Understanding Semiotic System in Letters of Credit (L/Cs)

Paniya An English teacher at the Business Administration Department The State Polytechnic of Semarang Email: panpaniya@gmail.com Abstract. This article deals with the study of sign called semiotics or semiology reflected in letters of credit. The discussion of semiotics is based on Systemic Functional Linguistics (SFL), while that of letters of credit are under the head of business document in English, whose expressions are specifically used in payment in international trade called export-import. Therefore, the discussion covers the integration of an area of linguistics and business English. The discussion involves 9 (nine) letters of credit (L/Cs) obtained as secondary data. Those nine letters of credit were issued by nine banks of different countries in different years. Due to the similarity of the nine L/Cs, only one L/C is discussed in details concerning how semiotic system is reflected in the document. Key words: semiotics, letter of credit, business document INTRODUCTION Since letter of credit (L/C) was used as a payment method in international trade, it has been learned and discussed particularly by business practitioners. It is actually a letter and very important in export and import of goods, but it is different from other letters in that the actual recipient is not what is written as receiver. The actual receiver is a beneficiary (exporter). The content is ununderstandable only from what is written. Messages are both explicitly and implicitly written/expressed. Someone must learn first the theoretical knowledge from banking books related to payments in international ttrade of goods. He/she must also learn UCPDC (Uniform of Customs and Practice for Documentary Credit), an international publication by International Chamber of Commerce headquartered in Paris, France. Most of the content is a command, but not written in imperative mood. It is important for us as English or non-English teachers to know that L/C texts can only be learned after the letters of credit have been issued. Talking about a business document before its issuance means only discussing theoretical knowledge of the document. PROBLEMS CONCERNING L/C 1. 2. There are at least two main problems concerning an L/C as follows: The actual problem in an L/C is the meanings as compared with what is written. The interpretation of what is written cannot only be based on the intuition using linguistic knowledge.

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SOURCE OF DATA For the purpose of this study, 9 (nine) letters of credit (L/Cs) as secondary data were collected. The 9 (nine) L/Cs are really used as business communication in a natural setting, and are displayed in Table 1 below. Table 1: A list of Letters of Credit (Documentary Credit) under Study
No. 1 2 3 4 5 6 7 8 9 Form of Documentary Credit Irrevocable Irrevocable Irrevocable Irrevocable Irrevocable Irrevocable Irrevocable Irrevocable Irrevocable Issuing Bank Zuecher Kantonal bank Zurich Bayerische Vereinsbank A.G. First Commercial bank, Tokyo Branch Banco Bilbao Vizcaya, S.A. Bankers Trust New York Tamara Bank, Jakarta Bank of Taiwan Bank Brussels Lambert The Bank of East Asia LTD. Country of Issuance Switzerland Germany Japan Spain The USA Indonesia (R.O.C) Taiwan Belgium Singapore Country of Beneficiary Indonesia Indonesia Indonesia Indonesia Indonesia Peoples Republic of China Indonesia Indonesia Indonesia Year of Issuance 2008 1999 1998 1997 1997 1997 1994 1994 1993 Writing Style Impersonal Impersonal Impersonal Impersonal Less Personal Less Personal Impersonal Impersonal Less Personal

DISCUSSION It is common in human communication for people to express something to mean a certain thing. As human beings usually use language for communication for a certain purpose, they usually choose a certain expression (a sign) to mean what it does (content/meaning) through conventions. Halliday and Hasan (1985:3) defines that Semiotic is the general study of signs. In this case people are involved in semiotic system. Wikipedia in http://en.wikipedia.org/wiki/ Semiotics (January 2009) clarifies that Semiotics, also called semiotic studies or semiology, is the study of sign processes (semiosis), or signification and communication, signs and symbols, both individually and grouped into sign systems. It includes the study of how meaning is constructed and understood. While Eggins (1994:14) clarifies that in semiotic system, the terms content and expression refer to the two dimensions which together constitute a sign: meaning (content) and representation (expression). Eggins (ibid) gives an example of semiotic dimensions of traffic lights as follows (see Figure 1). Eggins (ibid) continues clarifying the semiotic system of traffic lights that the content of the signs is the behavior they are designed to trigger, while the expression is the particular coloured light. It is easy to understand the semiotic system of traffic lights that when the expression is red, it means all kinds of vehicles in that location must stop. When the light (expression) is amber, all vehicles in the location must slow down (meaning), and

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so on with the green light (sign) for all vehicles to go (meaning). Frankly speaking, one choice in traffic light system constitutes an opposition to another. Figure 1: Semiotic system of traffic lights (Eggins, 1994:14)
stop RED Slow down AMBER Go GREEN

Content (meanng)

Encoded in (realized in)

Expression (realization)

Semiotic System in relation to the Kinds of L/Cs Semiotic system is also applicable to letter of credit (L/C), due the fact that the use of L/C involves sets of meaningful choices or oppositions for international business practitioners. In other words, there is semiotic system of L/C as illustrated Figure 2, which is similar to that of traffic light. Choosing one kind of L/C has certain impacts especially in relation to financial matters. Figure 2 (next page) indicates that there are also choices based on the kinds of L/C, but displaying the choices is not the end of the discussion on the business document. Exporters and importers mostly deal with L/C texts, and not only with the choices. In other words, expressions and meanings are not only discussed in relation to the kinds of L/C, but also to the L/C text how expression in the text is interpreted. This is usually faced by business practitioners especially importers and exporters. Semiotic System in relation to the L/C Text The semiotic system of L/Cs in relation to their kinds are already presented in Figure 2. However, it is only about L/C theoritically where the choice of one kind is in opposition from another. The following description is about the expressions and the meanings of texts of sample L/C1. Commonly, instructions are stated in imperative structures, but letter of credit (L/C) is unique in relation to instructions or commands. Those instructions or commands ar expressed in clauses which semantically have the meaning of command, but structurally the clauses are in fact declaratives. These are called modulation related not to probability but to obligation and necessity. Modulation in this sub-topic is in connection with the issued L/C text, and this is the focus of this paper. Therefore, this is to study how messages are presented whether using affirmative, interrogative, or imperative, which are discussed under the heading of mood and modality in Systemic functional linguistics. The sample L/C below also seems to indicate affirmative mood, and modulation is expressed either implicitly or explicitly.

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Figure 2: Semiotic system in the kinds of L/Cs

Payment at presentation of documents SIGHT PAYMENT L/C Payment at maturity date Draft valued at presentation of Documents. Payment done later Payment guaranteed by other than issuing bank More than one beneficiary Payment done to other than benefiicary Master L/C divided into smaller L/Cs Payment before shipment of goods L/C used more than once Uncancellable by one party Cancelable by one party any time. REVOLVING L/C IRREVOCABLE L/C REVOCABLE L/C Meaning (content) Encoded in (realized in) Expression (realization) ACCEPTANCE L/C NEGOTATION L/C

DEFERRED PAYMENT L/C

CONFIRMED L/C

TRANSFERABLE L/C ASSIGNMENT L/C BACK TO BACK L/C RED CLAUSE L/C

Source: Ramlan Ginting, 2000 integrated with Eggins (1994:14) Below is the retyped and codified L/C text for a sample in the discussion. LETTER OF CREDIT (L/C) 1:
(L/C) 1.1 a. b. c. (L/C) 1.2 (L/C) 1.3 (L/C) 1.4 (L/C) 1.5 (L/C) 1.6 (L/C) 1.7 27 40A 20 31C 40E 31D FIN 700 Issue of a Documentary Credit ZKBKCHZZL80A ZUECHER KANTONALBANK, ZURICH, SWITZERLAND. Receiver: BEIIIDJAA854 BANK MANDIRI (PERSERO), PT, (BILLS PROCESSING CENTRE), SEMARANG, INDONESIA. Sequence of Total 1/1 Form of Documentary Credit IRREVOCABLE Documentary Credit Number DOK-318575 B Date of Issue 080724 Applicable Rules UCP LATEST VERSION Date and Place of Expiry 080914 beneficiarys country Swift output: Sender:

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(L/C) 1.8 (L/C) 1.9 (L/C) 1.10 (L/C) 1.11 (L/C) 1.12 (L/C) 1.13 (L/C) 1.14 (L/C) 1.15 (L/C) 1.16 (L/C) 1.17 (L/C) 1.18

50 59 32B 39A 41D 43P 43T 44A 44B 44C 45A

(L/C) 1.19

46A

(L/C) 1.20

47A

Applicant Cotton-Tex AG, Werkstr.12a, 9444Diepoldsau/ Switzerland Beneficiary Name & Address PT.Apac Inti Corpora, Jl. Raya Soekarno Hatta Km.32, Ds.Harjosari, Semarang, Jawa Tengah, Indonesia. Currency Code, Amount USD28756,45 Percentage Credit Amt Tolerance 5/5 Available With .By..- Name &Address OURSELVES BY PAYMENT Partial Shipment NOT ALLOWED Transshipment ALLOWED On Board /Disp/Taking Charge at/from Any Indonesian Port For Transportation toROTTERDAM Latest Date of Shipment 080824 Descriptn of goods &/ or Services 9,336.51 kgs NE 30/1 100 pct Viscose (South Pacific Lenzing fibre) yarn, ring spun for knitting on cones with min. 30 cm pigtails, grey. USD 3.08 per kg cfr Rotterdam , contr. 9911206815 Documents required 1) Commercial Invoice duly signed, one original plus one copy showing lot number and also certifying that goods are produced from one single lot. 2) Packing List in one original plus one copy showing weight of one cone and lot number. 3) Original of Certificate of Origin issued by any competent authority in Indonesia, suitable for the export to the European Union. 4) Full set (3/3) original clean shipped On Board Bill of Lading, made out to the order of shipper blank endorsed, marked:freight prepaid, notifying : Nellen + Quack, the green line Internationale Spedition, Dueppelstrasse 17,D-48596 Gronou/Germany, evidencing shipment of goods from any Indonesian port to Rotterdam, mentioning contract number as well as our l/c number, issued and signed as per UCP Art.20 5) Copy of beneficiarys shipping advice (facsimile) to applicant (fax no. 0041/71/7379138) within 5 (five) working days after b/l issuing date at the very latest, evidencing the exact shipping details, such as etd, eta, description of goods, b/l no, b/l date, vessels name, number of pallets and cartons or number(s) of container(s) (if applicable). 6) Uster protokoll for the ordered yarn including twist and rkm (tensorapid proof) (in case of twisted yarn tpi of twist). 7) ISPM 15 and Fumigation Certificate. Additional Conditions 1) A fee of USD 80.00 or equivalent should be deducted from payment/reimbursement claim for each presentation of discrepant documents under this documentary credit, notwithstanding any instructions to the contrary, these charges are for beneficiarys account. 2) A tolerance of plus/minus 5 percent in amount and quantity is acceptable. 3) All goods to be shipped with container fcl/fcl on neutral cones and in neutral sea-worthy pallet packing and some cartons but every pallet and cartons must be clearly marked with count number and lot number, dont use a high cube container. Bill of Lading must evidence so. 4) It is only allowed to ship one lot in one container. 5) No documents, except commercial invoice and shipment advice must show price indication nor total value of goods. 6) We understand from applicant that the insurance will be covered by them. 7) Documents may be presented to any bank in Indonesia. 8) If shipment is not effected exactly as per specified terms, beneficiaries must bear in mind that they are liable towards applicant for all extra charges which occur to this fact and that same will be deducted from payment, in case of discrepancies in the documents. The ships must be classified (through a member of the International

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(L/C) 1.21 (L/C) 1.22 (L/C) 1.23 (L/C) 1.24

71B 48 49 78

(L/C) 1.25

72

Association of Classification Societies IACS) and the ships are not allowed to be older than 15 years. A signed Certificate from the shipping Company in this respect is required. Charges All Banking commissions and charges outside of Switzerland are for the beneficiarys AC account. Period for Presentation Documents to be presented within 21 days after bill of lading issuing date, but within the validity of the credit. Confirmation Instructions WITHOUT Instr to Payg/Acceptg/Negotg Bank Upon receipt of strictly credit conform documents at our counters in Zuerich we shall remit cover to the presenting bank for the counter value of documents according to their instructions and as per L/C terms within three Zuerich/New York bank working days. Sender to Receiver Information +Documents must be sent to Zuecher Kantonalbank, Dept.IBA2, Neue Hrd 9 CH-8005 Zuerich/Switzerland, in one lot by courier (DHL or similar service), quoting our above mentioned DOK- Reference.

Source : Authentic data obtained from PT. APAC INTI CORPORA, 2009 From the sample L/C, several messages tend to indicate affirmative mood, meaning giving information. However, affirmative mood in letter of credit tends to modality (especially modulation) which is dominant in the L/C text. Modality (modulation) in L/C texts is sometimes stated with omission of modal operator must, and sometimes found only in the interpretation, but in other clauses, modality is explicitly expressed. In fact, clauses using mood and modality (modulation) are in declarative mood, but they indicate command to the addressee to do things as illustrated further below. As an issued L/C reflects three semantic domains (area of knowledge), i.e. goods, documents, and payment, the discussion on modulation in every clause is commented whether it is connected with goods, documents, or payment, and how modulation is expressed, whether explicitly or implicitly, or whether modal operators are omitted. Modulation related to Sample L/C A command or an instruction is usually expressed in imperative mood, where clauses begins with infinitive verb without to, without -s nor -d/-ed ending, and without ing ending. However, command expressed through modulation is in declarative mood. In L/C texts, although the meaning of clauses indicate a command or instruction, clauses are expressed not by mentioning infinitive verb without to, but expressed through modal operators, such as must, may, will, might, should, or predicator constituent such as obliged to.., required to. However, clauses in L/C texts containing modulation are sometimes expressed explicitly with modal operators, sometimes with omission of modal operators, and sometimes modulation is found in the interpretation. The following expressions are original ones quoted from a letter of Credit (L/C) which is used in a export-import payment: (L/C) 1.3.Form of Documentary Credit IRREVOCABLE

The clause is related to L/C as a business document. In semiotic system of L/C, irrevocable is as the opposition from revocable. The expression irrevocable has a specific meaning in that the L/C can not be cancelled nor changed by one party/participant, indicating low degree of modulation. In the clause, modulation is found in the interpretation.

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(L/C) 1.6. Applicable Rules

UCP LATEST VERSION

The clause is related to both documents, and payment. When there is an expression as in (L/C) 1.6, there must be understanding of the relationship between L/C text and another text for the interpretation of the clause. As this section is connected with documents of goods, a quotation from the applicable rule should refer to Article 5 UCP-DC No.600, because UCP-DC No.600 is the UCP latest version or revision, which states that bank deals with documents and not with goods, services or performance to which the documents may relate. In L/C 1, the Article should be related to (L/C) 1.19 (Documents 1 up to 7). (L/C) 1.7. Date and Place of Expiry 080914 beneficiarys country

The clause is connected with documents of goods. Explicitly, there is no modality in the clause (L/C 1.7). It is expressed in such a way that that modulation (deontic modality) is found in the interpretation, because the expression means that documents of goods (in (L/C) 1.19) must be presented before or on 14th September 2008 in Indonesian banking working days and hours, indicating high degree of modulation. There is no other interpretation. At that time, it was a command to the beneficiary to present documents of goods before or on 14th September 2008. (L/C) 1.19.1. Commercial Invoice duly signed, one original plus one copy showing lot number and also certifying that goods are produced from one single lot The clause is related to both documents and goods, because an invoice constitutes and contains description of goods and total price of the goods. The clause (L/C) 1.19.1 does not contain modality (modulation). Modulation is found in the interpretation, i.e., Commercial Invoice must be duly signed, one original plus one copy, which must show lot number and must also certify that goods are produced from one single lot, indicating high degree of modulation. This is the only interpretation of the clause, and constitutes a direct instruction from the issuing bank to the beneficiary. Unless the command or instruction is fulfilled, the presentation of documents will be considered as discrepant. (L/C) 1.19.2. Packing List in one original plus one copy showing weight of one cone and lot number The clause in (L/C) 1.19.2 is associated with documents and goods, because a packing list is one the required documents stipulated in L/C. Again in clause (L/C) 1.19.2, no modulation is explicitly expressed. Modulation is found in the interpretation, i.e., Packing List in one original plus one copy must show weight of one cone and lot number, which indicates high degree of modulation. This is also a direct instruction from the issuing bank to the beneficiary. Unless the instruction is fulfilled the presentation of documents will be considered as discrepant. (L/C) 1.19.3. Original of Certificate of Origin issued by any competent authority in Indonesia, suitable for the export to the European Union The clause in (L/C) 1.19.3 is about document as well as about goods, and indicates no explicit modulation. However, the clause is modulated when the appropriate interpretation is made, i.e., Original of Certificate of Origin must be issued by any competent authority in Indonesia, suitable for the export to the European Union. This Ragam Jurnal Pengembangan Humaniora Vol. 12 No. 3, Desember 2012

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clause indicates different participants in L/C1, because this is an indirect instruction from an issuing bank to a competent authority in Indonesia (The Department of Industry and trade) to issue the certificate. The sender and the receiver has unequal power relation, because the receiver must obey the senders instruction to issue Certificate of Origin with a certain form. These two parties have low contact and low affective involvement. In business perspective, certificate of origin (COO) is required by the importing country in order that the goods can enter the country, exactly Switzerland for L/C1. (L/C) 1.19.4. Full set (3/3) original clean shipped On Board Bill of Lading, made out to the order of shipper blank endorsed, marked:freight prepaid, notifying: Nellen + Quack, the green line Internationale Spedition, Dueppelstrasse 17, D-48596 Gronou/Germany, evidencing shipment of goods from any Indonesian port to Rotterdam, mentioning contract number as well as our l/c number, issued and signed as per UCP Art.20 The clause is about document of goods. There is no explicit modality (modulation) in clause (L/C) 1.19.4. Modulation is found in the interpretation, i.e., Full set (3/3) original clean shipped On Board Bill of Lading, must be made out to the order of shipper blank endorsed, must be marked:freight prepaid, which must notify: Nellen + Quack, the green line Internationale Spedition, Dueppelstrasse 17,D-48596 Gronou/Germany, which must evidence shipment of goods from any Indonesian port to Rotterdam, which must mention contract number as well as our l/c number, issued and signed as per UCP Art.20 (Article 20). This clause also indicates different participants in L/C1, because this is an indirect instruction from the issuing bank to a shipping company, and no shipping company is nominated. In business perspective, full set (3/3) means that the number of an original bill of lading (B/L) consists of 3 sheets. The epithet clean means that the B/L may not contain certain notation about defective goods or their packing. On board means that the goods traded have been really loaded on the vessel (cargo ship) as the carrier of the goods. Unless the instruction is fulfilled, the presentation of documents will be regarded as discrepant. (L/C) 1.19.5. Copy of beneficiarys shipping advice (facsimile) to applicant (fax no. 0041/71/7379138) within 5(five) working days after b/l issuing date at the very latest, evidencing the exact shipping details, such as etd, eta, description of goods, b/l no, b/l date, vessels name, number of pallets and cartons or number(s) of container(s) (if applicable) The clause in L/C 1.19.5 is about documents and shipment of goods, and addressed to the beneficiary. Power relation is not stated as a direct command using declarative mood with a predicator evidencing in present participle. Modulation is found in the interpretation of the clause, i.e., Copy of beneficiarys shipping advice (facsimile) to applicant (fax no. 0041/71/7379138) within 5(five) working days after b/l issuing date at the very latest must evidence the exact shipping details, such as etd, eta, description of goods, b/l no, b/l date, vessels name, number of pallets and cartons or number(s) of container(s) (if applicable). The failure to fulfill the instruction, the presentation of documents is considered as a discrepant presentation and the beneficiary should pay a fee of USD 80.00 or equivalent (L/C) 1.20.1).

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(L/C) 1.20.5.No documents, except commercial invoice and shipment advice must show price indication nor total value of goods The clause is clearly related to documents of goods, and indicates explicitly high degree of modulation. Actually the finite must has negative polarity, but the negation is placed in the subject no documents, .... The clause can be expressed Any documents, except commercial invoice and shipment advice must not show price indication nor total value of goods. This clause refers to (L/C) 1.19.1 and (L/C) 1.19.2, and constitutes a direct instruction from the issuing bank to the beneficiary. (L/C) 1.20.7. Documents may be presented to any bank in Indonesia The clause is connected with both documents and payment, because the beneficiary will get payment if documents are presented as required. The low degree of modulation may be presented is explicitly expressed in the clause. This clause is a direct instruction from the issuing bank to the beneficiary. In business perspective, no nominated bank is appointed to negotiate the documents. The beneficiary is given freedom to choose a bank to which the documents of goods must be presented. (L/C) 1.20.9.a. The ships must be classified (through a member of the International Association of Classification Societies IACS) and the ships are not allowed to be older than 15 years The clause is connected with shipment (of goods), because a ship is a carrier of the goods from shipment port up to destination port. The clause is addressed to the shipping company through the beneficiary. The issuing bank has higher power. The high degree of modulation must be classified ., and low degree of modulation with negative polarity are not allowed to be. are expressed respectively. This is an indirect instruction from the issuing bank to the shipping company in operating a vessel to take the traded goods to the destination port. (L/C) 1.20.9.b. A signed Certificate from the shipping Company in this respect is required In this clause which is related to documents, high degree of modulation ..is required is explicitly expressed, because the clause can mean a signed certificate from the shipping company in this respect must be available. This is an indirect instruction from the issuing bank to the shipping company, and the mentioned certificate must be presented together with the documents of the goods. (L/C) 1.22. Period for Presentation Documents to be presented within 21 days after bill of lading issuing date, but within the validity of the credit In this clause which is connected with documents, modal operator must is absent, but the clause is interpreted as Documents must be presented within 21 days after bill of lading issuing date, but within the validity of the credit. Therefore, modulation is found in the interpretation. The validity of the credit (expiry date) is stated in the clause, because it is related to mode (feedback time). This clause is addressed to the beneficiary. If the presentation is done after the expiry date, the beneficiary will bear a risk of not receiving payment. but in the expression , but within the validity of the credit can mean and.

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(L/C) 1.25. Sender to Receiver Information Documents must be sent to Zuecher Kantonalbank, Dept.IBA2, Neue Hrd 9 CH-8005 Zuerich/Switzerland, in one lot by courier (DHL or similar service), quoting our above mentioned DOK- Reference The instruction in this clause is from the issuing bank addressed to the negotiating bank as an intermediary recipient, because in L/C operation, it is uncommon for a beneficiary to send documents directly to the issuing bank. It is uncommon either that a beneficiary sends documents directly to the applicant/importer/consignee. High degree of modulation is explicitly expressed with modal operator must plus predicator be sent, which indicates issuing banks higher power. In this case the intermediary recipient is the paying bank. L/C) 1.13. Partial Shipment NOT ALLOWED This clause is related to goods (shipment of goods). The finite is in the clause is absent, and the clause is interpreted as indicating low degree of modulation with allowed, which means that the issuing bank does not permit the beneficiary to ship goods by different means of conveyance, and that the bank obliges the beneficiary to ship goods in the same means of conveyance although in different dates. (L/C) 1.14 Transshipment ALLOWED

This clause is associated with shipment of goods, and indicates low degree of modulation with allowed, which means the issuing bank permits the carrier to unload goods from one means of conveyance and reload them into another during the carriage. There is no other interpretation. (L/C) 1.15. On Board /Disp/Taking Charge at/from Any Indonesian Port

This clause is about shipment of goods and addressed to the beneficiary, and does not indicate modulation at all, but only circumstantial adjunct is mentioned. Modulation (obligation) is found in the interpretation. The clause means loading goods for shipment in any Indonesian port is allowed under the credit. The interpretation also indicates high degree of modulation in the sense loading goods must be in an Indonesian port. There is no other interpretation. (L/C) 1.16. For Transportation toROTTERDAM The clause is addressed to the shipping company as well as to the beneficiary, because the phrase For Transportation toROTTERDAM is mentioned in all documents of exported goods which include bill of lading, invoice, packing list, and shipping instruction, and certificate of origin. Again, there is no modulation at all in the clause, and only circumstantial adjunct is found. However, modulation (obligation) is found in the interpretation. The clause means the goods must be shipped to Rotterdam or the destination port must be Rotterdam. The goods are not allowed to be shipped to another destination port. (L/C) 1.17. Latest Date of Shipment 080824

The clause in (L/C) 1.17 is addressed to the beneficiary and related to goods. With the absence of finite is, the clause also indicates no modulation at all. However, the

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clause means the beneficiary must ship the traded goods not later than 24th August 2008. Thus, high degree of modulation (obligation) is found only in the interpretation. (L/C) 1.18. Descriptn of goods &/ or Services 9,336.51 kgs NE 30/1 100 pct Viscose (South Pacific Lenzing fibre) yarn, ring spun for knitting on cones with min. 30 cm pigtails, grey. USD 3.08 per kg cfr Rotterdam, contr. 9911206815 (L/C) 1.20.2. A tolerance of plus/minus 5 percent in amount and quantity is acceptable (L/C) 1.11. Percentage Credit Amt Tolerance 5/5 (L/C) 1.10. Currency Code, Amount USD 28756,45 Clauses in (L/C) 1.10. (L/C) 1.18, (L/C) 1.20.2, and (L/C) 1.20.2 should be interpreted altogether, because they are interrelated. The amount of USD 28,756.45 is actually the L/C value, but the amount may be added with 5% to or be subtracted with 5% from the specified amount. The clauses are addressed to the beneficiary and related to goods and payment (in terms of amount of money). Although there is no indication of modulation in the clause, the interpretation contains modulation in that the beneficiary is allowed to add 5% to or subtract 5% from the quantity of goods. Thus, there is a posibility of the total amount of L/C value which may be 5% higher or 5% lower. However, the specification of goods must be in accordance with that stipulated in the L/C. There is a mixture of modulation in the clause, i.e., low and high degree of modulation in the interpretation of the clause. (L/C)1.20.3. All goods to be shipped with container fcl/fcl on neutral cones and in neutral sea-worthy pallet packing and some cartons but every pallet and cartons must be clearly marked with count number and lot number, dont use a high cube container. Bill of Lading must evidence so The above long and short clauses are addressed to the beneficiary and indicate both implicit and explicit modulation. The first compound clause reflects a combined mood, i.e., between a declarative mood and imperative mood mentioning a finite with negative polarity dont .., but the second clause shows explicitly declarative mood with high degree of modulation in must evidence. Here, the issuing bank has higher power than the beneficiary does. (L/C)1.20.4. It is only allowed to ship one lot in one container The clause in (L/C) 1.20.4 shows explicitly low modulation, evidenced by the expression allowed to ship . This clause which is related to shipment of goods, is addressed by the issuing bank to the beneficiary. In the clause, the issuing bank expresses a command with low degree of modulation by permitting the beneficiary to ship one lot in one container. However, the clause can be interpreted as indicating high degree of modulation in that one lot must be shipped in one container. (L/C)1.20.6. We understand from applicant that the insurance will be covered by them This clause (L/C) 1.20.6 is related to that in (L/C) 1.18. ... USD 3.08 per kg cfr Rotterdam , , in which the incoterm CFR (INCOTERMS 2000) is embedded, and is addressed to the beneficiary about insurance of the exported goods. It is true that in CFR, the insurance is covered by the applicant/importer/consignee. Thus, the clause (L/C) Ragam Jurnal Pengembangan Humaniora Vol. 12 No. 3, Desember 2012

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1.20.6 asserts the discussion in clause (L/C) 1.18, and can mean the applicant must cover the insurance premium. (L/C) 1.20.8. If shipment is not effected exactly as per specified terms, beneficiaries must bear in mind that they are liable towards applicant for all extra charges which occur to this fact and that same will be deducted from payment, in case of discrepancies in the documents Clause in (L/C) 1.20.8 is complex with conditional expression .. if shipment and explicit modulation . must bear in mind . It is addressed to the beneficiary to remind them about complied shipment of goods. The sense is that you the beneficiary must pay charges, if you do not ship the traded goods at the specified terms stipulated in the L/C. Pragmatically, the clause is a warning for the beneficiary. However, the clause in the declarative mood shows modulation (obligation), indicating a command to the beneficiary to send the traded goods and documents at the specified period. (L/C) 1.12. Available With .By..- Name &Address OURSELVES BY PAYMENT The clause is related to payment, addressed to the beneficiary, and expressed with the absence of subject and finite, and no modulation is explicitly expressed. However, the clause is modulated (inclination) in the sense that we the issuing bank prepare payment and are ready to pay you the beneficiary when the required documents have arrived at our counter. (L/C) 1.20.1. A fee of USD 80.00 or equivalent should be deducted from payment/ reimbursement claim for each presentation of discrepant documents under this documentary credit, notwithstanding any instructions to the contrary, these charges are for beneficiarys account The clause in (L/C) 1.20.1, indicates modulation (low degree) which is explicitly expressed with should be , and actually it is an inclination from the issuing bank (the sender) to make payment with warning. The clause can also mean an obligation in the sense that you the beneficiary must pay USD 80.00, if .. Thus, this clause is addressed to the beneficiary as well as to the negotiating bank. (L/C) 1.21. Charges All Banking commissions and charges outside of Switzerland are for the beneficiarys AC account The clause in (L/C) 1.21. indicates no modulation at all, is addressed both to the beneficiary and to the applicant, and is related to payment, because charges will decrease amount of payment received by the beneficiary and increase the applicants expenses. The modulation (obligation) is found in the interpretation in the sense you the beneficiary must pay all banking commissions and charges in Indonesia, and you the applicant must also pay all banking commissions and charges in Switzerland. There is no other interpretation of modulation, although the clause is expressed with finite are not with should nor must.

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(L/C) 1.24. Instr to Payg/Acceptg/Negotg Bank Upon receipt of strictly credit conform documents at our counters in Zuerich we shall remit cover to the presenting bank for the counter value of documents according to their instructions and as per L/C terms within three Zuerich/New York bank working days In clause (L/C) 1.24, modulation is expressed with . shall , indicating modulation (inclination), because the clause means we the issuing bank are willing to make payment to you the paying bank within 3 Zuerich /New York bank working days, after we receive documents in compliance with the terms of the credit. Thus, the clause is addressed to the paying bank, which has made payment to the beneficiary in the exporting country. CONCLUSION Letters of credit (L/Cs) discussed are authentic. Although they were issued in different banks and in different years, all 9 (nine) letters of credit are similar due to the convention. Letters of credit contain messages expressing commands through modulation which tends to obligation and necessity. Some messages are explicitly expressed using modal must, and modulation in some messages are found in the interpretation. From business view point, the characteristics of letters of credit oblige beneficiaries to meet the terms and conditions stipulated in the L/Cs. Otherwise, those beneficiaries will not obtain payment for the exported goods. In other words, there must be a complying presentation of documents. REFERENCES Bhatia, Vijay K. 2004.Worlds of Written Discourse, A Genre-Based View. London: Continuum. Eggins, Suzanne. 1994. An Introduction to Systemic Functional Linguistics. London: Pinter Publisher Ltd. Ginting, Ramlan. 2000. Letter of Credit, Tinjauan Aspek Hukum dan Bisnis. Jakarta: Salemba Empat. 2007. Transaksi Bisnis dan Perbankan International . Jakarta: Salemba Empat. Guffey, Mary Ellen. 2000. Business Communication Process & Product. Cincinnati: South-Western College Publishing. Halliday, M.A.K. 1978. Language as Social Semiotic, The social Interpretation of Language and Meaning. London: Edward Arnold. Halliday, M.A.K and Ruqaiya Hasan. 1985. Language, Context, and Text: Aspect of Language in a Social-semiotic Perspective. Oxford: Oxford University Press. International Chamber of Commerce (ICC). International Commercial Terms (INCOTERMS 2000). http://www.export911.com/e911/export/comTerm.htm, August 6, 2007). International Chamber of Commerce (ICC). 2007, Uniform of Customs and Preactice for Documetnary Credit (UCPDC). No. 600. Revision Edition. Paris. Lyons, John.1995. Linguistic Semantic, an Introduction. Cambridge: Cambridge University Press. McCarthy, Michael. 1991. Discourse Analysis for Language Teachers. Cambridge: Cambridge University Press.

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Mchura, Michal Boleslav. 2005. A Practical Guide for Functional Text Analysis. (http://www.cainteoir.com/cainteoir_files/etc/Functional Text Analysis.pdf. December 12, 2008). Nelson, Carl A, 2000. Import/Export, How to Get Started in International Trade, 3rd Edition. New York: McGraw-Hill Inc. Wikipedia. Semiotics, http://en.wikipedia.org/wiki/Semiotics. January 15, 2009.

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