外贸英语函电课件

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1、外贸英语函电Objectives of learning this course1.Know the writing principles of business letters;2.Master the special/technical terms in international trade;3.Master and be able to use the commonly used expressions in international business letters;4.Be able to write different business letters in specific

2、situations;5.Know the language features of international business contracts and be able to draft them by yourselves. Final examinationvI.Fill in the blanks with proper prepositions .vE.g. We learn from your enquiry letter that you are in the market for Chinese textiles.v We sent a sample book to you

3、 under separate cover yesterday.vII. Fill in the blanks with proper words .vE.g. Enclosed please find our catalogue and the pricelist. We sustained a great loss of $5,000, for which we have to lodge a claim against you.vIII. Special term translation (CE) .vE.g. 保兑的不可撤销的即期信用证confirmed, irrevocable si

4、ght L/CvIV. Special term translation (EC) .vE.g. despatch money 速遣费vV. First arrange the following sections in a proper layout, as they should be set out in a business letter, and then write an envelope for the letter.vVI. Write a reply to the following given letter.vVII. Translate the following sen

5、tences into English (CE).vVIII. Translate the following passage(excerpts from contracts) into Chinese (EC) .Chapter One: Business Letter Writing Writing business letters is one of the most important means of communication with other companies, either in the same country or abroad because letters can

6、 present some details which can not be done by other means of communication. It serves two main functions- to convey a message and to provide a permanent record for future reference and also valuable proof in the event of legal disputes.1 Writing principles of business letters ：7Cs 1. Courtesy 2. Co

7、nsideration 3. Completeness 4. Clarity 5. Conciseness 6. Concreteness 7. Correctness 1.1 Courtesyv1. Try to avoid irritating(惹人生气的) and offensive（得罪人的） statements in your letters; Compare the following sentences:v1a:Why didnt you read the instruction（说明书） before using the machine?v1b:You are request

8、ed to read the instruction before using the machine.v2a: In a company as large as ours, we seldom take an order of less than 2000 pcs（件）.v2b: Please note that it is not our common practice to take an order of less than 2000 pcs.v2. Even if you receive a rude letter, try to write a reply courteously（

9、礼貌地）;v3. In addition, to write back promptly（迅速） is also a matter of courtesy.1.2 Consideration v1. Using you-attitude instead of we-attitudevYou-attitude means that you are from the other partys point of view and put his/her interests in the first place. We-attitude is self-centered. Compare the fo

10、llowing two sentences and two letters:v3a: We regret to say that we have to cancel your order because of your failure to open the L/C in time.(we-attitude)v3b: Please let us know if there is something in the way that precludes（阻止，妨碍） you from establishing the L/C.(you-attitude)Conclusion: you-attitu

11、de sentences and letters show more respect and consideration for the other party.v2. Using positive tone（肯定的、积极的语气） instead of negative tone（否定的、消极的语气）vCompare the following two pairs of sentences and letters:v4a: We cannot supply in packs of less than 10.(negative tone)v4b: To keep packaging costs

12、down and to help our customers save on postage, we supply in packs of 10 or more.(positive tone )v5a: You failed to include your credit card number, so we cant mail your order. (negative tone)v5b: Well mail your order as soon as we receive your credit card number. (positive tone )Conclusion: sentenc

13、es and letters with positive tones are more easily accepted than those with negative tones though they convey almost the same message.1.3 Completeness v1. A complete sentence must include all the relevant information. Compare:v6a: Our Sales Manager will contact you soon.v6b: John Smith, our Sales Ma

14、nager, will contact you soon.v7a: My flight is to arrive at 6:30 on Wednesday.v7b: My flight BA121 from London Heathrow should arrive at Beijing International Airport at 18:30 on Wednesday, 12 June.Conclusion: incomplete information may bring about unnecessary trouble. v2. A complete letter should i

15、nclude whatever details are needed to generate the effect you want. vOmission of anything the receiver wants to know may cause suspicions, and may make you lose an important customer. 1.4 Clarity You should convey（传递） exactly what you wish to say and avoid any misunderstanding. v1. Avoid using words

16、/expressions which have different meanings or understandings or ambiguous meanings or make it clear with further explanation; Compare: 8a: This contract will come into effect from Oct. 1. 8b: This contract will come into effect from and including Oct. 1, 2009. 9a: Our offers by fax are open for five

17、 days. 9b: Our offers by fax are open for five days inclusive of the date of dispatch.v2. Paragraph the letter carefully and properly. Short paragraghs rather than long paragraghs are recommended. Generally if there are several points to make clear, be sure to follow the principle: “one point, one p

18、aragraph”. Look at specimen letters:1.5 ConcisenessvFollow the principle: KISS keep it short and simple in writing business letters.v1. Avoid using wordy or redundant （冗余的）expressions and use short and simple words instead;v2. Avoid unnecessary repetition;Compare:v10a: The letter you wrote on the fi

19、rst day of the month of May has been received by me with many thanks.v10b: Thank you for your letter of May 1.v11a: We confidently believe that you will have a good turnover, and that you will be able to place repeat orders with us in the near future.v11b: We are confident/sure that you will have a

20、good turnover（营业额）, and that you will be able to place repeat orders（续订单） with us in the near future.v3. Use simple and plain words and short sentences;v4. Use words to replace phrases or clauses.1.6 Concreteness The message should be specific, definite and vivid. So use words with definite and spec

21、ific meaning instead of abstract words. Compare:v12a: We have drawn on you as usual under your L/C.v12b: We have drawn on you our sight draft No.1234 for the invoice amount US$7 000 under your L/C No.4567.v13a: We have already received your invoices No.123 and 456 and will make payment shortly.v13b:

22、 We have already received your invoices No.123 and 456 and will make payment on or before Nov. 25.v14a: We will amend the L/C as soon as possible.v14b: We will amend the L/C on Dec. 12.1.7 Correctnessv Sometimes business letters can be used as proofs. So correctness refers not only correct spelling,

23、 grammar and punctuation, but also the accurate figures（数字） and correct use of technical terms or commercial jargons（商业行话）.2 Main sections in a business letterv1. Letter head or heading（信头）;v2. Date;v3. Inside name and address（封内地址）;v4. Salutation（敬称）;v5. Subject line or caption（标题、事由）;v6. The body

24、of the letter;v7. Complimentary close（结尾敬语）;v8. The writers signature and his job title or position or designation（职务、职位）;v9. Enclosure（附件）;v10. Postscript（附言）. NOTE: The following seven sections 1, 2, 3, 4, 6, 7, and 8 are indispensable parts of a business letter whereas sections 5, 9, and 10 are o

25、ptional. 2.1 Writing of each section and their respective positions in a business letter2.1 Letter head or headingvIt refers to the senders name, address, telephone number, fax number etc. Usually it is written in the upper right hand margin of the writing paper. Most business firms and other organi

26、zations use stationery with a center-printed letterhead that includes the name, the address, the postcode and the telephone number of the firm. 2.2 Date It refers to the date on which the letter is written. The date consists of the month, day and year. In writing dates, please note that “month” can

27、be abbreviated, but “year” can not be abbreviated and it must be written in full. It is put two spaces below the letter head or put in the left-hand margin two spaces below the letter head.2.3 Inside name and addressv It refers to the receivers name and address. It is written in the left-hand margin

28、 about two spaces below the date. It appears exactly the same way as on the envelope. It is important to include the postcode in order to facilitate mechanical mail-sorting（信件的分拣）.2.4 SalutationvIt is the polite greeting with which the writer starts his letter. The use of salutation depends on the w

29、riters relationship with the receiver.vThe customary formal greeting in a business letter is “Dear Sir” or “Dear Madam” for addressing one person and “Dear Sirs” or “Dear Mesdames” or “Gentlemen” for addressing two or more persons. If the receiver is known to the writer personally, a warmer greeting

30、 is preferred, such as “Dear Mr. ” or “Dear Ms. ”. vSpecial attention should be paid to the punctuation used after the salutation: after “Dear Sir”, “Dear Madam”, “Dear Sirs”, “Dear Mesdames”, “Dear Mr. ” and “Dear Ms. ”, a comma is used instead of a colon as in a Chinese letter. However, after “Gen

31、tlemen”, a colon is generally used. In addition, the first letter of each word in the salutation should be capitalized.vSalutation is usually written two spaces below the inside name and address.2.5 Subject line or captionvSubject line is actually the main topic of the letter. It is inserted between

32、 the salutation and the body of the letter. It is expressed as “Re:”. For instance, if the letter is mainly concerned with the L/C No.1234, then the subject line can be written as “Re: L/C No.1234”.2.6 The body of a lettervThis is the most important part of the letter. It contains the actual message

33、 of the letter. It states the writers idea, opinion, purposes and wishes, etc. vIt generally consists of three sections: the opening paragraph, paragraphs containing main points and the ending paragraph. The first section is the opening paragraph, introducing yourself if it is the first letter betwe

34、en you and the receiver, or referring to the previous letters if there were some correspondences. The second section contains the main points and it may consist of several paragraphs (Note: one point, one paragraph). The third section is the ending paragraph, indicating the writers plan, expectation

35、s, wishes etc. 2.7 Complimentary closev It is merely a polite way of ending a letter. vThe most commonly used complimentary closes are:The formal ones are “Yours faithfully” or “Faithfully yours” and “Yours truly” or “Truly yours”. The less formal ones are “Yours sincerely” or “Sincerely yours”.v Th

36、e punctuation used after these complimentary closes is a comma, and only the first letter of the complimentary close should be capitalized(大写). Generally the complimentary close is put in the right hand margin two spaces below the body of the letter.2. 8 Signature and job designation or job titlevIt

37、 is common for the writer to sign his name immediately below the complimentary close. vIf the writer represents his company, the companys name should come first, and then the writers signature. Under the signature, generally comes the writers printed name for easy identification. Below the writers p

38、rinted name is his or her designation. For example ABC Company (Signature) John Smith Sales Manager Some people prefer to put the name of the company under their job titles instead of putting it above their signatures, like this: (Signature) John Smith Sales Manager ABC Company2.9 EnclosurevIf somet

39、hing is enclosed in the letter, note it below the designation to draw the receivers attention to find the enclosure(s) like “Encl: a pricelist” or “Encl(s): a catalogue and a pricelist”. It can be put in the left hand margin two spaces below the designation of the writer.2.10 PostscriptvIf the write

40、r wishes to add something he forgot in the body of the letter or for the sake of emphasis, he may add a postscript two spaces below “Encl.”. It is abbreviated as “P.S.”. e.g. P.S.: The samples will be mailed to you tomorrow.3 The layout of the above 10 sections in a business letter 4 Different style

41、s of business letters vThere are three different styles for business letters according to the writers preferences. They are blocked style, indented style and blended style.4.1 Blocked stylevIt is a modern style and increasingly adopted now.vIts main feature is that all typing lines, including those

42、for the heading, the date, the inside name and address, the salutation, the subject heading (sometimes in the middle), the body of the letter, the complimentary close, signature and designation, enclosure and postscript begin at the left-hand. vThat is, every line of the business letter starts from

43、the very left margin. 4.2 Indented stylevIndented style is a traditional style. The second and succeeding lines of heading, inside name and address, the beginning of every paragraph in the body of the letter are all indented several spaces. vNote that for one letter, the indented spaces should be th

44、e same, say, four spaces. 4.3 Blended stylevThis style is the one combined with the full blocked style and the indented style. vWhen this style is adopted, the heading and the inside name and address are typed in blocked form, but the first line of paragraphs forming the body of the letter are all i

45、ndented four or more spaces. 5 Writing envelopesvEnvelopes for business letters ordinarily have return name and address (writers name and address) printed in the upper left corner of the envelope. The receivers name and address should be written about half way down the envelope. vSpecial attention s

46、hould be paid to the fact that the receivers name and address in the envelope should be in exact agreement with the inside name and address in the letter. The stamp is generally put in the upper right hand corner of the envelope. vOf course, it can be written either in block or indented style.Chapte

47、r Two: Establishing Business RelationsvTo establish business relations with prospective dealers is the base of starting and developing business. It is very important for both new firms and old ones. For a newly established firm, it can serve as the basis for starting business, while for an old firm,

48、 it can help expand business and increase its turnover. 1 Sources of information about prospective dealersv 1. The advertisements in the mass media;v 2. The introduction from its business connections;v 3. The introduction from its subsidiaries or branches, or agents abroad;v 4. The market investigat

49、ions;v 5. Attending exhibitions and trade fairs;v6. Visit abroad by trade delegations and groups;v7. Self-introduction or enquires received from the merchants abroad;v8. The banks;v9. The Commercial Counselors Office;v10. The Chambers of Commerce both at home and abroad;v11. Commercial directories o

50、f various countries and regions;v 12. Internet.2 The outline for letters to establish business relationsvThe following points can be covered : v1. Inform the receiver the source of your information, that is, where you got his name and address;v2. State your intention of writing the letter;v3. Give a

51、 self-introduction, such as the nature of your company, the business scope of your firm, etc.;v4. Provide the reference as to your firms financial position and credit standing;v5. Express your expectation of their cooperation and an early reply.v In addition, if you intend to import goods, you may a

52、lso ask for catalogues, samples, pricelists, etc. If you intend to export goods, you may send the catalogues, samples, pricelists, etc. This kind of letters should be written cordially, sincerely and courteously.3 The outline for the reply to a letter of establishing business relations After receivi

53、ng a letter requesting to establish business relations with you, you should write a reply promptly. The following points may be covered:v1. Thank the receiver for his letter of intending to establish business relations with you;v2. Express your interest in building up business relations with his com

54、pany;v3. State your further actions, that is, the specific actions to take.Chapter Three: Enquiries and Reply1 An introduction to enquiriesvIn international trade, there are several steps before business is concluded: enquiry, offer（报盘）, couteroffer（还盘） and acceptance. An enquiry is a request for in

55、formation. In international business, enquiry letters are often written by importers to exporters. vEnquiries can be classified into two kinds: general enquiries（一般询盘） and specific enquiries（具体询盘）. vIn a general enquiry, the writer may ask for catalogues, pricelists or samples in order to get a gene

56、ral understanding of the products handled by the exporter. A specific enquiry letter is written when the writer is interested in a particular item or product. And it is written to get some more detailed information about the product(s) he wants to buy right away. The writer may ask the exporter to m

57、ake an offer or a quotation for particular item or items.2 The outline for enquiry letters When making an enquiry, begin with the questions you want to ask, that is, keep your enquiry short and to the point. An enquiry letter may include the following points:v 1. Tell the receiver the source of your

58、 information about him or thank the receiver for his previous letter;v 2. State what your enquiry is about;v3. State your specific requirements such as quantity, quality, specifications, date of delivery, terms of payment, etc. v 4. Emphasize that the price to be quoted should be competitive;v 5. Ex

59、press your expectation for receiving an offer early. 3 The outline for replies to enquiry lettersvAfter receiving a letter, make a reply promptly. This kind of letters should be written helpfully and courteously and cover all the relevant information asked for. The following three points can be incl

60、uded :v1. Thank the receiver for his enquiry;v2. Provide all the information asked for and may enclose some necessary materials, if possible;v3. Express your expectation for an order at an early time.Chapter Four: Offers1 The definition of offervAn offer refers to conditions given by the seller or t

61、he buyer for making a contract. It can be given by either the seller or the buyer. The one, who volunteers to give conditions, is called the offeror（报盘人）. The one, who accepts the conditions, is called the offeree（受盘人）.vThe conditions mainly include the name of the commodity, Art No.（货号）, specificat

62、ion（规格）, quantity, price, packaging, terms of payment and delivery time（交货时间）, etc. 2 Classification of offervIn international trade, offers can be classified into two types: firm offers（实盘） and non-firm offers（虚盘）.2.1 Firm offersvDefinition: A firm offer is one by which the offeror promises to sell

63、 particular goods（特定商品） at a stated price（特定） within a stated period of time（特定时间段内）. vOnce the firm offer has been accepted within the specified period, it cannot be withdrawn. A firm offer has binding force （约束力）upon the offeror, ensuring that the content of the firm offer cannot be changed or rev

64、oked within the specific valid period. But after the valid time, the offer will become invalid. The offeror is no longer responsible for the obligations stipulated in the offer. Even if the offeree accepts the offer, the offeror has the right to refuse. The valid period of the firm offer is very imp

65、ortant. Otherwise, it will be regarded as a non-firm offer. vTwo apparent features of firm offers:v1. Th terms and conditions in the offer must be complete and definite. It should include a specified quantity with complete specifications at a fixed price and under stipulated conditions;v2. The valid

66、ity is clearly stated in the offer. The length of validity depends on the nature of the product and market conditions. Price-sensitive products（价格敏感商品） such as cotton always have a short validity period because their prices fluctuate sharply while some products such as art and handicraft articles ma

67、y have a longer validity because their prices are more or less stable. vThe common expression to be attached in a firm offer is: “We offer you firm subject to your reply reaching here before oclock, (day), .(date)”. This is a best wording because the word “here” has two meanings: the offerors place

68、and local time.2.2 Non-firm offersvA non-firm offer is usually indicated by means of sending catalogues, pricelists, proforma invoices（形式发票） and quotation sheets. It has no engagement for （对有约束力）the offeror. That is, the offeror is free from any obligations and the offer can be changed, revised and

69、even withdrawn at any time.vThe offers are considered as non-firm ones based on the following three points:v1. The offer is clearly marked “for reference”;v2. Some major terms such as the validity are omitted/left out in the offer;v3. There are some reserved statements in the offer such as:v The off

70、er is subject to change without notice;v该报盘如有变动恕不另行通知。vThe offer is subject to the sellers final confirmation;v该报盘以卖方最后确认为有效。v The offer is subject to the goods being unsold;v该报盘以货未售出为有效。v The offer is subject to market fluctuations;v该报盘以市场变动为准。v The offer is subject to prior sales.v该报盘以先售为准。v This

71、offer is subject to further discussion.v该报盘以进一步协商为准。3 The outline for offer lettersv1. Express thanks for the enquiry, if any enquiry is received;v2. State the name of commodity, quality, quantity, specifications clearly;v3. State packing, time of shipment and date of delivery and details of prices,

72、 terms of payment, discounts or commissions, if any;v4. Express your hope of receiving an order.vWhen a firm offer is made, the following three points must be paid attention to:v1. It must be made clear that the offer is firm;v2. The offer must be clear, definite, complete and final and it must incl

73、ude all the main terms and conditions of the transaction;v3. The offer must state the time of validity clearly.Chapter Five: Counteroffers and Reply to Counteroffers1 Introduction to counteroffers(还盘)vIf the importer considers the price is on the high side, or some terms and conditions are not in ag

74、reement with what he expected, he may decline the offer, or most probably, make a counteroffer. That is, he may put forward his own proposal or conditions. A counteroffer is a partial or full rejection of the original offer of the exporter. In counteroffer letters, the importer may show his disagree

75、ment to certain terms of the offer. To convince the exporter of his position, the importer should give proper reasons to support him and then state his own proposals. After receiving the counteroffer, the exporter may weigh(权衡) the advantages and disadvantages and decide to accept or decline it acco

76、rding to the concrete situation. Of course, the exporter has the full right to accept or reject the counteroffer. In the latter case, the exporter may make an “anti-counteroffer”. This is somewhat like bargaining in a free market. This process can go on for many a round till business is concluded or

77、 called off.2 The outline for counteroffer lettersvCounteroffer letters must be written with great care. They should be written this way:v1. Thank the offeror for his offer;v2. Express regret that you cannot accept the offer and give your reasons;v3. Make concrete suggestions or amendments to the or

78、iginal offer;v4. Express your hope that your counteroffer will be accepted.3 The outline for accepting counteroffersvAfter receiving the counteroffer, the exporter has the full right to accept it or to decline it. These replies can be written as follows respectively. vWhen the counteroffer is accept

79、ed, the following points can be covered:v1. Thank the importer for his letter of counteroffer;v2. Express your acceptance for the counteroffer in view of some specific reasons;v3. Expect to receive the order soon.4 The outline for letters of declining counteroffersvThe following points can be covere

80、d in letters to decline the counteroffer:v1. Thank the importer for his counteroffer;v2. Express your inability to accept the counteroffer and give your reasons;v3. Make an anti-counteroffer(反还盘，再还盘), if possible;v4. Express your hope for cooperation in the future.Chapter Six: Orders and Reply1 Rele

81、vant knowledge about ordersvAn order means a written buying promise.vWhen the quotation or offer made by the exporter is acceptable, the importer will write a letter to the exporter to express his readiness to place an order. vAccording to the general practice, once the importer sends out the order

82、which is then confirmed by the exporter, business is done. The both parties, the importer and the exporter, should undertake their responsibilities respectively. Otherwise the opposite party has rights to make complaints and claims.2 The outline for letters of ordersvAn order letter features accurac

83、y and clarity, and generally, it includes the following points: v1. Thank the exporter for his/her quotation or offer;v2. Express that you are prepared to place an order with the exporter for certain goods;v3. Give an accurate and full description of goods required, and terms and conditions such as

84、(1) the name of the commodity, specification, Art. Nos., color and size, etc.; (2) quantity; (3) prices, including unit price and total value; (4) packing and shipment, detailed instruction on packing and shipping marks（唛头，运输标志）; (5) time of shipment; (6) terms of payment.v4. Express your desire for

85、 the smooth execution（执行） of the order.3 The outline of letters for accepting ordersv If the exporter agrees to all the terms and conditions the importer requests, and can supply what is ordered, he should send a letter of confirmation of the importers order as soon as possible. This kind of letters

86、 should cover the following points:v1. Express your thanks for the order and make an acknowledgment about the order;v2. Restate the contents of the order;v3. Assure the importer of your prompt and careful execution of the order and express your desire for future orders.v4. Provide additional informa

87、tion about other products likely to be interesting to the importer;v5. Enclose your Sales Confirmation（销售确认书） in duplicate（一式两份） for counter-signature（会签）.4 The outline of letters for turning down ordersvSometimes the exporter cannot accept some orders because the goods ordered are out of stock, the

88、 prices have changed, or the delivery time is urgent and the exporter cannot meet the importers requirement. Such being the case, a letter to decline orders should be sent. Writing this kind of letters needs careful consideration for any misunderstanding or impoliteness will hurt the feelings of the

89、 importer and affect future business.vThese four points can be included in writing this kind of letters:v1. Thank the importer for his order and confirm he/she has received the letter;v2. Express your regret to the importer for inability to supply the goods and give your reasons;v3. Show your apprec

90、iation again and suggest other business;v4. Express your wish for future business.Chapter Seven: Sales/Purchase Confirmation1 Background knowledge about sales/purchase confirmationvAfter business is finalized, the most important thing is to make sure that both parties have the identical understandin

91、g of the terms to which they have agreed. That is why letters confirming purchase or sales are necessary. Generally, the importer may write a letter confirming the purchase or the exporter may write a letter confirming the sales according to the terms agreed upon by both parties. vIn this way, mista

92、kes or misunderstanding in terms of trade may be avoided. In writing the above confirmations, special attention should be paid to the price, terms of payment, specifications, quality, quantity, time of delivery, port of destination（目的港）, etc.2 Introduction to purchase/sales contractsvThe written con

93、tract is the evidence by which two parties fulfill their duties and obligations and settle any disputes that may arise later. Contracts in international trade may take the form of a Sales Contract (S/C), to be countersigned by the Buyers, or a Purchase Contract (P/C), to be countersigned by the Sell

94、ers. vThere is little difference between a Sales Contract and a Purchase Contract in terms of contents. For smaller deals or transactions between regular business partners, a Sales/Purchase Confirmation may be used instead of a formal contract. Though less detailed than a contract, a Sales/Purchase

95、Confirmation has the same legal effect.vA contract lists in detail all terms of a deal. Apart from the specifications, packing, unit price, loading port （装运港）and unloading port（卸货港）, time of delivery, payment method, shipping marks, insurance, commercial inspection of the consignment, it also provid

96、es clauses, such as claims, force majeure（不可抗力）, arbitration（仲裁） covering the rights and liabilities of the parties and the dispute settlement. The contract is usually made in the third person.vOnce a deal is concluded, two parties concerned may sign two originals of contract face to face, or the se

97、ller may send two signed originals of sales contract to the buyer, let him sign them and send one back for file. The second way is known as counter-signature.3 The major sections composing the sales/purchase contractv1. The Openingv2. The Body of the Contractv3. The Endingv1. The OpeningvIt contains

98、 the names and full addresses of the Sellers and the Buyers, the date when the contract is signed, the Contract No. and an introductory remark (expressing mutual desire for entering into the contract).v2. The Body of the ContractvIt contains detailed terms and conditions of the deal, also the rights

99、 each party is entitled to and the obligations each party should fulfill. They mainly cover the following clauses:v (1) Commodityv Namev Specification/Descriptions (such as quality，size.etc.)v Quantityv Packingv (2) Pricev Unit pricev Total amountv Discount and commission, if anyv (3) Shipmentv Time

100、 of shipmentv Terms of shipmentv Port of loadingv Port of destinationv Shipping marksv (4) Terms of paymentv (5) Insurance clausev(6) Inspection of commodity（商品检验）v(7) Arbitration clause（仲裁条款）v(8) Force majeure（不可抗力）v(9) Applicable laws（适用的法律）v(10) Claims v(11) Settlement of disputes（纠纷的解决）v(12) Mis

101、cellaneous clauses（其他条款） that concerns what is unsettled in the previous clauses of the contract v3. The EndingvIt shows the date from which it comes into effect, the language(s) used and text(s), the number of original and signatures of parties concerned.4 The outline for letters to confirm sales o

102、r purchasev1. Thank the receiver for his/her cooperation;v2. Confirm sales or purchase;v3. Restate the important terms and conditions explicitly;v4. Enclose the sales contract/confirmation or purchase contract/confirmation for the receivers countersignature.Chapter Eight: Terms of Payment1 Major mod

103、es of payment in international tradevPayment plays an important role in international trade. If payment is not ensured, then all will be meaningless. So it is vitally important to ensure payment in a proper way. Payment in international trade is often more complicated and difficult than selling in t

104、he domestic market because great distance separates the exporter from the importer. vBy certain means of transmission, the settlement of claims and debts, or transfer of money is carried out in international trade. The following three major modes of payment are commonly adopted: remittance（汇付）, coll

105、ection（托收） and letter of credit (L/C). Remittance and collection stand for commercial credit （商业信用）while letter of credit stands for bankers credit（银行信用）.2 RemittancevRemittance is to make the payment of the goods to the seller by bank transfer（银行转账）. In remittance, there are four parties involved:

106、the remitter（汇款人）, the beneficiary（受益人）, the remitting bank（汇出行）, and the paying bank（汇入行/付款行）. v Remittance uses commercial credit and hence in adopting this method the parties involved need have trust in each other. Remittance is chiefly used for payment in advance and payment for small quantity o

107、f goods, commission, sundry charges（杂项费用）, etc. v Remittance has three types: Mail Transfer (M/T)(信汇), Telegraphic Transfer (T/T)（电汇）, and Demand Draft (D/D)（票汇）.vBy mail transfer, the remitter applies to the remitting bank, and hands over the payment of the goods to the remitting bank that will aut

108、horize its branch bank or correspondent bank (paying bank) in the country of the beneficiary by mail to make the payment to him. vBy telegraphic transfer, the remitter makes an application and hands over the payment of the goods to the remitting bank which will authorize its branch bank or correspon

109、dent bank (paying bank) in the country of the beneficiary by telegraphic means to make the payment to him. Mail transfer is less expensive, but it takes more time, while telegraphic transfer is more expensive but it is much sooner. vBy demand draft, the remitter comes to the local bank (remitting ba

110、nk) to buy a bankers bill (demand draft) and then delivers it to the beneficiary by mail. When the beneficiary has received it, he will come to the bank (paying bank) designated by the bankers bill for cash. Apart from bankers bill（银行汇票）, promissory notes（银行本票） or checks（支票） can also be used in this

111、 way.3 Collection（托收）vUnder collection, upon the shipment of the goods, the exporter draws a bill of exchange （汇票）on the importer for the sum due（应付总额）, with or without relevant shipping documents（装运单据） attached, and authorizes his bank to effect the collection of the payment through its branch bank

112、 （支行）or correspondent bank（往来行） in the country of the importer. vTwo types of collection: documentary collection（跟单托收） and clean collection（光票托收）. Documentary collection has the relevant shipping documents attached to the draft（汇票）, while in clean collection only draft is used. vDocumentary collecti

113、on is most often used in the payment of goods in international trade while clean collection is occasionally used in the payment of payment balance（剩余货款）, extra charges（附加费）, or the like.3.1 The parties involved under collectionvThere are four parties involved in collection: the principal（委托人）, the r

114、emitting bank（托收行/寄单行）, the collecting bank （代收行）and the drawee（受票人）.v(1) Principal（委托人）. This is the one who draws the bill of exchange and authorizes his bank to effect the collection. Usually this is the seller of the goods.v(2) Remitting bank（托收行/寄单行）. This is the bank authorized by the drawer o

115、f the draft to effect collection from the buyer. Usually this is a bank in the place of the seller.v(3) Collecting bank（代收行）. This is the bank authorized by the remitting bank to collect the payment from the drawee, or the buyer of the goods. It is usually the bank in the country of the buyer.v(4) D

116、rawee（受票人）. The drawee is usually the buyer of the goods who should make payment of the goods in time.3.2 Varieties of documentary collectionv Documentary collection falls into two kinds: documents against payment (D/P)（付款交单） and documents against acceptance (D/A)（承兑交单）.v(1) Documents against paymen

117、t (D/P)vUnder D/P, the buyer can receive the shipping documents only after he has duly made the payment of the goods. It can further be of two types: D/P at sight （即期付款交单）and D/P at days after sight (date).（远期付款交单）v D/P at sight（即期付款交单）v Under D/P at sight, the seller might either draw or not draw a

118、 draft on the buyer. He hands over the shipping documents together with (or without) the draft to the remitting bank, and the shipping documents and the draft (or without draft) will be transferred to the collecting bank（代收行） which will present them to the buyer and ask him to make the payment at si

119、ght. The buyer, upon sight, should then make the payment and get the shipping documents. When the collecting bank has thus finished the collection, it should immediately notify the remitting bank托收行/寄单行which will then make the payment to the seller.v D/P atdays after sight (date)（远期付款交单）vIn practice

120、, it can further be D/P at days after sight, D/P at days after bill of lading or D/P at days after date of draft.v(2) Documents against acceptance (D/A)vUnder D/A, the buyer can get the shipping documents from the collecting bank after he has duly accepted the draft. This is only applicable to time

121、draft（远期汇票）. It will greatly convenience the buyer, but it means much more risk for the seller for the buyer might refuse to pay after he has accepted the draft and taken the delivery of the goods. Certainly the seller might sue him, but as is often the case, the buyer claims bankruptcy and then the

122、 seller can do nothing to remedy the situation.vCollection belongs to commercial credit, and the banks involved do not bear any risks if the payment of the goods is not made by the buyer. So before adopting this method, the seller should be sure that the buyer is reliable and able to make the paymen

123、t.4 Letter of creditvAs we can see, neither remittance nor collection is a safe means for the settlement of payment in international trade as both of them rely on commercial credit. vAlong with the development of international trade, bank credit gets involved in the settlement of payment which provi

124、des it with more secure means. Letter of credit is the chief means which is now most often used in the settlement of payment in international trade.4.1 The definition of L/CvA letter of credit consists of a promise made by the opening bank that he will honor（兑现、支付） the draft drawn by the seller of m

125、erchandise, provided that the seller surrenders to the bank a complete set of shipping documents evidencing that the goods shipped are in accordance with the contract and all stipulations in the L/C have been complied with. The letter of credit solves the possible problems arising from the distrust

126、between the seller and the buyer. vUnder L/C, the seller can feel assured that so long as he has made the delivery of the goods and got the required documents he can get the payment of the goods in time and the buyer can also feel at ease that he can get the shipping documents at the same time when

127、he effects the payment of the goods.4.2 The varieties of L/Cv(1) Revocable L/C（可撤销信用证） and irrevocable L/C（不可撤销信用证）v(2) Documentary L/C（跟单信用证） and clean L/C（光票信用证）v(3) Confirmed L/C （保兑信用证） and unconfirmed L/C（不保兑信用证）v(4) Sight L/C and usance L/C（远期信用证）v(5) Transferable L/C（可转让信用证）v(6) Deferred paym

128、ent L/C(延期付款信用证)v(7) Anticipatory/prepaid L/C(预支信用证)v(8)back to back L/C(背对背信用证)v(9)reciprocal L/C(对开信用证)v(10)divisible L/C (可分割信用证)v(11)revolving L/C(循环信用证)5 The outline for letters negotiating terms of paymentv1. Refer to the previous correspondence or the contract or order concerned;v2. Put forwa

129、rd your idea about the terms of payment;v3. Give your reasons;v4. Expect the receiver to accept the terms of payment you suggest.Chapter Nine: Urging Establishment of L/Cs1 The parties involved in the payment by L/CvSeven parties may be involved: the applicant（开证申请人）, the opening bank（开证行）, the advi

130、sing bank（通知行）, the beneficiary（受益人）, the negotiating bank（议付行）, the paying bank（付款行） and the confirming bank（保兑行）.v1. The applicant. The applicant is usually the importer and he applies to the bank for the letter of credit.v2. Opening bank, or issuing bank（开证行）. It opens the letter of credit upon t

131、he request of the importer and holds itself responsible for the payment of the goods.v3. Advising bank, or notifying bank（通知行）. It is in the exporters country and usually the correspondent bank（往来行） of the issuing bank. It is authorized by the issuing bank to transfer the L/C to the exporter.v4. Ben

132、eficiary. The beneficiary is usually the exporter and is entitled to use the letter of credit for the payment of the goods.v5. Negotiating bank(议付行). It is to advance the amount of the goods to the beneficiary provided that the exporter surrenders the required shipping documents which evidence that

133、the goods shipped are in accordance with the contract and the L/C stipulations are complied with. The negotiating bank and the advising bank can be the same bank.v6. Paying bank(付款行). It is designated by the letter of credit to pay the draft. In most cases, it is the issuing bank. Once the paying ba

134、nk has effected the payment, it can not claim it back by recourse（追索）.v7. Confirming bank(保兑行). It is asked by the opening bank to confirm the L/C. If a bank has confirmed the L/C, it holds itself responsible for the negotiation or payment of the L/C. Mostly, the confirming bank is advising bank.2 T

135、he chief contents of L/Cv1. The parties involved, including the applicant, the issuing bank, negotiating bank, the paying bank, and the like;v2. Remarks about the L/C, such as the No. of the L/C, its type, the issuing date;v3. The amount of the L/C;v4. The clauses of the bill of exchange, such as th

136、e amount of the bill, the drawer and drawee, the paying date, etc.;v5. The clauses about the documents, that is, what documents are required, such as the invoice, the bill of lading(提单), the insurance policy(保单), the packing list(装箱单), the certificate of origin(原产地证明), and inspection certificate（检验证

137、明）, etc. as well as the required number of copies of the documents;v6. Major terms about the transaction such as the description of the goods, specifications, quantity, packing, unit price, total amount, mode of transport, shipment, place of unloading, etc.;v7. Guarantee clauses of the opening bank,

138、 which testify that the opening bank will hold itself responsible for the payment to the beneficiary or the holder of the draft.3 Procedures involved in the use of L/C vThere are six steps in making payment by L/C.vStep 1: The importer applies to the issuing bank for the letter of credit. He is obli

139、ged to fill in an application form and hand over some margin or some other securities（抵押品）. The opening bank is entitled to take hold of the margin（保证金）if the importer will not effect payment to get the shipping documents in time. The margin accounts for different percentages the whole amount of the

140、 letter of credit depending on the credit status of the applicant and the marketing conditions of the goods.vStep 2: The letter of credit is opened by the issuing bank. The letter of the credit is seldom delivered directly to the beneficiary, as the beneficiary usually does not have any contact with

141、 the issuing bank. So the letter of credit is usually first delivered to the advising bank by air mail, which then will transfer it to the beneficiary. The advising bank can also be referred to if the beneficiary has any problems concerning the letter of credit. vStep 3: The advising bank informs th

142、e seller of the arrival of L/C. Then it will retain a copy for later reference and deliver the original and other copies to the beneficiary immediately.vStep 4: When the seller has received the letter of credit, he should check the L/C to see if it corresponds with the agreement or contract reached

143、between him and the buyer. If he has found any discrepancy which he cannot accept, or if some clauses need to be changed, he should immediately ask the advising bank or the applicant to require the opening bank to make amendments.vStep 5: When the seller has made sure that there are no more problems

144、 with the L/C, he should make shipment of the goods and get the shipping documents. Then together with the L/C and other documents such as insurance policy, packing list, invoice, bill of exchange, he comes to the negotiating bank for negotiation.vHaving thus finished negotiation, the negotiating ba

145、nk will deliver the relevant documents and the draft together with a reimbursing notice to the opening bank or the designated paying bank, which, after examination of the documents and the draft, will make the payment to the negotiating bank.vStep 6: Having effected the payment to the negotiating ba

146、nk, the issuing bank will ask the applicant to get the shipping documents. In so doing, the applicant makes payment and also pays the issuing bank some charges and gets back his margin or other securities. And then, with the shipping documents, the applicant comes to the carrier to take delivery of

147、the goods. vIf the applicant finds any discrepancy between the shipping documents and the letter of credit, he may refuse to honor the draft and get the shipping documents. And the issuing bank can not claim his payment back on the excuse that it has not found the discrepancy between the shipping do

148、cuments and the L/C during examination of the shipping documents. Thus, the issuing bank might sustain some losses.4 Urging the establishment of L/CsvThere are two different cases for urging establishment of L/C. One is to remind, in advance, the importer to open L/C in accordance with the time prov

149、ided in the contract. Another is to urge the importer to rush establishment of L/C, as he has exceeded the time limit. The former is to invite the importers attention to the fact that time of delivery is approaching and that the earlier establishment of L/C is beneficial to the both parties. Thus, t

150、he words used should be mild and roundabout so that the importer would promptly accept it. vThe latter is to make criticism on the importers delay of opening L/C. Though the exceeding of the time limit means breaking of the contract, youd better avoid blaming the importer at the very beginning. Neit

151、her should you threaten to cancel the contract or to lodge a claim for this. Aiming at the extension of business, you may, if possible, fix another time limit and give the importer a chance to make change. vOnly after times urging establishment of L/C and receiving no answer or finding his delay is

152、on purpose, should you take some necessary measures, such as, readjusting the terms of price or quantity and asking the importer to open the L/C according to the readjustment, and even stopping the business, canceling the contract, or lodging a claim so as to lessen or make up the loss on your side.

153、5 The outline for letters to urge establishment of L/Csv1. Refer to the receivers order or your sales contract;v2. Remind the receiver to open the covering L/C on time courteously and give your reasons;v3. Express your expectation of receiving the covering L/C at an early date.Chapter Ten: Requestin

154、g Amendments to and Extension of L/Cs1 Examining the L/CvThe following points may be paid attention to in the examination of the letter of credit:v1. Check whether the bank issuing the L/C is a sound reliable foreign bank and whether the currency employed and other reimbursement clauses（偿付条款） are cl

155、ear and in accordance with the regulations in the exporting country;v2. Check the type of the L/C, the total amount, validity time and place of negotiation;v3. Check whether the description, specifications, quantity, packing, unit price, shipping time, port of destination, insurance cover（险种）, etc.

156、of the goods are in accordance with the sales contract;v4. Check the mode of transportation and whether partial shipment (分批装运)and transshipment(转船) are allowed.v5. Check the requirement for the documents, the invoice, packing list(装箱单), weight list(重量单), certificate of origin（原产地证明）, insurance poli

157、cy(保单) or insurance certificate(小保单).2 Requesting amendments to L/CsvIf there is any variance with the contract or error in the L/C, the exporter should contact the importer immediately for necessary amendments so as to guarantee the smooth execution of the contract and to safeguard his own interest

158、.3.Reqesting extension of L/CsvWhen the exporter cannot ship the goods on time, they may request the importer to have the L/C extended.vCases for requesting to extend L/Cs:vSometimes exporters are unable to effect shipment or delivery of the goods on time because of some unexpected reasons such as l

159、ack of goods, any accident in the manufacturing process, or inappropriate arrangement for transportation. vSometimes the importer may not be able to open the L/C to the exporter within the time limit stipulated in the contract. This may also cause the delay of shipment and delivery of goods even if

160、the exporter has already got the goods ready for shipment. vBesides, natural disasters such as storm, typhoon, earthquake, flood etc. may make the exporter postpone his shipment and delivery of goods.vThe reasons are various. As for the exporter, lack of goods, any accident in manufacture, or inappr

161、opriate arrangement for transportation, may cause delay of shipment and delivery of goods. As for the importer, he may not be able to open the L/C to the exporter within the time limit stipulated in the contract. This may also cause the delay of shipment and delivery of goods even if the exporter ha

162、s already got the goods ready for shipment. vBesides, natural disasters such as storm, typhoon, earthquake, flood, or war, riot, strike etc. may force the exporter to postpone his shipment and delivery of goods.4 The outline for letters to request amendments to L/CsvThe following points can be cover

163、ed:v1. Inform the receiver that the relevant L/C has been received;v2. Inform the receiver of the discrepancies found after examination of the L/C directly;v3. Detail the differences and suggest the specific amendments;v4. Expect the prompt amendments so as to make shipment on time.5 The outline for

164、 letters to request extension of L/CsvThe following points may be covered:v1. Thank the receiver for the establishment of the L/C;v2. Request the extension of the L/C and give the reasons;v3. State the details of extension of the L/C;v4. Express your expectation for the prompt extension of the L/C s

165、o as to ship the goods in time.Chapter Eleven: Packing Appropriate packing can prevent or minimize the damage of the shipment. vProper packing can facilitate handling of goods in transit and assure their safe arrival at the place of destination. vThe packing used in transporting exported goods must

166、be very strong. The exporter also has to make the packing as lightly and compactly as possible to reduce the freight. Besides, the packing cost has to be considered.1 Classification of packingvPacking can be classified into two kinds: packing for transportation and packing for sales. Packing for tra

167、nsportation is also called big packing or outer packing while packing for sales is also called small packing or inner packing.v1.Outer packing（外包装）: vTo stand long marine transportation and rough handling of goods, and for other purposes, the outer packing of the cargoes should meet the following re

168、quirements: be solid and durable, adaptable to the changing climates at the loading and unloading ports and transit areas; be uniform so as to convenience storage（仓储）, stowing（理仓）, calculation, cargo inspection and identification; have the least weight and volume. v2.Packing for sales: vit will not

169、only protect, but also prettify commodities. It provides some necessary information about the quality, function, usage and some other things about the commodities. Inner packing plays a very important part in sales promotion. 2 The outline for letters about packing requirementsvGenerally the packing

170、 is up to the exporter. However, the importer may have his specific packing requirements. If so, he should inform the exporter of them before shipment by writing a letter with the following outline:v1. Refer to the relevant order or sales contract;v2. Inform the receiver of the purpose of your writi

171、ng: to give instructions in packing;v3. State your specific requirements for packing;v4. Express your expectation for the receivers acceptance of your requirements in packing.3 The outline for replies to importers request for packingvOn the part of the exporter, he should ensure that the packing can

172、 effectively protect the goods from damage and can sustain the long distance of transport. When letters instructing packing are received, there are two cases: the exporter agrees to the importers request for packing or the exporter disagrees to his request and puts forward his own suggestions.vFirst

173、, when the exporter agrees to the importers packing requirement, the following points can be covered:v1. Thank the receiver for his letter;v2. Agree to what is required about packing;v3. Ask the receiver to be assured that his requirement for packing will be satisfied.vSecondly, when the exporter di

174、sagrees to the importers packing request, the letter can be written as follows:v1. Thank the receiver for his letter;v2. State your own suggestion for packing and give an explanation;v3. Hope that your suggestions would be accepted.Chapter Twelve: Shipment1 Basic knowledge about shipmentvThe goods h

175、ave to be forwarded from one place to another. That is what we call “shipment”. There are three parties involved in shipment of goods: the consignor（发货人） who sends the goods; the carrier（承运人）, who carries them and the consignee（收货人）, who receives them at the destination.vGenerally, timed shipment is

176、 preferred, that is, shipment is effected during a certain period. No shipment being usually possible without an L/C, it is advisable for the exporter to effect shipment within a certain period after receipt of the relative L/C.vIf the importer has any requirements about shipment, he may make shippi

177、ng instructions（装运说明） to the exporter before shipment. After shipment, the exporter sends a shipping advice （装运通知）to the importer, usually by fax, informing him of the name of the carrying vessel（载货轮）, the sailing date and other details.2 The outline for letters of shipping instructionsv1. Refer to

178、the goods under the Order or the Sales Contract;v2. Propose the specific shipping requirements: the name of the carrying vessel, the sailing date, the packing, the shipping mark, etc.;v3. Express your expectation for receiving the shipping advice from the exporter at an early date.3 The outline for

179、letters of urging shipmentvUpon receipt of the L/C, the exporter should ship the goods within a definite period of time. However, the shipment may be delayed for various reasons. In this case, the importer may write to urge the shipment. Generally, the following points can be covered in this kind of

180、 letters:v1. Express your regret at no news about the shipment till now;v2. Remind the exporter that the L/C has been established and that the shipping date is approaching or overdue;v3. State the reasons for prompt shipment;v4. Hope to receive the shipping advice at an early date.4 The outline for

181、letters of shipping advicevThe shipping advice enables the importer to check with the transportation company if the goods do not reach him on time. This kind of letter should be written like this:v1. Refer to the goods under the Order or Sales Contract;v2. Inform the importer of the details about th

182、e shipment: the Contract No. or the relevant L/C No.; the name of the vessel used to dispatch the goods (especially important for F.O.B. terms because the buyer will effect insurance（投保） within 48 hours); the name of the goods and the quantities delivered; the packing conditions; the sailing date an

183、d the estimated time of arrival; v3. Indicate the copies of shipping documents enclosed: B/L, Commercial Invoice, Certificate of Quality, Certificate of Quantity, Insurance Policy, Weight Memo（重量单）, etc.;v4. Hope that the goods will duly arrive there in good condition.Chapter Thirteen: InsurancevIn

184、international trade, the transportation of the goods from the exporter to the importer is usually over a long distance by air, land or sea and has to go through the procedures of loading, unloading and storing. During this process it is quite possible that the goods will encounter various kinds of p

185、erils. In order to protect the goods against possible losses, before shipment, insurance on the goods to be transported must be covered. vWho will effect insurance depends on the particular trade term adopted. Under CIF terms, it is the seller who arranges insurance with an insurance company. Under

186、the terms as FOB, CFR, etc., the buyer effects insurance, but he may ask the seller to arrange insurance on behalf of him.1 Parties involved in insurancevUsually, there are two parties involved in insurance. One is the insurer（保险人） and the other is the insured（被保险人）. In some cases, there may be an i

187、nsurance broker（保险经纪人）, whose assistance can be of enormous benefit as they are highly skilled specialists and can obtain sound and reliable coverage, together with competitive premium rates.2 Insurance amountvThe amount insured must be at least the invoiced value of the goods. Under a CIF contract,

188、 it is common practice for the exporter to insure the goods for 10 above the invoice value. In return for payment of a premium （保费）paid by the insured, the insurer agrees to pay the insured a sum should the event insured occur. vSometimes, the importer may request insurance to cover more than 1l0 of

189、 the invoice value. In such cases, the extra premium will be for the importers account.3 Types of insurance documentv1.insurance policy（保险单）: a formal contract between the insurer and the insuredv2.insurance certificate（小保单，保险凭证）: a simplified form of insurance bined certificate（联合保单）: a further sim

190、plifed form of insurance policy with some insurance terms listed on the invoicev4. open cover/policy(开口保单): a pre-contract concluded between the insured and the insurer to insure the goods the insured despatches within a certain period of time4 Risk coverage for marine cargo transportationv4.1 Basic

191、 risks coverage for ocean transportation under C.I.C. Under China Insurance Clause (C.I.C.), basic risks coverage falls into three types: Free From Particular Average (FPA)(平安险), With Average (WA)/With Particular Average (WPA)（水渍险）, and All Risks（一切险）. The insured may choose any one from these suita

192、ble for the carriage of his goods.4.2 Additional risks coverage for ocean transportation under C.I.C.vAdditional risks complement the basic risks. When you ask for one or several of the additional risks coverage, you will have to insure one of the basic risks coverage first. Additional risks under C

193、.I.C. fall into general additional risks （一般附加险）and special additional risks（特别附加险）.v1. General additional risksvGeneral additional risks fall into 11 types：v (1) Theft, Pilferage, and Non-delivery (T.P.N.D.)（盗窃及提货不着险）;v (2) Fresh Water and/or Rain Damage Risk（淡水雨淋险）;v (3) Shortage Risk（短量险）;v (4) I

194、ntermixture and Contamination Risks（混杂玷污险）;v(5) Leakage Risk（渗漏险）;v (6) Clash and Breakage Risks（碰撞破损险）;v (7) Taint of Odor Risk（串味险）;v(8) Sweat and Heating Risks（受潮受热险）;v(9) Hook Damage Risk（钩损险）;v(10) Breakage of Packing Risk（包装破损险）;v(11) Rust Risk（锈损险）.v2. Special additional risksvSpecial additio

195、nal risks cover losses caused by special extraneous risks. They fall into 8 types: v(1) War Risk（战争险）;v(2) Strikes Risk（罢工险）;v(3) On Deck Risk（舱面险）;v(4) Import Duty Risk（进口关税险）;v(5) Rejection Risk（货物拒收险）;v(6) Aflatoxin Risk（黄曲霉素险）;v(7) Failure to Deliver Risk（交货不到险）;v(8) Fire Risk Extension Clause （

196、火险责任扩展条款） 5 The outline for letters to request the exporter to cover insurancevUnder the terms as FOB, CFR, etc., the importer should be responsible for insurance, but he may ask the exporter to arrange insurance on behalf of him. Generally the following points can be covered in this kind of letters

197、:v1. Refer to the goods under the Order or the Sales Contract;v2. Request the receiver to insure the goods for you, indicating clearly the insurance coverage, insurance amount, duration of insurance, etc.;v3. State the paying method for the settlement of the premium;v4. Expect the receivers cooperat

198、ion.6 The outline for letters in reply to the importers request for insurancevGenerally, the exporter covers the goods in question on behalf of the importer upon receipt of the importers request. In reply to the importers letter, this kind of letters can cover the following points:v1. Acknowledge re

199、ceipt of the receivers letter;v2. Inform the receiver of the arrangements of insurance, indicating clearly the insurance coverage, insurance amount, duration of insurance, etc.;v3. Indicate the paying method for the settlement of the premium.7 Outline for letters of application to insurance companie

200、s for insurance vThe following points can be covered in the letter to apply for insurance:v1. Indicate the purpose of your writing- to cover insurance;v2. Make clear the description of the goods, the insurance coverage, the insured amount, port of destination,duration of insurance, etc.;v3. Express

201、your expectation that your application for insurance will be accepted.Chapter Fourteen: Complaints, Claims and SettlementvSometimes when the loss is not serious, the party suffering from the loss may not lodge a claim for compensation. Instead he writes a complaint letter to call the other partys at

202、tention to avoid this matter happening again. Claims are usually raised for great loss. When one party receives a claim, he has three choices: settle the claim, or make some adjustment or reject the claim.1 Introduction to complaintsvComplaints are the dissatisfactory expressions of the importers. W

203、hen they find the goods quality, specifications, quantity, packing and time of shipment etc. are not in accordance with the contract stipulations, they send letters or faxes to the exporters, expressing their dissatisfaction, putting forward their suggestions for settlement or asking for adopting me

204、asures. 2 Background knowledge about claimsvIf one of the parties breaches the contract and results in a loss to the other party, the other party is entitled to request the defaulter(违约者)to make up for his losses.vIn international trade, most claims are filed by buyers against sellers because of the

205、 goods short weight, inferior quality, improper packing, and inconformity with the contract stipulations and so on. vHowever, there are times when sellers file claims against buyers. This may occur when buyers refuse or delay in opening an L/C, delay in sending a vessel to carry the goods under FOB

206、terms or refuse to take delivery of the goods, and so on.vWhat should be paid attention to is that claim must be made within the validity stipulated in the contract (generally within 30 days after the arrival of the goods at the destination). If overdue, you have no right to do so.3 The outline for

207、the letters of complaints or claimsvA complaint or claim letter very often contains the following points:v1. Clearly indicate the batch of goods about which you make complaints or claim, such as the order (or contract) number, the name of commodity;v2. State the problem as specifically as possible,

208、such as the inconvenience and troubles caused and losses you have sustained;v3. State your request clearly, that is, what you want to be done.4 Writing replies to claim lettersv Replies to claim letters must be written skillfully, cleverly and courteously to avoid further annoying the claimant. Try

209、to write a reply as specifically and promptly as possible.vThe concrete writing of letters in reply to a claim is different according to different cases. vThere are three cases: agreeing to the other partys request completely, making adjustments to the other partys request (partly agree) and rejecti

210、ng the other partys request (completely disagree). Different cases have different writing outlines 4.1. Agreeing to the other partys request (completely agree)vThe following points can be covered:v(1) Express your regret over the inconvenience or losses caused;v(2) State the details about the way of

211、 settlement;v(3) Further measures are to be taken, if necessary, that is, how you will keep this kind of problems from happening again;v(4) Be courteous and express a request for future business.4.2. Making adjustments to the other partys request (partly agree)vSuch a reply is to make some adjustmen

212、ts or concession, but the demand is not entirely met. The letter can contain the following points:v(1) Give an apology for inconvenience or loss caused;v(2) Explain why the adjustment to the request is being made and why this is a reasonable settlement for both parties;v(3) Hope that the other party

213、 will be satisfied with the adjustment to his request.4.3. Rejecting the other partys request (completely disagree)vThis kind of letter is very difficult to write, so words and expressions must be well-chosen in the letter. The letter should be written courteously and tactfully. Keep in mind the imp

214、ortant writing principle: dont begin with bad news in the letter, that is, do not decline the other partys request directly in the opening paragraph. vThe outline is as follows:v(1) Thank the other party for his writing or say that you are sorry for his dissatisfaction;v(2) Explain why his request i

215、s being declined;v(3) Summarize the letter and express your expectation for future business.Chapter Fifteen: Selling AgencyvAn agent is a middleman or intermediary who can act on behalf of a principal(委托人） in specific matters. An agency arises when one person (the principal) authorizes another perso

216、n (agent) to act on his/her behalf with third parties. Many kinds of agents are active in international business nowadays, such as forwarding agents（货运代理）and clearing agents（清算代理）. vHowever, in international trade, the most usual form of agency is that the exporter authorizes some foreign firms to s

217、ell certain goods to the customers in a particular area during a particular period of time. This is called the selling agent. The agent is obliged to market the goods actively and for doing this, he may receive commission（佣金）. 1 Necessity of appointing selling agentsvWhen a company first begins to d

218、evelop foreign markets, it often resorts to the help of agents, who will be employed to represent the company and sell its products in an area too distant to be effectively covered by the company itself.vAn important reason for appointing a foreign selling agent is his knowledge of local conditions

219、and the market in which he will operate. He knows what goods are best suited to his area and what prices the market will bear. Consequently, this is normally less expensive for a firm than sending a member of its own staff to a foreign country, and a native of any country will almost always know the

220、 market better than a foreigner will.2 Types of selling agentsvSelling agents can be classified into two major types:v 1. General agents（一般代理、总代理）v 2. Sole/exclusive agents（独家代理） 3 Parties concerned in agency agreements and their respective dutiesvThere are two major parties concerned in an agency a

221、greement: the principal（委托人） and the agent. Their duties are as follows:v1. The duties of the agentv(1) Serve the principal as an agent on the terms of agency agreement with all diligence;v(2) Maintain and provide necessary facilities at his own expense;v(3) Report the market information to the prin

222、cipal;v(4) Keep confidential for the principal, that is, not disclose any useful information to any third party;v(5) Do not act outside the territory.v2. Duties of the principal（委托人）v(1) Supply the agent with a reasonable quantity of sales literature free of charge;v(2) Supply necessary models or sa

223、mples relating the goods;v(3) Do not make/send offers to or conclude deals with other dealers in the particular territory without the agents consent;v(4) Pay for necessary expenses made by the agent;v(5) Pay commission or fee to the agent in accordance with the agreement.4 Major clauses in an agency

224、 agreementvOnce the agency agreement is signed between the principal and the agent, both parties must act in strict accordance with the provisions of the agreement. An agency agreement may include all or some of the following:v1. The nature and duration of the agencyv2. The name of the commodity;v3.

225、 The territory to be covered;v4. Commission;v5. The rights and obligations of the agent and the principal;v6. The annual turnover（营业额）/the sales volume each year;v7. The method of purchase and sales (e.g. whether the agent is to buy for his own account or “on consignment”（寄售）)5 The outline for lette

226、rs applying for selling agencyv1. Tell the exporter how you get to know his name, address, telephone number and even website;v2. Express your wish to act as the agent in a particular district;v3. State the strengths or advantages you have in serving as an agent;v4. Provide references as to your cred

227、it standing（资信） and financial position（财务状况）;v5. Expect the acceptance of your application.6 The outline for replies to the application of selling agencyvThere are two cases for replies to agency application: to accept the application or to decline the application. They can be written differently.v6

228、.1The outline for accepting agency application v1. Acknowledge receipt of the other partys application letter;v2. Express your approval for his agency;v3. Ask the other party, if necessary, some more information about his selling ability, business connections or selling ideas or suggestions about yo

229、ur products etc.;v4. State your details of terms for agency;v5. Expect to sign the agency agreement at an early date.v6.2 Outline for declining agency application v1. Thank the other party for his application letter;v2. Express your regret at inability to appoint him as your agent;v3. State your rea

230、sons for non-acceptance;v4. Express your expectation for future cooperation.Chapter Sixteen: International Business Contracts/AgreementsvSigning a contract is vitally important for both importers and exporters in international trade. Business is impossible if there is no agreement or contract to bin

231、d the two parties. A contract is a legally binding agreement between two or more parties. A contract is the only document between the parties to which they may refer for clarification of mutual responsibilities, and resolution of disputes in the event of disagreement.1 Language features of internati

232、onal business contracts/agreementsvThe contract or agreement is a legal document which the parties concerned shall comply with. The language used in contracts or agreements is quite formal, and bears the following features:1.1 Features in vocabularyv1.The frequent use of the legal term “shall” “Shal

233、l” is one of the most frequently used words in international business contracts or agreements. It is an accurate legal word, which is used to define each partys duties and obligations. We usually use the word “shall” instead of words like “must” , “have to” or “should” when we express the meaning th

234、at something must be done or some obligations must be complied with. v e.g. Upon receipt from the Sellers of the advice about the time and quantity expected ready for shipment, the Buyers shall open, 20 days before shipment, with the Bank of China, Beijing, an irrevocable Letter of Credit in favor o

235、f the Sellers payable by the opening bank against a sight draft accompanied by the documents as stipulated in Article 6 of this Contract.v买方在收到卖方关于预计装船日期及准备装船的数量的通知后，应于装船前20天，通过北京中国银行开立以卖方为受益人的不可撤消的信用证。该信用证凭即期汇票及本合同第6条规定的单据在开证行付款。v2. Common use of formal words or big wordsvContracts and agreements b

236、elong to the serious style, and the words and phrases used in the said documents should be legal, formal, serious and accurate. Therefore, formal or big words or phrases are commonly used instead of general words or phrases. v3. Repetitive use of synonymsvSynonyms are used together in order to expre

237、ss the meaning clearly, accurately and completely and to avoid possible misunderstanding. e.g.vThe Agreement is made and entered into by and between Party A and Party B.v该协议是由甲方和乙方签订的。vThe Contract is in full force and effect for one year commencing from Jan. 1, 2008.v4. Common use of Latin words an

238、d archaic wordsvLatin words are often used in contracts or agreements, such as “pro rata”, “force majeure” etc. because the use of them indicates the formal style of contracts or agreements. Meanwhile, there are many archaic words used in contracts or agreements. vThe following words are commonly us

239、ed:hereinafter/hereafter=later in this contract在下文vhereinbefore=in a preceding part of this contract在上文vhereby=by this means or by reason of this由此，特此vherein=in this其中vhereto=to this对此，至此vwhereby=by which 凭那个vwherein=in which在那里vwhereon=on which在那上面1. 2 Syntactic features v1. Complicated sentence st

240、ructurevLengthy and complex sentences are not rare in contracts and they are used to cover reasons, solutions, details, etc. Sometimes even a sentence makes up a paragraph in a contract. v2. Complex structures with many phrases or clauses inserted in the sentencee.g.The Buyers or their chartering ag

241、ent shall advise the Sellers by facsimile, 10 days prior to the arrival of the carrying vessel at the port of shipment, of the contract number, name of the carrying vessel, approximate loading capacity, lay days and port of loading, in order to enable the Sellers to make preparations for loading.v买方

242、或其租船代理人须于货船到达装运港口10天之前，以传真方式将合同号码、载货船的船名、估计的装载量、受载期及装货港通知卖方，以便使卖方能为装货作好准备。v3. Common use of passive voicevIn general, contracts/agreements are written in a formal style，making frequent use of passive voice. e.g.vFailure to notify Party A shall be deemed to be a breach of this Agreement.v没有通知到甲方就被视为违

243、约。vThe L/C should be opened 20 days after the Contract is signed.v合同签订20天后开立信用证。vShould the quality，quantity and/or weight be found not in conformity with what is stipulated in the Contract, the buyer is entitled to reject the shipment.v如果发现质量、数量和或重量与合同规定不一致，买方有权拒绝收货。2 The structure of international

244、 business contracts/agreementsvAn international business contract or agreement usually consists of the following four sections: the title and the number, the preamble, the body and the ending.v1. The title and the number of the contract/agreementvThe title indicates the nature of the contract or agr

245、eement, such as “Purchase Contract”, “Agency Agreement”, “Exclusive Sales Agreement”, etc. At the same time, the number of the contract or agreement should be indicated for the parties reference in the future. v2. The preamble/preface v (1) Date and place of signing the contract or agreement (someti

246、mes the date and the place are put in the end of the contract or agreement);v (2) Names of parties concerned and their nationalities, principal places of business or residence addresses;v (3) Each partys authority, for example: “A corporation duly organized and existing under the laws of the Peoples

247、 Republic of China”;v (4) Recitals or WHEREAS clause(订约缘由或说明条款).v3. The bodyvThe body of a contract or an agreement generally contains detailed terms and conditions of the deal, also the rights each party is entitled to and the obligations each party should fulfill.v(1) Basic clausesv(2) Miscellaneo

248、us termsv4. The endingv (1) Concluding sentence, which may include the number of original contract, the language(s) used and its (their) effectiveness; e.g.v This Contract is made out in two originals, each copy written in Chinese and English languages, both texts being equally effective. In case of

249、 any divergence of interpretation, the Chinese text shall prevail.v 本合同正本一式两份，分别以中文和英文书写，两种文本具有同等效力。若对其解释产生异议，则以中文本为准。v(2)Signaturev(3)Seal3.Compensation Trade(补偿贸易)v3.1 An introduction:vIn compensation trade, the importer imports advanced equipments or technology from the exporter and makes payment

250、 by commodities within a period of time. At the same time, the importer has to pay interest for that. That is to say, compensation trade is a kind of loan to some extent.3.2 Advantages of compensation tradevThis trade form is beneficial to both parties: to importers, they can overcome foreign exchan

251、ge difficulties and raise their productivity by using imported technology or equipments; to exporters, they can increase exports and gain profit.3.3 Two major formsvTwo major forms: buy-back(回购) and counter-purchase(返销)v（1）buy-backvThe importer imports advanced techonology or equipments and makes pa

252、yment by resultant products.(用引进的技术或设备直接生产出来的产品来抵偿技术或设备的价款)。v（2）counter-purchasevThe importer imports advanced technology or equipments, but makes payment by commodities which are not related to the imported equipment or technology.vThe L/C should be opened 20 days after the Contract is signed.v合同签订

253、20天后开立信用证。vShould the quality，quantity and/or weight be found not in conformity with what is stipulated in the Contract, the buyer is entitled to reject the shipment.v如果发现质量、数量和或重量与合同规定不一致，买方有权拒绝收货。4. Companies related to foreign investmentvThree major forms: wholly/solely/exclusively foreign-owned

254、enterprises, equity joint ventures（股权式合营企业） and contractual joint ventures(契约式合营企业)v（1） wholly/solely/exclusively foreign-owned enterprisesvFeatures: vregistered in China, with its legal address and business activities in China;vSolely foreign-funded, and soley responsible for its operations, hence

255、its operating profit or loss.v(2) equity joint venturesvFeatures:vIncorporated by a foreign company or person together with a Chinese company;vInvested jointly and operated jointly ；vTheir respective investments are made pro rata(折算成一定比例) and profits or losses shared between them accordingly.v(3) co

256、ntractual joint ventures(契约式合营企业)vFeatures:vIncorporated by a foreign company or person together with a Chinese company;vInvested jointly or funded by the foreign company whereas the Chinese company provides site or other conditions;vTheir respective investment are not made pro rata(折算成一定比例);vRights

257、 and obligations of both parties and the operations of the joint venture and sharing of profits or losses are explicitly specified in the contract;vGenerally, all the fixed assets of the joint venture will belong to the Chinese party after the expiration of their cooperation.5.Consignmentv5.1 partie

258、s concernedvConsignor and consignee(代销人，承销人）v(1)ConsignorvHe sends goods to the consignee abroad, but he still possesses/owns the goods and bears various expenses such as warehousing expense, insurance expense or selling expense. He should pay the consignee a commission.v(2)consigneevThe consignee s

259、ells the goods for the consignor according to agreed terms. He doesnt need to buy these goods and tie up his own money. Usually, the overseas consignee is advised of the goods being sent to him by means of a proforma invoice(形式发票). This invoice gives him some idea of the price at which the consignor

260、 hopes to sell goods. When the goods are sold, the consignee will submit a sales report to the consignor which shows the gross proceeds, the expenses incurred and the consignees commission.5.2 Circumstances under which consignment is adoptedv(1) when the exporter wants to introduce some new products

261、 to foreign markets.v(2)when the exporter wishes to control the price of his product in the foreign market.5.3 Disadvantages of consignment to consignorsv(1) the consignor/exporter runs a risk because he is not paid until all goods are sold in the foreign market, and this may turn out to be a long p

262、eriod of time. If the goods do not sell well in the foreign market, the exporter/consignor may have to get the goods back at his own expense or sell them at a discount. He may suffer a great loss from that.v(2)The consignee may not do his utmost to push the sales of consigned goods because his money

263、 is not tied up in the inventory. In other words, the consignee is not motivated to his best.Chapter Seventeen: Invitation for Bids and Bid1 Introduction to bid/tendervBidding, as one special trade form, is widely used in international trade nowadays, especially for government construction projects

264、and purchase of goods in large quantity. The trading process involved in bidding is quite different from the ones we discussed in previous chapters. vIn bidding, the price of goods or service is not quoted by the seller, but decided by choosing the most advantageous one from the offers of bidders. F

265、or bidders, it is always a difficult task to offer a low price to win the bid and still earn a profit.2 Classification of international bidsvInternational bids can generally be divided into two kinds: Open Bids or Unlimited Competitive Bids （公开招投标）and Selected Bids or Limited Competitive Bids（限制性招投标

266、）.v1. Open Bids or Unlimited Competitive BidsvThe invitation for bids is publicized through proper media to inform all prospective bidders. All those who are willing to participate in the bids are welcome to submit their bids. Information of such tender is spread through advertisements in domestic a

267、nd foreign newspapers and related journals, or over television and radio broadcasting to provide all legal bidders with an opportunity to buy tender documents/bidding documents and make a bid. vThis form is called unlimited competitive tender, and is now widely used. Comparing the offers from many b

268、idders attracted through such tender, the owner can obtain a lower and better price and choose the optimum bidder.v2. Selected Bids or Limited Competitive BidsvThe invitation for bids is only distributed to a limited or selected number of prospective bidders. Usually, a pre-qualification is involved

269、 to determine those potential bidders. Information of such tender is not made public in newspapers or journals. The owner sends out invitation to bidders chosen according to his own experience and information or the bidders qualifications as provided by consultants. vThis kind of tender is called li

270、mited competitive tender. The owner only invites the experienced bidders with reliable capital credit to submit bids so that the fulfillment of contract is secured. The drawback in doing so is that the owner is liable to lose bidders strongly competitive in terms of technology and bid prices.3 The g

271、eneral procedures of bidding vGenerally there are six steps in bidding:v1. Preparation of Bidding Documents （准备招标文书）v2. Publicizing the Invitation for Bids（发布招标邀请）v3. Preparation of Bids（准备投标书）v4. Submission of Bids（提交投标书） v5. Opening and Evaluation of Bids（开标和评标）v6. Award of Bids（决标）v1. Preparation

272、 of Bidding Documents vThe documents must describe the requirements of the product or project clearly, accurately and completely. In cargo-purchasing bidding documents, trading terms about quality, quantity and delivery time etc. are listed specifically, similar to those in a sales contract. Only th

273、e price is left open for the bidding.v2. Publicizing the Invitation for BidsvThe invitation must be publicized through proper means to all prospective bidders. Publicizing must occur a sufficient time before public opening of bids to enable prospective bidders to prepare and submit their bids.v3. Pr

274、eparation of BidsvIt is quite important that prospective bidders should have a pre-bid evaluation before they decide whether to participate in the bid or not. Once the decision is made, bidders must be careful in preparing the bid according to the requirements. Usually, a bidder needs to fill in the

275、 pre-qualification form, study the bidding documents, get an L/G and secure the necessary funds.v4. Submission of Bids vIt is vital for a bidder to deliver the bid at the appointed place on time. Late bids are always rejected and returned unopened.v5. Opening and Evaluation of BidsvGenerally, bids c

276、an be opened publicly or secretly. But nowadays, opening of bids in public is more popularly accepted worldwide. The invitation for bids generally specifies the date, time and place for the opening. Then, the bids will be evaluated.v6. Award of BidsvAfter the evaluation, an award will be made to the bidder who offers the most favorable bid. The award is generally based on the price and the price-related factors included in the documents.