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1、,CHAPTER 12 QUALITY, QUANTITY, PACKING AND PRICING Quality Quantity Packing Pricing,1 Quality,Name of commodity Using a proper name for the traded good is significant in that it helps to avoid confusion, reduce customs duties or save freight. Currently businessmen usually nominate traded goods with
2、names complying with the Harmonized Commodity Description and Coding System (HS) of tariff nomenclature. HS is an internationally standardized system of names and numbers for classifying traded products. It is developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-
3、operation Council),2. Methods of expressing quality of commodity Sale as seen Sale by sample Sale by description Sale by specifications Sale by grade Sale by standard Sale by brand and trade mark Sale by name of origin Sale by descriptions and illustrations,Sale as seen A sale is made on the basis t
4、hat the buyer has inspected the goods and is buying them as a result of this inspection. This method is of special necessity for particular goods such as ornaments, jewels, paintings, artworks, etc. In many cases, the buyer may be advised to arrange for inspection of the goods before or at the time
5、they are handed over by the seller for carriage.,(2) Sale by sample Garments, light industry products, and agricultural native products are generally sold by samples. Counter sample: a reproduced product for buyers confirmation Sealed sample: This sealed sample is for checking the quality of the del
6、ivered goods in the future. Reference sample: When sale is made by description, either the seller or the buyer may send a sample to the other party to let it know more clearly about the products. This sample is often marked “for reference only”. It is not the basis for delivery.,(3) Sale by descript
7、ion Sale by specifications Specifications refer to indices relating to chemical composition, contents, length, and size of a product. Simple and accurate. For example, Printed Shirting “Jumping Fish” Yarn counts 3036 No. of threads/inch 7269 Width (inch) 35/36, Sale by grade Products can be divided
8、into different grades based on different specifications. e.g. Fresh Hen Eggs, shell light brown and clean, even in size Grade AA: 60-65gm per egg Grade A: 55-60gm per egg Grade B: 50-55gm per egg Grade C: 45-50gm per egg, Sale by standard A standard is an established norm or requirement. It is usual
9、ly a formal document that establishes uniform engineering or technical criteria, methods, processes and practices. International standards like ISO standard, national standards like BS in Britain, ANSI in the USA and JIS in Japan. When sale is made by standard, it is important to mark the publicatio
10、n year of the standard. For example. Rifampicin B.P.1993. (Note: B.P.: British Pharmacopoeia), Sale by brand and trade mark Brand is the name, term, symbol, or design or a combination of these to identify a product. Trade mark is a legal term. It includes all those words, symbols, or marks that are
11、legally registered for use by a single company, printed on the commodity or its packing. Example: The Buick car is branded under the brand name “Buick“. When “Buick“ is printed in a certain kind of script, however, it becomes a trade mark., Sale by name of origin Some products are well known by the
12、place of origin, they would be more welcomed whenever their places of origin are mentioned. Thus, the place of origin may signify the quality of a product. In concluding a sales contract, traders like to mention the places of origin of these products to indicate their qualities., Sale by description
13、s and illustrations Machinery, instruments, equipments, etc. have complex structure. Sale by descriptions and illustrations is applicable. In the contract, the clause of quality contains not only the name of commodity, the brand but also the instructions to illustrate the structure and functions of
14、the product. Clauses like “quality and technical data to be strictly in conformity with the description submitted by the seller” are to be stipulated.,3. Quality clause in the contract Description or sample used separately or together to describe quality, depending on the product features. Flexible
15、clauses (1) “The quality of the goods shipped to be about equal to the sample” may be stipulated. (2) Flexible quality range for some primary products Range: e.g. Printed Shirting “Jumping Fish” Yarn counts 30x36 No. of threads/inc 72x69 Width (inch) 35/36, Allowing more or less Example: Duck feathe
16、r: down content 18%, allowing 1% more or less Max. & min. Example： Fish Meal Protein 55% Min. Fat 9% Max. Moisture 11% Max. Salt 4% Max. Sand 4% Max.,(3) Quality tolerance It is not uncommon that some industrial products such as instruments, mechanical products have some tolerances permissible variation in quality. When the quality difference is within the flexible range, t
