1、Chapter TwoTerms of CommodityLearning objectivesKnow the different ways of quality stipulation.Familiar with the quantity measurement units and systems.Know the functions and features of different types of export packaging.Master the stipulation of quality,quantity,and packing clauses properly.Conte
2、ntsCase study1Section 1 Name of Commodity2Section 2 Quality of Commodity3Section 3 Quantity of Goods4Section 4 Packing of Goods5Key terms6Section 1 Name of CommodityExample:Name of Commodity(Description of Goods):Chang Hong Brand 14”CTV,Model 1401Points for Attention:Using internationally recognized
3、 commodity description Paying attention to the use of different name for the same product Paying attention to the appropriate choice of commodity name The stipulation of the commodity must be precise and specific.Definition:The integration of the outward appearance and the intrinsic attributes of th
4、e commodities.Section 2 Quality of CommoditySignificance:a.Refers to the value of use and the value of the commodity.b.Affects the market price and marketability of the commodity.c.Involves the relevant corporate and even a countrys reputation.Methods of stipulating quality of the goods 1.Sale by ac
5、tual commodity 2.Sale by descriptionSale by Actual Commodity Sale by DescriptionSale by Inspection Methods of Stipulating Quality of GoodsSale by SampleSale by SpecificationSale by GradeSale by StandardSale by Specifications and IllustrationsSale by Product OriginSale by Brand Name or Trade Mark1.Sa
6、le by Actual Commodity1.1 Sale by InspectionAgricultural productCar exhibition1.2 Sale by Sample The transaction that is concluded on the basis of the sample representing the quality of the whole lot can be called sale by sample.a.Sale by Sellers Sample b.Sale by Buyers Sample The sample is the only
7、 legal basis of confirming whether the whole consignment is in conformity with the contract or not.The seller must deliver goods in conformity with the sample.This is an implied warranty of the seller.Though not expressed clearly in the contract,the seller must do as this.OneOneTwoTwoTwo basic requi
8、rements for sale by sample:Points for attention in sale by sampleA.Average qualityB.C.D.E.Keep the duplicate sample Use counter sample to avoid risksUse“for reference only”Avoid the absolute statementsF.Inadvisable to adopt sale by sample whenG.the quality can be describe by indicators G.One method
9、to stipulate the quality2.Sale by Description2.1 Sale by SpecificationExample 1:Width Length Weight Composition (inch)(yds)(m/m)55-56 38/42 16.5 100%SilkExample 2:Yarn No.of threads Width counts Per inch (inch)30 x 36 72 x 69 35/36”2.2 Sale by GradeExample 4:Grade AA:60-65 gm per egg Grade A:55-60 g
10、m per egg Grade B:50-55 gm per egg Grade C:45-50 gm per egg Grade D:40-45 gm per egg Grade E:35-40 gm per eggThe grade of the goods refers to the classifications of the commodity of the same kind.The commodities are graded as low or high quality by differences in specification.The Popular Standards
11、to Define Commodity QualityCE MarkISO9000 Standard ISO14000 Environmental StandardsUL Mark2.3 Sale by Standard F.A.Q.(Fair Average Quality):Example 6:Chinese Peanut 2006 Crop,F.A.Q.Moisture(max.)13%Admixture(max)5%Oil content(min.)44%The average quality level of export commodity within a certain per
12、iod of time.(for the trade of agriculture products)G.M.Q.(Good Merchantable Quality):The commodities are free from defects and are good enough for use or consumption(for the trading of wood and aquatic products)2.4 Sale by Brand Name or Trade Mark2.5 Sale by Name of origin Example 7:Jingdezhen Porce
13、lain,Beijing Toasted Duck,Ginseng from Changbai Shan,Guizhou Mao Tai wine 2.6 Sale by Description and Illustration Example 8:Multi-shuttle Box Loom Model 1515A,detail specifications as attached description and illustrations.In case of sale by specifications and illustrations,the delivery must be in
14、conformity with all the indication stipulated in the illustrations.The illustration forms an integrate part of this contract.1.Quality tolerance 2.Quality latitude Example 9:Raincoat,quality to be similar to the sample No.518 Example 11:Quality as per Sample No.256 and Technical Features Indicated i
15、n the Illustrations Submitted by Seller.Quality clause in the sales contractExample 10:SA-2041 Black Cotton Umbrellas for Ladies,20 x 10 ribs,Wooden Shaft,Plastic Handles.Points for attention when signing quality clause in the sales contract Quality tolerance is the tolerance that is recognized inte
16、rnationally.Points for Attention:AThe buyer should not returning goods and compensation within the range of quality tolerance.BCThe quality tolerance is used in terms of industrial manufactured goods.Within the range of quality tolerance,price adjustment is not allowed.Maximum and MinimumExample 13:
17、Live Yellow Eel 75g and up per pieceExample 14:White Rice,Long Shape,2006 Crop,F.A.Q.Broken Grains(max.)25%Admixture(max.)0.25%Moisture(max)15%Flexible AreaExample 11:Cloth(width)46 48Example 12:B601 Tomato Paste 28/30 Concentration abcAllowed Deviations Example 15:Grey Duck Feather Down Content 18%
18、,allowing 1%more or less Example 14:Brazilian Soybean Moisture(max)8%,per unit+1%,Price干1%Admixture(max)2%,per unit+!%,Price干1%Oil Content(min)45%,per unit+!%,Price+1%Impurity(max)2%,per unit+!%,Price干1%How to price?a.If the quality of the commodities delivered does not go beyond b.the range of the
19、flexibility stipulated in the sales contract,it usually does not affect the price.b.or the price can also to be adjusted in accordance with the actual c.deviation from a given standards.Section 3 Quantity of Goods British Sale of Goods Act 1893(1993 Revision)provides,“If the quantity delivered by th
20、e seller is greater than the amount stipulated in the contract,the buyer is entitled to reject the goods excessive in quantity,or he may reject the whole lot.”United Nations Convention on Contracts of International Sale of Goods also states:“To deliver goods by the agreed amount is a fundamental obl
21、igation of the seller.If the delivery quantity is more than quantity agreed upon,the buyer may reject delivery of the excess quantity,or he may take delivery of all or part of the excess quantity,but he must pay for it at the contract rate.”DefinitionThe quantity of commodities refers to the weight,
22、number,length,volume,area,capacity,etc.which indicated by different measuring units.Relative stipulations on quantity Method Units of Measurement CommoditiesWeightgram(g),kilogram(kg),ounce(oz),pound(lb),metric ton(M/T),etc.mineral products,agricultural and by-products,salt,oil,etc.Numberpiece(pc),p
23、ackage(pkg),pair,set,dozen(doz),gross(gr),roll,unit,head,bale,bag carton,case.etc.Industrial products,furniture,toll,clothing,automobile,cattle,yarn,canned good,etc.Lengthmeter(m),centimeter(cm),foot(ft),yard(yd),etcTextile products,metal cord,cable wire,etc.Areasquare meter(sq m),square foot(sq ft)
24、,square yard(sq yd),etc.glass,plastic floor.Leather,etc.Volumecubic meter(cu m),cubic centimeter(cu cm),cubic foot(cu ft),cubic yard(cu yd),etctimber,chemical gases,etc Capacityliter(L),gallon(gal),pint(pt),bushel (bu),etc.Grain,petroleum,etcCalculation of QuantityThe Calculation of the Weight:1.By
25、Gross Weight Example 1:Fish Meal in gunny Bags of 50 Kg gross for net 2.By Net Weight 3.By legal Weight 6.By Theoretical Weight 5.By Conditioned Weight Conditioned Weight=actual weigh x 1+standard regaining rate of weigh1+actual regaining rate of weigh 4.By Net Net Weight In international trade,it i
26、s customary to calculate the weight by net weight if a contract does not stipulate definitely by gross weight or by net weight.More or Less Clause:Example:Datong Steam Coal,1,000 M/T,shipment 5%more or less at the sellers option,value of the excess or shortage quantity to be calculated at the contra
27、ct rate.Quality clause in import and export contract Quantity and measurement of the traded commodities The buyer and seller stipulate in a sales contract that the seller is allowed to deliver the goods within a certain percentage of more or less than the contracted quantity.Content of More or Less
28、Clausea.the range of quantity differenceb.right of choice relating to quantity differencec.pricing approachSection 4 Packaging of Goods Sales PackagingTransport Packaging It is also called giant packing or outer packing.It is used mainly to keep the goods safe,facilitate the transportation,storage,i
29、dentification and count,reduce freight and cut costs.It also called inner packaging or small packaging,is in direct contact with the commodity and will get into sales outlets with the product to meet the consumer.Transport PackingBags(paper,linen,canvas,rubber,etc),Sack,Carton,Case,Box,Crate,Drum,Ba
30、le,Can/Tin,Carboy,Bundle.Container(TEU,FEU)PalletFlexible Container(Single Transport Packing)(Combined Transport Packing)Table1:Types of Packing ContainersVarious Kinds of Marks 1.Shipping MarksABCFrankfurtNos.1-3001.Specific geometric figure and Abbreviations or initials of consignee2.The port of d
31、estination3.The package number2.Indicative MarksTHIS SIDE UP USE NO HOOK KEEP DRYTEMPERATURE LIMIT 3.Warning Marks(Dangerous Cargo Marks)INFLAMMABLE GASINFLAMMABLE COMPRESSED GASPOISON GASOXIDIZING MATERIALCORROSIVESMATERIAL RADIOACTIVES(FIRST GRADE)HARMFULNESSMATERIAL RADIOACTIVES(SECOND GRADE)4.Id
32、entification Marks ART.NO.:904ACOLOUR:NAVY/GREYN.W.:11.3 KGG.W.:16.4 KGMEAS.:45.5 X 52 X 55.5 cmMADE IN CHINAu Decoration u Verbal Instructions(trademark,brand name,etc.)u Labelsu Bar Code Instructions and Signs on Sales Packaging UPC(Universal Product Code)EAN(European Article Number)Neutral Packin
33、g The packaging of goods is marked with neither country of origin,name and address of the manufacturer nor trademarks or brand names.lNeutral Packing with designated brand nameOnly has trademark or brand name and without producing country or origin of goods.lNeutral Packing without designated brand
34、nameWithout trademark,brand name,producing country and origin of goods.Packing Clause of Sales Contract Example 1:Each piece in a polybag,half dozen in a box and 10 boxes in a carton.Shipping marks are at sellers option.Example 2:To be packed in new gunny bag containing about 100KGS and each should
35、weigh 1.15KGS with allowance of 0.1KGS.Shipping marks STCN-6008/NEW YORK/1-UP.1.The packing manner and material adopted2.Shipping marks3.The packing expenseKey termsquality,specification,reference sample,counter sample,grade,quality tolerance,quality latitude,conditioned eight,gross for net,gross weight,net weight,more or less clause,tare,transport packaging,sales packaging,shipping mark,indicative mark,
