Terms of delivery of documents are as follows: （1)Delivery of documents against ______, its abbrevi

第1题

Delivery Terms

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第2题

Our usual terms of payment are cash on delivery/by L/C payable within 90 days of sight.

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第3题

In foreign trade business, the trade terms DDU is often used, DDU is the abbreviation for（). A. d

In foreign trade business, the trade terms DDU is often used, DDU is the abbreviation for( ).

A. delivery duty unpaid B. destination delivery charge unpaid

C. delivery duty paid D. destination delivery charge paid

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第4题

Under CFR trade terms , the shipping advice is very important because the importer may take delivery

Under CFR trade terms , the shipping advice is very important because the importer may take delivery of the goods after receiving the shipping advice.

参考答案：错误

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第5题

Goods should not be dispatched directly to the address of a bank or consigned to or to the

order of a bank without prior agreement on the part of that bank．Nevertheless，in the event that goods are dispatched directly to the address of a bank or consigned to or the order of a bank for release to a drawee against payment or acceptance or upon other terms and conditions without prior agreement on the part of that bank，such bank shall have no obligation to take delivery of the goods，which remain at the risk and responsibility of the party dispatching the goods．

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第6题

Key Points Concerning A Sales Contract A sales contract embodies a set of different terms such as q

Key Points Concerning A Sales Contract

A sales contract embodies a set of different terms such as quality, quantity, payments, delivery, and insurance, etc. When the exporter and customer are negotiating, they should consider and agree upon these terms. Apparently, each party hopes to stipulate terms favorable for himself. But arrangements which are advantageous to one party are often disadvantageous to the other party. Therefore, some practical suggestions and tactics should be given adequate importance in negotiation of a contract. In this sector, you will have a look on the problems international trade negotiators may face and suggestions in solving them.

Name of goods

It is recommended that the names of goods to be exported correspond to the names used in the customs lists of the importing country, in order to minimize problems at customs, and to facilitate calculation of import duties.

The exporter should be consistent in the names he uses for his products, referring to them precisely as he does in the catalogs he gives to the importers, for the purpose of avoiding any trouble of breach of an agreement for nonconforming goods.

Quantity

In indicating length, weight, volume and so on, the metric system should be used unless the sale is between countries which use another system.

For goods whose quantity could easily decrease during transportation, the biggest issue will be where and when to establish the quantity as a basis of payment and so on. The buyer wants the quantity to be determined upon receipt of the goods at his warehouse, while the seller wants to establish the quantity at the time of shipment at his plant. This issue can be solved only in connection with the closely related issues of risk of loss and insurance.

Quality

An order specifying goods "as per sample" is apt to lead to trouble, because often it is not made clear that a sample is first requested as a basis for future orders, and because it is not always clear just how much deviation from the sample will be tolerated. It is therefore recommended that the quality of goods be specified by specifications or detailed description of samples and that these specifications or descriptions be made a part of the agreement.

Price

The contract price will be closely related to the conditions of delivery, such as FOB, CFR, or CIF. One of these delivery terms will be chosen after consideration of the economic and political factors involved. The problem here is that these terms are not always understood to mean the same thing. For example, in common practice, delivery is deemed completed, and title to the product and the risk of loss pass to the importer, upon shipment. This definition of delivery is called FOB. However, the definition of FOB under Incoterms differs from the definition used in the USA. Therefore, to avoid the problems arising from the different possible meanings of these terms, it is highly recommended that each of these terms, whenever used in an agreement, be defined in it.

A drastic change in the foreign exchange rate could absorb all the profit expected from a transaction or could even cause a deficit. Both parties, therefore, may wish to establish their right to request a price change or to cancel the agreement in such a case. An importer can avoid this risk of foreign exchange rate by insisting on a price in his own country.

Destination

In the event that the destination port is too crowded , and the exporter's ship must wait for many days to enter the port, transportation expense will necessarily be increased. These will be borne by either the exporter or the importer depending upon the agreements made between the two. Even in CIF or CFR contracts, it is possible to provide that the importer will bear any additional port charge. If a port cannot be safely used because of war, the doctrine of force majeure usually excuses a ship from delivering products at the port. In such a case, the exporter should be allowed to deliver the goods at the nearest port possible, especially when the disabling disturbances continue for some time. In general, it is wise for the exporter to set forth in his contract a list of several ports at which the goods may be delivered.

Insurance

The exporter will want insurance to be taken out to cover war risks, strikes, riots, civil commotion, spontaneous combustion, and other risks of this type which are usually exempted from insurance. The exporter will want this coverage to be at the importer's expense, by means of including the insurance premiums in CIF or CFR prices. Both parties should keep in mind that taking out of insurance will be closely related to the contract clause that allocates the risk of loss. A conlract should make clear when and where the risk of loss or damage passes from the exporter to the importer. The exporter then need not worry about loss or damage after the risk has passed to the importer; and the importer need not worry about insurance covering damages that occur before the risk passes to him.

Customs duty

There will be no dispute over the common practice that customs duties are to be paid by the importer. However, the importer will argue that the exporter must pay any additional duties imposed as a result of the exporter's errors as to quantity or price indication, and that the exporter should pay any additional expense due to the exporter's mistake or mishandling.

The exporter will have to accept such an argument by the importer if the importer has provided clear instructions with regard to labeling, documentation, or other specifications affecting customs procedures with which the exporter has not complied.

Questions for reading :

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第7题

A beneficiary has presented a full set of documents under a Credit issued by Bank A confirmed by Ban

k B provided for deferred payment at 180 days after B/L date to the Nominated Bank C, it examined documents which were complied with the terms and conditions of the credit, it incurred a deferred payment undertaking and at the request of beneficiary, it has discounted and prepaid net amount to the beneficiary. Then it forwarded a full set of documents by courier to the Confirming Bank B for reimbursement at maturity. After some days Nominated Bank C discovered that the beneficiary has escaped for his delivery of a part of forgery documents.

On the maturity date in accordance with UCP 600 Article 8a and 8c the confirming Bank B ______ to the Nominated Bank C, because UCP 600 Article 8c stipulates: "A confirming bank's undertaking to reimburse another nominated bank is independent of the confirming bank's undertaking to the beneficiary."

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第8题

Prices determine how resources are to be used. They are also the means by which products a

nd services that are in limited supply are rationed among buyers. The price system of the United States is a very complex network composed of the prices of all the products bought and sold in the economy as well as those of a myriad of services, including labor, professional, transportation, and public-utility services. The interrelationships of all these prices make up the "system" of prices. The price of any particular product or service is linked to a broad, complicated system of prices in which everything seems to depend more or less upon everything else.

If one were to ask a group of randomly selected individuals to define "price", many would reply that price is an amount of money paid by the buyer to the seller of a product or service or, in other words, that price is the money value of a product or service as agreed upon in a market transaction. This definition is, of course, valid as far as it goes. For a complete understanding of a price in any particular transaction, much more than the amount of money involved must be known. Both the buyer and the seller should be familiar with not only the money amount, but with the amount and quality of the product or service to be exchanged, the time and place at which the exchange will take place and payment will be made, the form. of money to be used, the credit terms and discounts that apply to the transaction, guarantees on the product or service, delivery terms, return privileges, and other factors. In other words, both buyer and seller should be fully aware of all the factors that comprise the total "package" being exchanged for the. asked-for amount of money in order that they may evaluate a given price.

What is the best title for the passage？

A．The Inherent Weaknesses of the Price System

B．The Complexities of the Price System

C．Credit Terms in Transactions

D．Resource Allocation and the Public Sector

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第9题

Complaints caused by not delivering according to the time and quantity In the fall of 2006 ,one of

Complaints caused by not delivering according to the time and quantity

In the fall of 2006 ,one of our trading companies concluded a substantial rice business with an old customer in Africa. The terms of delivery are : shipment is to be made in equal monthly lots beginning from December,2006 to June,2007 and payment is to be made by irrevocable letter of credit 60 days after the date of the bill of lading. The customer established the L/C in time and all particulars of the rice, such as the name , specifications , unit price,total price and total quantity are in conformity with the contract. But the terms of shipment only stated " the latest date of shipment is June 30 ,to be shipped in several lots".

The staff in our trading company made the first shipment in December according to the quantity stated in the contract. However in order to export more and eam more foreign exchange earlier, they advanced the time of shipment regardless the shipment terms stipulated in the contract. In January 2007 , our company shipped the quantity of the first quarter once , and in February made the third shipment for the rest quantity that should be delivered in the second quarter, since our staff had not found any specifications "shipment is to be made in equal lots" in the L/C. At the same time our bank negotiated against presentation of the stipulated documents and subsequently asked the opening bank to pay for the goods. The opening bank examined the L/C and confirmed that the L/C had no error in it.

After receiving the shipping advice, the African customer found that the delivered quantity of the rice both in the second lot and third lot were not in accordance with the shipment terms stipulated in the contract, so a claim was filed by the customer against our trading company for default shipment. The amount claimed involved the added fees of chartering warehouse for the delivered goods, the interest and other charges etc. The two parties negotiated the compensation for several times, finally our company accepted the opposing party's opinion and agreed that the purchase price for the last two lots was to be paid four months later, that meant our company would receive the payment a few months later than che original stated time. According to Lhe current price in the international market at that time, our trading company suffered the loss equivalent to 10 percent of the original selling price.

Questions :

(1) What is the relationship between the letter of credit and the transaction contract？

(2) Which proof must the two parties concerned base on when they perform their obligations？

(Translate the case into Chinese and then answer the question)

Helpful hint: It is stipulated in Article 4 of the Uniform Customs and Practice for Documentary Credits that "in credit operations all parties concerned deal in documents and not in goods , service and/or other performance to which the documents may relate" .

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第10题

Symbolic Delivery

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第11题

Symbolic delivery Physical delivery Partial shipment Transshipment

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