1. Translate the text:
Bill of Lading: Negotiability
Bill of Lading is as a document of title. It is proof of ownership, so the person who owns the B/L may claim the goods.Look at the B/L in Exercise 2. Under the heading 'Consignee' is the word 'ORDER'. This word means that the B/L is negotiable — it can be sold. If you sell the goods you give the buyer the B/L so it
can be used to claim the goods. The advantage of this is that the importer can sell the goods while the ship is still at sea. The buyer then presents the B/L and collects the goods when the ship arrives at the port of destination. The first importer has the money to start another transaction.
Credit is normal in export trade. When a B/E has been signed by the importer, the exporter usually has to wait about 90 (or sometimes 180) days before it can be exchanged for money. Because a B/E is negotiable, the exporter may discount (sell) the bill at his bank before the 90 days have passed. The exporter has the money to start another transaction immediately and the bank collects the money when the B/E is paid, the bank may rediscount the bill to a discount
house which specialises in this work.
Notes:
Bill of Lading -коносамент
negotiable -оборотный документ (инструмент)
Give short answers to these questions about the passage:
1. What are the two functions of a B/L that you know?
2. Which words on a cheque mean that it is negotiable?
3. Do you think an exporter discounts a B/E when the transaction is 'documents against payment'?
4. When a bank discounts a B/E, do you think it pays (a) more than (b) the same amount as (c) less than the face value of the bill?
2. Translate the Bill of Lading:
| LINER BILL OF LADING B/L no. 2 TITAINER LINE AUSTRALIAN SHIPPING SERVICE PTY MELBOURNE -25 KOALA STREET TEL: 74245 TELEX: 15925 AA | ||||
| SHIPPER 1 | NUMBER OF ORIGINAL B/L | |||
| VESSEL 5 | ||||
| CONSIGNEE (IF 'ORDER' STATE NOTIFY PARTY) ORDER | PORT OF LOADING 6 | |||
| PORT OF DESTINATION 7 | ||||
| NOTIFY PARTY 3 | FREIGHT PAYABLE AT 8 | |||
| MARKS & NOS | NO & KIND OF PACKING DESCRIPTION OF GOODS 10 | GROSS WEIGHT IN KILOS | MEASUREMENT IN M3 | |
| FREIGHT PAID Place and date of issue IN LIVERPOOL 13 Smith & Jones Co Ltd Signed (for the master) by Smith & Jones Co Ltd Per P. Jackson as agentsP. Jackson | ||||
3. Decide which numbers these bits of information replace on the Bill of Lading above:
| a) 8 CASES MICRO- PROCESSORS b) GLM ENGINEERING LTD10 OAK WAY HALIFAX c) LIVERPOOL d) LIVERPOOL e) LIVERPOOL 19 July 2000 f) THREE (3) | g) MELBOURNE h) BJT (Pty) i) OUTBACK STREET MELBOURNE j) GLM/BJT MEL 1/8 k) 139.2K l) X2053 m) 1.16 cu.m n) “AUSTRALIAN QUEEN” |
4. A Bill of Exchange is a sort of post-dated cheque. Look at this Bill of Exchange and in pairs ask and answer questions about it, like this:
Ask who wrote the B/E.
P: Who wrote the Bill of Exchange? R: Sheila Baker
