Chapter2-Terms-of-Commodity-国际贸易实务双语课件

1、Chapter TwoTerms of CommodityChapter TwoTerms of CommodityLearning objectivesKnow the different ways of quality stipulation.Familiar with the quantity measurement units and systems.Know the functions and features of different types of export packaging.Master the stipulation of quality, quantity, and

2、 packing clauses properly.Learning objectivesKnow the diContentsCase study1Section 1 Name of Commodity2Section 2 Quality of Commodity3Section 3 Quantity of Goods4Section 4 Packing of Goods5Key terms6ContentsCase study1Section 1 NChapter2-Terms-of-Commodity-国际贸易实务双语课件Chapter2-Terms-of-Commodity-国际贸易实

3、务双语课件Section 1 Name of CommodityExample: Name of Commodity( Description of Goods): Chang Hong Brand 14”CTV, Model 1401Points for Attention:Using internationally recognized commodity description Paying attention to the use of different name for the same product Paying attention to the appropriate cho

4、ice of commodity name The stipulation of the commodity must be precise and specific. Section 1 Name of CommodityExaDefinition : The integration of the outward appearance and the intrinsic attributes of the commodities. Section 2 Quality of CommoditySignificance: a. Refers to the value of use and the

5、 value of the commodity. b. Affects the market price and marketability of the commodity. c. Involves the relevant corporate and even a countrys reputation.Methods of stipulating quality of the goods 1. Sale by actual commodity 2. Sale by descriptionDefinition : The integratiSale by Actual Commodity

6、Sale by DescriptionSale by Inspection Methods of Stipulating Quality of GoodsSale by SampleSale by SpecificationSale by GradeSale by StandardSale by Specifications and IllustrationsSale by Product OriginSale by Brand Name or Trade MarkSale by Actual Commodity Sa1. Sale by Actual Commodity1.1 Sale by

7、 InspectionAgricultural productCar exhibition1. Sale by Actual Commodity1.11.2 Sale by Sample The transaction that is concluded on the basis of the sample representing the quality of the whole lot can be called sale by sample.a. Sale by Sellers Sample b. Sale by Buyers Sample 1.2 Sale by Sample The

8、tThe sample is the only legal basis of confirming whether the whole consignment is in conformity with the contract or not.The seller must deliver goods in conformity with the sample. This is an implied warranty of the seller. Though not expressed clearly in the contract, the seller must do as this.O

9、neTwoTwo basic requirements for sale by sample: The sample is the only legal bPoints for attention in sale by sampleA.Average qualityB.C.D.E.Keep the duplicate sample Use counter sample to avoid risksUse “for reference only”Avoid the absolute statementsInadvisable to adopt sale by sample when the qu

10、ality can be describe by indicators G. One method to stipulate the qualityPoints for attention in sale b2. Sale by Description2.1 Sale by SpecificationExample 1: Plain Stain Silk Width Length Weight Composition (inch) (yds) (m/m) 55-56 38/42 16.5 100% SilkExample 2: Printed Shirting “Jumping Fish” Y

11、arn No. of threads Width counts Per inch (inch) 30 x 36 72 x 69 35/36”2. Sale by Description2.1 Sale2.2 Sale by GradeExample 4: Fresh Hen Eggs, shell light brown and clean, even in size Grade AA: 60-65 gm per egg Grade A: 55-60 gm per egg Grade B: 50-55 gm per egg Grade C: 45-50 gm per egg Grade D:

12、40-45 gm per egg Grade E: 35-40 gm per eggThe grade of the goods refers to the classifications of the commodity of the same kind. The commodities are graded as low or high quality by differences in specification. 2.2 Sale by GradeExample 4: Fr The Popular Standards to Define Commodity QualityCE Mark

13、ISO9000 Standard ISO14000 Environmental StandardsUL Mark2.3 Sale by Standard The Popular Standards to Defi F. A. Q. (Fair Average Quality ) : Example 6: Chinese Peanut 2006 Crop, F. A. Q. Moisture (max.) 13% Admixture (max) 5% Oil content (min.) 44%The average quality level of export commodity withi

14、n a certain period of time. (for the trade of agriculture products) G. M. Q. (Good Merchantable Quality ) :The commodities are free from defects and are good enough for use or consumption (for the trading of wood and aquatic products) F. A. Q. (Fair Average Qua2.4 Sale by Brand Name or Trade Mark2.4

15、 Sale by Brand Name or Trad2.5 Sale by Name of origin Example 7: Jingdezhen Porcelain, Beijing Toasted Duck, Ginseng from Changbai Shan,Guizhou Mao Tai wine 2.5 Sale by Name of origin Exa2.6 Sale by Description and Illustration Example 8: Multi-shuttle Box Loom Model 1515A, detail specifications as

16、attached description and illustrations.In case of sale by specifications and illustrations, the delivery must be in conformity with all the indication stipulated in the illustrations.The illustration forms an integrate part of this contract.2.6 Sale by Description and IlQuality tolerance Quality lat

17、itude Example 9: Raincoat, quality to be similar to the sample No.518 Example 11: Quality as per Sample No. 256 and Technical Features Indicated in the Illustrations Submitted by Seller.Quality clause in the sales contractExample 10: SA-2041 Black Cotton Umbrellas for Ladies, 20 x 10 ribs, Wooden Sh

18、aft, Plastic Handles.Points for attention when signing quality clause in the sales contractQuality tolerance Example Quality tolerance is the tolerance that is recognized internationally.Points for Attention:AThe buyer should not returning goods and compensation within the range of quality tolerance

19、.BCThe quality tolerance is used in terms of industrial manufactured goods.Within the range of quality tolerance, price adjustment is not allowed. Quality tolerance is tMaximum and MinimumExample 13: Live Yellow Eel 75g and up per pieceExample 14: White Rice, Long Shape, 2006 Crop, F.A.Q. Broken Gra

20、ins (max.) 25% Admixture (max.) 0.25% Moisture (max) 15%Flexible AreaExample 11: Cloth (width) 46 48Example 12: B601 Tomato Paste 28/30 Concentration aMethod of stipulating the quality latitude bcAllowed Deviations Example 15: Grey Duck Feather Down Content 18%, allowing 1% more or less Maximum and

21、MinimumExample 13:Example 14: Brazilian Soybean Moisture (max) 8%, per unit +1%, Price干1% Admixture (max) 2%, per unit + !%, Price干1% Oil Content (min) 45%, per unit + !%, Price+1% Impurity (max) 2%, per unit + !%, Price干1%How to price? If the quality of the commodities delivered does not go beyond

22、the range of the flexibility stipulated in the sales contract, it usually does not affect the price.or the price can also to be adjusted in accordance with the actual deviation from a given standards.Example 14: Brazilian SoybeanHSection 3 Quantity of Goods British Sale of Goods Act 1893 (1993 Revis

23、ion) provides, “If the quantity delivered by the seller is greater than the amount stipulated in the contract, the buyer is entitled to reject the goods excessive in quantity, or he may reject the whole lot.”United Nations Convention on Contracts of International Sale of Goods also states: “To deliv

24、er goods by the agreed amount is a fundamental obligation of the seller. If the delivery quantity is more than quantity agreed upon, the buyer may reject delivery of the excess quantity, or he may take delivery of all or part of the excess quantity, but he must pay for it at the contract rate.”Defin

25、itionThe quantity of commodities refers to the weight, number, length, volume, area, capacity, etc. which indicated by different measuring units. Relative stipulations on quantity Section 3 Quantity of Goods BrMethod Units of Measurement CommoditiesWeightgram (g), kilogram (kg), ounce (oz), pound (l

26、b), metric ton (M/T), etc.mineral products, agricultural and by-products, salt, oil, etc.Numberpiece (pc), package (pkg), pair, set, dozen (doz), gross (gr), roll, unit, head, bale, bag carton, case. etc.Industrial products, furniture, toll, clothing, automobile, cattle, yarn, canned good, etc.Lengt

27、hmeter (m), centimeter (cm), foot (ft), yard (yd), etcTextile products, metal cord, cable wire, etc.Areasquare meter (sq m), square foot (sq ft), square yard (sq yd), etc.glass, plastic floor. Leather, etc.Volumecubic meter (cu m), cubic centimeter (cu cm), cubic foot (cu ft), cubic yard (cu yd), et

28、ctimber, chemical gases, etc Capacityliter (L), gallon (gal), pint (pt), bushel (bu), etc.Grain, petroleum, etcCalculation of QuantityMethod Units of MeasurThe Calculation of the Weight : 1. By Gross Weight Example 1: Fish Meal in gunny Bags of 50 Kg gross for net 2. By Net Weight 3. By legal Weight

29、 6. By Theoretical Weight 5. By Conditioned Weight Conditioned Weight = actual weigh x 1+standard regaining rate of weigh1+actual regaining rate of weigh 4. By Net Net Weight In international trade, it is customary to calculate the weight by net weight if a contract does not stipulate definitely by

30、gross weight or by net weight.The Calculation of the Weight More or Less Clause :Example: Datong Steam Coal, 1,000 M/T, shipment 5% more or less at the sellers option, value of the excess or shortage quantity to be calculated at the contract rate.Quality clause in import and export contract Quantity

31、 and measurement of the traded commodities The buyer and seller stipulate in a sales contract that the seller is allowed to deliver the goods within a certain percentage of more or less than the contracted quantity.Content of More or Less Clausea. the range of quantity differenceb. right of choice r

32、elating to quantity differencec. pricing approach More or Less Clause :ExamplSection 4 Packaging of Goods Sales PackagingTransport Packaging It is also called giant packing or outer packing. It is used mainly to keep the goods safe, facilitate the transportation, storage, identification and count, r

33、educe freight and cut costs. It also called inner packaging or small packaging, is in direct contact with the commodity and will get into sales outlets with the product to meet the consumer.Section 4 Packaging of Goods STransport PackingBags (paper, linen, canvas, rubber, etc), Sack, Carton, Case, B

34、ox, Crate, Drum, Bale, Can/Tin, Carboy, Bundle.Container ( TEU, FEU ) PalletFlexible ContainerUnit Packing(Single Transport Packing)Collective Packing(Combined Transport Packing)Table1: Types of Packing ContainersTransport PackingBags (paper, Various Kinds of Marks 1. Shipping MarksABCFrankfurtNos.

35、1-3001. Specific geometric figure and Abbreviations or initials of consignee2. The port of destination3. The package number2. Indicative MarksTHIS SIDE UP USE NO HOOK KEEP DRYTEMPERATURE LIMIT Various Kinds of Marks 1. Ship3. Warning Marks (Dangerous Cargo Marks)INFLAMMABLE GASINFLAMMABLE COMPRESSED

36、 GASPOISON GASOXIDIZING MATERIALCORROSIVESMATERIAL RADIOACTIVES(FIRST GRADE)HARMFULNESSMATERIAL RADIOACTIVES(SECOND GRADE)3. Warning Marks (Dangerous C4. Identification Marks ART. NO.: 904ACOLOUR: NAVY / GREYN. W. : 11.3 KGG. W. : 16.4 KGMEAS.: 45.5 X 52 X 55.5 cmMADE IN CHINA Decoration Verbal Instructions (trademark, brand name , etc.) Labels Bar Code Instructions and Signs on Sales Packaging UPC (Univer