PAYMENT TERMS(Ⅱ) Jay: Mr. Lu, when do I have to open the covering L/C if I want the goods delivered in June? Lu: You'll have to open the L/C early in May, that is, 30 days before the month of delivery. Otherwise we'd be behind the sailing schedule. Jay: That'll tie up our capital in the bank for too long. We simply can't afford it. Won't 15 to 20 days be enough? Lu: I'm afraid 15 to 20 days won't do. Getting the goods ready, booking the shipping space, all this takes time. You can't expect us to make delivery in less than 30 days. Jay: Since there is no other choice I think I'll have to arrange for the L/C to be issued as soon as I get home. Lu: When will it be? Jay: Early next week. In the meantime, I'd like you to exert yourself and get everything ready for shipment. Lu: You may rest assured of it. We'll set about booking the shipping space immediately and try to effect shipment within the time stipulated. Jay: That'll be fine. Thank you for your cooperation. Lu: There's one point I'd like to mention. The L/C is to remain valid until the fifteenth day after shipment. You must leave us one week's time or so to get all the shipping documents ready for presentation and negotiation. Jay: Well, I'll take careful note of it.
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