chapter 1 introduction 1 1.1 lead-in 1 1.2 features of international transactions 3 1.2.1 transaction risks 3 1.2.2 institutional and political risks 4 1.3 organizations and legal environment of international trade 5 1.3.1 international trade organizations 5 1.3.2 legal system of international trade 6 1.4 three-step trade process 7 1.4.1 preparation for contract 8 1.4.2 negotiation of contract 8 1.4.3 performance of contract 9 1.5 general procedure of export and import 10 1.5.1 for export on cif term with payment by l/c 10 1.5.2 for import on fob term with payment by l/c 11 1.6 scope of this book 12 exercise 13 part ⅰ formation of contracts chapter 2 business negotiation 18 2.1 lead-in 18 2.2 inquiry 19 2.3 offer 20 2.3.1 what is an offer? 20 2.3.2 effectiveness of an offer 24 2.4 counteroffer 26 2.5 acceptance 26 2.5.1 what is an acceptance? 26 2.5.2 late acceptance 28 2.5.3 withdrawal of an acceptance 29 2.6 contracts in writing 29 2.6.1 countersignature 30 2.6.2 elements of international s/c 31 exercise 33 part ⅱ subject terms chapter 3 name and quality 36 3.1 lead-in 36 3.2 name of modity 36 3.3 quality of modity 37 3.3.1 sale by sample 37 3.3.2 sale by description 39 exercise 43 chapter 4 quantity 45 4.1 lead-in 45 4.2 systems of units 45 4.2.1 imperial system and us customary system 45 4.2.2 international system of units 46 4.2.3 to clearly define the adopted system 46 4.3 how to measure weight 47 4.3.1 weight, tare weight and gross weight 47 4.3.2 other weights 48 4.4 quantity tolerance 49 4.4.1 quantity tolerance in s/c 49 4.4.2 quantity tolerance in l/c 50 exercise 50 chapter 5 packaging 52 5.1 lead-in 52 5.2 importance of packaging in import and export 53 5.2.1 to protect the goods during transit 53 5.2.2 to facilitate transportation 53 5.2.3 to promote sales 53 5.3 types of packaging materials 54 5.3.1 individual packaging materials 54 5.3.2 unitized packaging materials 56 5.4 marks on packages 60 5.4.1 marks on individual shipping packages 60 5.4.2 marks on containers 63 exercise 65 part ⅲ price chapter 6 trade terms 69 6.1 international rules associated with trade terms 69 6.2 main features of incoterms 2010 71 6.3 basic concepts related to trade terms 73 6.3.1 critical points 73 6.3.2 obligations 74 6.3.3 free 74 6.3.4 customs clearance and formalities 75 6.4 fob, cfr and cif of incoterms 2010 75 6.4.1 fob 75 6.4.2 cfr 77 6.4.3 cif 79 6.4.4 parison of fob, cfr and cif 81 6.5 fca, cpt and cip of incoterms 2010 82 6.5.1 fca 82 6.5.2 cpt 83 6.5.3 cip 84 6.5.4 parison of fca, cpt and cip 85 6.6 other trade terms of incoterms 2010 86 6.6.1 exw 86 6.6.2 fas 86 6.6.3 dat 87 6.6.4 dap 87 6.6.5 ddp 87 exercise 88 chapter 7 export pricing and quotation 90 7.1 pricing strategies 90 7.1.1 pricing objectives 90 7.1.2 pricing strategies 91 7.2 price calculation for international sale 92 7.2.1 cost 92 7.2.2 expenses 94 7.2.3 expected profit 97 7.3 foreign exchange risk 98 7.3.1 hazards of foreign exchange risk 98 7.3.2 fx volatility and controls 99 7.3.3 options to manage fx risk 99 exercise 101 part ⅳ delivery chapter 8 marine cargo transport 104 8.1 lead-in 104 8.2 shipping services 105 8.2.1 liner service 105 8.2.2 charter service 107 8.3 multimodal transport and containerization 110 8.3.1 multimodal transport 110 8.3.2 containerization 112 8.4 marine shipping documents 113 8.4.1 bill of la (b/l) 113 8.4.2 sea waybill 124 exercise 125 chapter 9 other modes of cargo transport 127 9.1 lead-in 127 9.2 rail transport 127 9.3 road transport 129 9.4 air transport 130 9.5 other modes of transport 132 exercise 134 chapter 10 shipping terms 136 10.1 lead-in 136 10.2 time of shipment 136 10.3 port of shipment and port of destination 137 10.4 partial shipment 140 10.5 transshipment 142 10.6 advice of shipment 143 exercise 143 part ⅴ insurance chapter 11 marine cargo insurance 146 11.1 lead-in 146 11.2 concepts and principles of insurance 146 11.2.1 concepts in insurance business 146 11.2.2 principles of insurance 147 11.3 risks, losses and expenses in marine transport 150 11.3.1 risks in marine transport 150 11.3.2 losses in marine transport 151 11.3.3 expenses in marine transport 154 11.4 ocean marine cargo clauses 155 11.4.1 basic coverage 156 11.4.2 additional risks 161 11.5 cargo insurance for land and air transport and parcel t 163 11.5.1 overland transportation cargo insurance clauses(train, truck) 163 11.5.2 air transportation cargo insurance clauses 164 11.5.3 parcel t insurance clauses 165 11.6 institute cargo clauses 166 11.6.1 icc (a) 166 11.6.2 icc (b) 167 11.6.3 icc (c) 168 11.6.4 summary of the institute cargo clauses 169 exercise 170 chapter 12 cargo insurance practice 172 12.1 arranging cargo insurance 172 12.1.1 who should arrange insurance? 172 12.1.2 choice of insurance coverage 173 12.2 insured amount and insurance premium 174 12.2.1 insured amount 174 12.2.2 insurance premium 174 12.3 insurance documents 175 12.3.1 types of insurance documents 175 12.3.2 contents of the insurance policy 177 12.4 insurance claim 178 exercise 180 part ⅵ payment chapter 13 negotiable instruments 184 13.1 lead-in 184 13.2 bill of exchange 184 13.2.1 requisite form 185 13.2.2 types of bills 187 13.2.3 use of bills 188 13.3 promissory note 189 13.3.1 requisite form 189 13.3.2 types of promissory notes 190 13.4 check 191 13.4.1 what is check? 191 13.4.2 types of check 192 exercise 193 chapter 14 remittance and collection 195 14.1 lead-in 195 14.2 remittance 195 14.2.1 what is remittance? 195 14.2.2 types of remittance 195 14.3 collection 198 14.3.1 what is collection? 198 14.3.2 types of collection 198 14.3.3 finance in payment by collection 201 14.3.4 risk parison of different types of collection 202 exercise 203 chapter 15 documentary credit 205 15.1 lead-in 205 15.2 what is letter of credit? 206 15.2.1 definition 206 15.2.2 parties involved 206 15.2.3 features 207 15.2.4 contents 208 15.3 types of credits 210 15.3.1 irrevocable credit and revocable credit 210 15.3.2 negotiable credit 210 15.3.3 sight credit and time credit 211 15.3.4 confirmed credit 211 15.3.5 transferable credit 212 15.3.6 back-to-back credits 212 15.3.7 reciprocal credits 213 15.4 payment by letter of credit 213 15.4.1 payment by non-negotiable credit 213 15.4.2 payment by negotiable credit 214 15.5 expedition of l/c establishment 216 15.6 amendment of l/c 217 15.6.1 how to proofread l/cs 217 15.6.2 how to ask for amendment 222 15.7 terms in sales contracts 223 15.7.1 l/c as the only payment mode 223 15.7.2 l/c with other payment mode 223 exercise 225 chapter 16 documentation 229 16.1 process of contract implementation 229 16.1.1 goods preparation 229 16.1.2 inspection process 230 16.1.3 shipping, insurance and customs clearance 231 16.1.4 plying presentation under letter of credit 232 16.2 export documents required by the credit 234 16.2.1 draft 234 16.2.2 invoice 235 16.2.3 packing list 238 16.2.4 bill of la 239 16.2.5 insurance documents 240 16.2.6 inspection certificates 241 16.2.7 certificates of origin 245 16.2.8 other documents related to export 250 exercise 253 part ⅶ dispute chapter 17 inspection, claim and force majeure 256 17.1 lead-in 256 17.2 modity inspection 256 17.2.1 what is modity inspection 256 17.2.2 time and ces of modity inspection 257 17.2.3 modity inspection bodies 258 17.2.4 china inspection and quarantine (ciq) 260 17.2.5 inspection certificates 261 17.2.6 inspection clauses in sales contract 263 17.3 claim 263 17.3.1 breach of contract 263 17.3.2 discrepancy and claim clause 265 17.3.3 penalty clause 266 17.4 force majeure 267 17.4.1 what is force majeure 267 17.4.2 force majeure clause in sales contract 268 exercise 269 chapter 18 arbitration 271 18.1 dispute resolution processes 271 18.2 arbitration agreement 273 18.2.1 what is arbitration agreement 273 18.2.2 contents in arbitration agreement 273 18.3 arbitral award 276 exercise 280 glossary 283 referenceskdy 300
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