Chapter 1 General Introduction to International Trade 1 1.1 What Is International Trade 3 1.2 The Importance of International Trade 3 1.2.1 International Trade Restrictions 4 1.2.2 Differences between International Trade and Domestic Trade 4 1.3 World Trade Organization 5 1.3.1 Overview 5 1.3.2 Functions of WTO 6 1.3.3 Basic Principles 6 1.3.4 Missions 6 1.3.5 Formal Structure 7 1.4 Main Procedures of International Trade 9 1.4.1 Basic Procedures of Export 9 1.4.2 Basic Procedures of Import 12 1.5 Relevant International Practice and ? Laws 13 1.6 Overview of Contract 15 1.6.1 The Functions of a Written Contract 15 1.6.2 The Essential Features of a Legally Binding Contract 16 1.6.3 The General Contents of a Sales Contract 16 1.7 Overview of This Book 18
【Key Terms and Words】: 20
【Exercises】: 20 Chapter 2 International Trade Terms 22 2.1 Introduction to trade terms 24 2.1.1 Warsaw-Oxford Rules 1932 24 2.1.2 Revised American Foreign Trade Definitions 1941 26 2.1.3 International Commercial Terms 29 2.2 Introduction to INCOTERMS 2010 29 2.2.1 Mode of transport 30 2.2.2 The six most popular trade terms 31 2.2.3 The other five trade terms 45 2.3 INCOTERMS 2010 vs. INCOTERMS ? 2000 53 2.4 Incoterms and Contract 57 2.5 Choice of Trade Terms 58
【Key Terms and Words】: 60
【Exercises】: 61 Chapter 3 Terms of Commodity 65 3.1 Name of Commodity 67 3.1.1 Commodity Naming Methods 67 3.1.2 HS Code 68 3.1.3 Name Clauses in the Contract 68 3.2 Quality of Commodity 69 3.2.1 Quality Stipulation Methods 70 3.2.2 Quality Latitude and Quality Tolerance 76 3.2.3 Quality Clauses in the Contract 77 3.3 Quantity of Commodity 77 3.3.1 Unit of Measurement 78 3.3.2 Calculation of Weight 80 3.3.3 Quantity Allowance Clauses 82 3.3.4 Quantity Clauses in the Contract 83 3.4 Packing of Commodity 84 3.4.1 Transport Packing 85 3.4.2 Sales Packing 91 3.4.3 Neutral Packing and Designated Brand 93 3.4.4 Packing Clauses in the Contract 94
【Key Terms and Words】: 96
【Exercises】: 97 Chapter 4 International Cargo Transport 101 4.1 Containerization 103 4.1.1 Features of Container Transportation 103 4.1.2 Types of Container 104 4.1.3 Freight of Container Transportation 105 4.2 Modes of Transportation 107 4.2.1 Marine Transport 108 4.2.2 Air Transportation 121 4.2.3 Railway Transportation 122 4.2.4 International Multi-modal Transport 122 4.2.5 Land Bridge Transport 123 4.2.6 Postal Transport 123 4.2.7 Pipelines Transport 123 4.3 Shipment Clauses in Sales Contract 124 4.3.1 Time of Shipment and Time of Delivery 124 4.3.2 Port of Shipment and Port of Destination 125 4.3.3 Shipping Advice 126 4.3.4 Partial Shipment and Transshipment 126 4.3.5 Lay Time, Demurrage and Dispatch 127
【Key Terms and Words】: 129
【Exercises】: 129 Chapter 5 International Cargo Transport Insurance 133 5.1 Principles of Cargo Insurance 136 5.1.1 Principle of Insurable Interest 136 5.1.2 Principle of Utmost Good Faith 136 5.1.3 Principle of Indemnity 137 5.1.4 Principle of Proximate Cause 138 5.2 The Definition of Insurance 138 5.3 Parties to the Insurance 139 5.3.1 Insurer 139 5.3.2 Insured 140 5.3.3 Brokers 140 5.4 Marine Insurance 140 5.4.1 Risks 141 5.4.2 Losses 141 5.4.3 Expenses 143 5.5 Coverage of Marine Cargo Insurance ? of CIC 144 5.5.1 Basic Coverage 145 5.5.2 Additional Risks 146 5.6 Coverage of Marine Cargo Insurance ? of ICC 150 5.6.1 Institute Cargo Clauses A 150 5.6.2 Institute Cargo Clauses B 151 5.6.3 Institute Cargo Clauses C 151 5.6.4 Major Exclusion 153 5.7 Procedures of Marine Insurance 153 5.7.1 Gather Information 153 5.7.2 Choose the Insurance Coverage 154 5.7.3 Get Quotes 154 5.7.4 Pay the Insurance Premium 154 5.7.5 Purchase the Insurance Policy 155 5.7.6 Lodge an Insurance Claim 156 5.8 Insurance Clauses in Sales Contract 157
【Key Terms and Words】: 159
【Exercises】: 160 Chapter 6 Price of Goods 163 6.1 Price Elements 165 6.1.1 Pricing Principles 165 6.1.2 Pricing Consideration 166 6.1.3 Pricing Methods 167 6.1.4 Pricing Composition 170 6.1.5 Currency Option 172 6.2 Calculation of Price 173 6.3 Export Cost Accounting 175 6.4 Commission and Discount 177 6.4.1 Price Including Commission 177 6.4.2 Price with Discount 178 6.5 Import Cost Accounting 178 6.5.1 Import contract price 179 6.5.2 Total Domestic Expenses of Importing Countries 179 6.5.3 Calculation of Imported Goods Tariff 179 6.5.4 Calculation of Value-added Tax and Consumption Tax 180 6.5.5 Total Import Cost 181 6.6 Price Clause in Sales Contract 181
【Key Terms and Words】: 182
【Exercises】: 182 Chapter 7 Credit Instruments 184 7.1 Summary of Instruments 186 7.1.1 Definition of Instruments 186 7.1.2 Essential Features of Negotiable Instruments 186 7.1.3 Functions of Negotiable Instruments 187 7.1.4 The Legal System of Instruments 188 7.2 Bill of Exchange (Draft, Bill) 190 7.2.1 Definition of Bill of Exchange 190 7.2.2 Contents of a Bill of Exchange 191 7.2.3 The Acts of Bills of Exchange 195 7.2.4 The Classification of the Drawer 199 7.2.5 The Order of Making Recourse 200 7.3 Promissory Note 201 7.3.1 The Definition from Bills of Exchange Act 1882 of the United Kingdom 201 7.3.2 The Definition from the Negotiable Instruments Law of the People’s Republic of China 201 7.3.3 The Key Elements in the Promissory Note 202 7.3.4 Classification of Promissory Notes 202 7.3.5 Differences Between a Promissory Note and a Bill of Exchange 203 7.4 Check (Cheque) 204 7.4.1 Definition of Check 204 7.4.2 Classification of Check 205 7.4.3 Differences Between a Check and a Bill of Exchange 205
【Key Terms and Words】: 206
【Exercises】: 206 Chapter 8 International Payment and Settlement 210 8.1 Remittance 212 8.1.1 The Definition of Remittance 212 8.1.2 Parties to an Remittance 212 8.1.3 The Classification of Remittance 213 8.1.4 Reimbursement of Remittance Cover 216 8.1.5 Cancel the Remittance or Refund the Imbursement 217 8.1.6 The Application of Remittance in International trade 218 8.2 Collection 220 8.2.1 Definition of Collection 221 8.2.2 Nature of Collection 221 8.2.3 Procedure of Documentary Collection 221 8.2.4 The Involved Parties in Collection 222 8.2.5 Types of Collection 222 8.2.6 The Property, Advantages and Disadvantages 225 8.2.7 The Rules of Uniform Rules for Collections 522 (URC522) 225 8.2.8 Points for Attention for Collection 226 8.2.9 Risk and Protection for Exporters and Importers 226 8.2.10 Financing under the Collection 227 8.3 Letter of Credit 229 8.3.1 Definition of L/C 229 8.3.2 Parties to a Letter of Credit 230 8.3.3 Procedure of Credit L/C 232 8.3.4 Characteristics of a Letter of Credit 240 8.3.5 The Use of a Letter of Credit 241 8.3.6 Contents of a Letter of Credit 241 8.3.7 The Varieties of Documentary Credit 242 8.3.8 Other Special Credits 246 8.3.9 Combined Use of Different Methods of Payment 250
【Key Terms and Words】: 252
【Exercises】: 253 Chapter 9 Inspection, Claims, Force Majeure and Arbitration 264 9.1 Inspection 266 9.1.1 The Implication of Commodity Inspection 267 9.1.2 The Importance of Commodity Inspection 267 9.1.3 Import and Export Commodity Inspection 268 9.1.4 Time and Place of Inspection 268 9.1.5 Inspection Standard 270 9.1.6 Inspection Certificate 271 9.1.7 Inspection Clause 272 9.1.8 Inspection Procedures 272 9.2 Claim 273 9.2.1 Breach of Contract 275 9.2.2 Liabilities of Breach of Contract 275 9.2.3 Valid Term for Claim 276 9.3 Force Majeure 277 9.3.1 Definition of Force Majeure 277 9.3.2 Features of Force Majeure 277 9.3.3 Consequences of Force Majeure 278 9.3.4 Force Majeure Clause 278 9.4 Arbitration 280 9.4.1 The Definition of Arbitration 280 9.4.2 Characteristics of Arbitrat
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