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ChapterFour,TermsofCommodity,SEIBOFGDUFS,2,Learningobjectives,Afterreadingthischapteryoushouldbeabletoexplainthedifferentwaysofqualitystipulationoutlinethequantitymeasurementunitsandsystemsdescribetheapproachestoweightcalculationunderstandthefunctionsandfeaturesofdifferenttypesofexportpackagingidentifymarkingonthepackingofgoodsforinternationalsalescomposequality,quantityandpackingclausesproperly,SEIBOFGDUFS,3,4.1Nameofcommodity,SignificanceCISGArticle35:Thesellermustdelivergoodswhichareofthequantity,qualityanddescriptionrequiredbythecontractandwhicharecontainedorpackagedinthemannerrequiredbythecontractIssuesconcerningstipulatingnameinsalescontract:beingclear,specific&precisebeingpracticaladoptingthewidelyacceptedname(HSCode),SEIBOFGDUFS,4,4.2Quality,Definition:referstotheintrinsicelementsofcommoditiesincludingtheinternalpropertiesoringredientsaswellastheexternalappearance.,SEIBOFGDUFS,5,4.2Quality:waysofqualitystipulation,SEIBOFGDUFS,6,4.2QualitystipulationSalebydescription,Specificationcomprisesomeimportantindicatorssuchascomposition,content,purity,length,size,etc.ExampleChinaSesameSeedMoisture:8%max.Admixture:2%max.Oilcontent:52%basis,SEIBOFGDUFS,7,4.2QualitystipulationSalebydescription,Salebygradebeindicatedsimplybystatingitsgrade,aspresumablythesellerandthebuyeraresupposedtohavereachedaconsensusontheclassificationimplicationofgrades.toavoidmisunderstandingandthesubsequentdisputes,however,itisrecommendedtolaydownsomemajorspecifications,SEIBOFGDUFS,8,4.2QualitystipulationSalebydescription,salebygrade:exampleFreshHenEggs,shelllightbrownandclean,eveninsizeGradeAA:60-65gmpereggGradeA:55-60gmpereggGradeB:50-55gmpereggGradeC:45-50gmperegg,SEIBOFGDUFS,9,4.2QualitystipulationSalebydescription,Salebystandardwhenspecificationsorgradesarelaiddownandproclaimedinaunifiedway,theybecomestandards.ExampleTetracyclineHCLTablets(SugarCoated)250mg.B.P.1973ChinaNortheastSoybean2006NewCrop,F.A.Q:Moisture15%max.Admixture1%max.,SEIBOFGDUFS,10,4.2QualitystipulationSalebydescription,Salebystandard:F.A.Q.&G.M.QF.A.Q.:indicatingthatthequalityoftheaproductofferedisaboutequaltotheaveragequalitylevelofthesamecropwithinacertainperiodoftime(e.g.ayear.)generallysuitableforagriculturalproducts.G.M.Q.:thequalityofthegoodsofferedaresufficientlygoodtosatisfythepurposesforuseorconsumptionwhicharemutuallyunderstoodbythebuyerandthesellerusedsometimesasthebottom-lineofqualityrequirement.,SEIBOFGDUFS,11,4.2QualitystipulationSalebydescription,Salebybrandnameortrademarktodefinethequalityofsomeproductsbysimplyreferencingtotheirbrandnamesortrademarks.ExamplesSonyTelevisionsHaierRefrigeratorsTigerheadbatteriesPanasonicTelevision,TH-42PV65C,SEIBOFGDUFS,12,4.2QualitystipulationSalebydescription,SalebyorigintousethenameoftheplaceoforiginastheindicationforqualityExampleWest-lakeLongjingTea,Grade1,ZhejiangOrigin,SEIBOFGDUFS,13,4.2QualitySalebydescription,Salebydescriptionsorillustrationsspecificdescriptions,sometimeswithillustrationsExamplePanasonicTelevision,TH-42PV65C,qualityandtechnicaldatatobestrictlyinconformitywiththeinstructionsattached.HaierRefrigerator,ModelXXX,qualityandtechnicaldatatobestrictlyinconformitywiththedescriptionssubmittedbytheseller.,SEIBOFGDUFS,14,4.2QualitystipulationSalebysample,SalebysampleDefinition:asalewhenthesellerandbuyeragreethatsampleisusedasthebasisofqualityandconditionofthegoodstobedelivered.ExampleTeddyBearSize15,QualityasperSampleX071118A,SEIBOFGDUFS,15,4.2Qualitystipulationsalebysample,SalebysellerssamplemadeonthebasisofthesampleprovidedbythesellerSalebybuyerssamplemadeonthebasisofthesampleprovidedbythebuyerSalebycountersampleCountersample:areplicamadebythesellerofthesampleprovided,normallybythebuyercountersampleusedasthebasisforqualitytoremovetheriskoftheselleragoodsubstitutetosalebybuyerssample,SEIBOFGDUFS,16,4.2Quality,Issuesconcerningqualityclauseinsalescontract:adoptingtherightwayavoidingdoublestandardbeingclear,practicalandreasonablemakinguseofQualityLatitudeorTolerancemakingpriceadjustmentwhennecessaryinsertingsellersprotectingclausewhennecessary,SEIBOFGDUFS,17,4.2Quality,Qualitylatitude:definitionthepermissiblerangewithinwhichthequalityofthegoodsdeliveredbythesellermaybeflexiblycontrolledQualitytolerance:definitionthequalitydeviationrecognizedinthetrade,whichallowsthequalityofthegoodsdeliveredbythesellertohavecertaindifferenceswithinarange,SEIBOFGDUFS,18,4.2Quality,Howtostipulatequalitylatitude/tolerancetostipulateacertainscope,e.g.thewidthofthecottonclothis47/48inches.tostipulate“max”or“min”e.g.Moisture:8%max.Admixture:2%max.tostipulatemoreorlesse.g.ducksdowncontent18%1%,SEIBOFGDUFS,19,4.2Quality,Stipulatingqualitylatitude:examples“Qualityshallbeaboutequaltothesample”“Qualityisnearlythesameasthesample”“Thequalityofthegoodsshippedtobeaboutequaltothesample”“Shipmentshallbesimilartothesample.”,SEIBOFGDUFS,20,4.2Quality,SafeguardClause:examples“Itisthebuyerratherthanthesellerwhoshallberesponsibleforanydisputesarisingfromtheinfringementofthethirdpartysintellectualproperties.”Foranycottonpiecegoodsproducedwiththedesign,trademarks,brands,and/orstampingsprovidedbythebuyer,shouldtherebeanydisputesarisingfromtheinfringementuponthethirdpartysindustrialpropertyrights,itisthebuyertobeheldresponsibleforit.,SEIBOFGDUFS,21,4.3Quantity,UnitsofquantitycalculationWeight:metricton,tonne,kilogramme,longton,shorttonNumber:piece,dozen,setLength:meter,kilometer,yard,foot,inch)Area:km2,yd2,ft2Volume:km3,yd3,ft3Capacity:liter,gallon,quart,pint,bushel,SEIBOFGDUFS,22,4.3Quantity,MeasurementsystemstheMetricSystemtheU.S.SystemtheBritishSystemtheInternationalSystemofUnits(S.I.),SEIBOFGDUFS,23,4.3Quantity,Waystostipulateweightgrossweightnetweightgrossfornetconditionedweighttheoreticalweightlegalweight,SEIBOFGDUFS,24,4.3Quantity,grossweightgrossweight=netweight+TarenetweightNetweight=GrossweightTareIfnotstipulated,consideredtobenetweighttarecalculationactual/realtareaveragetare,customarytarecomputedtaregrossfornetGoodspricedbytheirgrossweightinsteadofthenet,SEIBOFGDUFS,25,4.3Quantity,ConditionedweightConditionedweight:equalstothedryweightofacommodityplusthestandardmoisturecontentConditionedweight=Driednetweightx(1+Standardregainrate),SEIBOFGDUFS,26,4.3Quantity,TheoreticalweightTheoreticalweight=UnitweightxQuantityLegalweightLegalweight=Netweight+Tare(immediatepacking),SEIBOFGDUFS,27,4.3Quantity,Issuesconcerningquantityclauseinsalescontract:clear,specificandavoidambiguityquantitylatitude(moreorlessclause)latitude:howmuchmoreorless?decision:atwhoseoption?pricing:contractrateormarketprice?,SEIBOFGDUFS,28,4.3Quantity,Examplesofmoreorlessclause:800metrictons,5%moreorlessatsellersoption20,000metricpairs,thesellersareallowedtoload5%moreorless,thepriceshallbecalculatedaccordingtotheunitpriceinthecontract1,000metrictons5%moreorless,atBuyersoptionwithmoreorlessportionpricedatthemarketpriceatthetimeofshipment.,SEIBOFGDUFS,29,4.4Packing&Marking,FunctionsofPackingProtectingGoodsFacilitatingDeliveryReducingCostPromotingsales,SEIBOFGDUFS,30,4.4Packing&Marking,FactorsdeterminingpackingNaturePropertiesofCargoModeoftheTransportCustomsorStatutoryRequirementsGeneralFragilityofCargoWeatherEaseofHandlingandStowageInsuranceTransportationCost,SEIBOFGDUFS,31,4.4Packing&Marking,TypesofpackingSalespackingTransportPackingunitpacking:drums,cases,bags,boxes.collectivepacking:pallet,flexiblecontainer,SEIBOFGDUFS,32,4.4Packing&Marking,TypesofmarkingShippingmarksIndicativemarksWarningmarksSupplementarymarks,SEIBOFGDUFS,33,4.4Packing&Marking,FunctionsofshippingmarkstoquickenstheidentificationtohelpavoidshippingerrorsContentsofShippingmarksConsigneescodeDestinationReferenceNo.Numberofpackages,SEIBOFGDUFS,34,4.4Packing&Marking,Exampleofshippingmark,SEIBOFGDUFS,35,4.4Packing&Marking,IndicativemarkstodrawattentionforproperhandlingEx
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