1、which is the international convention that regulates the negotiation, conclusion and implementation of international sales contract? a、ucp600 b、contract law of prc c、cisg d、incoterms 2020
2、international rules, such as ucp, have the same binding effect as laws.
3、domestic laws could be ignored when we conducting business internationally.
4、there is no difference between domestic trade and international trade.
5、import is an inverse process of export.
chapter two business negotiation
2.2 inquiry and offer随堂测验
1、when will an offer become effective? a、when it is dispatched b、when it reaches the offeree c、when it is withdrawn d、when it is revoked
2、which offer cannot be revoked? a、this offer is firm subject to your reply here within one week. b、we offer, subject to your reply here before the end of this month. c、this offer is irrevocable. d、this offer is subject to our final confirmation.
3、an effective offer should a、be addressed to one or more specific persons b、be sufficiently definite c、include the intention to be bound in case of acceptance d、include a validity
4、any offer could be withdrawn if the withdrawal reaches the offeree before or at the same time as the offer.
test for business negotiation in international trade
1、a foreign buyer cabled “offer dated 10 aug. accepted, if 5% commission included”. this is a/an ( ). a、acceptance b、counteroffer c、inquiry d、offer
2、according to cisg, a contract can be established when ( ) a、an acceptance becomes effective b、both seller and buyer sign on a written contract c、the contract is approved by authorities d、an offer reaches the offeree
3、when the offeree makes modification to the ( ), his reply may not be seen as a counteroffer. a、price b、payment term c、packing d、quality and quantity
4、which of the following statements is not true for an inquiry? a、it is an invitation to offer. b、either the sender or the recipient of an inquiry is not bound. c、it is not a necessary step to conclude a contract. d、the sender must be the potential buyer.
5、which of the following statements is not true for an effective offer? a、an offer must be a proposal for concluding a contract. b、it must be addressed to specific person(s). c、it must be definitely sufficient to include description of commodity, quantity, price, payment, shipment and insurance, etc. d、it should indicate the offeror's intention to be bound in case of acceptance.
6、if an effective offer is accepted unconditionally, a contract can be achieved.
7、offer and counteroffer are two essential steps in international trade negotiation.
8、a buyer cable an acceptance to an offer, but requiring to change payment from d/p at sight to d/a. the seller kept silence. a contract could be established at this moment.
9、an oral offer must be accepted immediately unless the circumstances indicate otherwise.
10、any offer can be withdrawn if the withdrawal reaches the offeree before an acceptance is dispatched.
11、any offer can be withdrawn, but not every offer can be revoked.
12、an offer is accepted only if there is no alteration.
13、a counteroffer terminates the offer and is a new offer.
14、a late acceptance must be invalid and have no binding on the offeror.
15、an acceptance can be revoked after it becomes effective.
16、as an exporter in china, the international sales contract can be signed either in written form or oral form.
case study for business negotiation in international trade
1、on february 2, lee co. made a selling offer to dee inc. , “we offer you firm at usd 150 per carton fob shanghai, subject to your reply here on or before february 10.” on february 6, dee replied, “your offer of february 2 is accepted if the price is usd 135 per carton fob shanghai.” as lee was considering, the market price went over usd 150. on february 8, b sent another mail that read, “we accept your offer of february 2.” q: is there any contract concluded?
2、company b sent us a buying offer, subject to our reply there before july 22. on july 24, we telexed our acceptance to the offer but received no reply. as the market kept going up, we unexpectedly received a telex on august 24 from company b requesting us to make shipment before the end of august as specified in the offer, or they would reserve the right to the claim against us for compensation. q: was the contract between b and us established? why?
3、china's company a made an offer to american company b on october 2 for 500 dozen men's shirts, 100% cotton, at usd 84.50 per dozen cif new york, subject to b's reply reaching before october 15. a received a reply from b on october 10, “your price is on the high side. we can accept your offer at usd 80 per dozen.” a received another email from b on october 13, “we accept your offer of october 2. the relevant l/c has been established.” we neither made any response or delivery for the price was increasing. later, b insisted a broke the contract and claimed for compensation. is there any contract concluded?
chapter three subject
test for subject
1、counter sample can also be called ( ) a、duplicate sample b、sealed sample c、return sample d、reference sample
2、in the case of neutral packing with designated brand, ( ) a、neither brand or trade mark nor the country of origin is indicated b、both brand or trade mark and the country of origin are indicated c、only brand or trade mark is indicated d、only the country of origin in indicated
3、the most commonly adopted way of stipulating weight in international trade contract is ( ). a、gross weight b、net weight c、theoretical weight d、tare weight
4、( ) is suitable for measuring the weight of the importing wool. a、theoretical weight b、conditioned weight c、contracted weight d、net net weight
5、according to international trade practice, ( ) should provide the shipping marks unless stipulated in the contract. a、the issuing bank b、the seller c、the carrier d、the buyer
6、all marks on the shipping packages are officially termed as “shipping marks”.
7、if the seller delivers goods with quantity greater than that stipulated in the contract, according to cisg, the buyer may take delivery or refuse to take delivery of all the goods.
8、there are various ways of defining quality in contracts. in order to clear the responsibility, we should adopt both sale by sample and sale by specification.
9、if the quality of goods delivered by the seller is not in accordance with that stipulated in the contract, the buyer has the right to ask for compensation for the loss but cannot declare the contract void.
10、quality difference within the agreed quality latitude or tolerance will not give rise to the increase or decrease in price unless stipulated otherwise.
11、in order to meet the demand in the international market, we should make efforts to conclude business according to the buyer's sample.
case study
1、china's company a exported frozen ducks to iraq's company b. it was contracted that ducks must be processed as per islamic customs. a knew nothing about islamic customs and adopted a different way of processing. company b refused to take delivery when the ducks arrived at their end and notified a to give instructions of diposal. please comment on the above case.
2、china's company a imported wheat from a foreign company. it was contracted "quantity: 2,000,000 m/t, usd 100 per m/t fob ..." but the foreign company shipped 2,300,000 m/t. how to deal with the overshipped goods? what if the foreign company only shipped 1,800,000 m/t?
chapter four price
4.2 rules of trade terms随堂测验
1、warsaw-oxford rules 1932 was developed by international law association to set rules for ______. a、fob b、cfr c、cif d、c&f
test for price
1、fob and cfr share one thing that ( ). a、risk is transferred when the goods are loaded on board the vessel b、they can be used in any mode of transport c、the seller will be responsible for the unloading at the port of destination d、none of the above
2、among all the trade terms in incoterms 2010, ( ) imposes the minimum obligation and cost to the seller. a、exw b、cif c、dap d、ddp
3、among all the trade terms in incoterms 2010, ( ) imposes the minimum obligation and cost to the buyer. a、exw b、cip c、dat d、ddp
4、on the basis of cif subject to incoterms 2010, if the goods get loose from the hook and fall into the sea during the loading stage, ( ) should be liable for the loss. a、the buyer b、the seller c、the carrier d、both the seller and buyer
5、incoterms 2010 requires the seller to handle the export customs clearance except under ( ). a、exw b、fca c、dat d、ddp
6、according to incoterms 2010, the following terms are applicable to any mode of transport except ( ) a、ddp b、exw c、fca d、fas
7、as for the risks of sellers in fca, cpt and cip, which of the following orders is correct? a、fca=cpt=cip b、fca>cpt>cip c、cip>cpt>fca d、cpt>cip>fca
8、under cif the seller has to effect insurance, therefore he has to bear the risk during the ocean transport.
9、both dat and dap should be followed by named places of destination.
10、under cif, the seller has to contract for carriage and insurance, bearing the risk of loss or damage to the goods or additional costs due to events occurring after shipment or dispatch.
11、in accordance with the international practice, unless the contract stipulates otherwise, the more or less part will be priced at the contract rate.
12、all the terms in incoterms 2010 starting with “d” are arrival contract terms and they all indicate actual delivery.
case study
1、our company exported straw products to a european company on cif basis with payment by l/c. as contracted, we insured with picc against ar. the goods were shipped within the contracted time at the named port. with the b/l issued by the shipping company, we got payment from bank of china through negotiation. the next day, we were notified by the importer, “the vessel was caught in fire at sea and all the goods had been burnt. you'd better claim compensation for the loss with picc, otherwise we had no choice but to ask for refund.” how to deal with this case?
2、china's company a concluded a contract with an indian company on fca shanghai airport. as contracted, goods should be delivered during august, and the buyer will pay the full price of usd 50,000 by t/t against the airline's advice of arrival. a got the airway bill after handing over the goods to the airline at shanghai airport on august 31 and sent a shipping advice to the indian company. the goods arrived at bombay on september 2 and an advice of arrival was dispatched to the nominated bank who notified the indian company to get documents and make payment. however, the price for wrist watches began to decrease, thus the indian company refused to take delivery for a's late delivery. was a's delivery late? why?
chapter five delivery
test for cargo transport in international trade
1、the term ( ) is used in a voyage charter party to specify which party of the shipping contract will pay for the costs of loading or unloading. a、fi b、fob c、fca d、exw
2、which of the marks below is not painted on the rear end of an iso container. ( ) a、owner’s logo b、csc-safety-approval plate c、the name of the ship d、size and type code
3、cy to cy is a mode of container shipping. it means shipping goods from ( ). a、ship owner’s container yard to consignee’s container yard b、carrier’s container yard to container terminal’s container yard c、shipper’s container yard to consignee’s container yard d、shipping agent’s container yard to exporter’s container yard
4、which one of the following documents has the function of the title to the goods. ( ) a、sea waybill b、to-order bill of lading c、commercial invoice d、packing list
5、which of the following clause is a correct way to stipulate shipment date? ( ) a、shipment as soon as the goods are inspected by the quality inspection agent. b、shipment not later than september 30, 2017. c、shipment within 75 days after receipt of l/c. d、immediate shipment after the payment is cleared.
6、the standard of basic freight rates for high-value goods is ( ). a、weight ton b、measurement ton c、ad. val d、weight ton or measurement ton
7、which charge listed below is not a type of surcharge? ( ) a、bunker adjustment factor b、demurrage c、currency adjustment factor d、terminal handling charges
8、which of the following modes of transport is suitable for deliver small amount of goods to customer’s home address? ( ) a、inland waterway transport b、railroad transport c、air transport d、parcel post transport
9、compared to other modes of transport, container shipping enjoys one advantage of ( ). a、offering the largest capacity b、being suitable for intermodal transport c、being the fastest way of moving goods d、being the most cost-efficient method of shipping cargos
10、which one of the following bill of lading will not be accepted by the bank for negotiation in a letter of credit transaction. ( ) a、original bill of lading b、clean bill of lading c、received-for-shipment bill of lading d、to-order bill of lading
11、on the face of a bill of lading, which element will be shown. ( ) a、non-disclosure statement b、name of the issuing bank of the letter of credit c、custom’s stamp d、port of discharge
12、which one of the following container ports is among the top ten world busiest ports by container traffic in china. ( ) a、port of busan b、port of shanghai c、port of dalian d、port of xiamen
13、under the trade term ( ), the time of shipment is not equal to the time of delivery. a、fob b、dap c、cif d、cfr
14、which one of the following cases is partial shipments. () a、goods are shiped by the same ship to the same destination. b、goods in the same sales contract are shipped by different ships on the same day and to the same destination. c、unloading from one means of conveyance and reloading to another means of conveyance during the carriage from the place of dispatch to the place of final destination. d、goods are shipped by different ships on the same day and to different destinations.
15、which one of the following statement is correct? ( ) a、inland waterway transport is no longer used in europe and china. b、marine transport is the backbone of international trade and the global economy. c、air transport is the most flexible mode of transport among all modes of transport because the speed of delivery is very high. d、pipeline transport cannot be used to move goods across national borders.
16、the main advantages of road transport are high capacity and relatively low costs compared to marine transport.
17、a shipper using liner service must pay for loading and unloading his cargo in addition to freight he pays to the shipping line.
18、in case of voyage chartering, when lay days are saved because loading finishes earlier, the charterer pays dispatch money to the ship owner.
19、the unit cost of a fcl cargo is higher than the unit cost of a lcl cargo.
20、iso containers need to be placed in a warehouse to protect them from damages caused by sun light, rain and snow.
21、a typical iso container is a durable and closed aluminum box.
22、sea waybill is a simplified version of the bill of lading, therefore it also works as a document of title to goods.
23、both ante-dated bill of lasing and advanced bill of lading constitute fraud and willful misrepresentation.
24、issuing an ante-dated bill of lading is a fraud and will impose very high risk to the shippers and ship owners. but issuing an advanced bill of lading is a generally accepted practice in trade business because it is less risky than issuing an ante-dated bill of lading.
25、under cfr and fob trade terms, the time of shipment is equal to the time of delivery.
26、according to ucp 600, shipping goods by different ships, but the ships departure on the same day and head to the same destination is not considered to be partial shipment.
27、multi-modal transport naturally involves transshipment because different means of conveyance and different modes of transport are used.
case study for cargo transport in international trade
1、company a exports 200 metric tons of goods. according to l/c terms, shipment should be effected in march and april in two equal monthly lots of 100m/t each and transshipment is allowed. company a shipped the first lot of 100m/t of goods on march 30 on ship a and on april 2 the second lot was shipped on ship b. both ship a and ship b transshipped in singapore. in singapore, two lots of goods of 200m/t total were loaded onto the same ship, ship c, and were delivered to the final destination. questions: 1. does the shipment of the 200m/t goods constitute partial shipments? why?' 5’ evaluate the practice of company a handling shipping of the 200m/t goods from the following angles: 2. does company a’s shipping practice is in compliance with the requirement of the l/c? 5’ is it proper? 5’ 3. what could be the possible considerations that buyer required the goods to be shipped in two equal lots in two consecutive months? please try to provide three points as your answers. 5’ 5’ 5’ 4. what will be the consequnce of company a's shipping practice to the buyer? 5’ 5. what is the proper way to handle partial shipments of equal monthly shipment? 5’ 学生自评给分建议(重要): 本题总分40分。每个小题的分值为5到15分，请看清每个小题的分值。请按得分点给分。学生的答案未必会按照参考答案顺序呈现，请通读学生的全部答案之后再给分，不要遗漏学生的得分点。 学生给出的答案未必和参考答案完全一致，只要主要意思回答出来，和参考答案没有矛盾即可以给5分(每个得分点)。如果学生的答案未出现在参考答案中，但是能够回答问题并且自圆其说，也可以算一个得分点，得5分。但是全部答案的总分不得超过40分。
chapter six insurance
test for international cargo insurance
1、which event listed below is not a general extraneous risk? ( ) a、rain b、fire c、leakage d、hooking
2、salvage charges should be levied by ( ). a、the insurance company b、the shipper c、the third party who come to the salvage of the ship and the consignments d、the carrier
3、general average is caused by ( ). a、the intentional act or fault of the insured b、deliberate measures for the rescue of the common interest c、the perils of the sea d、deliberate damage to the subject-matter insured
4、which one of the following event constitutes constructive loss? ( ) a、the cost of restoration of the damaged goods exceeds the value of the goods. b、the cargo ship sunk into the sea. c、the cargo ship is hijacked by pirates. d、sea water coming into the hold causes the hardening of cement and the whole batch of cement losses its original use.
5、particular average is ( ). a、total loss b、a special type of general average c、partial loss d、total loss or partial loss depending on the risk that causes the loss
6、ship striking upon the rocks is ( ). a、fortuitous accident b、general extraneous risk c、natural calamities d、deliberate act of the master of the ship
7、fpa does not compensate ( ). a、partial loss caused by natural calamities b、actual total loss caused by natural calamities c、costs of salvaging d、partial loss caused by fortuitous accidents
8、wpa is suitable insurance policy for ( ). a、cheap and bulk cargos b、goods that can be easily damaged by sea water c、goods may be damaged during transit but less likely lose their uses due to the damages d、goods which are very prone to damages during transit
9、which one of the following risks can be independently insured with an insurance policy of cic? ( ) a、general extraneous risks b、war risks c、all risks d、strike risks
10、china insurance clauses do not contain insurance policy for the following mode of transportation. ( ) a、railroad transport b、air transport c、parcel post transport d、pipeline transport
11、institute cargo clauses are ( ). a、widely adopted by global insurance industry b、only used by insurance companies based in london c、widely adopted by both british insurance companies and chinese insurance companies d、only used by american and european insurance companies
12、which one of the following goods should be insured against all risks? ( ) a、raw wood log b、scrap metal c、wooden chairs and tables d、plywood
13、which one of the following documents is not an insurance document? ( ) a、insurance policy b、endorsement c、insurance certificate d、contract of carriage
14、the time of validity of a claim shall not exceed a period of ( ) counting from the time of completion of discharge of the insured goods from the seagoing vessel at the final port of discharge. a、three years b、two years c、fifteen months d、one and half years
15、the insured amount is usually the cif price plus ( ) per cent of cif price. a、2 b、10 c、50 d、110
16、particular average is borne exclusively by the party upon whom the damage falls.
17、general average should be contributed among all parties benefited from the deliberate measures equally.
18、natural calamities include heavy weather, thunder storm and lightening, flood, earthquake and fire etc.
19、warehouse to warehouse clause is a part of shipping contract referring to carrier shipping goods from the shipper’s warehouse to the consignee’s warehouse.
20、according to ocean marine cargo clauses, the insured shall take reasonable measures in salvaging the goods.
21、in addition to the coverage of fpa, wpa also covers partial loss caused by natural calamities.
22、in terms of risk coverage, icc (a) corresponds to fpa of china insurance clauses.
23、under fob, cfr, fca and cpt trade terms, the buyer is to arrange insurance and pay premium.
24、insured amount is usually calculated on the basis of the cif invoice value plus 10% as anticipated profit for the buyer or compensation for trouble and time.
25、an insurance policy is a simplified version of an insurance certificate.
case study for international cargo insurance
1、on april 15, 2010, a chinese company a signed a cfr sales contract with an egyptian company b to sell 20,000 metric tons of fertilizer to company b. the letter of credit issued by company b specifies that the date of shipment is from june 1, 2010 to june 10, 2010. but the port of loading in china was hit by typhoon and all loading and unloading operations at the port were seriously disrupted, the cargo of fertilizer was actually loaded onto the vessel until june 22, 2010. company a issued a letter of indemnity to the carrier and requested the carrier to issue an on-board bill of lading that complies with the requirement of the letter of credit. the carrier issued such an on-board bill of lading. company b took the wpa insurance policy of cic for the cargo. the cargo ship carrying the 20,000 metric tons of fertilizer departed from the port of loading on june 24, 2010. en route to egypt, the cargo ship caught fire and a proportion of the fertilizer was destroyed by the fire. the master of the ship ordered sea water being pumped into the cargo hold to put out fire for the purpose of saving the ship and all cargos. finally, the fire was put out but more fertilizer was damaged by sea water during the fire fight. after the incident, the ship continued its journey to the egyptian port with the remaining fertilizer. when the ship arrived at the egyptian port of destination, it was behind the schedule by 15 days. as the market situation for fertilizers changed, the current market price of fertilizer was 20 per cent lower than the price half month ago. company b had to resell the remaining fertilizer at the current market price and suffered significant loss. questions: based on this case, please answer the following questions. 1). what type of loss is the loss of the fertilizer being destroyed by fire? 5 points who should bear the loss? 5 points why? 5 points 2). what type of loss is the loss of the proportion of fertilizer being damaged by sea water during the fire fight? 5 points who should bear the loss? 5 points why? 5 points 3). whether the egyptian importer, company b can claim damages from the carrier and the seller company a for the loss caused by the falling price of the fertilizer? 5 points why? 5 points
chapter seven payment
test for payment
1、the bill of exchange used in d/a must be a ( ). a、sight draft b、banker's draft c、banker acceptance draft d、time draft
2、if the exporter finds out mistakes on a received l/c, he should contact the ( ) at the first place. a、advising bank b、importer c、negotiating bank d、issuing bank
3、if there is no special provision, the draft under a letter of credit should draw on the ( ). a、advising bank b、issuing bank c、negotiating bank d、applicant
4、the draft used in collection is ( ). a、a banker's draft based on bank credit b、a commercial draft based on bank credit c、a banker's draft based on commercial credit d、a commercial draft based on commercial credit
5、a ( ) credit is normally used in processing trade. a、back to back b、revolving c、reciprocal d、transferable
6、once the importer refuses to pay by collection, the ( ) will be responsible for the cargo release, customs clearance, warehousing, and reselling in the importing country. a、drawee b、exporter's bank c、principal d、importer's bank
7、if a bank other than the issuing bank guarantees the payment under an l/c, this l/c is a/an ( ) a、confirmed credit b、irrevocable credit c、non-transferable credit d、negotiable credit
8、in l/c settlement, the obligation of the advising bank is ( ) a、to notify the seller of the arrival of the l/c b、to issue the l/c upon the application of the importer c、to buy a documentary draft d、to make actual payment
9、a credit stipulates that the quantity of the bulk cargo is 1,000 m/t and the total amount is usd 0.9 million. it shows no "more or less clause" and partial shipment is not allowed. according to ucp 600, ( ) a、the quantity and total amount of the goods delivered should not increase or decrease. b、the quantity and total amount of the goods delivered can be 10% more or less. c、the quantity and total amount of the goods delivered can be 5% more or less. d、the quantity and total amount of the goods delivered can be 5% more or less, while the total amount cannot exceed usd 0.9 million.
10、which of the following statements is not correct? a、a draft is au unconditonal order. b、an l/c is an unconditional undertaking of the issuing bank to make payment in complying presentation. c、a promissory note is a promise of payment by the drawer. d、bankers take no undertaking of payment in collection.
11、( ) credits are often used by export brokers. a、reciprocal b、transferable c、back-to-back d、clean e、revocalbe
12、"dishonor" means the refusal to the acceptance or payment of a duly presented draft.
13、according to ucp600, a letter of credit which does not indicate whether it is transferable or not would be considered as transferable.
14、under collection, though the seller collects payment through banks, it is not guaranteed that he will receive the money as collection is still based on commercial credit.
15、in d/a, the collecting bank will first accept the draft and then provide the documents to the importer.
16、the payer of a banker's draft is a bank while the payer of a commercial draft is a company.
17、for a confirmed credit, the confirming bank holds the same liability as the issuing bank.
18、if the exporter finds out mistakes on a received l/c, he should contact the issuing bank.
19、if the remittance is made by a banker's demand draft, this payment is based on bank credit.
20、in international trade, clean collection is more frequently used than documentary collection.
21、if a credit is subject to ucp 600 and doesn't indicate whether it is irrevocable or not, it is a revocable l/c.
case study for payment
1、an exporter signed with a foreign company a sales contract covering 10 m/ts of commodity b. the l/c amounts to usd 30,000. as contracted, the seller has the option to load 3% more or less than the quantity stipulated. actually, the seller loaded 10.2 m/ts and drew a draft for usd30,600. q:when the seller presented documents for negotiation, would the negotiating bank accept or not? why?
2、company m exported 500 m/t of fertilizer to a foreign company, h. it was contracted to shipped the goods on or before mar. 15 provided the credit reached the seller no later than feb. 28. on feb. 20, m received the credit that was valid until mar. 30. the goods were to be shipped on board as scheduled. however, unexpected storm made it impossible to shipped the goods on board before the contracted time. therefore, m asked h to extend the time of shipment and the validity of the credit to mar. 31 and april 15 respectively. with an immediate favorable reply from h, m shipped the goods on mar. 20. when m presented the documents for negotiation, the negotiating bank refused to make payment. q: did the negotiating bank have the right to refuse payment? why?
l/c amendment
1、(1) l/cirrevocable documentary credit hua chiao commercial bank ltd. 88-89 des voeux road, central hongkong no. f-07567 applicant: j. brown & co., 175 queen’s way, hong kong beneficiary: jiangxi comfort imp. & exp. co., ltd. nanchang, china advising bank: bank of china, jiangxi branch, nanchang negotiating bank: bank of china, jiangxi branch, nanchang date and place of issue: 2016/09/28 hong kong date and place of expiry: 2016/11/30 hong kong amount: usd 26,700.00 (say united states dollars twenty six thousand seven hundred only) partial shipments and transshipment are prohibited. shipment from shanghai, china to hong kong, latest 2016/11/30. credit available against presentation of the documents detailed herein and of your draft at 90 days’ sight for full invoice value. ü signed commercial invoice in quadruplicate. ü full set of clean on board ocean bills of lading, made out to order of hua chiao commercial bank ltd, marked “freight prepaid”. ü insurance certificate or policy endorsed in blank for full invoice value plus 10%, covering all risks and war risk. covering 50 doz, woolen sweaters, s105, @usd120 per doz. cfr hong kong 60 doz, woolen sweaters, m107, @usd150 per doz. cfr hong kong 70 doz, woolen sweaters, l109, @usd180 per doz. cfr hong kong as per contract no. 28kg063 (2) major terms and conditions in the corresponding s/c 合同号码：28kg603 卖 方：江西康福特进出口公司 买 方：j. brown & co., 175 queen’s way, hong kong 商 品：羊毛衫 s105 50打；m107 60打；l109 70打 价 格：s105 每打120美元cfr香港 m107 每打150美元cfr香港 l109 每打180美元cfr香港 总 金 额：27,600.00 美元 交 货 期：2016年11月，不允许分批装运，可转运。 付款条件：不可撤销的、见票后90天付款的信用证，有效期为装运后15天，在中国到期。
chapter eight documentation
test for documentation
1、a(n) ( ) is a general description of the goods and also the first document a seller has to prepare. a、export license b、packing list c、commercial invoice d、pro forma invoice
2、the drawer of a draft drawn under l/c is the ( ). a、issuing bank b、negotiatiing bank c、beneficiary d、applicant
3、if the b/l is required to mark "freight collect", the trade term adopted might be ( ). a、cpt b、cif c、cfr d、fob
4、there are four principles about document conformity for international trade documentation under the letter of credit. which set of the two principles are concerned by banks? ( ) a、credit-contract conformity and document-goods conformity b、document-document conformity and document-credit conformity c、document-goods conformity and document-credit conformity d、credit-contract conformity and document-credit conformity
5、deadline for presentation under the letter of credit is not later than ( ) calendar days after the date of shipment and not later than the expiry date of the credit. a、21 b、11 c、31 d、25
6、which one of the following statements about complying presentation is correct? ( ) a、when an issuing bank determines that a presentation does not comply, it may, with the agreement from the negotiating bank, approach the applicant for a waiver of the discrepancies. b、when an issuing bank determines that a presentation is complying, it may in its sole judgement, decide whether or not to honour. c、banks may refuse to honour or negotiate discrepant documents. d、notice of refusal must be given to presenter no later than close of the tenth banking day following the day of presentation.
7、which one of the following statements about important dates for presentation and examination is correct? ( ) a、a credit must state an expiry date for presentation. b、documents of presentation under the letter of credit cannot be dated prior to issuance date of credit, also they cannot be dated later than the expiry date for presentation. c、deadline for presentation under l/c is not later than 25 calendar days after the date of shipment and not later than the expiry date of the credit. d、the banks have maximum 10 banking days following the day of presentation to determine if a presentation is complying.
8、how many parties are involved in a draft for the payment against a letter of credit? ( ) a、two. they are drawer and drawee. b、three. they are drawer, drawee and payee. c、three. they are issuer, presenter and payee. d、four. they are drawer, drawee, payer and payee.
9、which one of the following description is a demonstrative order of a draft? ( ) a、“pay to abc company only” b、“pay to the order of bank of china” c、“pay to bear” d、“pay to holder”
10、a draft is drawn on the (1). he is also known as the (2). usually the (1) and the (2) could be the issuing bank. find the names of the two parties from the following combinations. ( ) a、1=drawer and 2=payer b、1=drawee and 2=payee c、1=drawer and 2=payee d、1=drawee and 2=payer
11、which one of the following statements about commercial invoices are correct? ( ) a、description of goods, services or performance does not have to correspond with the description in the credit. b、the issuer of a commercial invoice should be the beneficiary of the draft. c、the commercial invoice must be signed by the issuer. d、currency of the commercial invoice should be the same as the credit.
12、which one of the statements about the issuing date of the commercial invoice is not correct? ( ) a、the date can be earlier than the issuing date of the letter of credit. b、the date can be later than the expiry date of the credit. c、the date is earlier than the date of shipment. d、the date can be same date as the date of shipment.
13、the purposes of providing a packing list along with a commercial invoice are ( ). a、it works as the buyer’s reference regarding packing and quality of the goods and it is used for pre-shipment inspection at the destination. b、it works as the buyer’s reference regarding packing and quantity of the goods and it is used for custom clearance and inspection at the destination. c、it provides information about the value of the goods. therefore, it is used by the buyer to calculate import costs and by the importing country’s custom to determine tariff. d、it is required by insurance company to calculate insured amount and used by the seller as a payment order.
14、which one of the statements about packing list is not correct? ( ) a、the packing list is supplementary to the commercial invoice. b、the packing list and the invoice are usually issued at the same time. c、the name of the packing list must be exactly the same name of the list as required in the letter of credit. d、a packing list cannot serve as a weight list or a measurement list. if the latter two lists are needed, they should be issued as two separate documents along with the packing list.
15、the issuing date of a bill of lading is ( ). a、the date when the loading operation for a specify shipment begins. b、the date when the loading operation for a specific shipment finishes. c、the date when the ship leaves the port of loading. d、the date when the goods are delivered to the carrier’s warehouse at the port of loading and are accepted by the carrier.
16、which one of the statements about bill of lading is not correct? ( ) a、bill of lading only needs to indicate the port of loading as stated in the credit, but not the port of discharge. b、if bill of lading is issued in more than one original, all originals are required for presentation. c、bill of lading may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same bill of lading. d、a bank will only accept a clean on-board bill of lading for presentation.
17、banks won’t accept ( ) submitted by the seller as an insurance document for presentation. a、cover note b、insurance policy c、insurance certificate d、open policy
18、insurance coverage expressed in the letter of credit as percentage of goods/invoice value is deemed to be minimum coverage required. it should be at least ( ) of the cif or cip value of the goods. a、90% b、100% c、110% d、120%
19、which one of the following statements about cargo insurance document is not correct? ( ) a、the credit should state type of insurance required and additional risks to be covered. b、if the credit uses imprecise terms such as “usual risks” or “customary risks”, banks will not accept such insurance document because the insurance coverage is not clearly defined in the credit. c、if the credit requires insurance against “all risks”, banks will accept insurance document containing any “all risks” notation or clause, without regard to any risks stated to be excluded. d、an insurance document may contain reference to any exclusion clause.
20、which one of the following company is a reputable international inspection company? ( ) a、fda from us b、ccpit from china c、aqsiq from china d、sgs from switzerland
21、in order to apply for commodity inspection by the chinese inspection authority, the exporter needs to fill a form called “application form for inspection on export commodity” and submit it to ( ). a、aqsiq b、china certification & inspection group (ccic) c、any independent inspection companies which has a branch in china d、any non-foreign owned inspection companies
22、inspection certificate issued by ciq is valid for (x) days for general products and only for (y) days for perishable goods. please find the right number of days in the following combinations. ( ) a、x=30 and y=30 b、x=60 and y=14 c、x=60 and y=7 d、x=20 and y=15
23、as of 2017, there are 39 countries in the world give gsp treatment to goods imported from china, including ( ). a、us and spain b、us and russia c、uk and france d、brazil and argentina
24、which body in china is in charge of issuing generalized system of preferences (gsp) certificate of origin form a? ( ) a、ccpit b、chinese customs c、aqsiq d、ccic
25、in china, two institutes can issue ordinary certificate of origin. they are ( ). a、chinese custom and ministry of commerce of china b、bank of china and china certification & inspection group (ccic) c、china certification & inspection group (ccic) and sgs from switzerland d、entry-exit inspection and quarantine bureaus of aqsiq and china council for the promotion of international trade (ccpit)
26、the payee of a draft should be the exporter in internatonal trade.
27、insurance policy or certificate is one of the requisite documents in l/c.
28、documentary credit is a separate transaction from the sale or other contract on which it may be based. banks deal with documents and not with goods, services or performance to which the documents may relate.
29、documents of presentation under the letter of credit cannot be dated prior to issuance date of credit, also they cannot be dated later than the expiry date for presentation.
30、according to ucp 600 article 15 and 16, when an issuing bank determines that a presentation is complying, it must honour.
31、a draft is also called a bill of exchange, it is a written, unconditional order issued by one party (the drawer) to another (the drawee) to pay a certain sum to the payer.
32、a draft can be made payable to bearer/holder. this type of draft is acceptable by the chinese banks.
33、the commercial invoice must be made out in the name of the beneficiary of the letter of credit.
34、the issuing date of a commercial invoice can be earlier than the issuing date of the letter of credit, but should not be later than the expiry date of the credit.
35、a neutral packing list is a packing list without the name of the buyer printed on the list.
36、a packing list usually does not contain unit price and total price of the goods.
37、the bank may accept a received-for-shipment bill of lading because such bill of lading indicates that the exporter’s obligation of delivering goods to the carrier has been fulfilled.
38、clauses in a bill of lading stating that the carrier reserves the right to tranship will be disregarded by banks.
39、in practice, the effective date of insurance should not be later than the date when the goods leaving exporter’s warehouse in order to be avail of extended protection of “warehouse-to-warehouse” clause.
40、if there is no indication in the credit of the insurance coverage required, the amount of insurance coverage must be at least 110% of the cif or cip value of the goods.
41、if the goods to be exported are in the catalogue of import and export commodities subject to compulsory inspection, they shall be inspected by the commodity inspection authorities. it is known as statutory inspection.
42、the validity time of inspection certificates issued by ciq for general products and for perishable goods are the same, 30 days.
43、the letter of credit may specify which institute to issue a certificate of origin (c/o). if the institute is not specified in the letter of credit, usually the chinese exporter should choose aqsiq to issue a c/o. but banks should accept c/o issued by both ccpit and aqsiq.
44、generalized system of preferences (gsp) is a preferential tariff system that extended by developing countries (also known as donor countries) to developed countries (also known as beneficiary countries). it involves reduced mfn tariffs or duty-free entry of eligible products exported by donor countries to the markets of beneficiary countries.
export documents preparation
1、a shanghai-based trading company exported bicycles to a danish importer in copenhagen. trade term of this transaction is cif and the payment term is by letter of credit. you are given seven documents of this transaction. they are 1. sales confirmation 2. letter of credit 3. draft 4. commercial invoice 5. packing list 6. bill of lading 7. insurance policy the contents in the sales confirmation and the letter of credit are complete. the other five documents are unfinished with blank columns, but they also contain information you may need for completing other documents. please use information in the sales confirmation and the letter of credit, as well as the draft, commercial invoice, packing list, bill of lading and insurance policy to fill the blank columns in the draft, commercial invoice, packing list, bill of lading and insurance policy. the blank columns which you need to fill are numbered and highlighted by blue color, e.g. (1), (2), (3),…. the seven documents can be downloaded from the site as the document package in pdf format. when writing your answers, you need to write both the number of the column. you get one point for each numbered blank column correctly filled.
chapter nine claims and settlement
test for claims and settlement
1、which of the following institute is a governmental commodity inspection body? () a、tüv rheinland - germany b、underwriters laboratories - us c、aqsiq - china d、sgs - switzerland
2、in terms of place of commodity inspection, a fair arrangement for both the exporter and the importer is (). a、inspection at the port of shipment b、inspection at the port of destination c、inspection at the transit port d、inspection at the port of shipment and re-inspection at the port of destination
3、which one of the following reasons will not cause the breach of contract by the seller (). a、fail to deliver the goods. b、under fob, fails to dispatch the vessel. c、shipping document incomplete or inaccurate. d、fail to deliver the goods according to shipment date stipulated.
4、which one of the following statement about the penalty clause is correct (). a、penalty is used to discourage a party from deliberately breaching its obligations. b、once the breaching party pays penalty, the non-breaching party cannot lodge any claim for damages against the breaching party. c、the penalty clause is often used in the sales of consumer goods, such as clothes and home appliances. d、amount of penalty is closely linked to the amount of actual loss.
5、which one of the following events/accidents is a force majeure event? () a、commodity price fluctuation b、change of shipping schedule c、governmental prohibition of import/export of certain commodities d、exchange rate variation
6、which one of the following items is not an element of force majeure? () a、events or circumstance must be unforeseeable at the time of concluding of the contract. b、beyond the control of affected party. c、not caused by any default or negligence of affected party. d、the adverse event causes the loss of the subject matter of the contract.
7、for different dispute resolutions, a neutral third party is not involved in (). a、conciliation b、arbitration c、litigation d、negotiation
8、arbitration does not enjoy the advantage of (). a、simple procedure b、low cost c、public accessibility d、flexibility - an arbitration procedure can be customized to meet both parties’ needs
9、for the sales of bulk commodities such as wheat, soy bean and coal, ( ) is used as the inspection term. a、shipping weight and landed quality b、shipping quality and landed weight c、shipping quantity and landed quality d、shipping quality and landed quality
10、sgs is a ( ) inspection body. a、governmental b、public c、non-governmental d、british
11、which one of the following task is not that of aqsiq of china? ( ) a、drafting and revision of the law of inspection and quarantine b、supervision and administration c、statutory inspection on import and export d、authentic attesting business
12、in the international sales contract, two types of clauses are related to claim. they are ( ). a、discrepancy and claim clause and arbitration clause b、guaranty clause and indemnification clause c、discrepancy and claim clause and penalty clause d、deposit clause and penalty clause
13、which one of the following documents is not a legal proof for claim? ( ) a、inspection certificate b、sales contract c、governing law d、applicable regulation
14、un cisg classifies “breach of contract” into ( ). a、material and minor breach b、fundamental and non-fundamental breach c、breach of condition and breach of warranty d、substantial breach and partial breach
15、one of the following conditions is not required for the constitution of a force majeure event, it is ( ). a、events or circumstance must be unforeseeable at the time of concluding of the contract. b、event is beyond the control of affected party. c、event is not caused by any default or negligence of affected party. d、event causes the actual loss of the subject matter of the sales contract.
16、when a force majeure event occurred, the affected party should ( ). a、do his best to rescue the goods. b、promptly notify the other party about the occurrence of the force majeure event. c、ask a lawyer to issue a letter detailing the nature and extent of the force majeure event. d、none of the above.
17、the consequence of a force majeure event on the contract are ( ). a、suspension or termination of the contract b、renewal or cancellation of the contract c、revision or suspension of the contract d、reclassification or termination of the contract
18、for different dispute resolutions, a non-binding decision is resulted in the case of ( ). a、arbitration b、conciliation c、litigation d、government intervention
19、for chinese exporters, the preferred place for arbitration could be ( ). a、home country b、importer’s country c、a third country d、the country of the final destination of the goods
20、award on a trade dispute issued by an arbitration institute is ( ). a、non-binding if the losing party does not agree with the award b、non-binding c、binding only after the case is reviewed by the court of law d、binding
21、according to united nations convention on international sales of goods, article 38 - the buyer must examine the goods, or cause them to be examined.
22、certificate of inspection at the port of shipment is used as the basis for claim and the settlement of claim by the buyer.
23、under un conventions on contracts for the international sales of goods, if non-fundamental breach of contract occurs, the non-breaching party has the right to sue for damages and terminate the contract.
24、the amount of compensation of claim needs to be stipulated in the clause of claim in advance.
25、when a force majeure event occurs, it will ultimately lead to the termination of the contract.
26、force majeure events should be verified with a certificate issued by a reputable institute specified in the clause.
27、the arbitral award is final and binding. usually it cannot be challenged in the court of law.
28、there are two types of arbitration institution – ad hoc (provisional) arbitration and permanent institutional arbitration body.
29、in china, china food and drug administration is under the direct supervision of the general administration of quality supervision, inspection and quarantine (aqsiq).
30、two conditions must be met for the breaching party to pay penalty to the aggrieved party - breach of contract and actual loss must incur.
31、force majeure events are caused by adverse natural phenomena and social factors, the latter include industrial strikes and fluctuation of commodity price due to war actions.
32、there are two forms of arbitration agreement - arbitration clause before a dispute arises or submission agreement. the main difference between the two forms is that the first form has stronger legal effect than the second form.
case study for claims and settlement
1、a chinese led lights manufacturer signed a sales contract with a french importer for selling 5,400 pieces of led light bulbs. the time of shipment of the ordered goods is the end of september of 2015. on september 11, the manufacturer’ production facility and warehouse caught heavy fire and all the buildings and stocks were destroyed by fire. the preliminary investigation on the cause of the fire conducted by the local fire department suggested that the fire was caused by lighting. the chinese led lights manufacturer would like to notice the french buyer about the incident and cancel the delivery of the led light bulbs citing the force majeure clauses of the sales contract. questions: based on this case, please answer the following questions. 1). is the fire a force majeure event? why? please give the answer according to the elements that constitute a force majeure event. 2). could the chinese manufacturer terminate the performance of the contract and why? if yes, the act of termination of the contract is regulated by which international treaty on international trade? what should the chinese manufacturer do in order to properly invoke 援引 the force majeure clause and be exempted from performing the contract?
2、a chinese trading company (the buyer) entered a contract with a japanese manufacturer (the seller) of precision machinery and testing equipment for purchasing 15 sets of production lines and 8 sets of testing devices. the total value of the contract is 400,000 us dollars. price terms: cfr shanghai; time of shipment: the end of september 2013; payment terms: buyer opens an irrevocable negotiable letter of credit in full amount two months prior to the date of shipment. standard arbitration clauses were included in the sales contract. on september 30, 2013, the buyer opened a letter of credit through a bank in favour of the seller and no deposit was made. the seller, on october 8 and 31, shipped the goods in two lots, and negotiated the payment to the negotiating bank. the negotiating bank got repayment from the issuing bank. on october 19, the first lot of 15 sets of production lines arrived at the port of destination – shanghai. on november 12, the second lot of 8 sets of testing devices arrived at the same port. since the original copies of the bills of lading for the two lots were not available, the buyer took the goods from the shipping company using the copies of the bills of lading. the provincial commodity inspection bureau inspected the production lines and the testing devices. the inspection report issued by the authority shown that: 4 out of 15 sets of the production lines are not in conformity with the quality terms stipulated in the sales contract. these 4 sets of production lines cannot be used to manufacture standard-conforming products at all. the buyer insisted that the 15 sets of production lines should be used together. since 4 sets of the production lines were of no use, the remaining 11 sets of qualified production lines should be rejected as well. therefore, on december 15, 2013, the buyer sent a memo to the japanese manufacturer, which requested that all 15 sets of production lines should be sent back to japan. however, the japanese seller neither signed the memo nor replied to the chinese buyer’s request. the buyer finally brought the case to the ccpit, the arbitration institute specified in the sales contract. the demands of the buyer were: 1). return the 15 sets of the production lines. the seller should fully refund the payment and bear the costs and expenses associated with the return. 2). the 8 sets of the testing devices were late for delivery by six weeks than the stipulated date of shipment. therefore, the seller should pay the fine of 40,000 us dollars for the delayed delivery. 3). all 15 sets of the production lines were rented out to another chinese company. because the 4 sets of faulty production lines, the buyer had already paid compensation of 15,000 us dollars to another chinese company. the buyer demanded that the seller should bear the loss and pay the buyer 15,000 us dollars. questions: 1. other than the discrepancy and claim clauses, what kind of clause regarding dispute settlement should be included in the sales contract of this case? the buyer demanded a fine of 40,000 us dollars for late delivery of the testing devices to be paid by the japanese manufacturer. if the japanese manufacturer does pay the fine, could they terminate the contract? why? 2. how would the arbitration court handle the demands of the buyer? give your answers for the following subjects a. 15 sets of production lines b. 8 sets of testing devices c. economic loss to the chinese company which rented the equipment 3. since the japanese manufacturer did not sign the memo and respond to the chinese buyer, could the buyer bring the case to a court in china and sue the japanese seller for damage and loss first before arbitration? why? after the arbitration award was made, if the japanese manufacturer refused to honour the award, what could the chinese buyer do?
chapter ten business communication
sales letter
1、请根据你公司的具体情况，撰写一封开发信（建交信）。
2、请根据样张，仿写开发信的回复函。
quotation/ offer
1、根据样张，仿写一篇发盘函（报价函）
2、根据样张，仿写一篇还盘函。
exam
exam
1、please complete the following sales confirmation with the given information. 10月4日来电：想购买你方机器，样品编号nn725 diesel，c请报价及可供数量。 10月5日去电：样品编号nn725 diesel的机器，每台装一纸板箱，参考报价每台1,350.00美元cif洛杉矶。 10月9日来电：diesel机器70台，11月前装运，请报最优价。 10月12日去电：diesel机器70台，每台1,300.00美元cif洛杉矶。11/12月装。即期不可撤销信用证，限6日复到我方有效。 10月15日来电：你方10月12日报价歉难接受，报每台1,150.00美元，fob厦门，11月装，30天远期信用证，请速复。 10月17日去电：你方价格太低，市场价格上涨，不能接受远期信用证。 10月19日来电：每台1,180.00美元，fob厦门，11月装，即期信用证，请速复。 10月22日去电：你方10月19日电，diesel机器70台，每台装一纸板箱，每台1,200.00美元cif洛杉矶。11/12月装，从厦门到洛杉矶，允许转船。即期不可撤销信用证支付，10月底前开到，卖方按发票金额的110％投保一切险。10月27日复到我方。 10月25日来电：你方10月22日电接受，即期信用证已由美国chase bank开出，信用证编号xyz345，开证日期10月24日。 far east imp.&exp.co.ltd 119 industry road, fuzhou, fujian, china to: bg co.ltd s/c no.: sd2345 date: oct. 26, 2016 sales confirmation shipping mark commodity and specification quantity unit price (1) diesel machine 70 sets (2) packing: （3） shipment: （4） insurance: （5） payment: （6）
2、please draw a draft (see the attachment) on the basis of the above s/c.
3、please proofread the following l/c with the given terms and conditions in a sales confirmation, and list all requests for amendment. (1) l/c irrevocable documentary credit abc bank date: november 1, 2016 to: jiangxi comfort import & export co. ltd., nanchang advising bank: bank of china, jiangxi branch, nanchang negotiating bank: bank of china, jiangxi branch, nanchang we hereby open our irrevocable letter of credit no.l-1437 in favor of general trading company, singapore for account of jiangxi comfort import & export co. ltd., nanchang, up to an amount of hkd 201,600.00 (say hk dollar two hundred and one thousand six hundred only) cfrc2% singapore for 100% of the invoice value relative to the shipment of 67,200 yards of dove brand printed shirting 30×36，72×69，35×42 yards as per contract no. ps-1234 dated october 11, 2016, from chinese port to singapore. drafts to be drawn at 30 days after sight on bank and accompanied by the following documents, marked “x”: (x) signed commercial invoice in triplicate (x) full set of clean shipped on board bills of lading made out to our order quoting l/c no. l-1437, marked freight collect. (x) one original marine insurance policy or certificate for 130% invoice value covering all risks and war risk with claims payable in singapore in the currency of draft(s) partial shipments are permitted. transshipment is permitted. shipment must be effected not later than january 31, 2017. draft(s) drawn under this credit must be negotiated in singapore on or before january 31, 2017. (2) major terms and conditions in the corresponding s/c 卖 方： 江西福康特进出口公司 买 方： 新加坡通用外贸公司（general trading company, singapore） 商品名称：鸽牌印花细布（dove brand printed shirting） 规 格： 30×36, 72×69, 35×42码 数 量： 67,200码 单 价： 每码3.00港元cfr新加坡，含佣金2％ 总 金 额： 201,600港元 装 运 期： 2017年1月31号前中国港口至新加坡，允许分批装运和转船 付款条件： 凭不可撤销即期信用证付款，于装运期前一个月开到卖方并于上述装运期后15天内在中国议付有效。 保 险： 由买方自理 合同号码： ps-1234