PAYMENT TERMS(Ⅰ) Fitch: Talking of mode of payment, can you advise me of your regular practice on this respect? Jiang: Positively. We generally request payment to be made by irrevocable letter of credit payable against shipping documents. It's adopted universally in the international trade. Fitch: I wonder if you accept D/P, which is also customary as far as international trade travels. Jiang: As a rule we don't accept D/P payment terms. Fitch: To spcak frankly, it will add to the cost of our imports to open an L/C, especially for such a huge order. What's more, it will cause us a great deal of difficulty. Jiang: I'm afraid it can't be helped. Fitch: But it'll be of great help if you would be a bit more flexible and accept D/P terms. you see, it makes on great difference to you, but it dose make difference to me. Jiang: I'm very sorry, Mr. Fitch. It's beyond our power to grant your request. D/P will put us to great trouble while an L/C will give us protection of the bank. Everyone in trade knows it very well. And the other way round, we also pay by L/C for our imports. Fitch: Well, it seems that we have no alternative other than accept L/C payment terms. But, can you guarantee that shipment will be made as soon as you receive the L/C. Jiang: There could be no doubt about it.
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