a 24-hour cash dispensing service, with dispensers, in many central sites. They can be used to
obtain cash at any time, day or night.
A. COMPREHENSION SECTION I
Tick (V) the correct responses.
1) A cheque guarantee card is used to draw cash from the holder's branch. TRUE FALSE
2) A credit card can be used as a cheque guarantee card. TRUE FALSE
3) Cheque guarantee cards and credit cards are used when cheques are made payable to 'cash' in branches where the
holder is unknown. TRUE FALSE
4) The holder writes his name and address on a cheque guarantee and credit card. TRUE FALSE
5) The Eurocharge system allows holders to draw cash in banks throughout Europe if they have cheques or credit cards
displaying the red and blue Eurocheque sign. TRUE FALSE
6) The Eurocheque card is the only means of identification needed in overseas banks. TRUE FALSE
7) The Eurocheque card can be used as payment in large hotels, restaurants and garages. TRUE FALSE
8) The maximum for one transaction using the Eurocheque card is 100. TRUE FALSE
9) You receive foreign currency in overseas banks when you use your Eurocheque card, and there is no commission
charge. TRUE FALSE
10) A cashcard (ATM card) can be used every day of the week between the hours of 9 a.m. and 6 p.m. TRUE FALSE

BARCLAYS TRAVELLERS CHEQUES GIVE YOU CASH ON THE SPOT WHEREVER

YOU GO
With Barclays Bank U.S. Dollar and Sterling Travellers Cheques you can carry money safely and conveniently, wherever
and whenever you travel. You can use them throughout the world, just as you would cash, to pay for meals in restaurants,
hotels accommodation, duty-free goods, airline and rail tickets, and entertainment in night clubs and casinos - in fact for
almost all travel expenses other than minor incidentals such as taxi fares.

Barclays Travellers Cheques are encashable at banks world-wide for their equivalent in local currency. They are available
in denominations of U.S. $10, $20, $50, $100 and $250 and Sterling 5, 10, 20, 50 and 100.

How to get them

You dont have to bank with Barclays to buy Barclays Travellers Cheques - they may be purchased at any of the 5,000
offices of Barclays in 60 countries or at any of the thousands of selling agents world-wide.

Immediate refunds
Barclays Travellers Cheques cannot be cashed without your personal on-the-spot countersignature. Even if they are
stolen or accidentally lost, your money is still safe.
A special feature is that every purchaser of Barclays Travellers Cheques is provided with a booklet listing some 8,000
points around the world where refunds are obtainable. All these points are authorised to make an immediate refund for
limited amounts. Any balance remaining may be speedily settled after a few necessary formalities.

Barclays the international bank for international travellers

The Barclays Group of Banks has the world's largest international branch network. One reason why Barclays Travellers
Cheques are your passport to trouble-free travel. This unparalleled network ensures that the Barclays service is second to
none.
Travellers cheques
The most common method of carrying-money internationally is by using travellers cheques. They offer the advantages of
safety and convenience.
They are safe because of the two signatures needed. When you buy them, you in the top left-hand corner, where it says
'signature'. When you change them for cash in another country, you sign 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 encashment
(top right-hand corner). The cashier should inspect the travellers cheque to see if the signature and countersignature
correspond.
They are safe for another reason, also. You can get a refund if you lose them.
They are convenient 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.
B. COMPREHENSION
SECTION II
Answer these questions
1) Why are travellers cheques safe?
Because you dont have to bring cash with you when travelling.
2) Why are travellers cheques convenient?
Because you use them to pay
3) What payments are travellers cheques suitable for?
Accommodation, foods, tickets, entertainment and purchases
4) Can you think of any minor transactions you would not use a travellers cheque for?
Sometimes taxi fares, petrol purchases,
5) When do you write your signature on travellers cheques?
On the spot/ When you buy
6) When do you write your countersignature on a travellers cheque?
When you want to cash
7) Can you get a refund if you lose your travellers cheques?
Yes.
8) What happens if you want a refund for a large amount of travellers cheques?
You have to bank with a branch.
9) Do you have to be a client of a bank to buy travellers cheques from them?
No
10) What denominations of US dollars and sterling can you get in travellers cheques?
They are available in denominations of U.S. $10, $20, $50, $100 and $250 and Sterling 5, 10, 20, 50 and
100.
C. LANGUAGE PRACTICE
Notice how you make polite requests:
I'd like (I would like) to cash some travellers cheques, please.
Make polite requests in the same way for these:
1) Purchase 300 of travellers cheques in denominations of 50s and 10s
2) Transfer some money to my bank in New York
3) Withdraw 50
4) Open an account in this branch
5) Draw 100 on my London bank
6) Know what the exchange control regulations are
7) Know what the exchange rate is
8) Find out who your agent in Lucerne is
9) Charge the commission to my account
10) Complete the formalities now
26
(page 26) Eurocheque / Travellers Cheques
2. Notice how people on the other side of the counter ask politely if they can help by doing something for
you. Cashiers in banks, clerks in travel agencies and offices, and assistants in Department Stores, ask if
they can help you in this way:
Would you like me / us to transfer the amount by cheque? Ask if you can help with the following:
1) Issue the travellers cheques in denominations of 50, 20 and 10?
2) Issue the travellers cheques in denominations of 100, 50 and 10?
3) Issue the travellers cheques in sterling or US dollars?
4) Debit the commission charge to your account?
5) Pay by cheque or by transfer?
6) Make the banker's order out to Mondiale Travel Ltd?
7) Give you a booklet listing the branches which will cash your travellers cheques?
8) Complete the formalities on your behalf? (for you)
9) Give you small amounts of cash in different currencies for each country you visit?
10) Refund 50 immediately?
11) Make the cheque payable to John Smith?
12) Post a new cheque book to you?
13) Give you a Eurocheque card?
14) Send you a statement every month?
15) Contact branch in Zurich to arrange a cash advance?
3. Notice how various requests are made by cashiers:
Could you show me the letter, please!
You are a bank cashier. Request a customer to do these:
1) Sign here.
2) Show me your passport.
3) Endorse the cheque.1
4) Wait ten minutes while I find out what the exchange rate is.
5) Fill in this form.
6) Give me your name and address.
7) Cancel the crossing.
8) Write 'pay cash' here.
9) Sign on the back.1
10) Go to the foreign exchange cashier.
'Endorse' and 'Sign on the back' are two ways of saying the same thing.
27
(page 27) ENGLISH FOR THE OFFICE
Another form of request asks for objects and documents.
Have you got a pen, please!
Ask a customer for the following:
Your passport?
Any means of identification?
Their celephone number?
Your credit card?
Your cheque book?
Their name and address?
Your account number?
An account in this branch?
An application form?
All the necessary documents?
In exercises 1 and 2 we had polite requests from a customer: 'I'd (I would) like to cash some travellers
cheques, please.' And from the cashier: 'Would you like me to transfer the amount by cheque?'
Usually a bank cashier will ask this question when he is handing over cash to a customer: "How would you
like the money, sir?' In this sentence, he means 'What denominations would you like, sir?' That is, how many
50s, how many 10s and so on.
D. VOCABULARY
1. Note these words and phrases:
check draw rate of exchange commission endorse
subject to current guarantee denominations participate
Insert the correct words or phrases in the passage below:
"check' in the UK means to examine or scrutinize, 'check' in the USA is the spelling of 'cheque'..........

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 Eurocheque card as identification to 2 draw his
cheques. Or he can 3check on his account in his own country, which means that the cashier will have to telephone, cable
or telex his branch for confirmation. He will have to 4endorse the cheque, that is, write his signature on the back. Most of
the major banks in Europe 5.participate in the Eurocheque scheme.
When cashiers handle travellers 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, $130 and $250, 9. subject to exchange control regulations. They must pay
a small10. commission, or service charge as it is called in the USA.
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 Eurocheque 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, cable or telex his
branch for confirmation. He will have to 4.. the cheque, that is, write his signature on the back. Most of the major
banks in Europe 5.........in the Eurocheque scheme.
When cashiers handle travellers cheques, they must 6......... 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 current7.........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, $130 and $250, 9......... exchange control regulations. They must pay a small10........., or service
charge as it is called in the USA.

2. Note these phrases:

A. in the form of Most people take their money abroad in the form of travellers
cheques, (as a type of official document)
B. in the presence of You must countersign a travellers cheque in the presence of the
cashier, (while he is looking)
C. on arrival He telephoned me on arrival, (when he arrived)
D. over-the-counter You don't have to wait. It can be done over-the-counter. (immediately; in the bank or
office similar to 'on the spot', but only used in banks, offices)
E. up to You can transfer up to 500. (500 is the maximum, or limit)
Insert the correct phrases in the appropriate spaces in the passage below.
The Eurocheque scheme is very convenient for travellers. It helps Eurocheque card holders by giving them an opportunity
to cash cheques in thirty-five European countries. This means that you can use your cheque book all over Europe,
although you will need some cash 1.on arrival in other countries to pay for taxis and other small charges.
You can cash 2.up to 30 if you have a Barclaycard, for example, although there is a higher limit of 50 if you use it in the
UK. Most banks in Europe ask you for additional identification 3.in the form of a passport. You must sign the cheque 4.in
the presence of the cashier, who will then look at your Eurocheque card and your cheque to see if the signatures are the
same. The cashier will calculate the amount of cash to give you at the current rate of exchange, and give you the cash in
the denominations you ask for. This convenient 5.over the counter service saves a lot of time.

The Eurocheque scheme is very convenient for travellers. It helps Eurocheque card holders by giving them an opportunity
to cash cheques in thirty-five European countries. This means that you can use your cheque book all over Europe,
although you will need some cash 1.........in other countries to pay for taxis and other small charges.
You can cash 2.........30 if you have a Barclaycard, for example, although there is a higher limit of 50 if you use it in the
UK. Most banks in Europe ask you for additional identification 3.........a passport. You must sign the cheque 4.........the
cashier, who will then look at your Eurocheque card and your cheque to see if the signatures are the same. The cashier
will calculate the amount of cash to give you at the current rate of exchange, and give you the cash in the denominations
you ask for. This convenient5.........service saves a lot of time.
28
(page 29) ENGLISH FOR THE OFFICE
E. EXERCISES
1. Write a letter to a friend in England who wants to visit you on holiday.
She wants to know what the best way is of getting cash while she is abroad. Advise her in the letter.

123 Nguyen Trong Tuyen Street

Phu Nhuan district. HCMC

6 October 2010
Dear Carol,
Im very happy when receiving your letter in which you say you will visit me in the near future. I think its the first time
youll come to Vietnam so I want to give you some tips.
Perhaps the most common method of carrying-money is by using travellers cheques. You will find it safe and
convenient. They are safe because of the two signatures needed. When you buy them, you in the top left-hand corner,
where it says 'signature'. When you change them for cash in another country, you sign 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 encashment (top right-hand corner). The cashier should inspect the travellers cheque to see if the signature and
countersignature correspond.
They are safe for another reason, also. You can get a refund if you lose them.
They are convenient 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.
I hope that you will enjoy the trip.
Look forward to seeing you then.
Cordially, Affectionately, With love

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

Italian cashier: Can I help you, madam?
English customer: Yes. I want to know what the best way is of getting cash while I am abroad.
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, which has the red and blue Eurocheque sign printed on it. Include a request for
identification and the current exchange rate in the dialogue.
3. Write a short essay about the advantages of the Eurocheque system, and compare these advantages with
travellers cheques.
Include situations where one method can be used and the other cannot, and write about the advantages and
disadvantages of both methods.
4. Write a letter from a bank to a customer who has written to you asking for advice on travellers 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.
29
(page 30) Letters of Credit / Bank:Transfers
4 Letters of Credit / Bank Transfers
Group work
Report
PART 1:
1) Give a name to your group and explain why you choose that name.
2) Group leader: .
Member 1: .
Member 2: .
Member 3: .
Member 4: .
PART 2: Translate the text into Vietnamese
PART 3: Exercises

Barclays Bank International Ltd.

INTERNATIONAL 1 Union Court, London EC2 2HP
Date 20th July, 19.
DOCUMENTARY CREDITS DEPARTMENT
SPECIMEN IRREVOCABLE CREDIT No: UTDC 65432
To be quoted on all drafts and correspondence
Beneficiary(ies) Advised through
Speirs and Walley Ltd.
Adderley Road
Hackey, London E8 1XY
Accreditor To be completed only if applicable
Woldal Ltd. New Road
Kowloon, Hongkong Our cable of Advised through
. Refers

Dear Sirs
In accordance with instructions received from The Downtown Bank & Trust Co. we hereby issue in your favour a
Documentary Credit for 4,108
(say) four thousand, one hundred and eight pounds sterling available by your drafts drawn on us at sight for the 100% c.i.f.
invoice value, accompanied by the following documents:
1. Signed Invoice in triplicate.
2. Full set of clean Combined Transport Bills of Lading made out to order and blank endorsed, marked 'Freight Paid' and
'Notify Woldal Ltd., New Road, Kowloon, Hongkong'.
3. Insurance Policy or Certificate in duplicate, covering Marine and War Risks up to buyer's warehouse, for invoice value
of the goods plus 10%.
30
(page 31) ENGLISH FOR THE OFFICE
Covering the following points: 400 Electric Power Drills
To be shipped from: London to: Hong Kong c.i.f.
not later than 10th August 19..
Partshipment not permitted Transshipment permitted
The credit is available for presentation to us until 31st August 19..
Documents to be presented within 21 days of shipment but within credit validity.
Drafts drawn hereunder must be marked "Drawn under Barclays Bank PLC 1 Union Court London branch.
Credit number UTDC 65432
We undertake that drafts and documents drawn under and in strict conformity with the terms of this credit will
be honoured upon presentation.
Yours faithfully,
Co-signed (signature No. 9847) Signed (Signature No. 10247)
abbreviations
d/s days after sight L/C Letter of Credit B/E Bill of Exchange B/L Bill of Lading
c.i.f. Costs, insurance, freight. The exporter pays the cost of insurance and
freight to the port of discharge, f.o.b. The importer pays the cost of insurance and freight to the port of
discharge. The exporter pays only to the port of loading, c&f The exporter pays all costs to the port of
discharge, but the importer pays for the insurance.
against The use of the word against is specific in business. It means that something will be done if and only
if, a person does or provides something, e.g. 'We shall accept travellers cheques only if 'you provide some
form of identification, for example, a passport.'
against acceptance A company or person delivers shipping documents to a bank only //they accept his Bill of
Lading.
against credit Using this credit as a security, as a guarantee of payment
against documents A bank issues credit or accepts a Bill of Exchange only if a company delivers the shipping
documents against identification Something will be done only if a person shows proof of who he is.
30
(page 32) Letters of Credit / Bank Transfers
Against payment Agent (correspondent) Banker's Transfer
Bill of Exchange (Draft) cancel carry out
discount freight discount with a Bill of Exchange
retail price surrender irrevocable
valid retail
1) Against payment: Goods are delivered only when payment is made first
2) Agent (correspondent): Here, a bank or company which acts for you in a foreign country
3) Banker's Transfer : A movement or transfer of money from one bank account to another
4) Bill of Exchange (Draft) : A document which gives an order, from a company or individual to another company, individual
or bank, to pay a sum of money (printed on the Bill) either immediately (a 'sight' draft) or on a fixed future date.
5) cancel (v.) To stop; to reverse (an order or a Letter of Credit)
6) carry out (v.) To follow; to obey
7) discount (n.) (a) A reduction in price to encourage debtors to pay quickly, or in cash (cash discounts) (b) A reduction in
price for purchases of large quantities of goods, often offered by a wholesaler to a retailer
8) discount with a Bill of Exchange: to buy it for a sum less than its face value (e.g. the value printed on it). This sum
depends on the rate of discount and the length of time the Bill has to go before maturity.
9) freight (n.) The charge for transporting goods by road, rail, sea and air
10) irrevocable: Which cannot be cancelled
11) retail: The stage in distribution where shops, supermarkets, etc. sell to consumers.
12) retail price: The price of a good in a shop stocks (n.) Goods kept in reserve in a store.
13) surrender (v.): To give; to deliver
14) valid (adj.): Legally right or adequate

IMPORTER
instructs sends copies of
the shipping
documents

BANK
IMPORTING COUNTRY
issues the Letter of Credit

BANK
ALTERNATIVES
EXPORTING
COUNTRY
sends the shipping documents confirms the Letter of Credit

EXPORTER

(page 33) ENGLISH FOR THE OFFICE

The Letter of Credit (its abbreviation is L/C) is essential in the finance of international trade. It is a reliable
and safe method of payment and it protects the seller as well as the buyer. The seller (or exporter) needs the
Letter of Credit because the buyer maybe a new customer and the exporter may know nothing about his credit
status. Even if the buyer is a regular customer, his credit with his bank may change from time to time and the
seller's bank may not have enough information from the buyer's bank to arrange a banker's transfer which is
the other major method of financing international trade. A banker's transfer is usually made through sending a
telegraphic message, that is an order, called a telegraphic transfer, sent from a bank by telegraph or cable to an
overseas bank to pay money to an exporter in the overseas country. The overseas bank is usually a
correspondent or agent bank, although sometimes banks have a branch in the overseas country.
The exporter is paid local currency, and the bank usually keeps a balance with its branch of correspondent for
this purpose.
If both banks have teleprinters, the transfer is called a telex transfer.
In international transaction the Letter of Credit is not the only document we need to study. The seller must
send a Bill of Lading, an Export Invoice (also called a Commercial Invoice) and a Certificate of Insurance
before he can receive the credit. These documents will be discussed in later units. We can understand the
Letter of Credit by looking at the different stages in its "issue".
1. The buyer (or importer) asks his bank to "issue" or "open" a Letter of Credit. He has ordered goods, the
seller (or exporter) has sent an invoice to show details of the cost, and the buyer instructs his bank to issue the
Letter of Credit in favour of the seller for the amount of the purchase. There is usually a special application
form which the seller fills in and sends to his bank.
2. The buyers instruct their bank to issue the Letter of Credit through their agent or correspondent bank in the
seller's country or city.
3. The buyer's bank writes to its agent in the seller's country, giving instructions about the amount of the
credit, the beneficiary, the currency, the documents required, and other special instructions. The seller hands in
the documents against payment. (The bank will not issue the credit unless the shipping documents arc
presented.)
4. The agent bank writes to the seller, informing him that a Letter of Credit has been issued in his favour. The
Letter of Credit is now "confirmed", that is a bank in the seller's country provides the credit for the seller.
If there is an agreement between the seller and the buyer, a Bill of Exchange (or Draft) can be accepted by the
agent bank. This Bill of Exchange can be for 30, 60, 90 days, and gives the buyer credit for a short time. If the
seller submits a Bill of Exchange, he will do so against acceptance (that is he will surrender the documents
only if the bank accepts responsibility for the payment of the amount and credit on the Bill of Exchange).
32
(page 34) Letters of Credit / Bank Transfers!
The seller and buyer agree between themselves on the currency to be used for payment. Usually it is in the
currency of the seller's country. The Letter of Credit then states the currency which must be used for the
payment of the credit.
Most sellers request an "irrevocable" Letter of Credit. This means that it cannot be cancelled by the buyer.
This is necessary for many reasons. A seller may have packed and transported goods to a port, and if the buyer
cancelled the credit, the seller may lose a lot of money.
When the Letter of Credit is confirmed, the seller can then despatch the goods. He knows that payment will be
made by the agent bank. The buyer knows that, to get this credit, the seller must carry out his instructions.
Note:
1. A Letter of Credit is called documentary when the seller must surrender the shipping documents to the bank
before he receives the credit, or before the bank accepts his draft. In this case, we say payment is against
documents.
2. A Letter of Credit is irrevocable when the buyer cannot cancel the credit.
3. A Letter of Credit is confirmed when a bank in the seller's country pays the credit.
A. COMPREHENSION
Tick (^) the correct responses.
1) A Letter of Credit is issued by a bank in the sellers country. TRUE FALSE
2) The buyer gives the instructions which are included in a Letter of Credit. TRUE FALSE
3) The Letter of Credit stales the currency in which the credit is issued. TRUE FALSE
4) The Letter of Credit normally asks the seller to send the Certificate of Insurance to the agent bank. TRUE
FALSE
5) An irrevocable Letter of Credit means that the buyer can cancel the credit. TRUE FALSE
6) A Letter of Credit only protects the buyer. TRUE FALSE
7) A Letter of Credit is confirmed by a bank in the seller's country. TRUE FALSE
8) A telegraphic transfer is the most convenient method of payment for companies who do regular business in
international trade. TRUE FALSE
9) A seller cannot be sure that he will be paid if he accepts an irrevocable documentary Letter of Credit. TRUE
FALSE
10) A Letter of Credit is the most suitable method of payment between buyers and sellers who have not done
business with each other before. TRUE FALSI-
32
(page 35) ENGLISH FOR THE OFFICE
B. CORRESPONDENCE
An international transaction using a Letter of Credit ARVA, a large retail or organization in Venezuela, wants
to purchase cassette tapes from the British firm R.S. Whiteleaf Ltd. They want to order 1,500 tapes. They
received an invoice from Whiteleaf which gave details of costs and discounts before they decided to buy.
Mr Aguillar of the Accounts Department writes to ARVA's bank, the General Commercial Bank of Venezuela,
instructing them to issue a Letter of Credit which will cover the cost of payment to Whiteleaf.
Mr Aguillar then writes to Wltiteleuf Ltd.
R.S. Whileleaf, 315 Manor Street, London, El4 8PE.
14th November, 19..

Dear Sirs,

We refer to our letter of enquiry dated the 5th October. We have received your invoice (No. 0368851) and we now wish to
place an initial order for 1,500 tapes (Type EM127DN). The order No. is 7361. We have instructed our bank, the General
Commercial Bank of Venezuela, to open an irrevocable documentary Letter of Credit in your favour. The amount is for
4,275. This credit will be confirmed soon by our bank's correspondents in London. You are authorised to draw a 60 days'
bill on us against this credit for the amount of your invoice. Your draft must be accompanied by a complete set of shipping
documents, consisting of:

A full set of clean shipped1 Bills of Lading

Commercial Invoice (5 copies)
The Insurance Certificate

Our bank's agents in London will accept your 60 d/s draft on them for the amount of your invoice and also the cost of
freight and insurance as agreed. Your bill will therefore be at 60 d/s for full invoice c.i.f. The credit is valid until the 12th
February.

Yours faithfully.

1
Also: 'on board' (see unit on Bills of Lading)
33
(page 36) Letters of Credit / Bank Transfers
The sellers reply to the letter from ARVA.
20th November, 19..
Dear Sirs,
We thank you for your letter of 14th November 19...
We are pleased to receive your order, and we can confirm that we have adequate stocks of type EM127DN in our
warehouse, and that delivery dates can be met.
Payment by irrevocable Letter of Credit is convenient for us, and we shall draw a 60 d/s bill on your agent bank in London.
On receiving acceptance of our bill, we shall pack the tapes, and consult our agents in London about shipment.
We look forward to hearing from you. Any request for further assistance or information will receive immediate attention.
Yours faithfully,
HxacC
B.T. Greenwood
SALES DEPARTMENY

C. LANGUAGE PRACTICE
1. Notice the impersonal language, using passive forms of the verb, used in official documents.
This credit will be confirmed by our bank's agents.
You are authorised to draw a 60 days' bill on us.
Your draft must be accompanied by the shipping documents.
When someone you don't know does something you can say: Someone cleans the room every day.
But it is more common to say this in an impersonal, passive way: The room is cleaned even day. Or, instead of
saying:
The immigration officer stamps passports at the point of entry. You can say: Passports are stamped at the point
of entry.
33
(page 37) ENGLISH FOR THE OFFICE
Change these sentences into the passive.
1) Banks issue Letters of Credit for international payments.
2) Large department stores and hotels accept travellers cheques.
3) You must type replies to orders.
4) Some firms printed copies of the report.
5) Banks pay interest on deposit accounts.
6) Many firms use agents in foreign countries.
7) They buy and sell goods every day in the market.
8) It is common to give guarantees for expensive technological equipment.
9) Many people often criticize import restrictions. 10) Someone checks the accounts every week.
Put the verbs in the brackets info the correct passive form.
A bank is instructed by its clients when Letters of Credit is issued......... (issue). Details of time, place and currency are
included......... (include). Normally the currency of the exporter's country is used.........(use) for payment.
Details of insurance and freight are agreed........(agree) between importer and exporter. The Letter of Credit is
confirmed......... (confirm) when the agent bank in the exporter's country agrees to pay the amount which is stated.........
(state) on the Letter of Credit.
The exporter's Bill of Exchange is submitted ......... (submit) against the credit, and this draft is accepted......... (accept) by
the agent bank. In this way credit 'is given......... (give) to the importers, and the exporter's draft is discounted.........
(discount) for cash if necessary.
A bank is instructed......... (instruct) by its clients when Letters of Credit is issued......... (issue). Details of time, place and
currency is included......... (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.
2. Phrasal verbs (that is, a verb followed by a preposition).
In the passive, the preposition must be included. For example, to "put off means to delay or postpone. To "fill
in" means to complete a form or document. Example:
You can't depend on the telephone system. The telephone system can't be depended on.
Change these sentences into the passive
1) You must apply for a Letter of Credit
2) They must fill in all sections of the form.
3) The company ran up huge debts.
4) The secretary showed me around.
5) Customs officials held up the consignment of cassettes.
6) You must comply with exchange control regulations.
7) Someone turned down his request.
34
(page 38) Letters of Credit / Bank Transfers
8) You must take out an insurance policy.
9) Suppliers must carry out instructions. 10) You'll have to put off the meeting.
3. Note how you use the passive in the future
This credit will be confirmed soon by our agents in London. Use this form to write what will be done for these:
Example:
Someone is posting the letter. They will do it soon. The letter will be posted soon.
1) Someone is tying a reply. They will finish it soon.
A reply..................................................................................
2) They are issuing a Letter of Credit. They will issue it soon.
A Letter of Credit.....................................................................
3) They want a copy of the invoice. We will send one soon.
A copy of the invoice.................................................................
4) The bank wants the shipping documents. We will send them soon.
The shipping documents.............................................................
5) The goods are still in the port. Our agents will despatch them soon.
The goods..............................................................................
6) The goods are ready. Our Despatch Department will soon send them to you. The
goods..............................................................................
7) We shall write a letter and post it to you soon.
A letter..................................................................................
8) We agree to accept your draft. Our agent will accept it.
Your draft..............................................................................
9) The error on the invoice is our fault. Someone will correct it.
The error on the invoice..............................................................
10) Someone must confirm the credit. Our agent will do it.
The credit..............................................................................
D. VOCABULARY
I. Insert the correct words in the appropriate spaces in the passage below.
abbreviation confirmed finance agent credit
irrevocable Bill of Exchange document issue
cancel documentary payment carry out draw valid
34
(page 39) ENGLISH FOR THE OFFICE
A Letter of Credit is a very important document in international trade. It is safe and convenient for the seller, who is sure to
receive payment It is also helpful to the buyer, because the seller must carry out his instructions.
The buyer asks his bank to issue the Letter of Credit. The bank writes to its agent or correspondent bank in the seller's country.
The Letter of Credit will ask the seller to hand the Bill of Lading, copies of the Commercial Invoice, and the Insurance
Certificate to the agent bank. A Letter of Credit which demands this is called a documentary Letter of Credit.
In addition, the seller will ask for an irrevocable Letter of Credit, which means that the buyer cannot change his mind and
cancel
the credit
When the agent bank accepts responsibility for the credit, the Letter of Credit is confirmed. The bank will usually accept a
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 abbreviation for the period (the number of days) is d/s.
In this way the Letter of Credit can be a form of credit for the buyer, and a safe method of obtaining payment for the seller,
who can draw on the credit in the agent bank. The seller should always present the draft while the credit is valid, however.
If he doesn't do this, the credit may be unavailable, or out of date.
For these and many other reasons, the Letter of Credit is an essential document in international finance.

A Letter of Credit 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 .........his instructions.
The buyer asks his bank to 4......... the Letter at Credit. The bank writes to its 5.........or correspondent bank in the seller's
country. The Letter of Credit will ask the seller to hand the Bill of Lading, copies of the Commercial Invoice, and the
Insurance Certificate to the agent bank. A Letter of Credit which demands this is called a 6.........Letter of Credit.
In addition, the seller will ask for an 7.........Letter of Credit, which means that the buyer cannot change his mind and
8
.........the credit
When the agent bank accepts responsibility for the credit, the Letter of Credit is 9......... The bank will usually accept
a ........., 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 Letter of Credit can be a 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, the Letter of Credit is an essential document in international 15.........
2. Notice the particular use of idiomatic expressions beginning with the preposition against This usage
is found normally in business, especially in hanking.
against acceptance We shall send the documents against acceptance, (only if you
accept a Bill of Exchange) against (this) credit You can draw on us against this credit. (The credit our bank
issued will be a security) against documents We shall accept your craft against documents. (We shall accept
your draft only if you surrender the documents) against identification Banks will cash International Money
Orders for you against identification, (only if you provide identification, e.g. a passport) against payment We
shall send the documents against payment, (only if you pay
immediately)
The use of against here means that it is a security. A bank or a customer will do something only if another
person guarantees something.
Insert the correct phrases in the appropriate spaces below.
1) Banks give you cash for travellers cheques and International Money Orders.........
If you don't have your passport, it will not be possible to get the cash.
35
(page 40) Letters of Credit / Bank Transfers
2) Sometimes with a new customer, suppliers will deliver goods only.........They do
not know if the customer's credit is good, and so they demand payment (e.g. a Letter of Credit) before they
send the goods.
3) Suppliers can present a Bill of Exchange to the agent bank. The buyer's bank issues
a Letter of Credit, and the Bill of Exchange is presented ......... The Bill of
Exchange is certain to be accepted and paid in this case.
4) Banks demand the Bill of Lading, the Invoice and the Certificate of Insurance before they issue some
Letters of Credit. In other words,' they issue Letters of Credit only..........
5) If suppliers are uncertain about the credit arrangements, they demand that the bank in their own country
accepts responsibility for the credit before they surrender the documents to the bank. They surrender the
documents..........
E. EXERCISES
1. Write a letter informing your suppliers that your bank has opened a Letter of Credit for them.
The Letter of Credit is to cover a consignment of 250 men's jackets. The order No. is 57381. Your bank is the General
Commercial Bank. The amount is for 8,000. 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 90 d/s.
2. Write a letter to your bank instructing them to open the credit described in 1.
3. Write a letter informing an English supplier that your bank has opened a Letter of Credit for them.
Choose suitable consignment, bank, agent, and Bill of Exchange conditions.
4. Reply to an English buyer who has informed you that his bank has opened an irrevocable documentary Letter
of Credit in your favour.
The following details are printed on the letter:
Amount: US $6,400
In favour of: A.J.R. Peres,
Rua Laguari 327,
04137 Sao Paulo,
Brazil
30th October 19.. 60 d/s for full invoice f.o.b. US dollars on London 5 copies Commercial invoice Certificate of insurance 2
copies clean shipped Bills of Lading Sao Paulo to Liverpool Order No. 82713 - Typewriters
Valid until:
Bills of Exchange:
Currency:
Documents:
Shipment from: Shipment:
Special instructions: Part-shipment not allowed
36 FWW Flying without wing
(page 41)
Unit 5: Invoices
Commercial / Export Invoice: An invoice used in international trade, which includes details of freight and insurance
Consular Invoice: An export invoice which must be inspected and stamped by an official of the consulate of the importing
country
duty (n.) (as in customs duty) a tax
Pro-Forma Invoice: An invoice (see Unit 10) which is sent out for information or for payment before delivery. It does not
accompany goods, quarterly (adv., adj.) every three months quotation (n.) A detailed statement of costs record (v.) To note,
to write, in a diary, account, etc.
record (n.) A continuous, detailed list of transactions, meetings etc. noted in a book during a period time
sample (n.) An example, or a piece, of a product, which is sent or given for inspection
wholesale (n.) The intermediate stage in distribution between the producer and the retailer (see "retail' Unit 13)

Order from customer

To Customer
Sales Department

Invoice
(4 copies)

Accounts Packing Dispatch Files

department Department Department
An invoice is a document which gives details of the quantity, the description, the value per unit and the total value of goods
which are despatched from a seller to a buyer. In addition, discounts are often included. (In home, or domestic trade the
Value Added Tax must also be included, and invoices now have a V.A.T. registration number).
The invoice is a printed form with the seller's name and address, telephone, telegraph and telex number. The seller writes
the name and address of the buyer on the invoice.
An invoice sent to a buyer is a bill which tells the buyer the exact amount he must pay. It can also be a form of an advice
note, it may give details of the cost for information only, or it may be a statement of costs which must be paid before the
goods are delivered. A Pro-Forma Invoice is like this. It is like an invoice in every way, but it is used:
1. When the seller demands payment before he despatches the goods. This may happen with new customers whose
credit status is unknown.
2. For information. A Pro-Forma invoice may be a quotation, informing a buyer how much the goods costs, including the
cost of freight and insurance if necessary.
3. When goods are sent on approval. That is, when the seller sends samples of goods to the buyer who can then inspect
them before he decides to buy.
Mow an invoice is made out When an order is received from a buyer, the Sales Department passes copies to other
departments such as accounts, packing and despatch. If the goods are not in stock, a copy of the order is sent to the
factory for manufacture.
The order is transferred to a printed form and copies of this form are sent to various departments. The Sales, Accounts
and Dispatch Departments must have copies. The buyer's name and address, the number of goods ordered, and the
order number are typed on this form. Columns are left blank for the price of each good, and the total. One of these copies
is retained by the Accounts Department, which completes the remaining columns. This copy is known as the invoice.
The invoice is normally a bill which must be paid. However, a buyer may have an open account with a seller, especially if
they have a regular trade. In this case the seller keeps a record of all the invoices and sends a statement to the buyer.
This statement may be sent once a month or quarterly (once every three months, a quarter of a year). The separate
invoices become the debit entries, and payments by the buyer become the credit entries. The balance is the amount
which must still be paid by the buyer, and it appears in the final column.
The Commercial (or Export) Invoice This is an invoice which is used in exporting and includes details of shipment, freight
and insurance. The Export Invoice is a very important document, and is required by banks when they issue credit. It is one
of the shipping documents. It must be carefully made out, as it is the basis for the Bill of Lading.
The Consular Invoice This is a type of invoice which is necessary for importing goods into some countries. It states the
value for the customs and authorities in the importing country. The exporter must guarantee that all the details on the
invoice are accurate, and must sign it. The Consul of the importing country signs and stamps it also. There are three
copies of the Consular Invoice. Two of these are sent to the port authorities in the importing country. The third copy is
added to the shipping documents. The Consular Invoice helps the customs authorities to clear the goods quickly, and to
calculate the import duty correctly. It is often used to stop sellers evading the payment of duty, and can be used to compile
the statistics for imports.
37
INVOICE FACTURE RECHNUNG
FACTURA FACTUUR
Seller (Name, Address, VAT Reg. C.C.C.N. No.
No.) Universal Utensils, Rotterdam.

Invoice No. and Date (Tax Seller's

Point) Reference LS-
3352/91
Buyer's Reference

Consignee N/A Buyer (if not Consignee) Vesta Vehicles Earlstree

Industrial Estate Corby, Norlhanls United Kingdom

Country of Origin of goods Country of

Destination Holland UK

Terms of Delivery and Payment FOB Rotterdam

Payment against sight draft accompanied

Vessel/Aircraft etc. Port of by documents through Radobank

Loading MS Jupiter Rotterdam

Port of Discharge
Felixtowe

Marks and Numbers: Number and Kind of Packages: Descripticn of Goods UU LS-433
Gross Weight (Kg)
Cube (M)
Specification of Commodities Sensor Switches Type A 6B
Quantity 35 gross
Amount (State Currency)
TOTAL
It is hereby certified that this invoice shows the actual price of the goods described,
that no other invoice has been or will be issued and that all particulars are true and
correct.
Name of Signatory Ms Sanchez
Place and time of Issue
Signature

A. COMPREHENSION
Tick (V) the correct responses.
1) An invoice is a bill, that is, a demand for payment. TRUE FALSE
2) A Pro Forma Invoice is a quotation of prices and costs which usually must be paid before the goods are
despatched. TRUE FALSE
3) One of the columns on an invoice must give a description of the goods. TRUE FALSE
4) A Commercial Invoice is used only in inland (or domestics) trade. TRUE FALSE
5) A credit note is issued by the buyer to the seller if the seller charges too much on the invoice. TRUE
FALSE
6) A Consular Invoice is stamped by an official from the exporting country. TRUE FALSE
7) A buyer who orders on a regular basis can have an open account with the supplier and need not pay every
invoice when it arrives. TRUE FALSE
8) The Commercial Invoice is one of the shipping documents necessary for international finance. TRUE
FALSE
9) The Despatch Department doesn't need to have a copy of the invoice. TRUE FALSE
10) Discounts should be included on an invoice. TRUE FALSE

B. CORRESPONDENCE
A letter from the seller to the buyer enclosing a Pro-Forma Invoice
8th November, 19..
Dear Sirs,
We thank you for your enquiry dated 5th November.
We enclose a Pro-Forma Invoice as requested. This covers the cost of 1,500 cassette tapes (Type EM127DN), the
discount, and freight and insurance costs to Caracas. The invoice number is 0368851.
Please inform us if the details are acceptable to you when you place your order, and when you arrange credit through your
bank. We can then draw up the Export Invoice, and this must be accurate, as it forms the basis for the Bill of Lading.
We look forward to receiving your order, and we shall submit the complete set of shipping documents when arrangements
are completed.
Yours faithfully,

38
The reply to this letter would be the letter from Venezuela opening a Letter of Credit. However, a short
letter of reply (an acknowledgment) is usually sent before this.
12th November, 19..
Dear Sirs,
Thank you for your letter of the 8th November, in which you enclosed a Pro-Forma Invoice (No. 0368851).
The price, discount, freight and insurance costs are acceptable to us and we have contacted our bank, who will issue a
Letter of Credit in your favour for the amount of the invoice. They will notify you within a week.
In the meantime, we shall send you a letter within the next few days advising you of the details of the credit and other
arrangements for payment.
Yours faithfully,

Other letters accompanying invoices: 1. The invoice as a statement, when the buyer has an open
account with the seller.
2nd April, 19..
Dear Sirs
We enclose a statement for the quarterly invoices up to the end of March 19... Any payment sent by you which has not
reached us will form a credit entry for the next quarter. The balance is 447.70.
The standard VA per cent discount will be deducted if payment is made before the end of this month.
Please check the entries and if you cannot pay 447.70 in settlement of this account, kindly carry forward the balance to
the next quarterly account.
Yours faithfully,

39
A reply
12th April, 19..
Dear Sirs,
Thank you for your statement sent to us on 2nd April, 19... We enclose a money order for 447.70 in settlement of our
account with you.
Kindly adjust the next quarterly statement to include a credit entry covering the 1V* per cent discount.
Yours faithfully,

2. Price and discount queries and request for credit notes

22nd July, 19..
Dear Sirs,
There appears to be a mistake in your invoice (No. 12735) 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 12.80 each, but you
have invoiced them as 15.80.
Kindly inform us as soon as possible of the correct price, as we must begin to sell them soon.
Yours faithfully,

A Reply
2nd August, 19..
Dear Sirs,
Thank you very much for your letter of the 22nd July, in which you queried the price we 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 S14 chairs on the invoice.
We have checked this against our copy of the invoice in the Accounts Department.
We enclose a credit note for the difference in price, and we shall credit the amount to the next quarterly statement.
Yours faithfully,

C. LANGUAGE PRACTICE
1. Notice how you express agreement to a suggestion or offer:
We are willing to receive payment quarterly.
We are willing to offer you a 7/4 % discount for orders over 15,000. Use the same phrases to express
agreement to the following:
1) You want us to send the goods by air. We agree.
2) You want us to offer you free samples. We agree.
3) You want us to pay monthly. We agree.
4) You want us to despatch the goods from Southampton. We agree.
5) You want us to arrange open account terms. We agree.
6) You want us to post statements quarterly. We agree.
7) You want us to deduct cash discounts from your present statement of account. We agree.
8) You want us to make arrangements for a Letter of Credit. We agree.
9) You want us to accept your suggestion. We agree.
10) You want us to recommend your products to our customers. We agree.
2. Notice how you express acceptance of terms:
Payment by quarterly instalments is acceptable to us. Say that you accept the following terms:
1) A discount of 1 Vi % for payment of invoices by cash
2) Payment by cheque
3) Shipment from Liverpool to Marseilles
4) Annual statements
40
5) A credit note for 87.50 to correct errors on the invoice
6) Your Letter of Credit
7) Your suggestions for separate invoicing
8) Your request for delivery of samples on approval
9) Payment by International Money Order
10) Your recommendations for improved invoicing
3. Notice the use of the words in italics:
We shall send you a letter advising you of the credit. Thank you for your letter, enclosing a Pro-Forma
Invoice.
The word ending in '-nig' is the present participle. Look at these two sentences: 'We shall send you a letter. It
will advise you of the credit.' These sentences can be joined by using the present participle of'advise'. 'We shall
send you a letter advising you of the credit.'
Join these sentences in the same way.
1) Thank you for your letter. It told us about the new discounts.
2) We shall send you an invoice. It wilt include the freight costs.
3) Thank you for your letter. It requested information about our new range of office desks.
4) Thank you for your letter of the 24th July. It confirmed your shipping arrangements for our order No. 7273.
5) We sent you a letter on the 2nd July. It asked you to forward a Pro-Forma Invoice.
6) We shall send you a Pro-Forma Invoice, it will inform you of the details of prices and discounts.
7) We shall send you a statement. It will describe all the credit and debit entries carefully.
8) Thank you for your letter. It gave details of your new price reductions.
9) Please send a catalogue. It wilt include details of your new model. 10) Please send a letter. It will include
an invoice.
D. VOCABULARY
1/. Insert the correct words in the appropriate spaces.
balance commercial quarterly
basis consular quotation
bill debit retains
clear duty statement
column open submit
An invoice is a bill, that is, a demand for payment. It can also be a statement, a regular notice of a buyer's account with a
seller. The statement invoice is for buyers who have an open account with sellers, and is often sent monthly or quarterly.
In a statement each invoice is a debit entry, and each payment by the buyer is a credit. There is a separate column in an
invoice for the quantity of goods despatched, the description of the goods, the price per unit, and the total value. In the
statement there is one each for debit and credit entries, and for the balance.
A Pro-Forma Invoice is like an ordinary invoice, except that it is sent to the buyer for information before he buys, or for
payment before the seller despatches the goods. If the Pro-Forma Invoice is for information, it is a form of quotation, a
description of price and costs to help the buyer to decide.
An invoice which is used in international trade and includes the cost of freight and insurance is called a Commercial or Export
Invoice. This is one of the shipping documents and is very important for banks, customs, and shipping.
An invoice which is signed by the seller and an official from the importing country's embassy or consulate is called a consular
Invoice. This invoice is very often used for customs authorities in the importing countries to make sure that the customs
duty is paid. It is also used to help clear a consignment through customs, to avoid a lengthy inspection and a long delay.
When the invoice is made out, a copy is sent to the Packing and Despatch Departments, and the Accounts Department
retains
a copy. They fill in the columns for price and total value.
These details must be accurate, as the invoice is the basis for the Bill of Lading, and the exporter must submit these two
documents, the Export Invoice and the Bill of Lading to a bank for payment.
An invoice is a ........., that is, a demand for payment. It can also be a ........., a regular notice of a buyer's account with a
seller. The statement invoice is for buyers who have an 3......... account with sellers, and is often sent monthly or 4......... In
a statement each invoice is a 5......... entry, and each payment by the buyer is a credit. There is a separate 6.........in an
invoice for the quantity of goods despatched, the description of the goods, the price per unit, and the total value. In the
statement there is one each for debit and credit entries, and for the 7.........
A Pro-Forma Invoice is like an ordinal y invoice, except that it is sent to the buyer for information before he buys, or for
payment before the seller despatches the goods. If the Pro-Forma Invoice is for information, it is a form of 8........., a
description of price and costs to help the buyer to decide.
An invoice which is used in international trade and includes the cost of freight and insurance is called a 9......... or Export
Invoice. This is one of the shipping documents and is very important for banks, customs, and shipping.
An invoice which is signed by the seller and an official from the importing country's embassy or consulate is called a
10
......... Invoice. This invoice is very often used for customs authorities in the importing countries to make sure that the
customs "......... is paid. It is also used to help 2......... a consignment through customs, to avoid a lengthy inspection and a
long delay. When the invoice is made out, a copy is sent to the Packing and Despatch Departments, and the Accounts
Department 13......... a copy. They fill in the columns for price and total value.
These details must be accurate, as the invoice is the 14.........for the Bill of Lading, and the exporter must l5......... these two
documents, the Export Invoice and the Bill of Lading to a bank for payment.
2. Note the words and phrases used to express how often or how regularly something occurs.
annually (once a year) daily (once a day) every day / week / three weeks etc. fortnightly (once every two
weeks) half yearly (every six months) monthly (once a month) quarterly (four times a year) regularly (often,
but not an exact period) once / twice / three times a day / week etc.
Insert the correct word or phrase in following sentences.
Many people ask for.........bank statements; tlicy receive twelve every year.
The agent works in the city centre, but he travels to the port.........It isn't
necessary to go every day of the week. If you pay.........you only have four payments each year.
1)
2)
3)
41
(page 50) Invoices
4) Most newspapers are published.........
5) Companies in the UK publish their financial statements..........
6) You are often advised to take medicine.........by doctors.
7) Our representative visits Liverpool.........; the other two weeks of the month are
spent in the South East.
8) 'How often do you use the telephone?'
'.........I need to telephone people often in my work.'
9) Because of the increased postal charges, send the statement..........We only need
to pay twice instead of twelve times if you do.
10) You should make remittances..........If you don't, there will be high increased
charges.
3. Note the phrases used in this unit:
in settlement of Thank you for your money order for 275 in settlement of invoice
No. 723. (paying for) in stock We have copies of the book in stock, (ready for sale or despatch) In the
meantime Our bank will send you a Letter of Credit. In the meantime we
shall send you a letter advising you of the details of the credit, (while we are
waiting)
on approval We often send samples of the material on approval, (for inspection before you buy)
within a week / few days / months We shall post the invoice within the next few days / weeks / months,
(before the end of a certain period)
Insert the correct phrases in the letter below.
Dear Sirs,
Thank you for your letter of the 24th April, enclosing an International Money Order 1.........your account with
us.
We have many models of type G/l38 2......... at the moment, and we can send you one model 3......... for a few
weeks. There will be no charge for this. We shall send the model by air 4..........
5
.........we shall credit the money order to your account, and we shall send the monthly statement invoice at the
usual date.
Yours faithfully,
41
(page 51) ENGLISH FOR THE OFFICE
E. 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 discount of IVzVo for orders over 20,000. The buyer wants to know the
cost of freight and insurance.
2) 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 the latest entries in his statement, the balance which
must.be paid, and the cash discount it he pays within a certain period.
3) Reply to a customer who has written to you to point out an error on the last invoice he sent. Each item was
charged correctly, but the total was wrong. The item (an office chair) cost 14,80 and the quantity was 50, but
the total was 780. The customer wants an adjustment to this. Write a letter in reply, and inform the buyer that
you are sending a credit note to him.
42

(page 52) Bills of Lading / Air Waybills

6 Bills of Lading/Air Waybills
Cargo: Goods carried, or transported, by road, rail, sea or air
Consignee: The person or institution (in the importing country) to which goods are sent
Consignor: The person or institution (in the exporting country) which sends the goods
Discharge: Here, unloading
I.A.T.A. International Air Transport Authority
Negotiable: Ownership can be transferred by endorsing and transferring a document. A Bill of Exchange is
negotiable,
Title: A right to possess, or own, goods or property

captain of ship
Importing country
Exporter Bank
Importing country
Importer Bank
Importer Bank

The Bill of Lading (its abbreviation is B/L) is an essential document in international trade and shipment. It is
important in law, in finance, and in insurance.
It is important in law because it is the legal title to ownership of the goods. If an importer holds the Bill of
Lading, he can lake possession of the goods printed on it. The consignee (the buyer or importer) can get his
goods only when he presents the Bill of Lading to the shipping company when the ship arrives.
It is important in finance because the Bill of Lading is usually handed to the bank, together with the Export
Invoice and the Certificate of Insurance, before the bank will issue credit or accept a Bill of Exchange. The
consignor (the seller or exporter) sometimes demands payment before he hands the Bill of Lading to the buyer
or his bank.
It is important in insurance because the Bill of Lading states whether the goods have been inspected on board
ship by the Captain (or Master) of the ship. This is important in deciding who is responsible or liable for any
damage to the cargo.
42
(page 53) ENGLISH FOR THE OFFICE
The Bill of Lading is a receipt signed by the captain of the ship for the cargo he has received on board. This is
called a 'shipped' Bill of Lading (also called a 'shipped on board '' Bill of Lading). This Bill of Lading states
that the captain has inspected the goods after loading, and gives the following details:
The name of the shipper The name of the ship The consignee (or 'to order') The port of loading The port of
discharge The marks and numbers
The quantity
The type of packing
The description of the goods
The weight
The measurement
Banks usually require 'shipped' Bills of Lading for credit transactions.
A 'clean' Bill of Lading means that the shipowners agree that the goods were received on board in good
condition. If the goods are not in good order and condition, the Bills of Lading are described as 'dirty',
'unclean', or 'foul'.
Some Bills of Lading are also called 'claused', because the shipowners sometimes add an extra clause to show
that the goods were, for example, badly or inadequately packed. This may be important for the insurance
surveyor.
A Bill of Lading is a negotiable document. An importer can endorse the Bill of Lading and sell the goods in
this way, even before they arrive. An importer can endorse a Bill of Lading by signing across the back. In this
way, ownership of the goods can be transferred to another buyer simply by handing the endorse Bill of Lading
to him. A Bill of Lading can state that the goods must be delivered to a certain person or company, or it may
state 'to order'. (This phrase is also primed on cheques and Bills of Exchange.) A Letter of Credit may demand
that the Bill of Lading should be made out 'to order' and endorsed 'in blank'. This means that the sellers place
no restrictions on the right to transfer ownership.
Many shipowners print their own Bills of Lading, and not all look alike. The master of the vessel signs the Bill
of Lading and the shipowners retain a copy. The other copies are sent to the exporter (or seller). He will then
send a copy to the bank either for payment or for acceptance of a Bill of Exchange. If there is a regular trade
between seller or buyer, the seller will draw on the buyer's credit, and send copies of the Bill of Lading by
separate mails >o make sure he receives at least one. The buyer can then present the Bill of Lading to the
shipping company at the port of discharge, and can take delivery of the goods. The suppliers in the
correspondence in Unit 4, Whiteleaf Ltd., arrange for the shipment of 1,500 cassette tapes. Companies often
do this through forwarding agents (see Unit on packing, despatch and forwarding). When these arrangements
are completed, they receive the Bill of Lading from the captain of the ship which transports the goods. There
are usually three or four copies. One of the copies is kept by the shipping company, and the other copies are
sent to the exporter.
In the USA, 'on deck' is often used instead of'on board'.
43
(page 54) Bills of Lading / Air Waybills
A. COMPREHENSION
SECTION I
Tick (S) the correct responses.
1) A Bill of Lading gives the person named on it the right to possess the goods described on it. TRUE
FALSE
2) The consignee's name is usually printed on the Bill of Lading. TRUE FALSE
3) If the Bill of Lading is made out 'to order' it means that ownership of the goods cannot be transferred to
another person. TRUE FALSE
4) The Bill of Lading is signed at the bottom by the exporter. TRUE FALSE
5) A shipped Bill of Lading is one which is signed by the captain of the ship after he inspects the goods on
board ship. TRUE FALSE
6) The marks and numbers of the containers or crates must be printed on the Bill of Lading. TRUE FALSE

7) You endorse a Bill of Lading by signing it, and you can then transfer ownership of the goods to someone
else. TRUE FALSE
8) The Bill of Lading is one of the shipping documents which must be presented to a bank when payment is
arranged. TRUE FALSE
9) Copies of the Bill of Lading are sent to the exporter and the customs only. TRUE FALSE
10) In insurance, it is important to know if the Bill of Lading is 'clean' or not. TRUE FALSE
The Air Waybill
The Air Waybill, or Air Consignment Note, is a document supplied by the airline (the 'carrier') to the
consignors. The consignor fills in this document in triplicate (i.e. three copies), and one of these copies must
be sent with the goods. They are marked:
a 'For the carrier'
b 'For the consignee'
c 'For the consignor'
a is signed by the consignor for the carrier (e.g. British Airways, Alitalia,
etc.). It is kept by the carrier for customs purposes, b is signed by the carrier, as well as the consignor, and is
sent with the goods
to the consignee, c is signed by the carrier and sent back to the consignor.
The consignor must include details similar to those on a Bill of Lading:
1. The name and address of the consignee
2. The name and address of the consignor
3. The place of departure and the destination
44
(page 55) ENGLISH FOR THE OFFICE
4. The number of packages, their marks and numbers, method of packing, quantity, dimensions and weight
5. The value for customs purposes and for carriage
6. The value declared by the consignor for insurance purposes
7. The documents attached
8. The route and agreed stopping places
9. The charges for freight: if the payment is C.O.D. (cash on delivery), the charge for collection
10. The signature and date
The carrier may sometimes be required to certify that the contents of the consignment are in proper condition
for carriage by air according to the IATA (International Air Transport Authority) Restricted Articles
Regulations. They must describe the apparent condition of the goods and the packing (similar to the Bill of
Lading).
The carrier must write:
1. The name of the carrier or carriers accepting the consignment
2. The freight and expenses agreed to be paid by the consignor
3. The agreed route and stopping places
The international convention which slates the rules relating to the liability of carriers is the Warsaw
Convention.
An important difference between the Bill of Lading and the Air Waybill is that the Bill of Lading is a
negotiable document, the Air Waybill is not.
B. COMPREHENSION
SECTION II
Tick (the correct responses.
1) The consignee is the person who receives the goods. TRUE FALSE
2) All three copies of the Air Waybill must be send with the goods. TRUE FALSE
3) The value of the goods must be declared on the Air Waybill. TRUE FALSE
4) The airline must write the stopping places of the aircraft on the Air Waybill. TRUE FALSE
5) The Air Waybill is negotiable. TRUE FALSE
C. CORRESPONDENCE
The exporter sends Bills of Lading to the importer, usually by airmail on separate days to make sure that at
least one copy reaches him or his agent. When the importer receives the Bill of Lading from the exporter (or
the exporter's bank) he can accept delivery of the goods from the ship when it arrives.
44
(page 56) Bills of Lading / Air Waybills
The Letter enclosing the Bill of Lading
3 rd December, 19...
Dear Sirs,
Your Order No. 7361
The above-mentioned order has been shipped from the Port of London to Caracas on board the vessel M/V AURORA,
which left today, and is scheduled to arrive in Caracas on the 18th December, 19..
We enclose a copy of the Bill of Lading for this consignment. We shall send another copy by airmail tomorrow. This is our
usual procedure.
Please inform us of the safe arrival of the Bills of Lading as soon as they arrive.
Yours faithfully,
A reply to this letter from ARVA.

8th December, 19..

Dear Sirs,
Order No. 7361
Thank you for your letter of the 3rd December, enclosing a copy of the Bill of Lading for the consignment of tapes to
Caracas.
We have passed a Bill of Lading to our agents in the port of Caracas, and he will arrange acceptance of the consignment
at the port, and delivery to our address.
Yours faithfully,
A.J. Guillardo Accounts Department.

45
(page 57) D.
LANGUAGE PRACTICE
Notice /tow you express a purpose with the phrase so that.
We can join these sentences:
'We send copies of the Bill of Lading by separate mails. In this way you will receive at least one.'
We send copies of the Bill of Lading by separate mails so that you will receive at least one.
Use "so that" to express a purpose for these:
1) There are usually three or four copies of a Bill of Lading. In this way the consignor may keep one.
2) The captain signs a Bill of Lading. In this way the consignor knows that the goods are shipped.
3) We would like you to reply promptly. If you do this, we can'despatch the goods on board the M/V Cork.
4) Order the goods now. If you do, we can supply you early next month.
5) The captain writes a "dirt" Bill of Lading for damaged goods. In this way the insurance company will know
that the shipowners are not liable.
6) The bank would like you to surrender the shipping documents. When you do this, they can accept your Bill
of Exchange.
7) The Bill of Lading is necessary. With it the consignee can accept delivery of the goods.
8) The Bill of Lading is negotiable. In this way the consignee can transfer ownership to another buyer.
9) The Bill of Lading should be endorsed. The new owner can then use it to accept the goods.
10) Most letters are completed in triplicate. In this way there is one for the buyer, one for the seller, and one
for the files.
2. Notice how you express purpose with the phrase in order to.
We can join these sentences:
'We pack goods in light containers. We want to pay less freight.'
We pack goods in light containers in order to pay less freight. Use "in order to " to express a purpose for
these:
1) Banks write to their agent. They want to confirm a Letter of Credit.
2) Shipping companies "clause" a Bill of Lading if the packing is inadequate. They want to protect themselves
against insurance claims.
45
(page 58) Bills of Lading / Air Waybills
3) Banks often demand the shipping documents from the supplier. They want to issue credit.
4) Consignees must have a copy of the Bill of Lading. They want to accept delivery of the goods.
5) Consignors usually demand irrevocable credit. They want to be sure that the consignee pays.
6) The Bill of Lading is required by law. The law wants to prove ownership of goods.
7) The consignee must endorse a Bill of Lading. He wants to transfer possession of the goods to another buyer.
8) The captain of the ship inspects the goods. He wants to check that they arrived in good condition.
9) A supplier often submits his draft for 60 days. He wants to give the buyer time to pay.
10) We shall send a telegram. We want to speed up delivery of the consignment.
3. We have used the word "may" many times to means "it is possible" and "perhaps".
It is possible that the consignor will be required to declare the value to the customs authorities.
Perhaps the consignor will be required to declare the value to the customs authorities.
These sentences can be rewritten using "may" in this way:
The consignor may be required to declare the value to the customs authorities.
Use "may" to explain what is possible or will perhaps occur.
1) It is possible that the bank will demand the shipping documents before they issue a Letter of Credit.
2) Perhaps a supplier will demand payment before he surrenders the shipping documents.
3) Perhaps the goods will be delayed in Customs.
4) It is possible that a Bill of Lading will be lost in the post.
5) Perhaps the insurance companies will demand extra conditions.
6) Perhaps you will have to wait.
7) It is possible that you will be able to send the goods on board the M/V Waterford.
8) It is possible that you will receive his letter tomorrow.
9) Perhaps the bank will inform you before the 21st June. 10) It is possible that the bank will be able to help
you.
46
(page 59) ENGLISH FOR THE OFFICE
E. VOCABULARY
I. Insert the correct words in the appropriate spaces in the passage below.
accept law shipped
airmail negotiable title
consignee packing transfer
discharge present unclean
endorsing receipt
in blank responsibility
The Bill of Lading is important in international finance, insurance, and law. It
is the legal title to ownership of the goods described on the Bill of Lading. The consignee cannot accept delivery of his
consignment unless he possesses a copy.
You can describe a Bill of Lading 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 Bill of Lading signed by the captain
after he receives and inspects the goods on board ship is called a shipped Bill of Lading. If the goods are damaged before
they reach the ship, the captain or the shipowner issues an unclean Bill of Lading (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
Bill of Lading". Banks usually demand shipped Bills of Lading before they accept responsibility for the credit.
The holder of a Bill of Lading can transfer possession of the goods to another
person or company by endorsing or signing on the back of it. In other words, the Bill of Lading, unlike the Air Waybill, is a
negotiable. document. If the buyer or a bank asks the seller not to restrict the negotiability of the Bill of Lading, they
demand that it should be endorsed in blank.
The details printed on the Bill of Lading 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 Bill of Lading is completed, copies are sent by airmail on separate
days, so that if one is lost, the other may reach the importer. The importer, or
consignee as he is described on the Bill of Lading, can then present the Bill of
Lading to the shipping company and accept delivery of his goods.

The Bill of Lading is important in international finance, insurance, and 1.........It

is the legal 2.........to ownership of the goods described on the Bill of Lading. The 3.........cannot accept delivery of his
consignment unless he possesses a copy.
You can describe a Bill of Lading 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 Bill of Lading signed by the captain
after he receives and inspects the goods on board ship is called a 5.........Bill of Lading. If the goods are damaged before
they reach the ship, the captain or the shipowner issues an 6......... Bill of Lading (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
Bill of Lading". Banks usually demand shipped Bills of Lading before they accept 7.........for the credit.
The holder of a Bill of Lading can 8......... possession of the goods to another
person or company by 9.........or signing on the back of it. In other words, the Bill of Lading, unlike the Air Waybill, is
a ......... document. If the buyer or a bank asks the seller not to restrict the negotiability of the Bill of Lading, they demand
that it should be endorsed 11.........
The details printed on the Bill of Lading must include the port of loading and the port of 12.......... The type of packing must
also be stated. Examples of this are cases, crates, and boxes.
When the Bill of Lading is completed, copies are sent by 13......... on separate
days, so that if one is lost, the other may reach the importer. The importer, or
consignee as he is described on the Bill of Lading, can then 14......... the Bill of
Lading to the shipping company and 15.........delivery of his goods.
2. Notes these phrases used in this unit.
in good condition The goods arrived in good condition, (undamaged)
in triplicate The application form must be completed in triplicate, (three copies)
on board (US: on deck) The captain received the goods on board the M/V Seine yesterday, (on the ship)
on receipt of On receipt of your letter, we shall despatch, the goods, (when we receive your letter)
to order Make the Bill of Exchange payable to order, (not to one particular person)
Insert the correct phrases in the letter below, which is an example of a letter from a supplier to a consignee.
4th September, 19..
Dears Sirs,
Order No. 7361
We have sent your consignment to our forwarding agents, and they are arranging shipment. Your goods will arrive on
board the S/S Shannon before the end of the week.
When the captain is satisfied that he has received the goods in good condition, he will sign the Bill of Lading. These are
usually completed in triplicate, and one of them will reach you a few days after we receive it. We shall send another
copy by separate mail.
On receipt of the Bill of Lading, you or your agent can keep it to prove ownership of the goods when the consignment
arrives. We have, according to your instruction, made out the Bill of Lading to order, so that you can transfer ownership
of the goods to another buyer, even before the consignment arrives, if you wish, by endorsing it.
Yours faithfully,

4th September, 19..

Dears Sirs,
Order No. 7361
We have sent your consignment to our forwarding agents, and they are arranging shipment. Your goods will arrive 1.........
the S/S Shannon before the end of the week.
When the captain is satisfied that he has received the goods 2........., he will sign the Bill of Lading. These are usually
completed 3........., and one of them will reach you a few days after we receive it. We shall send another copy by separate
mail.
4
......... the Bill of Lading, you or your agent can keep it to prove ownership of the goods when the consignment arrives. We
have, according to your instruction, made out the Bill of Lading 5........., so that you can transfer ownership of the goods to
another buyer, even before the consignment arrives, if you wish, by endorsing it.
Yours faithfully,

F. EXERCISES
1. Write a letter to a buyer informing him that you have posted two Bills of Lading by separate mails.
They are for a consignment of tomatoes, and are packed in crates which have marks and numbers on them.
2. Write a letter of reply to the letter in No. 1.
3. Write a short report on the uses of a Bill of Lading. Include information on its use in law, insurance and
finance.
47
(page 61) ENGLISH FOR THE OFFICE
7 Bills of Exchange
dishonour (v.) Not to pay; to fail to pay a Bill of Exchange
Documentary Bill of Exchange A Bill of Exchange which has the shipping documents attached
domicile To keep a Bill of Exchange in the drawer's bank until it is due for
payment (e.g. until it matures) Export Credit Guarantee Department A UK government department which
issues insurance policies to cover credit risks, and other insurance Finance House A Credit institution
Letter of Hypothecation A letter from an exporter giving his bank the right to sell
goods if his Bill of Exchange is not paid or accepted mature The date when a Bill of Exchange become
payable .
There are three methods.
exporter
1) send Bill of Exchange
3) discounts with his bank
bank
exporting country
2) accepts and signs
importer
importing country
B
exporter
-1-
send Bill of Exchange
- 1)sends shipping documents
bank I
2)sends shipping documents
exporting country
importer
3) accepts Bill of Exchange
bank
4) releases shipping documents
importing country
exporter
sends
sends "Bill of Exchange-
agent
bank W
bank

exporting country
48
(page 62) Bills of Exchange
The oldest method of payment in International Trade is the Bill of Exchange.
A Bill of Exchange (also called a 'draft') is used when the seller (or exporter) needs to allow some time for the
buyer (or importer) to arrange payment. This is a form of credit.
Bills of Exchange need not be paid before 30, 60, 90 or more days. If the credit is for a period longer than this,
the sellers and buyers will need the service of an export finance house or, in the UK, the Export Credits
Guarantee Department, a Government organization which provides credit and insurance for export debts.
The most common method of arranging payment by a Bill of Exchange is to attach the shipping documents
(i.e. the Bill of Lading, the Commercial Invoice, and the Certificate of Insurance) to the Bill of Exchange and
present them to the bank for payment. This is called a 'Documentary Bill of Exchange'.
The Letter of Credit (see Unit 4) has already been issued by the buyer's bank in Caracas, and has been
confirmed by the Venezuelan bank's correspondent, or agent, in London. The bank in London will then accept
the Bill of Exchange on behalf of the buyer. We now have an 'Irrevocable Documentary Letter of Credit' or
simply 'Irrevocable Documentary Credit'. This means that the exporter is certain of payment. He is able 'to
draw a Bill on London', which is a very convenient method of financing international trade, from the
exporter's point of view. He can wait until the Bill 'matures' (e.g. at the end of the 60 days period) or he can
discount it immediately or at any time before the 60 days have elapsed.
A 'sight' Bill of Exchange is a bill which must be paid when it is presented to the company or bank which
accepts it. A Bill may be presented for payment 30 d/s, (30 'days after sight'), that is, 30 days after the
company or bank receives the Bill.
Arrangements can be made between the buyer and the seller about the transfer of documents. These are the
shipping documents which give title to ownership. These may be handed over:
1. Documents against acceptance (D/A). This means that the buyer or his bank will accept responsibility for
payment of the sum on the Bill of Exchange when the documents are surrendered.
2. Documents against payment (D/P). This means that payment must be made by the buyer or the buyer's bank
when the documents are surrendered.
The language used on Bills of Exchange is rather difficult. This is partly because the Bill of Exchange has a
long history. The seller can write his own bill or draft and simplify it.
Here is a typical example of a Bill of Exchange.
48
(page 63) ENGLISH FOR THE OFFICE

4,275.00 London 3rd May, 19..

sixty days AFTER SIGHT OF THIS FIRST OF EXCHANGE (SECOND AND THIRD OF THE SAME
TENOR AND DATE BEING UNPAID) PAY TO OUR ORDER Four thousand two hundred and seventy five
pounds.
VALUE RECEIVED, PAYABLE AT THE CURRENT RATE OF EXCHANGE FOR BANKERS SIGHT
DRAFTS ON LONDON
A.R.V.A. y Cia For WHITELEAF LTD.
Caracas Accounts Department
The 'drawer' of this bill is Whiteleaf Ltd., the 'drawee' is A.R.V.A. y Cia. Therefore, Whiteleaf is the creditor,
and is owed money. A.R.V.A. y Cia is the debtor, and owes money.
There are often three copies of the Bill of Exchange in case one or two are lost. The example printed above is
the first copy (the 'First of Exchange'). If this Bill is accepted, then the other copies, the second and third of
the same tenor (which means copy), are invalid.
The buyer or his bank accepts the bill by writing a signature across it, and then either returning it to the drawer
(or seller) or his bank. The drawer can then hold it until it matures, or he can have it discounted by his bank.
(That is if he wants the money sooner, the bank will pay the amount on the Bill, less a discount. The bank will
then, at the end of the period, collect the full amount from the buyer.) The drawer can have the Bill discounted
at the current rate of discount. Suppose the Bill of Exchange As for 1,000, payable 90 d/s and dated 2nd
February. If the Bill is discounted at 5% on the 2nd February, the drawer can receive 1,000 less the discount:
5% of 1,000 = 50 (per annum) 90 days = % of a year = 12.50
So he receives 1,000 - 12.50 = 987.50. The discount depends on the rate of discount, and the amount of
time the Bill of Exchange has to go before maturity. If the Bill of Exchange stays with the drawer's bank until
it is due for payment by the paying bank, it is 'domiciled' with the drawer's bank.
The Bill of Exchange is a 'negotiable' document. A document is negotiable if ownership of the amount printed
on it can be transferred to another person or company by delivery or endorsement (writing across the back) of
the document. (Other examples are cheques, unless they are signed 'not negotiable', and Bills of Lading).
49
(page 64) Bills of Exchange
Letter of Hypothecation If money is advanced by the bank to the exporter before his Bill of Exchange is due
for payment, he must send the shipping documents to the bank and write a letter of hypothecation giving the
bank the right to sell the goods if the Bill of Exchange is dishonoured.
A. COMPREHENSION
Tick (the correct responses.
1) The Bill of Exchange is a form of credit for the seller. TRUE FALSE
2) The drawer of the Bill of Exchange is the one who must pay. TRUE FALSE
3) If the seller domiciles a Bill of Exchange, he leaves it with his bank until it is due for payment. TRUE
FALSE
4) The seller can receive the amount of money written on the Bill of Exchange any time he likes. TRUE
FALSE
5) 30, 60 or 90 days are the usual periods which elapse before the Bill of Exchange must be paid. TRUE
FALSE
6) If the drawer discounts the Bill of Exchange, he receives less than the amount written on it. TRUE
FALSE
7) You can pay debts to others by endorsing a Bill of Exchange and giving it to them. TRUE FALSE
8) The buyer is described as 'the drawee' on a Bill of Exchange. TRUE FALSE
9) A letter of hypothecation states that a bank does not have the right to own and sell goods described in the
shipping documents. TRUE FALSE
10) A 'sight' Bill of Exchange must be paid immediately, when it is presented. TRUE FALSE
B. CORRESPONDENCE
The buyer A.R. V.A. y Cia writes to seller. This is a follow-up to the letter on page 36 in Unit 4.
28th November, 19..
Dear Sirs,
Order No. 7361 Thank you for your letter of the 20th November.
We shall be pleased to accept your draft for the amount of your invoice, payable at 60 d/s. Our bank's agent in
London, the Merchant and General Bank, will accept your draft on them on our behalf. The bank informs us
that the terms are documents against acceptance.
We would like to know if you are prepared to offer us 60 d/s terms in the future, as this credit is valuable to us
in the retail trade.
Yours faithfully,
50
(page 65) ENGLISH FOR THE OFFICE
The suppliers, Whiteleaf Ltd., replies.
2nd December, 19.. Dear Sirs, Order No. 7361
Thank you for your letter of the 28th November.
We have drawn on your agents, the Merchant and General Bank at 60 d/s for the amount of our invoice, in
accordance with our agreement. We are pleased to inform you that your order was despatched on the S/S
Bannow on the 30th November.
We are willing to offer you 60 d/s terms, D/A, in the future. This will be more convenient to you if you order
from us on a regular basis, and is quite acceptable to us.
Yours faithfully,
C. LANGUAGE PRACTICE 1. We can join these sentences using 'if: Leave now. You may be on
time.
If'you leave now, you'll (you will) be on time. Present your draft. The bank will discount it.
If'you present your draft, the bank will discount it.
Write conditional sentences like these, joining the sentences below:
1) Post the letter by airmail. It will arrive before Friday.
2) Send three copies. One of them will arrive.
3) Surrender the documents. The bank will then accept your draft.
4) Provide some form of identification. The bank will cash your travellers cheques.
5) Complete the draft in triplicate. One of the copies will go in the files.
6) Endorse the Bill of Exchange. You will be able to transfer ownership.
7) Make the Bill of Exchange payable 'to order'. It will be a negotiable instrument (document).
8) Attach your draft to the shipping documents. It will be more convenient.
9) Ask the bank. They will discover the Bill of Exchange for you.
10) Present your bills at 60 d/s. We will order much more from you in future. Negative: won't (= will not)
50
(page 66) Bills of Exchange
11) Order from us on a regular basis. Our bank won't demand irrevocable documentary credit.
12) Guarantee delivery within a month. There won't be any difficulty with our bank.
13) Post the documents today. There won't be any delay.
14) Endorse the Certificate of Origin. There won't be any extra charge.
15) Forward the shipping documents to the bank. They won't refuse acceptance of your draft.
2. Indirect questions
Notice how you write to a person to tell them that somebody asked you a question.
We can join these two sentences:
'Can you pay monthly?' the bank asked me.
The bank asked me if I could pay monthly.
Write indirect questions, telling your correspondent what someone else asked you.
1) 'Can you reply within a week?' The sellers asked us.
2) 'Will you allow us 60 days credit?' The buyers asked us.
3) 'Will you forward the documents as soon as possible?' The bank asked us.
4) 'Can we pay by cheque?' Our agents in Sao Paulo asked us.
5) 'Will you issue an irrevocable Letter of Credit in our favour?' The sellers asked us.
6) 'Will you accept our 60 d/s draft on you for 15,000?' The sellers asked our bank.
7) 'Can you discount our Bill of Exchange?' I asked the bank.
8) 'Will you enclose a statement of costs?' Our agent in New York bank asked us.
9) 'Will you return the shipping documents to your branch?' Our bank asked us. 10) 'Can we pay by
International Money Order?' A customer asked us.
3. Indirect requests
Notice what you write when a customer or bank requests you to do something. We can join these sentences:
'Please send the money at once.' The bank asked us to do this. The bank asked us to send the money at once.
Requests are preceded by 'please', but in indirect speech you omit it. Write to a correspondent telling him
what someone has requested for these:
1) 'Please reply as soon as possible.' The agent asked us to do this.
2) 'Please send the shipping documents to the Main Street Branch of the General Commercial Bank.' The
buyer asked us to do this.
3) 'Please pay by irrevocable Letter of Credit.' Our suppliers asked us to do this.
4) 'Please accept our draft on you for 60 d/s.' Our suppliers asked our bank to do this.
5) 'Please discount the enclosed Bill of Exchange for us.' I asked the agent bank to do this.
51
(page 67) ENGLISH FOR THE OFFICE
6) 'Please telephone the shipping agents at the Port of Genova.' I asked the buyer to do this.
7) 'Please pay by International Money Order.' I asked the customer to do this.
8) 'Please check the invoice carefully before you send it.' We asked our suppliers to do this.
9) 'Please send a reply by telex before Friday.' The buyers asked us to do this.
10) 'Please enclose a stamped, addressed envelope.' The company requested its customers to do this.
4. Indirect requests for information
Notice what you write when someone requests information Our bank would like to know if you will offer 60
days credit. We can join these sentences in this way:
'Will you send the letter by airmail?' The buyer would like to know this.
The buyer would like to know if you will send the letter by airmail.
Write to a correspondent telling him what someone has requested information for these:
1) 'Will you offer us a 2Vi % discount for purchases over 5,000?' An importer in Milan would like to know
this.
2) 'Can you despatch the goods before the end of the month?' An importer in Boston would like to know this.
3) 'Will your bank issue an irrevocable Letter of Credit in our favour?' The supplier in Manchester would like
to know this.
4) 'Can you fill in the forms in triplicate?' The supplier in Jordan would like to know this.
5) 'Will your bank accept our sight draft on them?' A supplier in England would like to know this.
6) 'Can you confirm the credit in the UK?' A supplier in Birmingham would like to know this.
7) 'Will you cable your instructions as soon as possible?' The agents would like to know this.
8) 'Will you submit the shipping documents?' Our bank would like to know this.
9) 'Can you get in touch with the shipping company?' An importer would like to know this.
10) 'Will your bank discount our Bill of Exchange at 5%?' A supplier wants to know this.
11) 'Will you check the invoice again?' A customer would like to know this.
12) 'Can you send us a quotation for a bulk purchase of A4 stationery?' Our Accounts Department would like
to know this.
13) 'Will you contact the shipping agent for us?' A supplier would like to know this.
14) 'Can you despatch the goods on board the M/V Trent?' Our agent would like to know.
15) 'Will you correct an error in the statement?' Our Accounts Department would like to know this.
51
(page 68) Bills of Exchange
D. VOCABULARY
1. Insert the correct words in the appropriate spaces.
accept discount drawee
against dishonoured drawer
attached domiciled hypothecation
credit draw ownership
When a Letter of Credit has been confirmed, the agent bank in the seller's country usually asks for the
shipping documents, and often writes to the seller to say that
they are willing to 1......... a draft on them for the amount. This draft (another
name for Bill of Exchange) is often 2......... to the shipping documents, and is
called a Documentary Bill of Exchange. Banks often stale that the seller can 3.........on them for the amount of
the credit.
A buyer or his bank may ask the seller if he is willing to allow them a period of 30, 60, or 90 days to pay. They
may write: 'Can you present your drafts for 60 d/s?'
This is a form of ........., and allows the buyer time to pay. The agent bank will
normally accept a draft 5......... documents because they need them to make sure
that the title to .........has been transferred.
Sometimes the bank demands a letter of7......... so that they have the right to sell
the goods if the Bill of Exchange is 8........., that is, if the buyer or his bank do not
pay. This does not apply to irrevocable documentary credit.
If the seller allows the draft to remain in the bank until it is due for payment, then it is 9.........with the bank.
However, the bank can 10.........the Bill of Exchange by deducting the interest for
the period the draft has to go before maturity. If the 11.........wishes to have cash,
this is a convenient arrangement. The Bill of Exchange can therefore be a form of
credit for the 12......... because it allows him time to pay, and it can also be a
convenient way of obtaining cash for the drawer if he wishes to discount it.
2. Note the phrases used in this unit:
in accordance with In accordance with your instructions, we have sent the
documents to the bank, (agreeing to; obeying) in favour of (also: in your favour) Please issue a Letter of
Credit in favour of
Whileleaf Ltd. (i.e. the Letter of Credit is for them) on a regular basis We offer favourable terms to
customers who order on a regular
basis, (i.e. every month, every quarter, etc.) on behalf of / on your behalf The agents will receive the goods
on behalf of'the
importer, (acting for the importer) on time The airplane arrived on time, (punctual, exactly at the right time)
on them Our bank has confirmed the credit, and you can draw on them. (You can
receive cash or credit from their account) The drawer draws on the drawee.
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(page 69)
ENGLISH FOR f HE OFFICE
Insert the correct phrases in the following letter.
Dear Sirs,
Thank you for your letter of the 25th May, in which you requested information about payment.
We have issued a Letter of Credit through the General Commercial Bank
......... our agreement. The Letter of Credit is 2......... A.D. Jones Ltd.,
and our bank will notify you of the credit before the end of the week provided the airmail services leave and
arrive 3.........
The agent in London, The Merchant Bank, will confirm the credit 4.........
the General Commercial Bank. You can present a Bill of Exchange to The Merchant Bank and draw 5.........for
the amount of the credit.
We can arrange payment by bank transfers or by open account in the future if we order, and if you supply us
6
.........
Yours faithfully,
E. EXERCISES
/. An English company writes to ask if they can pay by Letter of Credit, and would like you to submit a
draft against this credit.
The credit covers a consignment of 20 refrigerators, the order number was 8257, and the credit was for
3,250. They wish to have time to sell some refrigerators before they have to pay, and they ask for a 90 d/s
Bill of Exchange. Their bank is the National Provincial Bank, and their agent in your town is the Banco di
Roma.
Reply to the letter, agreeing to the conditions and stating that you are drawing a Bill of Exchange on the agent
bank.
2. You wish to pay an English company by Letter of Credit, and you want them to submit a draft on
your agent bank in Manchester.
The credit covers a consignment of umbrellas (order No. 35961), and the value was 675. You would like 60
d/s terms. Your bank is the Banco di Roma, and the agent bank in Manchester is the National Provincial Bank.
52
(page 70) Letters of Enquiry; Replies to Enquiries
8 Letters of Enquiry; Replies to Enquiries
brochure A small booklet which gives details, colour, pictures, etc. of one product,
or a range of products bulk large quantity
catalogue A list giving descriptions and numbers of products data processing The system and methods of
keeping all information in a properly ordered form
file (n.) A collection of papers arranged for easy reference model (n.) a type, an example
range A number of goods of basically the same type, with each good having
modifications and minor differences retrieval A system which enables one to find stored information
specification Precise instructions about size, weight, colour, etc. storage To keep goods, information, files, in
good order
All business letters have two principal functions:
a To ask for and to give a reply to an enquiry, announcement, offer, order or
complaint in the briefest and clearest way. b To keep a record of all the important facts included in the
correspondence.
(Letters are filed for easy reference)
A business letter should also give the recipient the impression that the writer knows what he is doing, that he
is efficient and clear-headed. This can be achieved by stating your enquiry briefly, with clear wording and no
unnecessary phrases, and by the use of accurate reference numbers, dates and specifications. Simplicity and
brevity help tire writer as much as the recipient, and will probably mean an earlier reply. A confused, over-
long and unclear letter may be left waiting until someone explains its meaning, and this may mean delays.
A first letter of enquiry should be brief and simple. This type of letter is often written to suppliers you have not
done business with before. The letter of enquiry often asks for a brochure, catalogue or price-list. It is
sometimes considered useful to give some details of your business, and also where or how you heard of the
supplier's name and address.
You should always address your letter 'Dear Sirs'. In this way you are writing to the company. The letter
receives attention if you address it to the company.
If you address it to an individual, your letter may have to wait while he is away. Or you may make a mistake
and address it to the wrong individual, and this will also mean delay.
The salutation is always 'Dear Sirs'.
53
(page 71)
ENGLISH FOR THE OFFICE
A. CORRESPONDENCE A 'first' letter of enquiry
A.Q. Electronics Ltd., Calle Estoril 1701, Barcelona.
Ref: JHR/CT
The Sales Manager
Standard Office Furniture Ltd.,
Cantley Rd.,
London, SW4 9HX. 12th October, 19..
Dear Sirs,
We have read an article in 'Office News' about your range of visible record system filing cabinets. We are
interested in introducing a modern filing system in our main office. We also wish to install an electronic
system for the storage and retrieval of data.
Please send us price lists and catalogues of your manual and electronic data processing systems, quoting your
prices f.o.b. London if possible. We are particularly interested in type TW37, so we should be obliged if you
would enclose more detailed information about this particular model.
Yours faithfully,
J.H. Rodriguez Office Manager
53
(page 72) Letters of Enquiry; Replies to Enquiries
Reply to 'first enquiry'.
Standard Office Furniture Ltd., Cantley Rd., London, SW4 9HX
Your Ref: JHR /CT Our Ref: PJM /JA
The Office Manager AQ. Electronics Ltd., Calle Estorit 1701,
Barcelona. 18th October, 19..
Dear Sirs,
Thank you for your letter of 12th October, enquiring about our range of office equipment. We enclose our
latest price list and catalogue with this letter, together with a brochure on filing cabinet type TW37. All prices
are quoted f.o.b. London.
We look forward to receiving your order. If you require further information, please let us know.
Yours faithfully,
P.p. "TH^vu^
P.J. Morris Sales Manager
B. LANGUAGE PRACTICE SECTION I
1. Notice how you inform the company you are writing to how or where you heard about them.
Dear Sirs,
We have seen art advertisement in this month's 'Office News' about your range of pocket
calculators._____
Make sentences similar to the above, informing your recipient how and where you heard about them or
their products, using the words given.
54
(page 73) ENGLISH FOR THE OFFICE
1) Read / article / The Financial Times / filing cabinets
2) Hear / a lot / electric typewriters
3) See / the publicity material / photocopying machines
4) Hear / from the Commercial Attache at the British Embassy / office equipment
5) Read / an advertisement / local newspaper / modern storage and retrieval systems
6) See / your advertisement / Milan Trade Fair / range of clothes
7) Flear / from our agent in London / leather jackets
8) Read / in the financial papers / success with Type TS8
9) Talk / your representative / possibility of buying electric cookers from you 10) Talk / our customers /
suitability of your range of bathroom equipment
2. Notice how you express an interest in a specific good: Dear Sirs,
We are interested in type TW37.
Express an interest in the following. Remember you are writing to a company.
1) A range of kitchen furniture
2) Type SK/27 cabinets
3) Large bookshelves
4) A range of pocket calculators
5) Type CSJ/7 especially
6) Electric heaters, type 2JS
7) A range of dining room tables
8) The 'Embossed' typewriter
9) The latest printing process
10) The 'Sierra' 1100 motor car
3. Notice how you express an interest in more general ideas:
Dear Sirs,
We are interested in introducing a modern filing system in our main office. Express an interest in the
following. Use the words below.
1) Buy / type TW37 filing cabinets
2) Receive / more information about your electric typewriters
3) Introduce / a modern storage system
4) Order / twenty new office desks
5) Export / some of our business machines to the USA
6) Install /a new telex machine
7) Extend / our market to include Northern Europe
8) Increase / our supplies of photocopying paper
9) Make / an improvement in our Design Department 10) Improve / our data processing system
54
(page 74) Letters of Enquiry; Replies to Enquiries
4. Notice these sentences
A Dear Sirs,
We wish to install a new telex machine. B Dear Sirs,
We wish to enquire into the possibility of installing a new telex machine.
Sentence B is not a statement of strong intention. It is a preliminary enquiry. Sentence A is a bit more certain.
Make sentences similar to A and B for the following:
1) order a new duplicating machine
A...............................................................:...........................
B...........................................................................................
2) develop our trade with North America
A...........................................................................................
B...........................................................................................
3) modernize our fding system
A...........................................................................................
B...........................................................................................
4) increase our storage facilities
A...........................................................................................
B...........................................................................................
5) buy 25 type TW37 filing cabinets
A...........................................................................................
B......................................................................*....................
6) visit your head office in London on the 25th of June
A...........................................................................................
B...........................................................................................
7) extend the range of cookers in our department stores
A...........................................................................................
B...........................................................................................
8) accommodate more tourists in our hotels
A...........................................................................................
B...........................................................................................
9) arrange payment by International Money Order
A...........................................................................................
B...........................................................................................
10) send our agent to inspect the goods
A..........................................................................................
B...........................................................................................
55
(page 75) ENGLISH FOR THE OFFICE
ii
5. Notice these polite requests.
A Please send us a catalogue and your latest price-list. B Will you please send us a catalogue and your
latest price-list? C We should be obliged if you would send us a catalogue and your latest price-list.
These are all formal requests. You also have the form: D We would appreciate a catalogue and your latest
price-list.
This is less formal, and should not be used for formal requests, but can be used for additional requests at the
end of a letter.
Make four sentences (types A,B,C and D) for the following:
1) a brochure for type TW37
2) more information about your office desks
3) a detailed statement of prices f.o.b. London
4) a reply as soon as possible
5) a quotation for our bulk purchase of men's suits
6) a statement of our account at your branch
7) your latest catalogue reference numbers
8) a reply by telex
9) a message from your agent in Oslo 10) a letter of confirmation
C. CORRESPONDENCE
Further examples of letters of enquiry, and replies.
23rd February, 19..
Dear Sirs,
We have heard from the British High Commission about your range of agricultural machinery.
We are interested in improving our methods of farming in all products from wheat to tomatoes.
We wish to enquire into the possibility of ordering a large number of tractors, and perhaps a smaller amount of
spare parts.
Please send us your latest catalogue and price-lists for all your agricultural vehicles. We would appreciate a
quotation c.i.f. Mombasa, if possible, for each shipment of 50 tractors of type ATI/34.
55
(page 76) Letters of Enquiry; Replies to Enquiries
We should be obliged if you would send us a brochure for type AT 1/34, as this model seems to be the most
suitable to our conditions.
Yours faithfully, G. Aluko
The reply
Dear Sirs,
Thank you for your letter of the 23rd February, in which you requested our latest catalogue and price-list.
We have pleasure in enclosing these, together with a brochure on type ATI/34.
Although there is an increasing demand for our agricultural vehicles, we are glad to be able to tell you that we
can deliver a large order from stock at the moment.
All prices quoted in our price-list are f.o.b. London, but we enclose a tariff of freight and Insurance charges
from London to Mombasa.
We look forward to hearing from you in the near future. If you require additional information, we can send an
experienced salesman to visit you.
Yours faithfully,
29th May, 19..
Dear Sirs,
We have received many enquiries about your latest portable television set (GROVE model T31).
We are a large chain store with retail outlets in most major Danish towns and cities, specializing in electrical
and electronic goods. We believe that there could be a big demand for the GROVE T31 in Denmark.
56
(page 77) ENGLISH FOR THE OFFICE
Will you send us your latest price-list and catalogue, please? We would appreciate any information you could
give us about discounts for bulk purchase. There is a considerable need for publicity material also. Please send
us any window display posters you have for this and other models.
Prices can be quoted f.o.b. London. We can enquire about freight and insurance here. If you can supply 300
models from stock, we would be interested in an immediate order.
Yours faithfully,
The reply
5th June, 19..
Dear Sirs,
Thank you for your letter of the 29th May, enquiring about GROVE T31.
We have enclosed our latest price-list and catalogue. We normally give discounts of IV2 per cent and more for
orders worth more than 10,000. Your order for 300 models would receive a discount of 8% per cent.
We shall send you publicity material for window display, and small coloured brochures on the T31 which you
can distribute to customers. We shall send these to you as soon as our Sales Department have collected and
packed them.
You can be sure of immediate attention to your order, which we look forward to receiving.
Yours faithfully,
D. LANGUAGE PRACTICE
SECTION II
I. Notice these sentences in which the writer thanks his correspondent for an enquiry.
Notice that you 'enquire' about general information; you 'request' an object or a statement.
You 'enquire about something'; you 'request something'.
56
(page 78) Letters of Enquiry; Replies to Enquiries
A Dear Sirs,
Thank you for your letter enquiring about our range of office equipment, or:
Dear Sirs,
Thank you for your letter in which you enquired about our range of office furniture.
B Dear Sirs,
Thank you for your letter requesting our catalogue, price-list and a
brochure about type TW37.
or:
Dear Sirs,
Thank you for your letter in which you request our catalogue, price-list, and a brochure about type TW37.__
Make sentences similar to these examples, thanking your correspondent for an enquiry or request. Be
careful which verb you use.
1) Our range of office seats
2) A detailed quotation of prices f.o.b. Southampton
3) The possibility of a bulk purchase of stationery
4) Our latest price-list
5) A brochure about the new duplicating machine
6) Our latest electric typewriters
7) A Pro-Forma Invoice for your order
8) The possibility of a visit from our agent in Athens
9) A visit from our agent in Nairobi
10) The discounts we offer for orders over 10,000
2. Notice this sentence, which tells your correspondent about enclosures:
We enclose a price-fist and catalogue, together with a brochure for type TW37. Write similar sentences,
using the phrases in italics, for the following:
1) A quotation of prices f.o.b. London / a Pro-Forma Invoice
2) A application form / a stamped, addressed envelope
3) A written invitation to the conference /a claim for travelling expenses
4) An International Money Order / a statement of the bank's service charge
5) A copy of our latest price-list / a sample of the typewriting paper you are interested in
6) Our latest catalogue / a statement of freight and insurance charges from Liverpool to Bilbao
7) Our cheque for 150 / our account number and the address of our bank
8) A statement of your account with us / our advice on how to pay it
9) A copy of the invoice / a transfer form to our bank account
10) A postal order for 20 / a request for further supplies
57
(page 79) ENGLISH FOR THE OFFICE
3. Notice how letters of reply often finish with a sentence like this:
We look forward to hearing from you in the near future. Yours faithfully,
Conclude letters in the smite way for the following:
1) Receive / further orders
2) Meet / your, agent in Brussels
3) Receive / instructions
4) Do / business
5) Hear / from your agent in Lucerne
6) Have / a conversation with you in Stockholm
7) See / your representative in Manchester
8) Hear / from you soon
9) Receive / your payment
10) Meet / your Sales Manager on the 17th May
E. EXERCISES
1. Write a letter offirst enquiry, using the following words and phrases:
17th April, 19..
Dear Sirs,
We / see / display / Leipzig Trade Fair / 12th April.
We / interest / range / small cameras. We / wish / supply / customers / the 'Ultramatic' model.
Please / send / catalogue / price-list / all small cameras. Enclose / detailed information / the 'Ultramatic' model,
/ as / this / the camera / our customers / most interested.
Yours faithfully,
2. Write a letter of reply to the letter in No. 1, using the following words and phrases:
' 22nd April, 19..
Dear Sirs,
Thank /... / you requested / a catalogue ...
57
(page 80) Letters of Enquiry; Replies to Enquiries
We enclose /........................................................................
All prices / quote / f.o.b. London.
We / look forward / receive / your order. If / require / additional information, / please / inform. We / send / an
experienced salesman / you wish.
Yours faithfully,
3. You have read an advertisement in your trade journal about a range of linen shirts supplied by
Evergreen Ltd., a company based in Leeds, Yorkshire.
Their full address is 47 Halifax Road, Leeds, England. Write a first letter of enquiry to the Export Marketing
Manager of Evergreen, requesting information about colours and sizes, price-lists and catalogues.
4. At a recent Trade Fair, your Purchasing Manager noticed samples of plastic tubing made by Archer
Products Ltd., 129 Hampton Road, London SE23 7NY.
Your firm needs tubing of this sort in a cooling process on your production line. Write a letter of enquiry to
Archer Products asking for details.
5. You work in the Export Marketing Department of Unisign, a company specializing in outdoor decor and
display for shop fronts.
You have received a letter of enquiry, asking for information about your special adhesive posters. The writer
works for Pane and Stone Ltd., a chain store with shops in many towns in the UK.
Write a reply, enclosing price lists and a catalogue, and offering to send special brochures. The address is Pane
and Stone Ltd., (Display Department), 137 Drompton Road, London SW7 3ES.
6. You work for a company which supplies typewriters. You receive a letter of enquiry asking for details of
your new 'Ambassador II' electric typewriter.
Send a letter of reply to the correspondent, A.J. Lester, Purchasing Dept., Trenowen Office Systems Ltd., 273
Winchester Road, Bristol, providing details of prices, size and enclosing a brochure.
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(page 81) ENGLISH FOR THE OFFICE
9 Follow-up Letters; Sales Letters; Orders
announcement A statement which is publicly delivered and distributed cable (n.) an international telegram
Certificate of Origin A document required by the importers to show where the goods have been
manufactured and shipped from. It is usually required for calculating the duty to be paid.
charter to hire
despatch / dispatch (v.) to send, post, ship fluctuate (v.) to vary, to go up and down in value follow-up a
continuation forward (v.) to send, or post to your address
indent (n.) An order from an importing country which can be placed with agents or exporters. (An open indent
is one where an agent can get the goods from any company he wishes. A closed indent is one where the
importer specifically writes the company he wishes to purchase from.)
merchandise goods, cargo
unsolicited not asked for
If you are writing a letter about one specific commodity, you must always give the correct reference number.
You should also consider using a heading. If you are beginning a long correspondence, with a series of letters
on one subject, then a heading will be useful. If your correspondent has already used a heading, you should
use it also. And if a heading helps to shorten a letter you should consider using one. The heading in the letter
on page 83 is Order No. 281511/TW3F/CLF.
After the enquiry and reply in the previous unit, a supplier may consider an announcement or follow-up letter
necessary to keep the buyer interested. The announcement might be about a reduction in price, improved
discounts for bulk purchase, a reminder that demand is high and stocks are in short supply, or information
about an addition to the range of goods which the supplier can offer.
The follow-up is often a sales letter, an advertisement praising a product, for example. Sometimes it is an offer
of a free sample. Sometimes it is to arrange a visit by a representative.
For example, an announcement from Standard Office Furniture Ltd. to AQ Electronics following the
correspondence in the previous unit would look something like the letter following:
Pages 81-82
Dear Sirs,
We trust you received our catalogue, price list and brochure, sent to you on the 18th October. We have forwarded under
separate cover a list of price reductions available. We would like to inform you especially of price reductions for our filing
cabinet systems, including type TW37, which came into effect on November 1st.
These price reductions were made possible by currency fluctuations, in particular with the decline in the value of sterling
against most major currencies. The price reductions apply to other markets in Europe, so we expect demand to increase.
This may mean that our limited stocks may become depleted. To avoid delay in despatch perhaps you would like to order
as soon as possible.
Chng ti tin tng qu Ngi nhn c catal, biu gi v t ri, m chng ti
gi cho qu Ngi vo ngy 18/ 10. Chng ti c cp theo mt ba ring danh mc cc
mt hng gim gi. Chng ti mun thng bo cho qu Ngi r cc loi t h s gim
gi c bit, bao gm loi TW37, v gi mi s c hiu lc k t ngy 1/11.
S d c gim gi l do bin ng t gi hi oi, c th l ng bng Anh st gim
so vi hu ht cc ngoi t mnh. Vi mc tiu kch cu, chng ti s p dng gim gi cho
cc th trng chu u. Nh vy ngun hng d tr hn ch ca chng ti c th ht
sch mt cch nhanh chng. trnh b chy hng, mong qu Ngi t hng sm. Ch cn
mt tin nhn qua telex hay in bo, chng ti sau c th ng gi, gi hng ngay
theo yu cu.
A cable or telex message would be the best method of communication since we could then begin to pack the required
goods ready for despatch.
Yours faithfully,

A follow-up or sales letter might look like this:

Dear Sirs,
We refer to your enquiry of October 12th, in which you stated that you wished to modernize your office filing system,
possibly using some of our products.
The decision is yours, of course, but we would like to help you to decide, if possible. Cm n th hi mua ngy
12/ 10 ca qu Ngi, trong qu Ngi cho bit nh hin i ha h thng lu tr h s ca qu
Ngi bng cc sn phm ca chng ti. Tt nhin quyt nh ty vo qu Ngi, th nhng, nu
c php, chng ti xin gp thm kin gip qu Ngi quyt nh.
For example, we could arrange a demonstration of the installation of type TW37 in your office or store-rooms. You could
then see for yourself the great advantages of our unique pull-out tray system, which has the greatest possible ease of
handling for easy reference. Chng hn chng ti s cho nhn vin n hng dn lp t loi t TW37
ti vn phng hay phng lu tr ca qu Ngi. Lc y qu Ngi s tn mt trng thy nhng u
im c mt khng hai ca sn phm chng ti: khay ng h s c th ko hn ra ngoi, v vi
c im qu Ngi s rt thoi mi khi cn tham kho h s.
Our representative in Barcelona could call on you within a week to arrange a demonstration and he will be in touch with
you within the next few days.
If we can be of assistance in any other way, please let us know. Your correspondence will receive immediate attention. i
din ca chng ti ti Barcelona tun ti c th n vn phng ca qu Ngi gii thiu sn phm v
s lin lc vi qu Ngi trong vi ngy na. Nu qu Ngi cn h tr them g na xin vui long cho
chng ti bit. Rt mong mi th t lin lc ca qu Ngi.
Yours faithfully, Trn trng knh cho
PART 5: WRITING
Siu th in my ca bn c mt s mt hng gim gi nh: LCD TV, t lnh, my git, ni cm in v 30
mt hng khc cng s gim gi t 30% n 50%. Chng trnh ny ch p dng cho cc chi nhnh ti thnh
ph HCM v gi mi s c hiu lc k t ngy 15/ 11. Khch hng ch cn gi in thoi n ca hng v s
c giao hng n tn nh. Bn hy vit th cho khch hng thng bo v cho hng.

(We are not talking about unsolicited sales letters here. Unsolicited sales letters are not sent in response to an
enquiry. An unsolicited sales letter is often a circular sent to thousands of addresses, advertising a product.)
59
(page 83) ENGLISH FOR THE OFFICE
An order The next step is the order itself. When you place an order, the correct reference number of heading
must be used. An incorrect catalogue number could create serious confusion.
In import and export business, you need to mention the method of transport and payment, freight and
insurance.
The importer may also require special documents (such as a Certificate of Origin, and a Consular Invoice). He
must stale his special instructions. Ordering may be done by indent if it is from a regular customer. Large
firms normally use a Special Order Form for export orders.
Dear Sirs.
Order No. 281511/TW37/CLF
We thank you for your revised price list, sent to us on 3rd November. We have received a visit from your representative in
Barcelona, and we are convinced that the filing cabinet (TW37) will meet our requirements.
We are therefore placing an order for 70 type TW37 filing cabinets and 500 Cuefile loose-leaf folders.
We enclose an official order form for the above goods.
Xin cm n qu Ngi sn lng gi cho chng ti biu gi hiu chnh vo ngy 3/ 11. Chng ti
tip i din ti Barcelona ca qu Ngi, v chng ti tin rng t ng h s TW37 p ng yu cu
ca chng ti. Do vy chng ti mun t 70 t ng h s TW37 v 500 cp ng Cuefile c th
ly cc vn bn ra. Chng ti km theo y mu n t hng chnh thc ca cng ty chng ti cho
cc mt hng ni trn. Chng ti cn Ha n tm in vo n t, bao gm ton b cc
khon chit khu, cc vn chuyn v bo him. n t hng ny cn c giao trc ngy 15/
12/ 2010. V vy chng ti buc s hy n t hng v tr hng v v mi chi ph v ri ro qu
ng phi chu nu c giao tr hn ngy .
The order will call for a Pro-Forma Invoice, which should include full details of discounts, freight and insurance. This order
is subject to delivery before 15th December, 2010.. We therefore reserve the right to cancel the order and / or return the
shipment at your risk and expense at any time after that date.

Since this is the first time we have done business, the most acceptable method of payment will be by irrevocable Letter of
Credit. Our bank, Banco Commercial Barcelona, will therefore issue a Letter of Credit in your favour for your invoice c.i.f.
Barcelona, and the amount of our Letter of Credit will be sufficient to cover this. We hope this is acceptable.
V y l ln u chng ta giao dch kinh doanh nn phng thc thanh ton d chp nhn nht l
Tn dng th khng th hy ngang. Ngn hng ca chng ti l Banco Commercial Barcelona do vy s
pht hnh L/C cho ha n cif Marcelona m ngi th hng l qu ng, v gi tr ca LC s
thanh ton ha n ny. Chng ti hy vng qu ng chp nhn cch thanh ton ny.
We will accept your draft for 60 days on our credit. Our bank will inform you of the types and numbers of copies of the
documents required. The credit will be issued only against documents.
We look forward to receiving your shipment, and to doing further business with you.
Chng ti s chp nhn hi phiu tr chm 60 ngy do qu Ngi k pht cho chng ti. Ngn hng
ca chng ti s thng bo cho qu Ngi bit loi v s cc chng t cn thit. Tn dng s c
pht hnh theo phng thc tn dng chng t. Chng ti mong nhn c nhn hng v c thm
mi quan h bn cht gia 2 cng ty.

Yours faithfully,

60
(page 84) Follow-up Lettersj Sales Letters; Orders
Chas. J. FOX (Organs) Ltd Coopers Terrace
Doncaster 07333 REQUESTED by John Hamilton Branch Newbury NAME Catherine Ferreira
ADDRESS Gateways, Station Road, Shiplake, Oxfordshire TELEPHONE Wargrave 2243 DATE 22nd
November 1978
INVOICE O/Y 349 DELIVERY DETAILS 3PS
PRODUCT PURCHASE SERIAL No

Yamaha Organ CV150

TICK WHERE AVAILABLE BASIC PRICE 599 00

PEDALS LESS DISCOUNT 10% 59 90

BENCH NET PRICE 340 10
CABLES ADD VAT-8% RATE 74 87
OWNER'S MANUAL NET TOTAL 614 97
HEADPHONES

FAOT EXCHANGE 50 50 97

CASH/ AMOUNT 564 97

HIRE PURCHASE TERMS DUE
Order Form A004931
A/C No 34968
VAT No 181 4728 54
TYPE OF SUPPLY
DEPOSIT..................... RECEIPT NO............... DEPOSIT................... RECEIPT NO
No OF MONTH BALANCE.................. INTEREST CHARGES........
H.P. COMPANY......................................................................................................
CUSTOMERS SIGNATURES.........................................................................................
COST PRICE..................... ENTERED STOCK CARDS................. ENTERED STOCK BOOK.....
Acknowledgement When an order is received, a speedy letter of acknowledgement is essential.
(page 85) ENGLISH FOR THE OFFICE
18th November, 19..
Dear Sirs,
Your Order No. 281511/TW37/CPF
We thank you for your order of 5th November for:
70 TW37 Filing Cabinets 500 Cuefile Loose-leaf Folders
We can confirm that we have these items in stock, and that we can guarantee delivery to Barcelona before the 15th
December. They will be despatched as soon as we have received instructions from your bank's correspondents in London.
We have already despatched a Pro-Forma Invoice for the merchandise to you and it should reach you within a few days.
All costs to Barcelona are included on it.
When we have heard from your bank's correspondents, we will immediately advise you of the date of shipment.
You may rely on us to follow the instructions in your Letter of Credit in full.
Sau khi chng ti nhn phc p ca ngn hng i l, chng ti s thng bo ngay cho qu Ngi bit
ngy giao hng. Xin qu Ngi tin chc chng ti s thc hin y trch nhim ca mnh trong tn
dng th.
Yours faithfully,

A. LANGUAGE PRACTICE
/. Note these sentences:
A We would like to inform you of price reductions for our filing cabinets. B To avoid delay in despatch,
perhaps you would like to order as soon as possible?_
Make statements and questions similar to A and B for the following:
1) A statement Inform / the latest development in filing systems
2) B question Enclose / a detailed statement of costs?
3) A statement Help / in every possible way
4) B question Visit /our stand at the Milan Trade Fair?
5) A statement Forward / brochures on this model under separate cover
6) B question Send / your representative to visit us?
7) A statement Receive / further instructions from you about shipment
8) B question Telex / your instructions as soon as possible?
9) A statement Despatch / the goods from Southampton
10) B question Confirm / these arrangements with your banks correspondents in
London?
61
(page 86) Follow-up Letters; Sales Letters; Orders
2. Note these sentences:
A cable or telex message would be the best method of communication as /siENGLISH FOR THE
OFFICE
18th November, 19..
Dear Sirs,
Your Order No. 281511/TW37/CPF
We thank you for your order of 5th November for:
70 TW37 Filing Cabinets 500 Cuefile Loose-leaf Folders
We can confirm that we have these items in stock, and that we can guarantee delivery to Barcelona before the 15th
December. They will be despatched as soon as we have received instructions from your bank's correspondents in London.
We have already despatched a Pro-Forma Invoice for the merchandise to you and it should reach you within a few-days.
All costs to Barcelona are included on it. When we have heard from your bank's correspondents, we will immediately
advise you of the date of shipment.
You may rely on us to follow the instructions in your Letter of Credit in full.
Yours faithfully,

A. LANGUAGE PRACTICE
/. Note these sentences:
A We would like to inform you of price reductions for our filing cabinets. B To avoid delay in despatch,
perhaps you would like to order as soon as possible?_
Make statements and questions similar to A and B for the following:
1)
A statement
Inform / the latest development in filing systems
2)
B question
Enclose / a detailed statement of costs?
3)
A statement
Help / in every possible way
4)
B question
Visit /our stand at the Milan Trade Fair?
5)
A statement
Forward / brochures on this model under separate cover
6)
B question
Send / your representative to visit us?
7)
A statement
Receive / further instructions from you about shipment
8)
B question
Telex / your instructions as soon as possible?
9)
A statement
Despatch / the goods from Southampton
10)
B question
Confirm / these arrangements with your banks correspondents in
London?
62nce we could then begin to despatch the goods.
The most acceptable method of payment will be irrevocable Letter of Credit as /since this is the first lime we
have done business.
Connect these pairs of sentences, using the words 'since' or 'as'.
1) You should place an order immediately. Our stocks are diminishing.
2) We shall arrange payment by bank transfer in future. It is much more convenient than other methods of
payment.
3) There is no need for us to give you special instructions. Our bank always states them on their Letters of
Credit.
4) Our credit will not be valid after December 15lh. We insist on delivery before that date.
5) Your products are ideal for us. We want to modernize our office and save space at the same time.
6) We must import many types of paper products. There is a shortage in our own country.
7) We must ask you to pay by irrevocable Letter of Credit. We don't have enough knowledge of your
company's financial position.
8) We cannot guarantee delivery before December 15th. It is difficult to charter shipping at this time of year.
9) We must cancel the order. You cannot guarantee delivery before December 15th. 10) We expect a 5%
discount. Our order is worth more than 10,000.
3. Note these sentences:
We would like to help you if possible.
For example, / For instance, we could arrange a demonstration in your office.
Make similar sentences, giving or quoting examples.
1) There are various methods of payment in International Trade. You can use a Letter of Credit.
2) In a letter placing an order, you must request special documents. You must request an invoice.
3) A sales letter often gives many extra details. It often gives details of price reductions.
4) A follow-up letter often offers special services.
5) A company representative performs many useful functions.
6) A heading in a letter may be unhelpful for various reasons.
7) An announcement to regular customers is sometimes necessary.
8) A Pro-Forma Invoice may be necessary for some import orders.
9) An immediate acknowledgement of an order is essential in many cases. 10) A bulk purchase of goods is
quite economical for many reasons.
63
(page 87) ENGLISH FOR THE OFFICE
4. Notice the sentence you use when you place a definite order We are therefore placing an order for 70
filing cabinets. Write sentences placing definite orders for the following:
1) The men's suits supplied by your correspondent are the right quality. You have seen samples, and they are
the right design, colour and size. Order 120.
2) Your agent has inspected the typewriter paper supplied by your correspondent. He has said it is excellent,
and you have decided to buy it. Order 2,000 reams.
3) You sent a letter of enquiry to a company which supplies ball point pens. You have tried the samples and
found them of good quality, colour, and the right price. Order 500.
4) The bathroom scales supplied by your correspondent are acceptable to you. Your representative has
inspected them. They are accurate and well-designed. Order 40.
5) The copper bars you need for electric wires can be supplied by your correspondent. The copper is the right
kind, and you are satisfied with the price. Order 750 bars.
6) The magazines you need to distribute to the Production Managers of bakeries in your region must contain
the right information about production machines. The magazine 'The Bakers' has this information and has
written a reply to your letter of enquiry. Order 150 copies.
7) You need strong motor car tyres for use on tough roads. Your correspondent is the manufacturer who
produces the strongest tyres. Order 800.
8) Your correspondent supplies iron ore at the lowest price. You have decided to buy from him. Order 100
tons.
9) Your correspondent has offered you the best price for pocket diaries. You have decided to buy from him.
Order 100,000.
10) After a long search you have found a supplier who can supply the right kind of thermometers. You have
decided to buy from them* Order 250.
5. When you have decided to order, notice how you use the future simple tense to show certainty:
Our bank will issue a Letter of Credit in your favour. We will accept your draft.
Our bank will inform you of the documents needed. Use the future tense to show certainty for the following:
1) We / inform / the most acceptable method of payment.
2) Our bank / issue / a Letter of Credit in your favour.
3) Our Despatch Department / send / the shipping documents.
4) We / accept / your draft for 30 days.
5) Our bank / accept / your draft after you have delivered the documents.
6) Our Sales Manager / make sure / the delivery date is met.
7) We / deliver / the goods to the port of Genova.
63
(page 88) Follow-up Letters; Sales Letters; Orders
8) We / arrange / credit to include the cost of freight and insurance.
9) Our bank / inform / when the credit expires. 10) We / accept / your packing instructions.
B. VOCABULARY
1. Note the phrases used in the correspondence in this unit:
as soon as possible We shall send the goods as soon as possible, (as quickly as we can)
in demand Heavy overcoats are in demand in winter, (a large number of people want them)
in short supply Tomatoes are in short supply in December, (there are not enough of them)
in stock We have the goods in stock, (in the store or warehouse, ready for delivery)
into effect (come into effect) The new law comes into effect next January (it will be the law, or rule)
out of stock We would like to supply you with the goods, but unfortunately we are out of stock, (opposite of in
stock)
under separate cover We have sent a sample of the material under separate cover. (in a different envelope or
package)
Insert the correct phrases in the following letter.
Dear Sirs,
We thank you for your order of the 22nd June. We enclose a catalogue and price-list. We have also sent a catalogue of
our range of tinned vegetables under separate cover as it was too big to enclose with the other documents.
Our tinned fruit products are in demand at the moment since it is the middle of summer, which is our busiest season for
fruit. Because of this, tinned peaches and grapefruit are in short supply, and we cannot satisfy all our customers'
demands. In fact, our grapefruit products are almost out of stock. We can recommend apricots, which fortunately we
have in stock at the moment. We would like to draw your attention to our new discounts for bulk purchase, which came
into effect on June 1st.
Because of our special seasonal difficulties, we would be pleased to receive your order as soon as possible.
We thank you for your order of the 22nd June. We enclose a catalogue and price-list. We have also sent a catalogue of
our range of tinned vegetables 1 .........as it was too big to enclose with the other documents.
Our tinned fruit products are 2.........at the moment since it is the middle of summer, which is our busiest season for fruit.
Because of this, tinned peaches and grapefruit are 3........., and we cannot satisfy all our customers' demands. In fact, our
grapefruit products are almost 4.........
We can recommend apricots, which fortunately we have 5......... at the moment.
We would like to draw your attention to our new discounts for bulk purchase, which came 6.........on June 1st.
Because of our special seasonal difficulties, we would be pleased to receive your order .........

Yours faithfully,
64
(page 89) ENGLISH FOR THE OFFICE
More phrases used in this unit:
at your expense (mi chi ph qu ngi phi chu) The extra risks must be insured at your expense, (you
must pay)
at your risk (qu ngi phi chu mi ri ro) Delays in shipment will be at your risk, (you are responsible or
liable for any delay)
in full (y , hon tt) You must pay in full, (completely; all at once)
in response to: (p li) In response to your enquiry the manager sent an invoice, (answering)
in touch with (lien h vi) I shall be in touch with the Sales Manager next Tuesday. (I shall communicate in
writing or by phone)
in (your / our) favour (m ngi th hng l qu ngi, chng ti..) Our Accounts Department will sign a
cheque in your favour, (for you),
of assistance (h tr) Our agent can be of assistance to you. (can help)
Insert the correct phrases in the following letter.
Dear Sirs,
We have forwarded a Pro-Forma Invoice in response to your request, sent to us by telegram on the 24th November.
We shall be in touch with our agents to arrange for despatch and shipment. We would like to remind you that
refrigeration facilities on board ship will be at your expense. Chng qu ngi ti gi ha n tm theo yu cu
ca qu Ngi trong in tn m qu ngi gi cho chng ti vo ngy 24/11. Chng ti s lin lc vi
i l ca chng ti thu xp chuyn giao hng. Chng ti xin nhc l qu ngi phi chu mi chi
ph thu thit b ng lnh trn tu. Any losses through excess heat will be entirely at your risk. The Insurance
Policy will make this clear.
We would like you to open an irrevocable Letter of Credit in our favour through your bank, which we trust will be
confirmed by your bank's correspondents in London.
If we can be of assistance to you in any way, please let us know. Your correspondence will receive immediate attention,
and we shall follow your instructions in full.
Qu Ngi s hon ton chu mi ri ro nu nh c tht thot do nhit qu cao gy ra. Quy nh ny
s c ghi r trong hp ng bo him. Chng ti yu cu qu Ngi m tn dng th khng th
hy ngang m chng ti l ngi th hng thng qua ngn hng ca qu ngi, v c s xc
nhn ca ngn hng i l ti London.

Yours faithfully,
Dear Sirs,
We have forwarded a Pro-Forma Invoice your request, sent to us by telegram on the 24th November.
We shall be 2.........our agents to arrange for despatch and shipment. We would like to remind you that refrigeration
facilities on board ship will be 3.......... Any losses through excess heat will be entirely 4.......... The Insurance Policy will
make this clear.
We would like you to open an irrevocable Letter of Credit 5......... through your bank, which we trust will be confirmed by
your bank's correspondents in London.
If we can be 6......... to you in any way, please let us know. Your correspondence will receive immediate attention, and we
shall follow your instructions 7..........
Yours faithfully,
65
(page 90) Follow-up Letters; Sales Letters; Orders
C. EXERCISES
1. A 'follow-up' letter. Write a follow-up letter, using the following words and phrases:
28th April, 19..
Dear Sirs,
We refer / your enquiry / 2nd April / our range / tinned soups.
We / like / help / you / decide / which brands / choose. Perhaps you / like / our representative / visit you? He /
arrange / a demonstration / free samples.
Our representative / visit you / within a week. He / in touch with you / soon.
If we / assist you / in any way, / please / let / know. Your correspondence / receive / immediate attention.
Yours faithfully,
Dear Sirs,
We refer to your enquiry dated 2nd April about our range of tinned soups.
We would like to help you in deciding which brands to choose.
Perhaps would you like our representative to visit you? He will arrange a demonstration with free samples.
Our representative will visit you within a week. He will be in touch with you soon.
If we could assist you in any way, please let me know. Your correspondence will receive our immediate attention.
Yours faithfully,
2. An order. Write this letter using the following words and phrases:
7th May, 19..

Dear Sirs,
We thank you for your catalogue, price-list and brochure sent to us on 22nd April.
We received a visit from your representative on 2nd May. We are very satisfied because your goods are
suitable.
We are going to place an order for 1,200 tins of tomato soup.
We are enclosing an order form (No. 12937).
Our bank will issue a Letter of Credit in your favour for your invoice f.o.b. London.
We look forward to receiving your shipment.
Yours faithfully,

7th May, 19..

Dear Sirs,
We thank / your catalogue, price-list and brochure / sent / on 22nd April. We / receive / visit / your
representative / 2nd May. We / satisfied / your goods / suitable.
We / place / an order / 1,200 tins of tomato soup./ We / enclose / order form (No. 12937).
Our bank / issue / a Letter of Credit / in your favour / your invoice f.o.b. London.
We look forward / receive / your shipment. Yours faithfully,
65
(page 91) ENGLISH FOR THE OFFICE
3. An acknowledgement. Write this letter, using the following words and phrases:
12th May, 19..
Dear Sirs,
We thank you for your order (No. 12937) of 7th May for 1,200 tins of tomato soup.
We confirm that we have those items in stock. We can guarantee the delivery by 25th May 19..
The goods will be sent as soon as we have received instructions from your bank's agents in London. We have
already despatched a Pro-Forma Invoice for the merchandise. All costs are included on it.
We will immediately advise you of the date of shipment when we have heard from your bank's
correspondents.
Yours faithfully,
12th May, 19..
Dear Sirs,
We thank / your order (No. 12937) / 7th May / 1,200 tins of tomato soup.
We confirm / have / items / in stock. We / guarantee delivery / 25th May 19.. The goods / sent / as soon as /
receive / instructions / your bank's agents in London. We / despatched / a Pro-Forma Invoice / merchandise.
All costs / include / on it.
We / advise you / the date of shipment / when we hear / your bank's correspondents.
Yours faithfully,
4. Write a letter to the Export Marketing Manager of a British company which specializes 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 colour. You want a
variety of sizes, also. The address is Motoleather Ltd., 159 Roman Way, Chelmsford, SQB 159T, Essex,
England.

Viet Tien Co.

12-4 Le Loi Street
Ben Thanh Ward
District 1 HCMC

24 November 2010
Export Marketing Manager
Motoleather Ltd.
159 Roman Way
Chelmsford SQB 159T
Essex - England
..
Dear Sir or Madam,
I am writing to express my interest in your selection of of leather motorcycle gloves.
We are an important store chain in Vietnam with more than 55 branches nationwide.
I would like to place a substantial order for black ones. We want a variety of sizes, also. I wish that you could
let us know your terms of trade or any discount you allow.
I wonder whether you can make delivery within 6 days after you have received my order.
We hope that your products will sell well through my store chain because you are a British company which
specializes in the production of leather motorcycle gloves.
I really look forward to hearing from you soon.
Yours faithfully,

4. Write a letter to the Export Marketing Manager of a British company which specializes 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 colour. You want a
variety of sizes, also. The address is.

5. You work for a firm which supplies typewriters to various British companies.
Write a follow-up letter to a first enquiry, giving details of an improved 15% discount for purchases over
10,000. Offer any other services (demonstration, visit) you think suitable.

5. You work for a firm which supplies typewriters to various British companies.
Write a follow-up letter to a first enquiry, giving details of an improved 15% discount for purchases over
10,000. Offer any other services (demonstration, visit) you think suitable.
Dear Sirs,
We refer to your enquiry dated 2nd April about our range of typewriters.
We often allow an improved 15% discount for purchases over 10,000.
We would also like to help you in deciding which brands to choose. Perhaps would you like our representative to visit you?
He will arrange a demonstration with free samples.
Our representative will visit you within a week. He will be in touch with you soon.
If we could assist you in any way, please let me know.
Your correspondence will receive our immediate attention.
Yours faithfully,

6. Acknowledge an order from a British buyer.

Micronerg 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 E7 5QT.
67
(page 92) Letters for Packing, Forwarding, Despatch, Shipping
10 Letters for Packing, Forwarding, Despatch, Shipping
advice of despatcli A letter stating that a cargo has been shipped consignment cargo
containerization The entire system of pre-packing goods in large metal boxes which can be transported by
road, rail and sea. it makes handling very easy, as loading and unloading of individual items is simplified. It is
safer, quicker, and there is less risk of damage or theft of goods. Docks and ships are now being designed to
handle containers of this kind, and the whole system of transport, packing, docks and special container ships is
called containerization.
forwarding agent An agent who arranges packing and shipping, especially in the docks
port of call A port which a ship slops at
scheduled A timetabled service; a ship or airplane which must leave at a fixed time
and arrive at a fixed lime, every day, week, month, etc. stencil A system of making regular marks with paint
on wooden and other surfaces, stipulate To make specific demands
Containers packing terms dimensions
Bag cardboard Weight
Carton wrapping Bulk
Case padding Mass
Crate Lining measurement
Container waterproof Capacity
Box rustproof Volume
Cask damp-resistant Space
Sack airtight Gross
Barrel Sealed Net
Drum battened lightweight
Hogshead insulated
Keg adhesive tape
Bale reinforced
Can cleated
Tin Clamp
Carboy fast (made fast)
Bundle returnable
A "mark"
Special Instructions (stencilled on containers) fragile
produce of the United Kingdom export - Spain this side up
67
(page 93) ENGLISH FOR THE OFFICE
handle with care use no hooks to be kept cool keep dry open this end perishable
inflammable - with care
The buyer (or importer) has the right to stipulate (i.e. to state and demand exactly what he wants) the correct
form of packing and shipment. No buyer wants to find his goods damaged or missing on arrival. No supplier
wants this to happen, either. He may lose a customer.
The buyer will want the supplier to stencil special marks and numbers on the boxes, cartons, crates and other
containers.
The supplier will give him this information, together with details of the dates, ports of call (if any) and
scheduled arrival date in an "advice of despatch'.
There are special difficulties in export packing, and there are new methods of containerization, loading and
unloading. For these and many othe* reasons, firms employ a special export packing service or a forwarding
agent to arrange their export packing for them.
The buyer sends the instructions following for packing and marking.
Dear Sirs,
Order No. 281511 /TW37IGLF
We refer to the above order, for which you will soon receive our order form. Chng ti cm n n t hng trn, v
qua qu ngi s sm nhn c mu n t ca chng ti.
First we must insist on certain packing conditions, both in our own interest and to comply with the demands of our customs
authorities. u tin chng ti khng nh phi p ng iu kin ng gi, trc ht l bo m
hng ca qu ngi ng thi theo ng yu cu ca c quan hi quan ca chng ti.
We refer light wooden containers for the filing cabinets to prevent dents and scratches. Wooden crates will be necessary
for the loose-leaf folders. We would like to have some extra padding in these crates also. Customs examination is
thorough in Barcelona, so any metal bands securing the containers and crates must be screwed on carefully so that the
containers can be opened the secured again properly.
We are acquainted with your special as identification. In addition, Spanish customs require the country of origin to be
marked on the container, and the weights (in kilos, please!) and dimensions (in centimetres, please!). We would also like
the word FRAGILE stencilled in large letters on all sides of the container. Each container must have a number.

68
(page 94) Letters for Packing, Forwarding, Despatch, Shipping
These instructions must be strictly observed as the containers and crates are likely to receive rough handling in
transit and at the port of discharge.
Yours faithfully,
Reply from S.O.F. Ltd.
Dear Sirs,
Order No. 281511 /TW37/CLF
We have pleasure in confirming that your packing instructions will be carried out to the letter by our forwarding agents in
London.
Our forwarding agents advise us that the containers for the filing cabinets are made of lightweight reinforced plywood.
These are used to reduce freight, which is charge on weight (not on dimensions) for this shipment. These containers are
returnable.
We shall, in due course, send you an advice of despatch when all arrangements have been completed and your order has
been shipped.
Yours faithfully,

When payment has been arranged and documents surrendered to the bank which confirms the credit, the
goods can then be shipped. An advice of despatch is then sent, informing the buyer that the goods are on
the way.
6th December, 19..
Dear Sirs,
Your Order No. 281511/TW37/CLF
We arc pleased to inform you thai your filing cabinets and loose-leaf folders have now been despatched. As
agreed, we have fulfilled the following conditions:
Packing: in 13 containers; 4 cabinets to a container.
Shipment: By S/S Shenandoah, Norless Line, which sailed from Tilbury Docks, London on December 5th,
and is scheduled to arrive in Barcelona on December 11 th.
68
(page 95) ENGLISH FOR THE OFFICE
Marks and numbers: S.O.F. in diamond BARCELONA. Details of weights and measurement are given on the
enclosed printed form.
We have handed the shipping documents, that is a complete set of clean "on board" Bills of Lading, the
Commercial Invoice (5 copies), and the Insurance Certificate to your bank's correspondents in London, who
have accepted our 60 d/s draft on them for the amount which your Letter of Credit opened with them.
We look forward to hearing in due course of the safe arrival of the consignment.
Yours faithfully,
A. LANGUAGE PRACTICE 1. Notice these sentences:
A Your consignment will be shipped on board the S.S. Shenandoah, which sailed from Tilbury Docks on
December 5th.
B We refer to the above order,yor which you will soon receive a special order form.
Make sentences similar to A for the following pairs of sentences:
1) Marks are abbreviations and symbols. They are stencilled on containers.
2) Weights and dimensions are details. They are included in the buyer's instructions.
3) Your packing instructions will be sent to the export packing department. It will carry them out.
4) You may use our agent's services. They are free.
5) Our invoice shows the charge for the metal containers. They are returnable.
Make sentences similar to B for the following:
1) We enclose a Pro-Forma Invoice. The discount is stated in it.
2) Please forward the shipping documents. We sent a request for them on the 12th November.
3) Please write the name of the bank. We must send the documents to it.
4) We thank you for your letter of the 29th November. You state your terms for packing and shipment in it.
5) This is address. You must send all correspondence to it.
69
(page 96) Letters for Packing, Forwarding, Despatch, Shipping
2. Notice how this sentence is used for important demands: We must insist on certain packing conditions.
Make similar sentences for the following:
1) Non-inflammable polythene wrapping for the voltmeters.
2) The correct dimensions of the containers in centimetres.
3) The shipping documents before we can issue the Letter of Credit.
3. Notice how this sentence is usedfor compulsory, legal demands: We must comply with the demands of the
customs authorities. Make similar sentences for the folio wing:
1) The port authority's fire precautions.
2) The instructions of the marine insurance policy.
3) Government import licence regulations.
4. This sentence is used for essential and sometimes compulsory demands: Customs authorities require a
Certificate of Origin.
Make similar sentences for the following:
1) Our customers / full packing details.
2) The suppliers / a special order form.
3) The Bank / a full set of shipping documents.
5. This sentence is usedfor essential specific demands. These conditions must be strictly observed. Make
similar sentences for the following:
1) Instructions about transshipment.
2) Our customer's special packing requirements.
3) The Government's customs duty declarations.
Further examples of letter in packing, despatch and forwarding
A buyer (or importer) writes a letter giving packing instructions.
69
(page 97)
ENGLISH FOR THE OFFICE

7th August, 19..

Dear Sirs,
Our Order No. Q157M
We refer to our order for 400 large tins of paint. Our order form was sent to you last week, and we trust you have received
it.
As we have longer experience in the shipment of paint than you, it would be best if we gave you packing instructions.
Paint, as you know, is a highly inflammable commodity, and extra precautions are always necessary.
We would like you to pack the tins in 10 large cartons, 40 tins to each carton. Packing in strong metal cartons is essential,
and each carton should measure not more than 110cm. x 55cm. x 55cm., as there is an additional charge for extra space,
as well as weight.
Each carton should have an inner fireproof lining. We think asbestos is suitable for this, as it is light. Each carton should
be properly sealed.
We would like you to stencil the following words in large, letters on all four sides of each carton:
EXPORT - MOMBASA INFLAMMABLE - PAINT Your mark in a square: A.J.L. HANDLE WITH CARE
These will be sufficient. Our customs authorities do not require anything special on the cartons although they will inspect
them. We will not need to seal the cartons again after inspection.
Please arrange the packing in accordance with these instructions. Give particular attention to the fire-proof lining as our
insurers insist on this.
Yours faithfully.

70
(page 98) Letters for Packing, Forwarding, Despatch, Shipping
Reply to the letter of instruction about packing.
18th August, 19..
Dear Sirs,
Your Order No. Q157M We thank you for your letter of the 7th August.
We have passed on your instructions to our packing and forwarding agents, and they will carry out your
instructions in full.
Our forwarding agents tell us that the metal cartons they use are fire-resistant, but also lightweight. These
cartons are returnable, and our forwarding agents will be in touch with you about arrangements for collecting
them for re-shipment.
We shall send you an advice of despatch as soon as the goods have been packed and shipped.
Yours faithfully,
The advice of despatch
21st August, 19..
Dear Sirs,
We have pleasure in informing you that your consignment of paint has been despatched. As agreed, we have
fulfilled the following conditions:
Packing: In 10 cartons; 40 tins to each carton.
Shipment: Per S/S Liffey, Soulhcross Line, which sailed from Liverpool on 20th August, and is due to arrive
in MOMBASA on the 29th September.
Marks and numbers: A.J.L in square EXPORT - MOMBASA INFLAMMABLE PAINT FIANDLE WITH
CARE Cartons numbered 1 to 10.
We have handed the shipping documents to your bank's agents in London, and they have accepted our sight
draft on them.
We look forward to hearing of the safe arrival of the consignment in due course.
Yours faithfully,
70
(page 99) ENGLISH FOR THE OFFICE
B. VOCABULARY
1. Insert the correct words in size appropriate spaces in the passage below.
containers fire-proof open this end
country of origin fragile padding
dimensions inflammable stencil
discharge lining water-proof
forwarding on board weight
Packing is very important in modern shipping. The use of pre-packed 1......... has reduced the risk of damage which can be
caused by rough loading and unloading, but there are still many risks which packing and 2......... agents must be careful
about.
In addition to the damage caused by loading and unloading, there are the risks from water and fire, as well as other
accidents 3......... ship. Therefore the containers used today are often strong, 4......... and 5......... to protect them against
rough handling, fire and water respectively.
Although there is less risk today, forwarding agents often have to 6......... special signs on the containers, cartons, crates or
boxes. For example, they write 7.........if the goods can be broken easily,8.........if the goods catch fire easily, and 9......... if it
is important to open a container so that the goods are standing the correct way when the container is opened.
In addition, the 10......... in kilos and the 11......... in centimetres are sometimes necessary. Importers also give instructions to
suppliers to stencil the ........., e.g. PRODUCE OF THE UNITED KINGDOM, and the port of 13........., e.g. MOMBASA, on
the containers.
The materials used are important. Wooden and metal crates and containers are necessary for fragile goods, and
waterproof and fireproof 14......... is sometimes necessary. To prevent damage from rough handling of glass bottles, for
example, extra 15......... is necessary.
If goods are packed carefully, there is less damage and less inconvenience for suppliers, buyers and insurance
companies.
2. Note these phrases:
in our / your own interest It is in your own interest to pack well, (it helps you) in transit The goods were
damaged in transit, (during the journey) in due course We shall send the invoice in due course, (at the proper
time) on arrival The agent accepted the cases on arrival, (when they arrived) on the way The S/S Shenandoah
is on the way to Bilbao, (travelling) to the letter You must follow the instructions to the letter, (every small
detail must be accurate)
(page 100) Letters for Packing, Forwarding, Despatch, Shipping
Insert the correct phrases in the following letter.
Dear Sirs,
We enclose packing details for your order of the 25th September for 125 voltmeters. Your instructions about waterproof
material's have been followed 1......... A letter enclosing specimens of our marks is 2.........to your head office.
We hope you will forward this to your agents in Genova 3......... It will be 4.........to ensure that no hooks are used when
unloading at the port of Copenhagen. We have tried to ensure that no damage is caused to your merchandise 5.........
Your agent should ensure that no damage is caused 6.........
I trust that these packing details are suitable. If not, please let us know, and we will help you in any way we can.
Yours faithfully,
C. EXERCISES
1. Write a letter containing packing instructions using the following words and phrases:
20th April, 19..
Dear Sirs,
We refer / order for light weight suits / which / you / soon receive. We / insist / certain packing conditions.
We / like / you / pack / goods / light wooden crates. Each crate / have extra padding. Please ensure / crates /
have / metal bands / can be opened / customs authorities.
We / like / you / stencil / following / all sides of the crates:
PRODUCE OF THE UNITED KINGDOM KEEP DRY OPEN THIS END HANDLE WITH CARE
We / also like / you / mark / weight / dimensions.
71
(page 101) ENGLISH FOR THE OFFICE
Please / ensure / these packing instructions / carried out. Our insurers / insist / these conditions, / and
handling / likely / rough / in transit and at the port of discharge.
Yours faithfully,
2. Write a letter of reply to the letter in No. 1 using these words and phrases:
28th April, 19..
Dear Sirs,
We thank /...............................................................
We / pleased / confirm / your packing instructions / carried out. Our forwarding agents / tell / crates /
lightweight. This / reduce / freight. The crates / not returnable.
We / send / an advice of despatch / when / arrangements / complete / and / order / shipped.
Yours faithfully,
3. Your firm has ordered a consignment of200 small electric heaters.
The heaters are made of metal, and part of the wire front is very light and weak. The consignment can be
damaged by rough handling, and the metal can be corroded by water. Your firm is based in Stockholm, and
Swedish customs require the country of origin's name on the containers, as well as the destination. Write a
letter to Nicholson Heaters Ltd., 49 Eynsham Rd., London, NW4 3ST, the suppliers, giving packing
instructions.
4. A British education authority has ordered 300 book cupboards for use in schools and colleges in their
area.
They have sent vague instructions for the packing of the cupboards, specifying thick padding only. Send a
letter of reply to their packing instructions, informing them of the packing arrangements you have made,
including marks, weights, dimensions, materials, padding, lining, and any other relevant details. The address is
The South West Education Authority, 47 Market Square, Exeter, EC4 3PD, UK.
5. Send an advice of despatch for the shipment of the goods in exercise 4.
The goods will be shipped on board the S/S Vespucci, leaving Montevideo on the 16th June, and due to arrive
in Southampton on the 2nd July.

11 Letters of Complaint
discrepancy A disagreement between two descriptions or accounts formalities Fixed arrangements such as
the signing of documents, which must be done
negligence Failure to perform certain duties
packing list A list which goes inside each case or crate, giving a list of the goods inside
penalty clause A part (or clause) of a contract which demands financial
compensation for late delivery, etc. pilferage stealing
replacements Goods (of the same kind) sent in cases of damage, loss stow To put away or stow in a ship
warehouse A building (usually in a dock) where goods are stored
We can classify most letters of complaint in International Trade under these main headings:
1. Complaints that the wrong goods were sent. The entire consignment may contain the wrong merchandise, or
perhaps just one or two cases were wrong packed.
2. Complaints that not enough goods were sent, or too many goods.
3. Complaints about bad, inferior or inadequate packing.
4. Complaints about the quality of the merchandise. The goods may be of inferior quality, or they may not be
what the buyer expected. These are two different matters.
5. Complaints about delay. This may be covered by a penalty clause.
6. Complaints about damage. This is usually a matter for the insurance agent.
I. A complaint that the wrong good were sent

Dear Mr Smith,

Ti va mi nhn c l hng 100 tm dn tng I have just received your shipment of 100 sheets of
kh 8X5 ca qu Ngi theo n t hng ngy 1-6- 8x5 dry-wall, which we ordered on June 1, 1998 (a
1998 (km theo y l bn sao bin nhn). copy of the sales receipt is enclosed).

V bit uy tn ca qu Ngi c c l nh cht Since I know of your reputation for quality, I was
lng lun bo m, nn ti rt ngc nhin khi thy surprised to find that a good portion of the
rng phn ln l hng u b rn nt. shipment was cracked.

Hng tr li c xe ti ca qu Ngi ch v Your trucks have taken the original shipment back
kho ca qu Ngi. to your premises.

Ri thay, ti phi yu cu qu Ngi hy b n t Unfortunately, I will have to request that the order
hng. be canceled.

Thi gian cn thit cho vic thc hin li n t The time required to reship the order will
hng chc chn s lm tr lch phn phi hng ca significantly delay our schedule.
chng ti.

Do vy chng ti nh th sn ca chng ti tm
ngun giy dn tng thng qua cc nh cung cp
ca h. Accordingly, we have arranged for our painters to
provide the drywall through their suppliers.

Ti hi tic l chng ti khng th theo ui n

t hng ti ni ti chn.

Tuy nhin v ti tin chc rng y ch l s c nht I regret that we were unable to complete the order.
thi, nn mong mi quan h gia hai cng ty ca
chng ta ngy thm bn cht.
 As I am certain this is an isolated incident,
however, I look forward to continued business with
you in the future.

Sincerely,

Order No. 281511/TW37/CLF

We received the documents concerning the above order in good time and the consignment arrived on board the S/S
Shenandoah on the 11th of December 19... Our agents accepted delivery of the order at the port of Barcelona.
The merchandise seems to be in good order with the exception of Case No. 13, which appears to contain filing cabinets of
a type completely different to TW37. The case contained two filing cabinets whereas the other cases contained four each.
We have checked this against the details printed on the Bill of Lading and on your invoice.
We assume that your packing or forwarding agents made a mistake. Perhaps the contents of Case No. 13 were for a
different order?
We enclose a list of the contents of Case No. 13. We would like you to arrange a despatch of replacements at once.
Our agents are keeping Case No. 13 in their warehouse. Please let us know what you wish our agents to do with it.
Perhaps you will inform your forwarding agents regarding shipment and customs formalities.
Yours faithfully,

2. A complaint that not enough goods were despatched

Dear Sirs,
We refer to our order (No. 169/SPL) for stainless steel lightweight cutlery. Our agent took delivery of the consignment in
accordance with the instructions contained in your advice of despatch.
Unfortunately, only 1,873 forks were despatched. The 2,000 knives, packed separately according to our instructions,
arrived in good order and condition. However, they are not much use 1 to us without the missing 127 forks.
There is a clear discrepancy between the packing lists which arrived and your invoice. Whether there has been pilferage
or not is a matter for the Lloyd's agent, who is investigating the matter at the moment.
We must ask you to arrange for the despatch of the replacements for the missing forks at once as we must meet a
delivery date to our own customers.
Yours faithfully,
3. A complaint about bad packing
Dear Sirs,
Order No. J AD/1573
We regret to inform you that four of the twenty cases containing your consignment of alarm clocks were
inadequately packed.
not very useful
(page 104) Letters of Complaint
We sent you specific packing instructions for this consignment, and no doubt you passed these instructions on
to your forwarding agent.
Cases 13, 14, 18 and 20 did not include the layers of waterproof lining we insisted on. As a result, the clocks
contained in these cases are almost ruined and certainly unsaleable.
We must insist on an immediate replacement for the four cases, and we must ask you to follow our
instructions more carefully in the future.
Yours faithfully,
4. Complaints about quality
Dear Sirs,
We refer to our order (No. 1276/FRS) for 70 light blue nylon shirts, which were consigned by you on 16th
August, 19.. and which we received on 23rd August 19...
We very much regret to inform you that the quality of the above mentioned shirts is unacceptably low,
especially in design and colour. They are, in fact, discoloured. The pattern is not what we expected when we
saw your samples.
Our customers will not buy these shirts at the market price. They will expect a discount.
Since the shirts correspond neither to the description in your brochure nor to the sample, we cannot accept
these goods at the price we agreed. We will accept the shirts only on condition that you make a substantial
reduction in price. We expect this reduction to be about 30 per cent.
Please let us know by return what you propose to do about either replacement or price reduction. Our agent
can bring a sample from the consignment to show you.
Yours faithfully,
5. Complaints about delay.
Very often firms have penalty clauses in their contract which protect them against losses through delay. So a
letter may simply refer to this clause, but usually letters of this sort will remind and ask for explanations also.
10th December, 19..
Dear Sirs,
We are concerned that we have not yet received an advice of despatch from you about our order
(JM8/08/07/77) for 1,500 Mickey Mouses.
Our order stressed the importance of an early delivery date.. That date is very near (15th December). In your
acknowledgement (of the 18th November) you said you were confident you could meet this delivery date.
There is no possibility of this now, unless your advice of despatch was lost in the post.
Our stocks are running out and the Christmas trade will soon be at its peak. It will be most unfortunate if you
cannot arrange delivery before Christmas.
Please inform us by cable whether the goods have been despatched and when we can expect delivery.
Yours faithfully,
A. LANGUAGE PRACTICE
1. Note the use of 'with the exception of and 'which We can join these three sentences using
them.
The merchandise seems to be in good order. No. 9 is not. It contains the wrong type of cabinet.
The merchandise seems to be in good order, with the exception o/No. 9, which contains the wrong type of
cabinet.
Do the same thing with the following sentences:
1) The packing cases arrived in good condition. No. 5 did not. It was broken.
2) The goods arrived safely. The metal tubes did not. They were missing.
3) The merchandise was shipped on time. The electric light switches were not. They were sent later.
4) The documents were sent by surface mail. The Certificate of Insurance was not. It was sent by air mail.
5) Most goods must be sent by ship. Light, small, expensive precision instruments need not. They should be
sent by air.
(page 106) Letters of Complaint
2. Note these sentences:
Our agent look delivery of the goods in the port of Oslo on the 29th January 19-. Unfortunately, 127 forks
were missing.
Use the word 'unfortunately' to express a mild complaint at the following. The word begins the second
sentence in each case.
1) We received your consignment of electrical equipment. Two cases of transformers were damaged.
2) We would like to send the goods in one shipment. That is not possible at the moment
3) The ship set off on schedule. It was delayed in transit by stormy weather.
4) The damage was caused by bad packing. The insurance policy doesn't cover you for this.
5) We ordered 250 typewriters. Only 25 arrived.
3. Notice how a more serious complaint is expressed:
We regret to inform you that four cases are damaged.
We very much regret to inform you that the quality of the merchandise is unacceptable.
Complain in this way about the following.
1) Seven boxes are missing.
2) There has been some pilferage in cases 1 to 5 inclusive.
3) The padding did not protect the glass bottles.
4) Case No. 19 was damaged by hooks in the port of Marseilles.
5) The shipment of men's suits was delayed in transit.
6) The quality and design is not up to your usual standard.
7) Cases 7 and 8 contain the wrong goods.
8) Only 20 typewriters were despatched, out of an order for 25.
9) The insurance policy doesn't cover you for negligent packing. 10) We cannot accept the surplus cases you
consigned.
4. Notice how these phrases are used to suggest pulitcly that the recipient has made a mistake or has been
inefficient in some way.
Perhaps your forwarding agent made a mistake?
We assume that your forwarding agent made a mistake.
Use 'perhaps' and 'We assume that' to make polite suggestions for these:
1) You didn't send the advice of despatch by airmail.
2) Your packing department received the wrong catalogue reference no.
3) The S /S Sheppey was delayed in the port of London.
4) The Bill of Lading was not 'clean'.
5) The case was not marked 'USE NO HOOKS'.
6) The contents of Case No. 9 were for a different order.
7) The containers were too light and weak.
8) Your forwarding agent was unaware of the penalty clause.
9) The goods were stowed in a hot place on board ship.
10) Your forwarding agent doesn't understand French customs regulations.
5. Notice how this sentence expresses urgent and immediate demcndS.
We must insist on replacements for the four cases immediately. We must insist on replacements for the four
cases at once.
Use the italicized words and phrases for the following demands.
1) A despatch of the shipping documents
2) A visit from your agent
3) Replacements for the goods in Case No. 4
4) A consignment of spare parts
5) A correction for the details printed on the Bill of Lading
6) A cancellation of the order
7) A detailed statement of freight and insurance costs
8) A reply to our complaint about your merchandise
9) The despatch of a Pro-Forma Invoice
10) A cable in reply to our enquiry about the advice of despatch
6. Notice the use of 'arrange' here:
Please arrange for the despatch of replacements at once.
You ask your suppliers to contact others when you ask them to 'arrange for' something.
Ask supplier to arrange the following:
1) The correction of an error in the consignment
2) The collection of the ten cases at the port of Liverpool
3) The despatch of the shipping documents as soon as possible
4) The completion of the customs forms by your Despatch Department
5) The distribution of copies of our packing instructions to all departments
7. Notice the use of the words 'concerning' and 'regarding':
We received the documents concerning the above order on the 10th December. Please inform your forwarding
agents regarding customs difficulties.
75
(page 108) Letters of Complaint
'Concerning' and 'regarding' are very often used in official correspondence instead of the more common word
'about'.
Use these words to connect the following sentences:
1) We received your letter. It mentioned the Certificate of Insurance.
2) Inform your agents. Tell them about our packing instructions.
3) We saw the notice. It was about the new customs regulations.
4) We received your enquiry. It was about filing cabinets.
5) Please send instructions. They must tell us about shipment.
6) We notice a difficulty. It was about unloading.
7) We received your instructions.. They were about methods of payment.
8) Please send information. It should tell us about marks and numbers.
9) We received the documents. They were about shipping arrangements.
10) Please notice the regulations. They are about the new customs documents.
B. VOCABULARY
1. Insert the correct words in the appropriate spaces in the passage below.
cancel investigate quantity discount negligence replacements
discrepancy packing list unsaleable inferior penally clause up to standard
Complaints are often received by companies who ship consignments overseas.
These complaints are sometimes about the 1.........of the goods received. Perhaps not good enough goods were
sent, perhaps too many. And sometimes it is a complaint that the wrong goods were sent.
Often there are complaints about2......... packing, which can cause damage to the goods. Sometimes the
complaint is about inferior quality. Buyers in this case often complain that the goods are not 3......... There may
be a ......... between the description of the goods in the brochure and the goods which actually arrived.
A complaint may be about a delay in shipment, although companies often have a 5.........in their contract to
protect them against loss from delay. Complaints about damage are usually the business of insurance
companies, but if the damage is caused by the 6.........of the packers, then the insurance companies will not
accept responsibility. When there is a complaint that the wrong goods were sent, or too many, or too few, then
it is always necessary to check the 7......... for the cases, as well as the invoice. Then the agent must 8.........what
happened. The goods may still be in the port of loading. But the buyer cannot wait for the agent's report. He
usually insists on9.........as soon as possible. Bad, inferior or inadequate packing may cause damage to goods in
transit. The buyers may accept damaged goods if the supplier offers a 10........., but if the goods are badly
damaged they may be 11........., and in this case the buyer will demand replacements. If the delay is very long,
the buyer may 12.........the order, and there may be great loss to both suppliers and buyers.
2. Note these phrases:
at once Please send the replacements at once, (immediately)
by return Please send the invoice by return, (by the first postal delivery after you receive this letter)
in accordance with We will pack the goods in accordance with your instructions, (following)
in good condition The goods arrived in good condition, (undamaged)
in good time Please make sure the goods arrive in good time, (early)
on board Goods are often damaged on board ship, (on the ship or airplane)
on condition that We shall accept your consignment on condition that you send
the documents, (provided) on schedule The ship left on schedule, (at the right time)
with the exception of All the goods arrived with the exception of Case 6. (but Case 6 did not)
Insert the correct phrases in the following letter.
Dear Sirs,
1
.........your instructions for the shipment of leather goods to Naples, we
have despatched the goods 2......... the S.S. Warwick, which left the Port
of London 3.........and should arrive in Naples 4..........We have packed
the goods in sealed metal containers, 5......... the knee-length boots,
which we have put in separate wooden crates. We trust that the goods will arrive 6..........
We will accept responsibility for any damage caused by bad packing, but
only 7......... you make sure that your agent supervises unloading in
Naples.
Please contact your agent in Naples 8........., since he will have to receive
and inspect the merchandise.
Perhaps you would let us know 9......... if you are still interested in our
range of men's leather jackets.
Yours faithfully,
76
(page 110) Letters of Complaint
C. EXERCISES
1. Write a letter of complaint, using the following words and phrases:
3 rd May, 19..
Dear Sirs,
We refer / our order No 1395D/ men's woollen socks / consigned by you / 19th April / and / we received / 28th
April.
We regret / inform / you / two cases, numbers 8 and 12, / broken. 37 pairs of socks / missing. We / informed /
the Lloyd's agent / investigating the matter.
We / check / the invoice / the packing lists. There / a discrepancy / the two.
We / ask / arrange / despatch / 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 towels which your company didn't order. They are the wrong size and colour.
Write to the suppliers, Abercrombie Ltd., 129 Charlton Ave., London, SW11 1NP, complaining about the
mistake, which was part of an order which arrived on board the M/V Lowestoft at the port of Athens on the 1st
April 19..
3. A consignment of J5,000 motor car tyres is three weeks late.
Write a letter to the suppliers, Manro Ltd., 47 Edward Square, Glasgow, complaining about the delay and
insisting on immediate despatch.
4. Your company ordered 1,000 transistor radios from the International Electric Company, 107 Vine Street,
Cambridge.
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.
5. A consignment of 5,000 women's skirts has arrived and your company has examined them.
The quality is not what you expected. The skirts are made of poor material and they tear easily. The colours
and design are disappointing, too. Write a letter of complaint, asking for a reduction in the prices quoted on
the invoice, or replacements if the suppliers do not agree to your demands.

Draw out an IMO and fill in it.

International Money Order Request Form
Customers name: IMO No. .
IMO payable to
Please supply International Money Order as detailed above. Payment is to be made by: .
Debit to my/ our account; Cash; Cheque. (Delete as appropriate).

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 (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 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.. .(3). Both of
these methods are better than payment.. .(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.. .(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.

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 transactions (1).. such as subscription, gifts, orders 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 (2)..., ask
a bank official for advice.
When you fill in (3) ..the request form you write your own name and the names of the Beneficiary (4) , you should also
state how you wish to pay: in cash, by cheques, or by debit (5)..to your account. You then receive the I.M.O., and you can
mail (6)...it direct to the company or relative abroad.

The I.M.O is convenient...(7)...because the bank makes all the arrangements for you and there is no delay. There is a small
service charge....(8)..., however. This is also called a commission charge.
Banks which encash.. .(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 deposit....(10)...it to his account. The
beneficiary's bank will levy(11)...a small commission charge, and will ask for suitable identification (12).... if they do not
know him personally.
Only banks are allowed to negotiate (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 refund(14). which is limited to 100 or US$250. The balance.(15)....is
repaid after a short period.
(Page 5) B. 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.

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 money (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 supplying the magazines as soon as we receive payment.

Yours faithfully,

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.

8m March 2005
Dear Sirs,
Thank you very much for your letter of the 2nd March 2005 enclosing your invoice (No. QS3458). I enclose an
International Money Order (No.1075881) for 140, 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 place orders in futures, however, I International Money Order may
be inadequate, as we hope to buy your magazines in much bigger quantities.

We look forward to receiving the magazines. ........

Yours sincerely,

J.K Harvey
V. Exercises
1. Write a letter to an English customer who has booked 25 rooms for a group of English tourists.
You work for a travel agency. You require a deposit of 150 pounds from Miss Carol Levander for the booking, and you
want her to pay by IMO. Explain to her that this is the cheapest and quickest method of payment for her.

Viet Travel Company

12-6 Le Loi Street
 Ward 10 District 1
HCMC Vietnam
15 September 2010

Miss Levander,
37 Winchester Str,
London, SW34 KR.

Dear Miss Carol Levander,

Thank you for your booking 25 rooms for a group of English tourists. We enclose the invoice, which gives you details of
the cost. Payment must be made before.

We would like to suggest that you pay the deposit by International Money Order. The amount of money (150) 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 soon.

Yours sincerely,

C.A. Hines

2. The English buyer can then go to his bank branch and purchase an International Money Order. Then he writes to
the supplier.
3.
8m March 2005
Dear Sirs,
Thank you very much for your letter of the 2nd March 2005 enclosing your invoice (No. QS3458). I enclose an
International Money Order (No.1075881) for 140, 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 place orders in futures, however, I International Money Order may
be inadequate, as we hope to buy your magazines in much bigger quantities.

We look forward to receiving the magazines. ........

Yours sincerely,

J.K Harvey

4. Reply to the above letter, enclosing an International Money Order for SUS250.
1. An IMO is suitable for the payment of subscriptions.
B. In addition, you can pay small import orders by IMO

What do you know about cheques?