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国际贸易实务(双语) (INTERNATIONAL TRADE PRACTICE IN CHINESE AND ENGLISH) 主讲:易露霞 国际贸易实务(双语) (INTERNATIONAL TRADE PRACTICE IN CHINESE AND ENGLISH) 主讲:易露霞

INTERNATIONAL TRADE PRACTICE IN CHINESE AND ENGLISH Contents to be studied in this course: INTERNATIONAL TRADE PRACTICE IN CHINESE AND ENGLISH Contents to be studied in this course: Chapter 1 A brief introduction to international trade (2 hrs) Chapter 2 General Procedures of Export and Import Transaction (2 hrs) Chapter 3 Contracts for the Sale and Purchase of International Commodity (4 hrs ) Chapter 4 Trade Terms (8 hrs) Chapter 5 Quality of Commodity (2 hrs)

Chapter 6 Quantity of Goods (2 hrs) Chapter 7 Packing and Marking of Goods Chapter 6 Quantity of Goods (2 hrs) Chapter 7 Packing and Marking of Goods (4 hrs) Chapter 8 Price of Goods (4 hrs) Chapter 9 Delivery of Goods (6 hrs) Chapter 10 Cargo Transportation Insurance (4 hrs) Chapter 11 Payment of Goods (8 hrs) Chapter 12 Disputes, Claim, Arbitration (4 hrs)

PICTURE OF THECOURSE PICTURE OF THECOURSE

对国外市场调查研究 制定出口方案 交 易 前 的 准 备 作 谈 判 广告宣传 发展客户 交易洽商 对国外市场调查研究 制定出口方案 交 易 前 的 准 备 作 谈 判 广告宣传 发展客户 交易洽商 催证 备货 合 同 履 行 报验 (商检) 询盘 发盘 审证 还盘 接受 改证 (审核发现的修改) 租船订舱 投保(必须在发货以前) 货发码头 报关、装船、取得单证 所有单据送银行议付 议付结汇合同履行完毕 发生争议处理索赔 签合同

外运公司 保险公司 进口商 生产厂家 出口商 商检局 银行 海关 税务局 外运公司 保险公司 进口商 生产厂家 出口商 商检局 银行 海关 税务局

CHAPTER 1 A BRIEF INTRODUCTION TO INTERNATIONAL TRADE Section One Reasons for international trade CHAPTER 1 A BRIEF INTRODUCTION TO INTERNATIONAL TRADE Section One Reasons for international trade (从事国际贸易的动机) 1 Resource Acquisition (寻求资源) 2 Benefits Acquisition (追求利润) 3 Diversification (多种经营) 4 Expand sales(扩大销售)

Section Two Problems Concerning International (国际贸易遇到的问题) Problems Culture Problems Monetary conversion Trade barriers Section Two Problems Concerning International (国际贸易遇到的问题) Problems Culture Problems Monetary conversion Trade barriers

CHAPTER 1 A BRIEF INTRODUCTION TO INTERNATIONAL TRADE Section Three Forms of International Trade CHAPTER 1 A BRIEF INTRODUCTION TO INTERNATIONAL TRADE Section Three Forms of International Trade (国际贸 易形式) 1 Merchandise Exports and Imports (商品进出口) 1) Exporting(商品出口) (1) Direct exporting(直接出口) (2) Indirect exporting(间接出口) 2) Importing (商品进口) 2 Service Exports and Imports (劳务进出口) 1) Travel, Tourism, and Transportation (旅游业、交通运输业) 2) Performance of Activities Abroad (国外商务活动) 3) Use of Assets From Abroad (国外资产的运用)

CHAPTER 1 A BRIEF INTRODUCTION TO INTERNATIONAL TRADE 3 Licensing (许可证贸易) 4 Trading Companies CHAPTER 1 A BRIEF INTRODUCTION TO INTERNATIONAL TRADE 3 Licensing (许可证贸易) 4 Trading Companies (贸易公司) 5 Joint Ventures (合资企业) 6 Investment 1) Direct Investments (直接投资) 2) Portfolio Investments (间接投资) 7 Visible and Invisible Trade (有形贸易和无形贸易)

EXERCISE 1 What is international trade? 2 What are the major motivations for firms EXERCISE 1 What is international trade? 2 What are the major motivations for firms to operate international business? 3 What measures do most companies usually adopt to avoid wild swings in the sales and profits? 4 Please give the four major operation forms chosen by most companies. 5 What limits a firm’s sales? 6 What does “royalties” mean? 7 Please try to finish all the exercise in the text book.

CHAPTER 2 GENERAL PROCEDURES OF EXPORT AND IMPORT TRANSACTION Section One Procedures of Export CHAPTER 2 GENERAL PROCEDURES OF EXPORT AND IMPORT TRANSACTION Section One Procedures of Export and Import Transaction 1 What is Exporting 2 Procedures of Export 1) Making market research 2) Marketing and Promotion 3 What is Importing 4 Parties involved in export and import transaction 5 Specialists involved in export and import transactions 6 Basic Documents needed in Export and Import Transaction Please look at the following draft (Export Procedures under CIR on the side of Seller)

Export Procedures under CIR on the side of Seller Export Procedures under CIR on the side of Seller

Acceptance Procedures of Import Transaction Signing Contract Applying Import License Opening L/C Chartering Space Acceptance Procedures of Import Transaction Signing Contract Applying Import License Opening L/C Chartering Space Ship Delivery Insurance Checking L/C Track Goods Arrival Declare and Discharge Settlement Claims, Adjustment Conclusion

Market Research Any exporter who wants to sell his products in a foreign country Market Research Any exporter who wants to sell his products in a foreign country or countries must first conduct a lot of market research. Market research is a process of conducting research into a specific market for a particular product. Export market research, in particular, is a study of a given market abroad to determine the needs of that market and the methods by which the products can be supplied. The exporter needs to know which foreign companies are likely to use his products or might be interested in marketing and distributing the products in their country.

Parties involved in export and import transaction * the exporters * the importers * Parties involved in export and import transaction * the exporters * the importers * the port authority * the shipping company (for sea freight) * the airline (for air freight) * the insurance company or brokers * the exporter’s bank * the importer’s bank * the railways (in some cases) in the importer’ country * the road hauler ( in some case) in the importer’ country * the shipping agent at the port or airport of discharge * the shipping agents at the port or airport of loading * the railway (in some cases)in the exporters’ country * the road hauler (in some cases) in the exporter’s country

* the exporters * the port authority * the importers * the shipping company * the exporters * the port authority * the importers * the shipping company (for sea freight) * the airline (for air freight) * the exporter’s bank * the insurance company or brokers * the importer’s bank Parties Involved in Exp. & Imp. Transaction * the railways (in some cases) in the importer’ country * the road hauler ( in some case) in the importer’ country * the shipping agent at the port or airport of discharge * the shipping agents at the port or airport of loading * the railway (in some cases)in the exporters’ country * the road hauler (in some cases) in the exporter’s country

Specialists involved in export and import transactions A shipping agent and /or foreign forwarder Specialists involved in export and import transactions A shipping agent and /or foreign forwarder (forwarding agent) will take responsibility for the documentation and arrange for the goods to be shipped by air, sea, rail or rail. Theses services may be carried out by the supplier’s own export department, if they have the expertise. Airlines, shipping lines, railway companies or haulage contractors will actual transport the goods. Both the importer’s and exporter’s banks will be involved in arranging payments if a letter of credit or bill of exchange is used. Customs and Excise officers may need to examine the goods, check import or export licences and charge duty and /or VAT. A chamber of Commerce may need to issue a certificate of origin, if this is required by the importer’s country. An insurance company insures goods in transit. A lawyer if a special contract has to be drawn up.

Basic Documents needed in Export and Import Transaction An import/export transaction usually requires a Basic Documents needed in Export and Import Transaction An import/export transaction usually requires a lot of complicated documents because it is difficult to make many different arrangements when one firm is dealing with another on the other side of the world. The number and type of documents needed depend on the specific requirements of the exporter and importer. Generally, the documents needed include: 1). Bill of Lading 2). Commercial Invoice 3). Proforma Invoice 4). Consular Invoice 5). Packing List 6). Weight Memo 7). Certificate of Inspection 8). Certificate of Origin 9). Insurance Policy (Certificate) 10). Sales Contract 11). Sales Confirmation

CHAPTER 2 GENERAL PROCEDURES OF EXPORT AND IMPORT TRANSACTION Section Two Business Negotiation Review CHAPTER 2 GENERAL PROCEDURES OF EXPORT AND IMPORT TRANSACTION Section Two Business Negotiation Review 1 General Procedures of Export and Import Transaction 2 What is export? 3 What is import? 4 Parties involved in export and import transaction 5 Specialists involved in export and import transaction 6 Basic documents needed in export and import transaction

BUSINESS NEGOTIATION The way of Negotiation: Oral, in Written (letter, fax, email, telex, cable, BUSINESS NEGOTIATION The way of Negotiation: Oral, in Written (letter, fax, email, telex, cable, etc. ) Contents: Main terms: quality, quantity, packing, price, delivery , payment General terms: insurance, inspection, arbitration, force majeure Formality: Inquiry ↓ Offer ↓ Counter-offer ↓ Acceptance ↓ Conclusion of Contract Offer, and acceptance are two indispensable links for reaching an agreement and concluding a contract.

Section Two Business Negotiation 1. The form of business negotiation Two forms: Oral form Section Two Business Negotiation 1. The form of business negotiation Two forms: Oral form and written form 2. Main contents of business negotiation (1)Main terms of trade It includes quality, quantity, packaging, price, delivering and terms of payment, etc. (2)General Terms and Conditions

出 口 发 盘 所 包 含 的 信 息 商品规格 价格 发盘流程 支付 出 口 发 盘 所 包 含 的 信 息 商品规格 价格 发盘流程 支付 具 包装 船期 支付条件 发盘有效期 支付方式

发盘流程 发盘 NO 送达生效 撤 回 撤 消 NO 发盘失效 YES 发盘无效 发盘流程 发盘 NO 送达生效 撤 回 撤 消 NO 发盘失效 YES 发盘无效

 1. Inquiry An enquiry is a request for business information, such as price 1. Inquiry An enquiry is a request for business information, such as price lists, catalogue, samples, and details about the goods or trade terms. It can be made by either the importer or the exporter. On receiving the enquiry, it is a regular practice that the exporter should reply to it without delay. The seller and the buyer both can make an inquiry. Usually, the inquiry made by the buyer is also called bid, and the inquiry made by the seller is also called selling inquiry. Inquiry will not bind upon both parties, but usually when you receive an inquiry, you should reply it as soon as possible

2. Offer (1)The meaning of an offer * An offer is a proposal made 2. Offer (1)The meaning of an offer * An offer is a proposal made by sellers to buyers in order to enter into a contract. In other words, it refers to trading terms put forward by offerers to offerees, on which the offerers are willing to conclude business with the offerers. There are two kinds of offers, one is the firm offer, the other, non-firm offer. * The party who makes an offer is called an offeror, in the case of the seller, the offer is called a selling offer, while in the case of the buyer, and it is called a buying offer. (2)The basic conditions of an offer I ) The offer shall be made to one or more specific persons The offer shall be the definite representation in which the offeror expresses that he shall conclude transaction on the terms and conditions stipulated therein.

II) Contents of the offer shall be sufficiently definite, i. e. , trade terms II) Contents of the offer shall be sufficiently definite, i. e. , trade terms of the offer shall be complete, clear and final * The “Convention” stipulates that a sufficiently definite offer should include three basic elements: name, quantity and price * In our foreign trade practice, a complete offer shall include the quality, quantity, packing, price, terms of delivery of the goods and terms of payment. III) The offer shall indicate the intention of the offeror to be bound in case of acceptance * This intention may be indicated by terms as “firm” offer, “offer with engagement”, etc. * If the offer has a restrictive condition, i. e. , “subject to our final confirmation”, then it’s a non-firm offer regarded as an invitation for offer.

(3) Time of Validity or Duration of Offer 1 Stipulate the term of validity (3) Time of Validity or Duration of Offer 1 Stipulate the term of validity clearly The term of validity is not an indispensable condition of an offer (1)Stipulate the latest date for acceptance. For example: OFFER SUBJECT TO REPLY HERE FIFTEENTH, JULY (2)Stipulate a period of time for acceptance As to this method, there is a question of computing validity time. See article 20 of “Convention”. 2 If an offer doesn’t clearly stipulate the time of validity, it will be valid within a reasonable time. An oral offer, unless otherwise agreed, must be accepted immediately unless the circumstances indicate otherwise. (4) Time that an offer becomes effective Different views of the time that a written form offer becomes effective : 1. Despatch Theory 2. Arrival Theory Both “convention” and our “contract law” adopt arrival theory.

(5) Withdrawal or revocation of an offer A. Withdrawal The British laws and the (5) Withdrawal or revocation of an offer A. Withdrawal The British laws and the American laws have different explanations to withdrawal The spirit of “ Convention ” Suitable occasion for withdrawal: The offer is sent by mail or telegram B. Revocation As to whether an offer can be revoked or not, different laws have different explanations The “Convention” adopts a compromise regulation (6) Termination of an offer In the following cases, an offer is terminated: The time validity stipulated in the offer becomes due; The offeree rejects or makes a counter offer; The oferer revokes the offer before acceptance.

3. COUNTER-OFFER A reply to an offer which purports to be an acceptance but 3. COUNTER-OFFER A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection of the offer and constitutes a counter offer. (1) A reply to an offer which alter the terms of the offer materially constitutes a counter-offer (2) An acceptance with restrictive conditions is another form of counter-offer, such as “subject to our final confirmation”. (3) If offeree accepts the original offer after he made a counter-offer, the contract is invalid. 4. Acceptance A statement made by …or other conduct of the offeree indicating assent to an offer is an acceptance. (1) The meaning of acceptance (2) The essential conditions of acceptance

5 Investigation of Credit-worthiness of Customers 6 Implementation of Contract Preparing goods for shipment 5 Investigation of Credit-worthiness of Customers 6 Implementation of Contract Preparing goods for shipment 2) Inspection application 1) 3) Reminding, examining and modifying L/C 4) Chartering and booking shipping space 5) Customs formalities 6) Insurance 7) Documents preparation for bank negotiation 7 Settlement of disputes

QUESTIONS 1. What are the essential conditions of an offer? 2. According to the QUESTIONS 1. What are the essential conditions of an offer? 2. According to the regulation of "convention", when the offer can be withdrawal and revoked? 3. When an offer is terminated? 4. Try to analyze the effectiveness of a late acceptance. 5. What are the essential conditions of a contract established?

SUMMARY: NEGOTIATION OF CONTRACT 第八章 国际货物买卖合同的订立 ①询盘(Inquiry) ②发盘(Offer) 递盘(Bid) ③还盘(Counter-offer) buyer seller 接受(Acceptance) 订立合同(Sign SUMMARY: NEGOTIATION OF CONTRACT 第八章 国际货物买卖合同的订立 ①询盘(Inquiry) ②发盘(Offer) 递盘(Bid) ③还盘(Counter-offer) buyer seller 接受(Acceptance) 订立合同(Sign a contract) 合同成立的时间 (Effective time of contract) 合同生效的要件 ( Effective conditions of contract) 合同的形式 (Forms of contract ) 合同的内容 (Contents of contract) 返回目录

EXERCISE Please finish the exercise in the text book Case Study: Please read your EXERCISE Please finish the exercise in the text book Case Study: Please read your case book

Chapter 3 Contracts for the International Sale of Goods 1. Establishment time of contract Chapter 3 Contracts for the International Sale of Goods 1. Establishment time of contract Two standards for judgment: 1. When the effective acceptance reaches offeror; 2. When offeree make the behavior of accepting. 2. The essential conditions of a contract come into effective: 1, contracting parties should have signing ability 2, the content of the contract should be legal 3, the contract should conform to legal formarity 4, contracting parties' meaning expresses should be true

Section One Definition of the Contract A contract is an agreement between two or Section One Definition of the Contract A contract is an agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. It is an agreement which sets forth binding obligations of the relevant parties. The agreement can be formal, informal, written, oral or just plain understood. Some contracts are required to be in writing in order to be enforced. A contract proper includes: 1)the full name and address of the buyer and the seller; 2) the commodities involved; 3)all the terms and conditions agreed upon; 4)indication of the number of original copies of the contract, the language used, the term of validity and possible extension of the contract.

THE PREREQUISITES(前提) REQUIRED FOR A CONTRACT TO BE RECOGNIZED AND ENFORCED (1) A Valid THE PREREQUISITES(前提) REQUIRED FOR A CONTRACT TO BE RECOGNIZED AND ENFORCED (1) A Valid Offer and a Proper Acceptance (2) Sufficiency of Consideration(对价) (3) Absence of Fraud, Force, or Legal Loopholes (4) Legal Capacity (5) Consistency with General Public

Section 2: Formation and main contents of contact 1. Formation of contact (1) Written Section 2: Formation and main contents of contact 1. Formation of contact (1) Written contract It is the basis that the contract is established It is the basis of fulfilling contract It is the basis that the contract comes into force It is the basis of arbitration or lawsuit. (2) Oral form (3) Other forms

 CISG Article 11: A contract of sale need not be concluded in or CISG Article 11: A contract of sale need not be concluded in or evidenced by writing and is not subject to any other requirement as to form. It may be proved by any means, including witnesses. 2. Main parts of contract Preamble Body Witness clause

VARIOUS FORMATS OF CONTRACT IN WRITTEN Contract Confirmation Agreement Memorandum Letter of Intent Order VARIOUS FORMATS OF CONTRACT IN WRITTEN Contract Confirmation Agreement Memorandum Letter of Intent Order (Please log into: http: //222. 200. 98. 43/trade)

THE LAWS ARE APPLICABLE TO INTERNATIONAL SALES CONTRACTS ◆International Trade Practice ☆International Rules for THE LAWS ARE APPLICABLE TO INTERNATIONAL SALES CONTRACTS ◆International Trade Practice ☆International Rules for the Interpretation of Trade Terms《国际贸易术语解释通则》 ☆Uniform Customs and Practice for Documentary Credit《跟单信用证统一惯例》 ◆International Treaty Unite Nations Convention on Contracts for the International Sale of Goods《联合国国际货物销售合同 公约》 ◆Domestic Laws Contract law《中华人民共和国合同法》

MODIFICATION OR TERMINATION OF CONTRACT CISG Article 29: (1) A contract may be modified MODIFICATION OR TERMINATION OF CONTRACT CISG Article 29: (1) A contract may be modified or terminated by the mere agreement of the parties. (2) A contract in writing which contains a provision requiring any modification or termination by agreement to be in writing may not be otherwise modified or terminated by agreement. However, a party may be precluded by his conduct from asserting such a provision to the extent that the other party has relied on that conduct.

Name of commodity Quality Quantity Package Body Price Payment Transport and insurance The time Name of commodity Quality Quantity Package Body Price Payment Transport and insurance The time limit and place of performance The prevention and handling of dispute

NAME OF COMMODITY Generally, this clause is relatively simple, we always list the names NAME OF COMMODITY Generally, this clause is relatively simple, we always list the names that in the offer or counter-offer under the article of Name of Commodity. And sometimes we only write several sentences showing the two parties’ agreement on the business of some commodity at the beginning of a contract.

QUALITY In the quality clause we should clearly list the name and detailed qualities QUALITY In the quality clause we should clearly list the name and detailed qualities of commodities. As commodities are various, the ways showing their qualities are not the same. So the terms of quality must be fit for the characteristics of commodities. Stipulate the flexible range Quality Use various kinds of expression methods properly Formulate the clause according to actual ability

QUANTITY The quantity clause mainly includes the quantity and unit of commodity. To facilitate QUANTITY The quantity clause mainly includes the quantity and unit of commodity. To facilitate the performance of contract and avoid disputes, the quantity clause should be clear and detailed. In addition , it is improper to use those uncertain words like about 、 circa、approximate to define the quantity.

Packing material Method of packing Package Specification of packing Packing mark Packing charges Packing material Method of packing Package Specification of packing Packing mark Packing charges

PACKING MATERIAL The packing for sea need firm The packing for rail need not PACKING MATERIAL The packing for sea need firm The packing for rail need not afraid of shaking The packing for air need light See the law of relative country

METHOD OF PACKING Single packing Set packing Generally, choose set packing SPECIFICATION OF PACKING METHOD OF PACKING Single packing Set packing Generally, choose set packing SPECIFICATION OF PACKING Involve such respects as every package putting, the piece and expenses packed, etc. , should confirm according to the actual conditions.

PACKING MARK Packing mark includes shipping mark, indicative mark and dangerous cargo mark Shipping PACKING MARK Packing mark includes shipping mark, indicative mark and dangerous cargo mark Shipping mark can be chosen by us, or by the customer. PACKING CHARGES Generally including in the price of goods Or not including in the price of goods, paid by buyer.

PRICE Unit price and the total amount of payment are extremely important in a PRICE Unit price and the total amount of payment are extremely important in a contract. After several rounds of offer and counter-offer, both parties reach an agreement on the price. The price clause should clearly indicate the currency、price terms、unit price and the total amount of payment. When writing the total amount in capital, we always add “say” at the beginning of the sentence, and “only” at the end. PAYMENT This clause mainly includes: The means of payment Time and place of payment and so on

TRANSPORT AND INSURANCE While negotiating, both parties must discuss for the time of delivery, TRANSPORT AND INSURANCE While negotiating, both parties must discuss for the time of delivery, place of loading and the destination, whether partial shipment or transshipment, amount of insurance, risk, insurance rate and which insurance clause of insurance company being accurate. Shipment: different price terms must relate to different responsibility and risk. Insurance: different price terms, different person to fix insurance.

STIPULATE THE FLEXIBLE RANGE In quality terms, add the clause such as “QUANLITY TO STIPULATE THE FLEXIBLE RANGE In quality terms, add the clause such as “QUANLITY TO BE CONSIDERED AND BEING ABOUT EQUAL TO THE SAMPLE. ” According to the error of products quality that internationally acknowledged, add “QUALITY TOLERANT. ” As to some primary product that quality is not very steady, while regulating its quality index, can make certain flexible range of quality separately, allow certain range in the quality index of the goods that sellers hand in, but should adjust prices according to the situation of quality of delivering goods. While negotiate on quality, the seller can add such in the contract: "If the quality seller delivers is defective, does not accord with the regulation of the contract, the buyer can't cancel contract, but can lodge a claim against seller. "

USE VARIOUS KINDS OF EXPRESSION METHODS PROPERLY Choose the way describe quality according to USE VARIOUS KINDS OF EXPRESSION METHODS PROPERLY Choose the way describe quality according to the character. If can describe in one way, don’t use many ways. FORMULATE THE CLAUSE ACCORDING TO ACTUAL ABILITY Pay attention to the science and rationality. Avoid too high or too low. Pay attention to the inner link and relation between every quality index.

The prevention and handling of dispute Inspection Force majeure Arbitration The prevention and handling of dispute Inspection Force majeure Arbitration

INSPECTION The third party provides the inspection certificate. At present in our country, examine INSPECTION The third party provides the inspection certificate. At present in our country, examine in the export country, re-inspects in import country. Inspection clause includes: inspection time, inspection place, inspection organization, inspection certificate, method of inspection, re-inspect, etc.

FORCE MAJEURE After the contract is signed, it is not fault or carelessness of FORCE MAJEURE After the contract is signed, it is not fault or carelessness of contracting parties, but because of the accident that can't be predicted, can't be prevented and avoided, so that the parties can't fulfill or can't fulfill the contract as scheduled, so the party that had the accident, can avoid the responsibility of fulfilling contract according to the stipulations of the contract or the law, or postpone fulfilling the contract.

ARBITRATION Mean both parties while disputing, according to the agreement between both sides, certain ARBITRATION Mean both parties while disputing, according to the agreement between both sides, certain organization as the third part, judge the fact of the dispute or the rights and obligations, thus solve the dispute. We should try our best to choose the national arbitration organ or the arbitration organ of the third country.

品名 品质 数量 本 文 包装 价款 支付方式 运输与保险 履行期限及地点 争议的预防与处理 品名 品质 数量 本 文 包装 价款 支付方式 运输与保险 履行期限及地点 争议的预防与处理

品 质 一般要写明商品的名称与具体品质。 规定机动幅度 品质 正确运用各种表示法 根据实际能力制定 品 质 一般要写明商品的名称与具体品质。 规定机动幅度 品质 正确运用各种表示法 根据实际能力制定

包装材料 包装方式 包 装 包装规格 包装标志 包装费用 包装材料 包装方式 包 装 包装规格 包装标志 包装费用

争议的预防与处理 商品检验 不可抗力 仲裁 争议的预防与处理 商品检验 不可抗力 仲裁

EXERCISE Please finish the exercise in the text book Case Study: Please read your EXERCISE Please finish the exercise in the text book Case Study: Please read your case book

Case Study Please write letters of enquiry, offer, counter-offer and credit enquiry according to Case Study Please write letters of enquiry, offer, counter-offer and credit enquiry according to the situation given below: Suppose there is an export transaction on “Haier” Air Conditioner. Please write the come-and-go correspondence during the process of the transaction. Particulars: Sales Confirmation No. FC 9998 Price Terms: CIF Lagos Importers: ABC Co. Ltd. , Lagos Quantity: 1, 000 dozen Port of Shipment: Huangpu, Guangzhou Port of Destination: Lagos Exporters: Guangzhou Light Industrial Products Imp. & Exp. Corp. As for the delivery, insurance, payment, packing, payment and so on, you have to suppose. Notes: 1) All togethere will be letters from the steps of establishment of business relations to the successful performance of the whole transaction. During this course, maybe there will be disagreement on some terms like price terms, the date of delivery, the premium and so on, which you can give your own supposition.

SUMMARY This chapter has mainly introduced the general procedures of business negotiation, the basic SUMMARY This chapter has mainly introduced the general procedures of business negotiation, the basic contents and establishment of contract, etc. Key point of this chapter: offer, acceptance Difficult point: the explanation of offer and acceptance in “convention”. About the sample contract, please read the text book P 45 -52

Give the Chinese equivalents of the following phrases: 1. technical expertise 2. after-sales service Give the Chinese equivalents of the following phrases: 1. technical expertise 2. after-sales service 3. initial negotiations 4. wear and tear 5. non-price nature 6. a long-term commitment 7. export package 8. agency agreement 9. target market 10. distribution channels 11. advance research 12. maximum concession 13. defensive attitude 14. import duties 15. credit terms 16. bulk purchase 17. commission rate 18. production capacity 19. marketing mix 20. quabtity discount 21. repeat orders 22. quantity discount 23. small and medium-size enterprises

Give the English equivalents of the following phrases: 1 业务联系,交往 3 保持业务关系 5 中断业务关系 Give the English equivalents of the following phrases: 1 业务联系,交往 3 保持业务关系 5 中断业务关系 7 三角贸易 9 对销贸易;抵偿贸易 11 回购贸易 13 市场状况 15 市场情报 17 市场报告 19 样品册 21 低劣质量 23 够装运数量 25 凭卖方样品质量交货 2. 密切的关系 4. 促进业务关系 6 信用地位 8 多边贸易 10 互购贸易 12 租赁贸易 14 市场波动 16 市场价格 18 市场风险 20 反样、回样 22 优等质量 24 可观的数量 26 数量折扣

Chapter 4 Trade Terms Main points to be understood about this chapter 1、各种贸易术语的含义及使用中注意的问题 2、在装运港交货的三种常用术语的变形 Chapter 4 Trade Terms Main points to be understood about this chapter 1、各种贸易术语的含义及使用中注意的问题 2、在装运港交货的三种常用术语的变形 3、相邻或相似术语之间的异同对比 4、出口商品的成本核算 5、六种常用术语之间的价格换算 6、佣金与折扣的区别和计算

1、THE DEFINITION OF TRADE TERMS(贸易 术语的定义): The trade terms refer to using a brief 1、THE DEFINITION OF TRADE TERMS(贸易 术语的定义): The trade terms refer to using a brief English concept or abbreviation of English letters to indicate the formation of the unit price and determine the responsibilities, expenses and risks borne by two parties as well as the time of the passing of the property in the goods. FOB LONDON CIF JIUJIANG 返回目录

WHAT IS TRADE TERMS The trade terms, are the short terms or abbreviations or WHAT IS TRADE TERMS The trade terms, are the short terms or abbreviations or brief English concept(3 English characters in Incoterms 2000) to indicate/explain the composition/formation of the unit price and determine the (1)responsibilities/rights and obligations, (2)expenses and (3)risks borne by two parties as well as the time of the passing of the property in the goods(货权转移).

THE MOST INFLUENTIAL TRADE CONVENTIONS 1、Warsaw-Oxford Rules(W. O. Rules)1932 《华沙牛津公约》 2、Revised American Foreign Trade THE MOST INFLUENTIAL TRADE CONVENTIONS 1、Warsaw-Oxford Rules(W. O. Rules)1932 《华沙牛津公约》 2、Revised American Foreign Trade Definitions 1941 《1941美国对外贸易定义修 订本》 3、International Rules For the Interpretation of Trade Terms《国际贸易 术语解释通则》 It has been amended and modernized in

Case One import and export company exported his goods under the CIF term. The Case One import and export company exported his goods under the CIF term. The seller delivered the goods on board the vessel on time and prepared all necessary documents. But the vessel stranded and sank in a few hours after departure. The next day, when the seller asked for payment with full set of documents in conformity with the contract, the buyer refused to accept the documents and rejected payment because his goods have been lost. Is it reasonable for the buyer to do so? Why? 返回目录

1、BRIEF INTRODUCTION OF CUSTOM PRACTICE Name Issued by time 《1941年美国对外贸易定义修正本》 (Revised American Foreign Trade 1、BRIEF INTRODUCTION OF CUSTOM PRACTICE Name Issued by time 《1941年美国对外贸易定义修正本》 (Revised American Foreign Trade Definitions 1941) 美国商业团体 In Ex Point of Origin, 1919 FOB(6 variations), FAS Vessel, C&F, CIF, Ex Dock 《1932年华沙— 牛津规则》 (Warsaw. Oxford Rules) 国际法协会 In CIF International Law Institute 1928 国际商会International Chamber of Commerce In 《2000年国际贸易术语解释通则》 (International Rules for the Interpretation of Trade Terms) 1936 trade terms E、F、C、D四组13个贸 易术语

《2000年通则》 四组术语(共 13种) E 组 启运 EXW EX Works FCA Free Carrier F 组 《2000年通则》 四组术语(共 13种) E 组 启运 EXW EX Works FCA Free Carrier F 组 主运费 FAS Free Alongside Ship 未付 FOB Free On Board C组 主运费 已付 厂交货 货交承运人 船边交货 装运港船上交货 适用于各种运输方式, 包括多式联运 同上 适用于海运及内河运输 同上 CFR Cost and Freight CIF Cost, Insurance and Freight 成本加运费 成本加保险费、 运费 同上 CPT Carriage Paid To 运费付至 适用于各种运输方式, 包括多式联运 同上 运费、保险费付至 同上 边境交货 目的港船上交货 同上 D组 CIP Carriage and Insurance Paid To DAF Delivered At Frontier DES Delivered Ex Ship 到达 DEQ Delivered Ex Quay 目的港码头交货 同上 适用于各种运输方式, 包括多式联运 DDU Delivered Duty Unpaid 未完税交货 DDP Delivered Duty Paid 完税后交货 适用于海运及内河运输 同上

TRADE TERMS IN INCOTERMS 2000 The following terms can be used only for sea TRADE TERMS IN INCOTERMS 2000 The following terms can be used only for sea or inland waterway transport: FAS, FOB, CFR, CIF, DES, DEQ The following terms can be used for multimodal transport EXW, FAS, CIP, CPT, FCA, DDU, DDP Six main international trade terms FOB, CFR, CIF, FCA, CPT, CIP

Ⅱ常用的贸易术语 FOB (Free on Board, …named port of shipment)船 上交货(…指定装运港) CFR (Cost and Freight,…named Ⅱ常用的贸易术语 FOB (Free on Board, …named port of shipment)船 上交货(…指定装运港) CFR (Cost and Freight,…named port of destination)成本加运费(……指定目的港) CIF (Cost,Insurance and Freight,…named port of destination)成本加保险费、运费(……指定目的港) 返回目录

FOB, Free on Board (…Named port of Shipment)      指定装运港船上交货  It means that the seller FOB, Free on Board (…Named port of Shipment)      指定装运港船上交货  It means that the seller fulfils his obligation to deliver the goods when they have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all expenses and risks of or damage to the goods from that point.    Such as FOB Shanghai or FOB Hamburg 返回目录

THE SELLER’S RESPONSIBILITIES 1、deliver the goods at the time stipulated in the contract,provides sufficient THE SELLER’S RESPONSIBILITIES 1、deliver the goods at the time stipulated in the contract,provides sufficient notice 2、obtains the export licenses and authorizations and carry out all export formalities and procedures 3、assume all risks of loss or damage to the goods until they have passed the ship’s rail 4、provides the buyer with a proof of delivery or a transport document (such as B/L , inspection documents) The most important is deliver the goods on time and notice to the buyer.

FOB使用中须注意: 第一, 注意船货衔接, 避免发生空舱费 用, 避免造成船等货或者货等船. 第二, 和美洲国家交易时使用FOB vessel New York 第三, 及时通知一般理解为 24小时. FOB使用中须注意: 第一, 注意船货衔接, 避免发生空舱费 用, 避免造成船等货或者货等船. 第二, 和美洲国家交易时使用FOB vessel New York 第三, 及时通知一般理解为 24小时.

THE VARIATION OF FOB TRADE TERMS In order to indicate who shall bear the THE VARIATION OF FOB TRADE TERMS In order to indicate who shall bear the loading and unloading charges expenses, the most used variation of FOB are: 1、FOB liner terms 2、FOB under tackle 3、FOB stowed 4、FOB trimmed

FOB … (NAMED PORT OF SHIPMENT (装运港)船上交货 卖方 风险在船舷转移 卖方办出口手续 海运 目的 港 买方负责运输、 FOB … (NAMED PORT OF SHIPMENT (装运港)船上交货 卖方 风险在船舷转移 卖方办出口手续 海运 目的 港 买方负责运输、 运费、进口手续

CASE On FOB term basis, Seller A prepared the goods at the stipulated time, CASE On FOB term basis, Seller A prepared the goods at the stipulated time, meanwhile , Buyer B informed A of the name of vessel and the date of shipment , when the goods is lifted to the ship, it fell down on the deck , so now who shall take responsibility? Seller or Buyer?

ANSWER Under FOB terms , the risk separation was the rail of the ship ANSWER Under FOB terms , the risk separation was the rail of the ship , during the shipment of goods, if they didn’t across the ship's rail, and fell to the sea, the seller should bear the risk. When the goods across the ship's rail, fall in the deck, the buyer should bear the corresponding risks. In this case, falling into the cargo deck, the buyer can assume the risk is no doubt.

CIF (COST,INSURANCE AND FREIGHT, …NAMED PORT OF DESTINATION)成本加保险费、 运费(……指定目的港)  It means that the seller CIF (COST,INSURANCE AND FREIGHT, …NAMED PORT OF DESTINATION)成本加保险费、 运费(……指定目的港)  It means that the seller has the obligation to procure marine insurance against the risks of, losses of, or damage to the goods during the carriage. 返回目录

4)卸货费用负担的问题 ——CIF的变形 CIF Liner Terms(班轮条件)—卖方 CIF Ex Ship’s Hold(舱底交接)— 买方 CIF Ex Tackle (吊钩交货)—卖方 4)卸货费用负担的问题 ——CIF的变形 CIF Liner Terms(班轮条件)—卖方 CIF Ex Ship’s Hold(舱底交接)— 买方 CIF Ex Tackle (吊钩交货)—卖方 CIF Landed(卸到岸上)——卖方

CASE A Chinese import and export company concluded a Sale Contract with a Holland CASE A Chinese import and export company concluded a Sale Contract with a Holland firm on August 5, 2000, selling a batch of certain commodity. The contract was based on CIF Rotterdam at USD 2500 per metric ton. The Chinese company delivered the goods in compliance with the contract and obtained a clean on board Bill of Lading. During transportation, however, 100 metric tons of goods got lost because of rough sea. Upon arrival of the good, the price of the contracted goods went down quickly. The buyer refused to take delivery of the goods and effect payment and claimed damages from the seller. How would you deal with the case?

ANSWER It was not right for the buyer not to take delivery of the ANSWER It was not right for the buyer not to take delivery of the goods. In this case, the contract concluded between the seller and the buyer was on CIF terms, according to which, the seller’s responsibilities ended when he loaded the goods on board the ship and paid the freight and insurance premium; the risk separation was the side of the ship; that is to say, the risks were transferred to the buyer or the other parties concerned after the seller put the goods on board the ship. Since the documents presented by the seller were right and proper, the seller could directly get paid form the Issuing Bank of the L/C. However, part of the goods got lost because of rough sea. Does this mean that the buyer suffered loss? It is definitely not the case because there are other two subcontracts existing on CIF terms-I/P and Bill of Lading. In this case the buyer could claim damages with the insurance company, but he had to take delivery of the goods. Obviously, the actual reason for the buyer’s refusal to accept the goods in this case was that the prices of the goods were going down. This is, certainly, unjustified.

CASE A Chinese import and export company concluded a Sale Contract with a German CASE A Chinese import and export company concluded a Sale Contract with a German firm on October 5, 2006, selling a batch of certain commodity. The contract was based on CIF Hamburg at USD 2500 per metric ton; The Chinese company delivered the goods in compliance with the contract and obtained a clean on board B/L. During transportation, however, 100 metric tons of the goods got lost because of rough sea. Upon arrival of the goods, the price of the contracted goods went down quickly. The buyer refused to take delivery of the goods and effect payment and claimed damages from the seller. Question: (1) Is the buyer’s refusal reasonable? Why? (2)How should the buyer to deal with the loss?

ANSWER (1)It was not right for the buyer not to take delivery of the ANSWER (1)It was not right for the buyer not to take delivery of the goods. In this case, the contract concluded between the seller and the buyer was on CIF terms, according to which, the seller’s responsibilities ended when he loaded the goods on board the ship and paid the freight and insurance premium; the risk separation was the side of the ship; that is to say, the risks were transferred to the buyer or the other parties concerned after the seller put the goods on board the ship. Since the documents presented by the seller were right and proper, the seller could directly get paid form the Issuing Bank of the L/C. (2)In this case the buyer could claim damages with the insurance company, but he had to take delivery of the goods.

CIF(…NAMED PORT OF DESTINATION) 卖方承担运费和保险 买方 在装运港船上交货 风险在船舷转移 卖方办理租船订舱、投 保、出口手续 海运 目的港 买方负责 进口手续 CIF(…NAMED PORT OF DESTINATION) 卖方承担运费和保险 买方 在装运港船上交货 风险在船舷转移 卖方办理租船订舱、投 保、出口手续 海运 目的港 买方负责 进口手续

CFR (COST AND FREIGHT,…NAMED PORT OF DESTINATION)成本加运费(……指 定目的港)   It means that the seller shall CFR (COST AND FREIGHT,…NAMED PORT OF DESTINATION)成本加运费(……指 定目的港)   It means that the seller shall undertake the cost and freight necessary to carry the goods to the named port of destination, but the risks of, losses of, or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, are transferred from the seller to the buyer when the goods pass the ship’s rail at the port of shipment. 返回目录

CFR应该注意的问题 装船通知的重要作用 CFR变形— 卸货费用的负担问题 CFR Liner Terms(班轮条件) CFR Ex Ship’s Hold(舱底交接) CFR Ex Tackle CFR应该注意的问题 装船通知的重要作用 CFR变形— 卸货费用的负担问题 CFR Liner Terms(班轮条件) CFR Ex Ship’s Hold(舱底交接) CFR Ex Tackle (吊钩交货) CFR Landed(卸到岸上)

CFR … NAMED PORT OF DESTINATION 卖方承担运费 买方 在装运港船上交货 风险在船舷转移 卖方办理租船订舱、 出口手续 海运 目的港 CFR … NAMED PORT OF DESTINATION 卖方承担运费 买方 在装运港船上交货 风险在船舷转移 卖方办理租船订舱、 出口手续 海运 目的港 买方负责 进口手 续

CASE A merchant in South America placed an order with a Chinese export company CASE A merchant in South America placed an order with a Chinese export company for a certain commodity on CFR Asuncion (亚松森)terms. With a view to develop new markets, the export company immediately made an offer abroad on the basis of CFR Asuncion, and the transaction was soon concluded. When shipping the goods, however, this company came to realize that Asuncion is an inland city. As was the case, if the company had the goods transported to Asuncion, it had to , first of all, have the goods transported by sea to a seaport in Argentina or some other South American neighboring country. After that, the goods might be transport to Asuncion through river transportation or inland transportation. As a result, this company had to pay a considerable sum of freight charges. What can we learn from this case?

ANSWER In this case the loss was caused simply because of the ignorance on ANSWER In this case the loss was caused simply because of the ignorance on the part of the export businessman. What we can learn from this case is that, when offering abroad, we must make exact calculations of the total freight and other relevant charges. Most importantly, it is very beneficial for every export businessman to learn geography.

EXERCISE Please finish the exercise in the text book EXERCISE Please finish the exercise in the text book

Chapter 5 Quality of Commodity Goods are indispensable to international trade. Whether it is Chapter 5 Quality of Commodity Goods are indispensable to international trade. Whether it is visible trade or invisible trade, the goods sold have their own qualities, and the quality of a certain kind of goods determines to a great degree its market and price. Therefore, the quality of the goods is among the main terms upon which a sales contract is based and constructed. Commodity provides the material basis for international trade. All of commodities present certain qualities. Therefore, the quality of commodity is not only one of the major terms of sales contract, but also the first item which should be agreed upon by the exporter and the importer while the business is being negotiated.

1. Sale by Description(凭文字说明买卖) (1)Sale by specification,grade or standard (凭规格、等级、标准买卖) (2)Sale by brand name 1. Sale by Description(凭文字说明买卖) (1)Sale by specification,grade or standard (凭规格、等级、标准买卖) (2)Sale by brand name of trade mark (凭牌号或商标买卖) (3)Sale by name of origin(凭产地名卖) (4)Sale by description and illustration (凭说明书和图样买卖)

2. Sale by Sample(凭样品买卖) (1)Sale by the seller’s sample (凭卖方样品买卖) Seller’s sample are the 2. Sale by Sample(凭样品买卖) (1)Sale by the seller’s sample (凭卖方样品买卖) Seller’s sample are the samples which are usually sent by the seller to the buyer. We also called Original sample. (2)Sale by the buyer’s sample (凭买方样品买卖) In this case, the seller shall first take into consideration the availability of the new material and the possibility of providing the processing technology.

DEFINITION: Quality of Goods outwards appearance: shape, structure, color, flavor, luster and etc. inner DEFINITION: Quality of Goods outwards appearance: shape, structure, color, flavor, luster and etc. inner features: composition, physical and mechanical property, chemical, biological feature, etc.

METHODS OF STIPULATING QUALITY OF GOODS: By description *by Specification *by Grade *by Standard METHODS OF STIPULATING QUALITY OF GOODS: By description *by Specification *by Grade *by Standard *by Brand name or Trade Mark *by Name of Origin *by Instruction By sample *by the seller’s sample *by the buyer’s sample *by counter sample

THE SPECIFICATION OF THE GOODS refers to certain main indicators which indicate the quality THE SPECIFICATION OF THE GOODS refers to certain main indicators which indicate the quality of the goods, such as composition, content, purity, size, length, etc. So it is the detailed description of the goods to be sold. The grade of the goods refers to the classifications of the commodity of one kind which is indicated by words, numbers or symbols.

THE STANDARD refers to the specifications or grades which are stipulated announced (laid down THE STANDARD refers to the specifications or grades which are stipulated announced (laid down and proclaimed) in a unified way by the government department or commercial organization of a country such as the chamber of commerce, etc. About standard International standard: ISO-international Standards Organization-has more than 4000 standards IEC-international Electrotechnical Commission-has over 1580 standards National standard: GB 14 -05(is national standard pulished in 2005, publication No. is 14), BP Craft (Guild) Standard 行业(公会)标准 Local Standard Enterprise Standard

SALE BY NAME OF ORIGIN There are some agricultural products and by-products whose origins SALE BY NAME OF ORIGIN There are some agricultural products and by-products whose origins are well known for their excellent quality all over the world. As to these products, the origins may well indicate their qualities. e. g. : Qimen Black Tea Longjing Green Tea But sometimes the places of origin do not always represent the areas where the products are turned out. e. g. : Longkou Vermicelli---- are mainly produced in Zhao County of Shangdong Province; Jinghua Ham ---- is produced mainly in Yiwu County of Zhejiang Province.

DEFINITION OF SAMPLE: The sample refers to the article which can be used to DEFINITION OF SAMPLE: The sample refers to the article which can be used to represent the quality of the whole lot. In merchandising, a sample is a small quantity of a product, often, taken out from a whole lot or specially designed and processed, that is given to encourage prospective customers to buy the product. Sale by the seller's sample Seller’s sample are the samples which are usually sent by the seller to the buyer. We also called Original sample.

EXERCISE Please finish the exercise in the text book EXERCISE Please finish the exercise in the text book

Chapter 6 Quantity of Commodity THE QUANTITY OF THE GOODS refers to the weight, Chapter 6 Quantity of Commodity THE QUANTITY OF THE GOODS refers to the weight, number, length, volume, area, capacity, etc. which are indicated by different measuring units. Any business deal consists of a certain quantity of goods supplied by the seller and a certain sum of money paid by the buyer. Without a certain quantity of goods, any business deal would be groundless. Thus, quantity clause is one of the essential terms and conditions for the conclusion of a transaction in the contract. United Nations Convention on Contracts for International Sale of Goods requires that the quantity of goods delivered should be identical to that called for in the contract, otherwise the buyer is entitled to reject the portion of goods excessive in quantity, and to claim against the seller if the quantity is found to be less than that called for in the contract.

Section One Calculating Units of Quantity of the Goods Units of Measurement Weight gram Section One Calculating Units of Quantity of the Goods Units of Measurement Weight gram (g), kilogram (kg), ounce (oz), pound (Ib), metric ton (M/T), long ton, short ton, etc. Number piece (pc), package (pkg), pair, set, dozen (doz), gross (gr) ream (rm), etc. Length meter (m), centimeter (cm), foot (ft), yard (yd), etc. Area square meter (sq m), square foot (sq ft), square yard (sq yd) , etc. Volume ubic-meter (cu m) cubic centimeter (cu cm), cubic foot (ct ft), cubic yard (cu yd) , etc. Capacity liter (1), gallon (gal), pint (pt), bushel (bu), etc.

长度换算 Chinese System Metric System公 制 中国 市制 Meter 米 Centimeter 厘米 1 Britain/American 长度换算 Chinese System Metric System公 制 中国 市制 Meter 米 Centimeter 厘米 1 Britain/American System 英美制 Chi 尺 Yard 码 Foot 英尺 Feet 英寸 100 3 1. 094 3. 2808 39. 3701 0. 01 1 0. 03 0. 0109 4 0. 03281 0. 3937 0. 3333 33. 33 1 0. 3646 1. 094 13. 123 0. 9144 91. 44 2. 743 1 3 36 0. 3048 30. 48 0. 9144 0. 3334 1 12 0. 0254 2. 54 0. 0762 0. 0278 0. 0833 1

面积换算 Metric System 公 制 Squaremeter Centimeter 平方米 平方厘米 Britain/American System英 美 制 Square 面积换算 Metric System 公 制 Squaremeter Centimeter 平方米 平方厘米 Britain/American System英 美 制 Square Yard 平方码 Square feet Square foot 平方英尺 平方英寸 Chinese System 中国市制 Square Chinese meter 平方尺 1 10000 1. 196 10. 7639 1550 9 0. 0001 1 0. 00012 0. 00108 0. 155 0. 0009 0. 8361 1 9 1296 7. 525 0. 0929 0. 1111 1 144 0. 836 0. 00065 6. 45 0. 00077 0. 00694 1 0. 0058 0. 1111 0. 133 1. 196 172. 2 1

容积换算 Metric System 公制 Chinese System 中国市制 Britain System 英制 American System 美制 Liter 容积换算 Metric System 公制 Chinese System 中国市制 Britain System 英制 American System 美制 Liter 升 Chinese Liter 升 Britain Gallon American Gallon 1 1 0. 22 0. 264 4. 546 1 1. 201 3. 785 0. 833 1

体积换算 Metric System公 制 Cubic-meter centimeter 立方米 立方厘米 Britain/American System英 美 制 Chinese System 体积换算 Metric System公 制 Cubic-meter centimeter 立方米 立方厘米 Britain/American System英 美 制 Chinese System 中国市制 Cubic yard 立方码 Cubic Feet 立方 英尺 Cubic foo 立方英 寸 Cubic Chinese Meter 立方尺 1 1000000 1. 303 35. 3147 61024 27 0. 000001 1 0. 0000013 0. 00004 0. 06102 0. 000027 0. 7636 764555 1 27 46656 20. 643 0. 02832 28317 0. 037 1 1728 0. 7646 0. 000016 16. 387 0. 00002 0. 00058 1 0. 00044 0. 037 37037 0. 0484 1. 308 2260 1

Section Two Methods of Calculation 1. Weight Calculation(重量的计算) ⑴By Gross Weight(按毛重) ⑵By Net Weight(按净重) Section Two Methods of Calculation 1. Weight Calculation(重量的计算) ⑴By Gross Weight(按毛重) ⑵By Net Weight(按净重) ⑶Conditional Weight(公量) 实际重量*(1+标准回潮率) 公量= 1+实际回潮率 =干量+标准含水量 (4)Theoretical Weight(理论重量) (5)Legal weight(法定重量) 2. More or Less Clause(溢短装条款)

Weight: It is usually used for mineral products, agricultural and by-products such as wool, Weight: It is usually used for mineral products, agricultural and by-products such as wool, cotton, grains and ore products. Number: Constantly used for measurement of industrial products and general products such as ready-made clothes, stationery, paper, toys and so on. Length : It is mostly used for textile products, metal cords, electric wires, ropes and so on. Area : It is often used in trade of glass, textile products such as carpets, etc. Volume : It is generally used for timber/wood, chemical gases, etc. Capacity : It is mostly used for grain, petroleum/oil, etc. Package : It is often used in the packing of cement, cotton, tin food and so on, such as bag, carton, case, bale, etc.

METHODS OF CALCULATING WEIGHT In international trade, there are many goods which are calculated METHODS OF CALCULATING WEIGHT In international trade, there are many goods which are calculated by weight. CISG Article 56 Cases: case book P 39 Case 18 Weight Calculation 1) By Gross Weight Gross weight is the sum of total weight of the commodity itself and the tare (the package weight). That’s to say it refers to the net weight plus the tare weight of the goods.

2) BY NET WEIGHT Net weight = gross weight-tare weight There are four ways 2) BY NET WEIGHT Net weight = gross weight-tare weight There are four ways to calculate tare. (1) By actual tare: The actual weight of packages of the whole commodities. (2) By average tare: In this way, the weight of packages is calculated on the basis of the average tare of a part of the packages. (3) By customary tare: The weight of standardized package has a generally recognizer weight which can be used to represent the weight of such packages. e. g. : The weight of a gunny bag is 2. 5 pounds. (4) By computed tare: The weight of package is calculated according to the tare previously agreed upon by the seller and the buyer instead of actual weighing. Gross for Net

3)BY CONDITIONED WEIGHT公量 This refers to the kind of weight derived from the process, 3)BY CONDITIONED WEIGHT公量 This refers to the kind of weight derived from the process, with which the moisture content of the commodity is removed and standardized moisture added both by scientific methods. This kind of calculating method is suitable to those cargoes, which are of high economic value and with unsteady moisture content (whose water contents are not stable), such as wool, raw silk, etc. The formula of calculating the conditioned weight is: Wa x (1+standard regaining rate of water) Wc = -------------------------------1 + actual regaining rate of water = Dried Weight + Standard Moisture In which: Wa- Actual Weight Wc- Conditioned Weight

EXERCISE Please finish the exercise in the text book EXERCISE Please finish the exercise in the text book

Chapter 7 Packing, in business practice, is one of the most important problems that Chapter 7 Packing, in business practice, is one of the most important problems that confront the merchants engaged in foreign trade. It needs more care in export trade than domestic trade. The real art of packing is to get the contents into nice, compact shape that will stay in perfect condition with nothing missing during the roughest journey. Every buyer expects that his goods will reach him in prefect condition. Nothing if more infuriating to a buyer than to find his goods damaged or part missing on arrival. It has been estimated that as much as 70% of all cargo loss could be prevented by proper packaging and marking. Hence, in this respect, suitable packing is of great necessity and importance.

Section One The function of Packing 1 Problems in Transport 2 Purpose of Packing Section One The function of Packing 1 Problems in Transport 2 Purpose of Packing 3 Practical suggestions for packing methods

Section Two Kinds/types of Packing 1) Nude Cargo Nude cargoes or nude packed commodities Section Two Kinds/types of Packing 1) Nude Cargo Nude cargoes or nude packed commodities refer to those kinds of cargoes whose qualities are more stable and to be shipped without any packages or in simple bundles. They are not easy to be influenced by outside circumstances and they become single pieces of their own. They are difficult to be packed or do not need any packing, such as steel products, lead ingot, timber, rubber, automobile, etc.

2) CARGO IN BULK/BULK CARGO Cargo in bulk refer to those goods which are 2) CARGO IN BULK/BULK CARGO Cargo in bulk refer to those goods which are shipped or even sold without packages on the conveyance in bulk, such as oil, ore, grain, coal, etc. Bulk shipment is usually applicable for large quantity of commodities that are to be shipped by means of transport with special purposed shipping equipment. Bulk shipment has the advantages of space saving, quick handling and lower freight.

PACKED CARGO Most of commodities in international trade need certain degree of packing during PACKED CARGO Most of commodities in international trade need certain degree of packing during the shipping, storing and sales process. Packed cargoes refer to those which need shipping packing, marketing packing or both. Classification of Outer Packing 1 Single piece packing 2 Collective packing *Container *Pallet *Flexible container

NEUTRAL PACKING The Neutral packing means that there is neither a name of the NEUTRAL PACKING The Neutral packing means that there is neither a name of the origin, nor a name and address of the factory/manufacturer, nor a trade mark, a brand, or even any words on the (outer or inner) packing of the commodity and the commodity itself. Brands designated by the buyer refers to the packing that the goods should be packed according to the trade marks and brands by the buyer. As to the goods to be ordered regularly in large quantities for a long time by foreign customers, in order to expand sales, we can accept trade marks designated by buyers with indicating the mark of the manufacturing country, that is, the neutral packing with brands designated by the buyers.

Package Mark Shipping mark Original mark Indicativ e mark Warning mark ---- Stencil the Package Mark Shipping mark Original mark Indicativ e mark Warning mark ---- Stencil the marks on the two faces/sides (front and back side) on the outer package.

运输标志的构成 *目的地的名称或代号; * 收货人和发货人的代号; * 件号、批号、合同号或许可证号。 收货 人 三角形的运输标 志 目的港 整批货 物 600件中 运输标志的构成 *目的地的名称或代号; * 收货人和发货人的代号; * 件号、批号、合同号或许可证号。 收货 人 三角形的运输标 志 目的港 整批货 物 600件中 的第一件 合同号 整批货 物总 共 600件

常用指示性标志 紧 急出口 EXIT WATERPROOF 防潮 滑动 开门 SLIDE THIS SIDE UP 此端朝上 推开 常用指示性标志 紧 急出口 EXIT WATERPROOF 防潮 滑动 开门 SLIDE THIS SIDE UP 此端朝上 推开 PUSH FRANGIBLE 易碎品 拉开 PULL NO HOOKS 禁用钩

WARNING MARKS (警告性标志) 当心火灾—易燃物质 当心火灾—氧化物 当心爆炸—爆炸性物质 WARNING MARKS (警告性标志) 当心火灾—易燃物质 当心火灾—氧化物 当心爆炸—爆炸性物质

EXERCISE Please finish the exercise in the text book Case Study: Please read your EXERCISE Please finish the exercise in the text book Case Study: Please read your case book

Chapter 8 Pricing PRICE TERM IN CONTRACT In contract: unit price, total amount, method Chapter 8 Pricing PRICE TERM IN CONTRACT In contract: unit price, total amount, method of pricing Unit Price USD 100 per dozen FOB New York type of currency price per unit measurement unit trade terms HKD 30 per Carton FOB Dalian net. (net price, 净 价) USD 500 per M/T CIFC 5 Boston. (price with commission, 含佣价)

TOTAL AMOUNT Total price is the total amount of a deal. e. g. : TOTAL AMOUNT Total price is the total amount of a deal. e. g. : Total Amount: USD 5000 FOB Liverpool Both commission and discount are general practices often employed in foreign trade to promote exporting and win keen trade competitions. Then, ……

Commission & Discount 1、Definition Commission Discount Broker Importer Commission is the service fees charged Commission & Discount 1、Definition Commission Discount Broker Importer Commission is the service fees charged by the agents or brokers for the transactions made for their principles, such as the commission paid by the exporter to its sales agent, and the commission paid by the importer to its purchasing agent.

 Discount is the price deduction allowed by the Seller to the Buyer as Discount is the price deduction allowed by the Seller to the Buyer as a reward for paying cash (cash discount), buying in quantity (quantity discount, volume discount), making early payment (trade discount), or granting some other advantage to the seller. The way to pay discount: The discount is customarily to be deducted from the payment when the buyer pays for the goods.

PRICING METHODS (1)Fixed pricing:The seller delivers and the buyer accepts the commodities at a PRICING METHODS (1)Fixed pricing:The seller delivers and the buyer accepts the commodities at a fixed price agreed by both parties, neither party shall have the right to change the agreed price. (2)Flexible pricing: (a) The pricing time and the pricing method are specified in the price terms. e. g. : The price will be negotiated and decided by both parties 60 days before the shipment according to the international price level. (b) Only the pricing time is fixed. e. g. : to be priced on July 10, 2004 by both parties.

(3)Partial fixed price and partial unfixed price: The parties concerned only fix the price (3)Partial fixed price and partial unfixed price: The parties concerned only fix the price for the commodities to be delivered recently, and leave the price of the commodities to be delivered in the long term open. e. g. : for the goods to be delivered in several lots. (4)Floating pricing: At the time of pricing, the price adjustment is also stipulated. Sometimes, the floating pricing consists of a basic price plus the adjustment. It can be expressed by a formula: Settled Price = Basic price + price adjustment. e. g. : If the concluded price for other buyers is 5% higher or lower than the contract price, both parties will negotiate to adjust the contract price for the quantity of the contract.

Calculation before export quotation Purchase price of goods Export packing Quotation quantity Collecting basic Calculation before export quotation Purchase price of goods Export packing Quotation quantity Collecting basic information for export quotation Export freight Premium rate Calculation before export quotation Commission Exchange rate The profit rate Theoretical arithmetic Experience arithmetic Rate of export rebates Circulation expense (domestic)

Theoretical arithmetic Cost FOB price Expenses FOBC CIF price Profit CIFC Quotation CFR price Theoretical arithmetic Cost FOB price Expenses FOBC CIF price Profit CIFC Quotation CFR price CFRC

EXERCISE Please finish the exercise in the text book Case Study: Please read your EXERCISE Please finish the exercise in the text book Case Study: Please read your case book

Chapter 9 Delivery of Goods Modes of Transport Documents Terms of Transport Chapter 9 Delivery of Goods Modes of Transport Documents Terms of Transport

INTRODUCTION The delivery of goods, in international trade, is one the most important steps. INTRODUCTION The delivery of goods, in international trade, is one the most important steps. This is because in international trade where an exporter and an importer are always far apart, the goods under the contract have to go a long distance and sometimes change several carriers in transit before they reach the importer. In an international business, it is one of the basic tasks for the exporter to deliver the goods to the buyer or carrier or agreed conveyance after the contract has been singed according to the stipulated time, place, and transport methods in the contract.

The delivery of the goods means that the seller delivers the contract goods at The delivery of the goods means that the seller delivers the contract goods at the agreed time, place and in the agreed manners to the buyer. In international sales of goods, the delivery also means to transfer the necessary documents at the stipulated time to the buyer.

Section One Methods of the Delivery As to the methods of delivery in international Section One Methods of the Delivery As to the methods of delivery in international practice, there are many methods to deliver the goods purchased, such as ocean transport, railway transport, air transport, river and lakes transport, postal transport, road transport, pipelines transport, land bridge transport and international multimode transport and so on. The buyer and seller can decide which methods will be the best for the goods to be transported according the goods characteristics, quantity, transit journey, value, time, the natural conditions and so on.

(一)MODES OF TRANSPORT Sea Charter Liner Land Railway, train Roadway, truck Airline Ups, Fedex, (一)MODES OF TRANSPORT Sea Charter Liner Land Railway, train Roadway, truck Airline Ups, Fedex, DHL, EMS

POSTAL PARCEL TRANSPORT Combined Transport OCP Transport: Overland common point Land Bridge Transport POSTAL PARCEL TRANSPORT Combined Transport OCP Transport: Overland common point Land Bridge Transport

1 Ocean Transport Ocean freight is the most widely used form of transportation in 1 Ocean Transport Ocean freight is the most widely used form of transportation in international trade as well as the most efficient form in terms of energy. It still has the attraction of being a cheap modes of transport for delivering large quantities of goods over long distance. Before a shipment is made, the exporter has to consider many different factors influencing his transport considerations such as cost, safety, speed and convenience.

1) SHIPPING BY CHARTERING It is also called tramp. A shipping by chartering is 1) SHIPPING BY CHARTERING It is also called tramp. A shipping by chartering is a freight-carrying vessel which has no regular route or fixed schedule of sailing. It is first in one trade and then in another, always seeking those ports where there is a demand at the moment for shipping space. The shipper charters the ship from the ship-owner and uses it to carry the goods.

It falls into 3 kinds: voyage charter, time charter and demise charter. (1). Voyage It falls into 3 kinds: voyage charter, time charter and demise charter. (1). Voyage charter 定程租船 (2). Time Charter 定期租船 (3). Demise charter 光船租船 (4). Charter party 租船合同

(1). VOYAGE CHARTER The voyage charter is one for the carriage of goods from (1). VOYAGE CHARTER The voyage charter is one for the carriage of goods from one specified port to another, or for a round trip. It includes single voyage charter, return voyage charter and successive voyage charter. According to the route stipulated in the charter party, the ship-owner is responsible for delivering the goods to the port of destination and for managing the ship as well as bearing all expenses.

Under a voyage charter, payment by the charterer is usually based on an agreed Under a voyage charter, payment by the charterer is usually based on an agreed rate per ton for a “full and complete cargo”. Should he fail to provide sufficient cargo to fill the ship he is liable for what is termed dead freight, a prorate payment for the space not used. A voyage charter also stipulates the number of days known as lay days, for loading and unloading. Should these be accessed, the charter is liable for a demurrage charge for each day in excess, and conversely is entitled to dispatch money for each day not taken up. The liability of the shippowner is to provide a ship that is seaworthy and to avoid unjustifiable deviation en route.

(2). TIME CHARTER The charterer charters the ship for a period of time during (2). TIME CHARTER The charterer charters the ship for a period of time during which the ship is deployed and managed by the charterer. What concerns the charterer most is the period, not the voyage. The chartering may be for a period of 1 year or of several years.

(2). TIME CHARTER During the period of chartering, the ship is managed, deployed and (2). TIME CHARTER During the period of chartering, the ship is managed, deployed and used by the charterer. A series of work, such as loading, unloading, stowing and trimming and the so caused fuel expenses, port expenses, loading and unloading expenses, etc. , should be borne by the charterer. The ship-owner should bear the wages and board expenses of the crew, and be responsible for seaworthiness during the period of chartering and the so-caused expenses and the vessel insurance premium.

(3). DEMISE CHARTER Demise charter, is also called bare-boat charter, the charterer takes a (3). DEMISE CHARTER Demise charter, is also called bare-boat charter, the charterer takes a lease of the entire ship for an agreed time. So demise charter belongs to time charter, but there are some differences: as to time charter, during the period of chartering, the ship-owner provides the charterer with a crew, while as to bare-boat charter, the ship-owner only provides the charterer with a bare-boat, the charterer shall employ the crew and pay the crew’s wages and provisions, ship’s maintenance and stores etc. by himself, apart from those expenses he is responsible for under the time charter.

(4). CHARTER PARTY The charter party is a contract concluded between the shipowner and (4). CHARTER PARTY The charter party is a contract concluded between the shipowner and the charterer when the latter charters the ship or booking shipping space from the former. It stipulates the rights and obligations of the two parties. The main terms on the charter party include the interested parties, name and flag of the ship, description and quantity of the shipments, time of chartering, freight, loading and unloading expenses, time limit of loading and unloading, demurrage and dispatch money.

2) Liner/Regular Shipping Liner A liner is a vessel with regular sailing and arrival 2) Liner/Regular Shipping Liner A liner is a vessel with regular sailing and arrival on a stated schedule between a group of specific ports. The main features of liners usually include: a. The liner has a regular line, port, timetable and comparatively fixed freight,which is the basic features of liners b. The ship-owner usually leases part of shipping space instead of the whole ship. c. The carrier is responsible for loading and unloading operations, i. e. , Gross Terms. d. The B/L drawn by the shipping company is the shipping contract between the carrier and the consignor. The rights and obligations of the carrier and the consignor are based on the B/L drawn by the shipping company.

3) Freight of liners Freight is the remuneration payable to the carrier for the 3) Freight of liners Freight is the remuneration payable to the carrier for the carriage of goods. The freight paid for the carriage by a liner differs in the way of calculating from that paid under a charter party. Freight = Fb + ∑S Fb----Basic freight S----surcharge

characteristics and functions     liner ship business obligations of consignment liner consortia marine transportation characteristics and functions     liner ship business obligations of consignment liner consortia marine transportation business characteristics of ship leasing ship charter voyage charter ways of ship chartering time charter party demise charter

2 Railway Transport Railway is capable of attaining relatively high speeds with large quantities 2 Railway Transport Railway is capable of attaining relatively high speeds with large quantities and is , safe, at low cost, punctual, rather economical and less influence by weather. Railway transport falls into 4 kinds: a. Railway transport at home; b. Railway transport to H. K. and Macao; c. International railway transport between two countries; d. International railway the rough transport.

3 Air Transport The air transport can be divided into the following kinds: a. 3 Air Transport The air transport can be divided into the following kinds: a. Scheduled airliner班机运输 b. Charted carrier包机运输 c. Consolidation集中托运 d. Air express急件运送

AIRWAY BILL Airway Bill has the following features: a. It is a transport contract AIRWAY BILL Airway Bill has the following features: a. It is a transport contract signed between the consignor/shipper and the carrier/ airline. b. It is a receipt from the airline acknowledging the receipt of the consignment from the shipper. c. The air waybill is an internationally standardized document mostly printed in English and in the official language of the country of departure, which facilitates the on-carriage of goods going through 2 to 3 airlines in different countries to the final destination.

4 POSTAL TRANSPORT According to international trade practice, the seller fulfils the duty of 4 POSTAL TRANSPORT According to international trade practice, the seller fulfils the duty of delivery only if he delivers the parcel to the post office, pays off the postage, and gets the receipt. The post office is responsible for the delivery of the goods to the destination, and the consignee goes to the post office for picking up his goods. Postal transport falls into 2 kinds: a. Regular mail; b. Air mail.

5 INTERNATIONAL COMBINED TRANSPORT/INTERNATIONAL MULTIMODAL TRANSPORT International combined transport means the conveyance of cargo 5 INTERNATIONAL COMBINED TRANSPORT/INTERNATIONAL MULTIMODAL TRANSPORT International combined transport means the conveyance of cargo includes at least two modes of transport by which the goods are carried from the place of dispatch to that of destination on the basis of combined transport or a multimodal transport contract. Under this method, the container is used as an inter-medium and make up of an international multimodal and joint transport mode by sea, air and land.

6 CONTAINER TRANSPORT The use of container provides a highly efficient form for transport 6 CONTAINER TRANSPORT The use of container provides a highly efficient form for transport by ship, by road, by rail and by air, though its fullest benefits are felt in shipping, where costs may be reduced by as much as one half. Therefore, nowadays, it it has become very convenient and modern transport methods in international practice. Containers are constructed of metal and of standard lengths, mostly ranging from ten to forty feet.

7 LAND BRIDGE TRANSPORT Land bridge transport is a mode of transport that connects 7 LAND BRIDGE TRANSPORT Land bridge transport is a mode of transport that connects the ocean transport on the two sides of the land by the railway and land which runs across the continent, i. e. , ship-train-ship. Land bridge transport uses the container as a medium, so it has all advantages of container transport.

There are 3 main land bridges in the world: a. American land bridge; b. There are 3 main land bridges in the world: a. American land bridge; b. Siberian land bridge. c. The New European- Asia land bridge.

8 PIPELINES TRANSPORT Pipelines are used for transporting commodities, such as crude oil and 8 PIPELINES TRANSPORT Pipelines are used for transporting commodities, such as crude oil and gases etc. , long distances over land under the sea. Rising fuel costs make pipelines an attractive economic alternative to other forms of transport in certain circumstances. Safety in transferring flammable commodities is another important consideration.