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1、Inspection and Quarantine Declaration EnglishSun ShengyongChapter 5Theories and Knowledge of Inspection and QuarantineUnit 1 GeneralProceduresinInternationalTrade1Before proceeding on to the practical businesscommunication in international trade,its absolutelynecessarytogetourselvesacquaintedwiththe
2、generalproceduresinthegame,withoutwhichwewouldbebuta small boat striving against the waves on the PacificwithoutaGPRS.Thereforethislectureistooffersomeframework knowledge about the essential issues thatmaybeconcernedinourbusinesscommunication,butitsalsonecessary forlearners tobeadvised thatthisbooki
3、snotintendedtofocusoninternationaltrade,andthereforecannotgointogreatdetailsaboutithere.Solearnersshouldrefertoothermaterialsforsuchfurtherdetails when they get puzzled with and interested insomeoftheissueddiscussedinthislecture.1.1 Generalexportprocedures1.1Aswemaybemoreoftenengagedinexportbusiness
4、,we would first begin with the general procedure forexport.In an export business,the first step is to getsufficient market information ranging from the marketdemandoftheproductstobehandled,thegeographicaldistribution,thetechnicalrequirementsorotherspecialpreferences,totheavailabilityofsuchproductsto
5、getherwith their quality and price information,etc.Its noexaggerationtosaythatsufficientmarketinformationishalf success in business.But this step is not alwaysnecessarywhenweareorthinkwearewellinformedalready.1.2 Generalimportprocedures1.21marketinvestigation2inquiry3quotation,offer4creditinquiry5co
6、unteroffer6concludingcontracts7importlicense8applyingforL/C9openingL/C10transferringL/C11shipment1.212negotiation13shipmentadvice14transferringdocuments15documentsagainstpayment16entrustingimportcustomsdeclaration17importdeclaration18takingdeliveryofthegoods19settlementofdisputes1.3Tradeterms1.3Pric
7、e terms in international trade is defined as TradeTermswhichdeterminesthetermsonwhichthetradingparties conclude their deals and assign the duties,obligations and risks in the process.There are threecommonly available international conventions on tradeterms.The first is the Warsaw-Oxford Rules 1932es
8、tablished by International Law Association(a non-profitorganizationbasedinGreatBritainthat-accordingtoits2004constitution-promotes“thestudy,clarificationand development of international law”and“thefurtherance of international understanding and respectforinternationallaw”)in1932.http:/ one is Revised
9、 American Foreign TradeDefinitions 1941 established by American commercialfirms in 1919 and revised in 1941 at a nationalconference.The most widely accepted and adoptedinternationalconventionontradetermsisINCOTERMS(or International Commercial terms are a series ofinternational sales terms,published
10、by InternationalChamber of Commerce(ICC)and widely used ininternationalcommercialtransactions.1.3These are accepted by governments,legal authoritiesandpractitionersworldwidefortheinterpretationofmostcommonlyusedtermsininternationaltrade),establishedby International Chamber of Commerce(businessorgani
11、zation with membership from over 80 countries.They work to harmonize trade practices worldwide byestablishingagreeduponrulessuchasIncotermsandUniform Customs and Procedures for DocumentaryCredits).Its full name is International Rules for theInterpretation of Trade Terms originating in 1936 andrevise
12、dfivetimesin1953,1967,1976,1980and1990.Thelatestversionof2010cameintoeffectin2011whichconsistsof11tradeterms.1.3Termsforanymodeormodesoftransport:EXW-ExWorks(namedplaceofdelivery)FCA-FreeCarrier(namedplaceofdelivery)CPT-CarriagePaidTo(namedplaceofdestination)CIP-CarriageandInsurancePaidto(namedplace
13、ofdestination)DAT-DeliveredAtTerminal(namedterminalatportorplaceofdestination)DAP-DeliveredAtPlace(namedplaceofdestination)DDP-DeliveredDutyPaid(namedplaceofdestination)1.3Termsforseaandinlandwaterwaytransport:FAS-FreeAlongsideShip(namedportofshipment)FOB-FreeOnBoard(namedportofshipment)CFR-CostandF
14、reight(namedportofdestination)CIF-Cost,Insurance and Freight(named port ofdestination)1.4 Paymentmethods1.4Mailtransfer(M/T)Thebuyergivesmoneytohislocalbankandthebankissuesatrustdeed(usuallyanM/TadviceoraPaymentorder)for payment,then sends it to a correspondentbankatthesellersendbymail,entrustingthe
15、banktopaytheamounttotheseller.1.4TelegraphicTransfer(T/T)T/Tmeansacablemessagefromonebanktoanotherinordertoeffectthetransferofmoney.Attherequestofthebuyer,thelocalbanksendsatrustdeedforpaymentbycabledirectlytoacorrespondentbankatthesellersend and entrusts that bank to pay the amount to theseller.Glo
16、ssary,International Trade Services,First NationalBank1.4D/D(demanddraft)The buyer buys a bank draft from his local bank andsendsitbymailtotheseller.Onthebasisoftheabovebankdraft,thesellerorhisappointedpersongetsthemoneyfromtherelativebankathisend.Itincludesthefollowingstages:1.4In our export busines
17、s,the so-called“Shipment firstSettlementlater”methodisusuallyadopted,i.e.beforereceiving money,the seller hands over the shippingdocumentsorgoods.Thenthebuyermakespaymentonhisowninitiative.Whetherthemoneycanbereceivedsuccessfully,inthefinalanalysis,itreliesonthebuyerscreditonly.Butthe“CashwithOrder”
18、or“Cashbeforeshipment”methodismoreadvantageoustotheseller,asthe buyer fulfills his obligations of payment beforereceivingthedocumentsorthegoods.1.4Collection:D/P(documentsagainstpayment,D/A(documentsagainstacceptance)Collection means that the exporter asks his bank toarrange for the acceptance or pa
19、yment of the billoverseas，andthebankwillcarryhistaskthroughitsownbranchofficeabroadoracorrespondentbank1.5 Paymentbills1.5Draft(billofexchange)ItisdefinedinChinaasabill(atrustdeed)issuedbythedrawer entrusting the payer to unconditionally pay acertain amount to the payee(usually the seller orexporter
20、ininternationaltrade)orhisappointedpersonatthesightoforuponacertaindateafterthesightofthebill.In Britain,it is defined as a written entrustmentissued by one person to another for the latter tounconditionally pay a certain person or his appointedagentortheholderofthedraftacertainamountatsightoruponac
21、ertainoragreeddateaftersightofthebill.1.5PromissorynoteApromissorynoteisanunconditionalpromiseinwritingmadebyonepersontoanothersignedbythemaker，engaging to pay，on demand or at a fixed ordeterminablefuturetime，asumcertaininmoneyto，ortotheorderofaspecifiedpersonortoabearer.Promissory note is classifie
22、d into bank note andcommercialnote.Banknoteisissuedbythebank；butcommercialnoteisissuedbythebusinessortheperson.Specimenofapromissorynote1.5Cheque/checkAchequeisanunconditionalorderinwritingdrawnonabankersignedbythedrawer，requiringthebankertopayondemandasumcertaininmoneytoortotheorderofspecifiedperso
23、nortoabearer.Itisdividedintocashchequeandtransfercheque；crossedchequeandnon-crossedchequeUnit 2 Business Communication Essentials2.1Businesscommunicationprinciples2.1A.CourtesyB.ConsiderationC.CompletenessD.ClarityE.ConcisenessF.ConcretenessG.Correctness2.2 Businesscorrespondencestructures2.2Busines
24、sorCommercialEnglishCorrespondence(asinBritain)or Business writing(as in the United States)referstolettersforbusinesspurposesandrangesfromletters,reports and post cards to telexes/telegraphs,telephone calls,fax messages,and emails.GreatdifferenceshavenowdevelopedbetweentheBritishandthe Americans,esp
25、.in the letterhead,the solutation,layoutofthemessage,thedictionandthecomplementaryclosing.2.2As a general tendency,the conservative British preferclassicalstylesandformaldictionwhiletheAmericansaremoredynamicandliberal.ThereforewedadopttheuniformQueensEnglishwhenaddressingcorrespondents of British b
26、ackground and apt toAmericanEnglishwhenwritingtoAmericansorreadersofsuchtastes.Unit 3Business Stages3.1Inquiry3.1Inquiry is usually made by the buyers withoutengagement to get information about the goods to beordered，such as quality，quantity，price，deliverydateandotherterms.Inquirycanbedividedinto2ki
27、nds：3.1Invitation to make an offer，e.g.，PLEASE OFFERNORTHEAST SOYA BEAN and BOOKABLE MAXAMBRAND DENTAL CREAM LARGE SIZE MAX 10000GROSSPLSCBLLOWESTPRICEEARLIESTDELIVERYTIME.Invitation to make a bid，e.g.NORTHEAST SOYABEAN AVAILABLE PLEASE BID and CAN SUPPLYMAXAM BRAND DENTAL CREAM USD0.50 PER PCMARSHP
28、MTCBLRESPIFINTERESTED.3.2 Offer3.2Offerisadeclarationofintenttoconcludeacontractwithother parties.The declaration shall comply with thefollowingstipulations：(1)Itscontentsshallbespecificand definite；(2)It indicates that the offeror will beboundbyitupontheacceptanceoftheofferee3.3Counter-offer3.3Coun
29、ter-offermeansthattheoffereedoesntaccepttheoffer wholly and put forward some additions，modification，limitations，etc.astothebasictermsandconditions contained in the offer.If the additional ordifferent terms do not materially alter the terms of theoffer constitutes an acceptance，unless the offeror，obj
30、ectsorallytothediscrepancyordispatchesanoticetothateffect.3.3Ifhedoesnotsoobject，thetermsofthecontractarethetermsoftheofferwiththemodificationscontainedintheacceptance3.4Acceptance3.4Acceptance is a declaration of intent of the offeree toassenttoanoffer.Acceptance shall be made by means of notificat
31、ionexcept that it is based on transaction practices or theoffer which indicates an acceptance may be made byperforminganact.Acceptanceshallreachtheofferorwithinthetimelimitfixedintheoffer.3.4Acceptancewithoutanytimelimitshallreachtheofferorinaccordancewiththefollowingprovisions：(1)Iftheoffer is made
32、 in dialogues，the acceptance shall bemadepromptlyexceptasotherwiseagreeduponbytheparties；(2)Iftheofferismadeinformsotherthanadialogue，theacceptanceshallreachtheofferorwithinareasonableperiodoftime.3.5Quotationstrategies3.5Uniformquotationformsareasfollows:TO:ABCCO.ATTN:Mr.SmithSUBJECT:quotationonxxx
33、itemsDATE:DearMrSmith,Thank for your inquiry by fax of _.We arepleasedtoquoteyouourbestpricewithourtermsasfollows:3.5QUOTATIONPAYMENT:BYT/TORIRREVOCABLEANDCONFIRMEDL/CATSIGHTINOURFAVOR.TERMS:FOBWuhan.DELIVERY:WITHIN_DAYSAFTERTHERECEIPTOFYOURORDER.VALIDITY:DAYSFROMTHEDATEHEREOF.ITEMNO:ITEMDESCRIPTION
34、:INDIVIDUALPACKING/CASEPACK:_PCS/_PCS,N.W._,G.W._,3.5MEAS:_cm(L)X_cm(W)X_cm(H)FOBPORTPRICE:REMARKS:Thanks&bestregards.XXXXCO.,LTD.SunShengyongUnit 4Contract Clause Consultation4.1 Paymentclauses4.1Suppose such a situation:China National Import&Export Corp.,Shanghai Branch,Shanghai,China,on30thJune,2
35、004exportedtotheUnitedHardwareCo.,ViaFioravanti,40129Bologna,Italy.The seller wrote the following letter to the buyer toconsultaboutthepaymentclause.Dearsirs,WethankyouforyourorderNo.905for50metrictonsofEmeryPowder butregretbeing unable toacceptyourtermsofpaymentmentionedtherein.4.1Inourlastletterwe
36、sentyouacopyofourspecimencontractinwhicharecontainedthegeneralsalestermsandconditions.Ifyouhavegonethroughthespecimencontractyourwillseethatourusualtermsofpaymentarebyconfirmed,irrevocableletterofcreditinourfavor,availablebydraftatsight,reachingusonemonthaheadofshipment,remainingvalidfornegotiationi
37、nChinatillthe21stdayaftertheprescribedtimeofshipment,andallowingtranshipmentandpartialshipments.4.1Wealsomentionedinourletterof14thJunethatseveralbig Italian firms had already done business with usaccording tothe above terms.Wehope therefore thatyouwillnothesitatetocometoagreementwithusonpayment ter
38、ms so as to get the first transactionconcluded.Assoonaswehearfromyouintheaffirmativewewillsendyouthecontract,sothatthegoodscanbereadyforshipmentasrequested.Welookforwardtoreceivingyourfavorablereplysoon.YoursfaithfullyChinaNationalImport$ExportCorp.4.2Insuranceclauses4.2Firstofall,weneedtoknowofrisk
39、s&coverage.(1)free from particular average(F.P.A.,marine cargoinsurance that does not cover partial losses or partialdamage unless caused by the vessel being sunk,stranded,burned,onfire,orinacollision4.2Then,we need to get acquainted with stipulations forinsurance.ICC=institutecargoclauseCIC=ChinaIn
40、suranceClausecoverholdsthcoveredinsuredprincipalclaimspayableinLondondebitnoteforthepremiumMarineinsurancepolicyIOP=irrespectiveofpercentageW/W,CY-CY4.3Packingclause4.3The specifications ofpackage should be concrete andclear.Theterms，suchasseaworthypacking，customarypackingandsellersusualpackingcanon
41、lybeusedforlong-termbusinesspartners.The characters of goods，the traits of differenttransportation，theshapesofgoodstochoosesuitablepackingshouldbeconsidered.Whentoappointmaterialsof package，types of package，the specifications ofpackage，wemustthinkabouttheactualneedsduringtransportation，storageandsal
42、es.4.3Thefeesofpackageshouldbepaidattentionto.The number of cases inside should be described indetails.Examples：In wooden cases of 60 kgs net each；Innew single gunny bags of 40 kgs net each；In clothbaleseachcontaining10pcs.of42yd；10piecestoabox，20boxestoanexportcarton；Inirondrumsof40kgsneteach.4.4 C
43、laimsclause4.4Claim means that in international trade，one partybreaksthecontractandcauselossestotheotherpartydirectlyorindirectly，thepartysufferingthelossesmayaskforcompensationforthelosses.Itsademandmadeuponapersonorpersonsforpaymentonaccountofalosssustainedthroughitsnegligenceregardingquality,quan
44、tity,weightanddamagesorlostintransit.Thereare2mainkindsofcomplaintsorclaims.Thefirstis genuine complaints.It arises from the situations asfollow:4.4Thewronggoodsmayhavebeendelivered;Thequalitymayhavebeenfoundunsatisfactory;The shipment may have been found damaged,short,missingorlateThepriceschangedm
45、aybeexcessiveornotasagreedThesecondisfalsecomplaints.Itsmadebybuyerswhofindfaultwiththegoodsasanexcusetoescapefromthecontract.EitherbecausetheynolongerwantthegoodsOr because they have found that they can get themcheaperelsewhere4.4There are 3 kinds of settlements:making refund andcompensatingfordire
46、ctlossesorexpenses,sellingthegoodsatlowerpricesandreplacingthefaultygoodswithperfectones,e.g.:4.4Incaseofqualitydiscrepancy,claimshouldbefiledbythebuyerswithin30daysafterthearrivalofthegoodsatportofdestination,whileforquantitydiscrepancy,claimshould befiledbythebuyerswithin 15daysafterthearrivalofth
47、egoodsatportofdestination.Inallcases,claims must be accompanied by survey reports ofrecognized public surveyors agreed to by the sellers.Shouldtheresponsibilityofthesubjectunderclaimbefoundtorestonthepartofthesellers,thesellersshall,within20daysafterreceiptoftheclaim,sendhisreplytothebuyerstogetherw
48、ithsuggestionforsettlement.4.5 Transportationclause4.5Abillofladingisadocumentissuedbyacarriertoashipper,acknowledgingthatspecifiedgoodshavebeenreceivedonboardascargoforconveyancetoanamedplace for delivery to the consignee who is usuallyidentified.Athroughbillofladinginvolvestheuseofatleasttwodiffer
49、entmodesoftransportfromroad,rail,air,andsea.Thetermderivesfromtheverbtoladewhichmeans to load a cargo onto a ship or other form oftransportation.4.6Arbitrationclause4.6Arbitration is process of resolving a dispute or agrievance outside a court system by presenting it fordecision to an impartial thir
50、d party.Both sides in thedisputeusuallymustagreeinadvancetothechoiceofarbitrator and certify that they will abide by thearbitrators decision.The arbitration award shall bebindingtobothparties.Unit 5 Operation of L/C5.1 Features and FunctionsofL/C Features and Functions of L/CLetterofcreditisastateme