1、Chapter FourChapter FourTerms of CommodityTerms of Commodity SEIB OF GDUFS2Learning objectives lAfter reading this chapter you should be able toexplain the different ways of quality stipulationoutline the quantity measurement units and systems describe the approaches to weight calculationunderstand
2、the functions and features of different types of export packaging identify marking on the packing of goods for international sales compose quality,quantity and packing clauses properly SEIB OF GDUFS34.1 Name of commoditylSignificanceCISG Article 35:The seller must deliver goods which are of the quan
3、tity,quality and description required by the contract and which are contained or packaged in the manner required by the contractlIssues concerning stipulating name in sales contract:being clear,specific&precisebeing practicaladopting the widely accepted name(HS Code)SEIB OF GDUFS44.2 QualitylDefinit
4、ion:refers to the intrinsic elements of commodities including the internal properties or ingredients as well as the external appearance.SEIB OF GDUFS54.2 Quality:ways of quality stipulationSEIB OF GDUFS64.2 Quality stipulation Sale by descriptionlSpecificationcomprise some important indicators such
5、as composition,content,purity,length,size,etc.ExampleChina Sesame Seed lMoisture:8%max.lAdmixture:2%max.lOil content:52%basisSEIB OF GDUFS74.2 Quality stipulation Sale by descriptionlSale by gradebe indicated simply by stating its grade,as presumably the seller and the buyer are supposed to have rea
6、ched a consensus on the classification implication of grades.to avoid misunderstanding and the subsequent disputes,however,it is recommended to lay down some major specificationsSEIB OF GDUFS84.2 Quality stipulation Sale by descriptionlsale by grade:example Fresh Hen Eggs,shell light brown and clean
7、,even in sizeGrade AA:60-65gm per eggGrade A:55-60gm per eggGrade B:50-55gm per eggGrade C:45-50gm per egg SEIB OF GDUFS94.2 Quality stipulation Sale by descriptionlSale by standardwhen specifications or grades are laid down and proclaimed in a unified way,they become standards.ExamplelTetracycline
8、HCL Tablets(Sugar Coated)250mg.B.P.1973 lChina Northeast Soybean 2006 New Crop,F.A.Q:Moisture 15%max.Admixture 1%max.SEIB OF GDUFS104.2 Quality stipulation Sale by descriptionlSale by standard:F.A.Q.&G.M.QF.A.Q.:lindicating that the quality of the a product offered is about equal to the average qual
9、ity level of the same crop within a certain period of time(e.g.a year.)lgenerally suitable for agricultural products.G.M.Q.:lthe quality of the goods offered are sufficiently good to satisfy the purposes for use or consumption which are mutually understood by the buyer and the sellerlused sometimes
10、as the bottom-line of quality requirement.SEIB OF GDUFS114.2 Quality stipulation Sale by descriptionlSale by brand name or trade mark to define the quality of some products by simply referencing to their brand names or trademarks.ExampleslSony Televisionsl Haier RefrigeratorslTigerhead batteries lPa
11、nasonic Television,TH-42PV65C SEIB OF GDUFS124.2 Quality stipulation Sale by descriptionlSale by originto use the name of the place of origin as the indication for quality ExamplelWest-lake Longjing Tea,Grade 1,Zhejiang Origin SEIB OF GDUFS134.2 Quality Sale by descriptionlSale by descriptions or il
12、lustrations specific descriptions,sometimes with illustrationsExamplelPanasonic Television,TH-42PV65C,quality and technical data to be strictly in conformity with the instructions attached.lHaier Refrigerator,Model XXX,quality and technical data to be strictly in conformity with the descriptions sub
13、mitted by the seller.SEIB OF GDUFS144.2 Quality stipulation Sale by samplelSale by sampleDefinition:a sale when the seller and buyer agree that sample is used as the basis of quality and condition of the goods to be delivered.ExamplelTeddy Bear Size 15,Quality as per Sample X071118ASEIB OF GDUFS154.
14、2 Quality stipulation sale by sample l Sale by sellers samplemade on the basis of the sample provided by the sellerl Sale by buyers samplemade on the basis of the sample provided by the buyerl Sale by counter sampleCounter sample:a replica made by the seller of the sample provided,normally by the bu
15、yercounter sample used as the basis for qualityto remove the risk of the seller a good substitute to sale by buyers sampleSEIB OF GDUFS164.2 QualitylIssues concerning quality clause in sales contract:adopting the right wayavoiding double standardbeing clear,practical and reasonablemaking use of Qual
16、ity Latitude or Tolerance making price adjustment when necessary inserting sellers protecting clause when necessary SEIB OF GDUFS174.2 QualitylQuality latitude:definitionthe permissible range within which the quality of the goods delivered by the seller may be flexibly controlled lQuality tolerance:
17、definitionthe quality deviation recognized in the trade,which allows the quality of the goods delivered by the seller to have certain differences within a range SEIB OF GDUFS184.2 QualitylHow to stipulate quality latitude/toleranceto stipulate a certain scope,e.g.the width of the cotton cloth is 47/
18、48 inches.to stipulate“max”or“min”e.g.Moisture:8%max.Admixture:2%max.to stipulate more or less e.g.ducks down content 18%1%SEIB OF GDUFS194.2 QualitylStipulating quality latitude:examples“Quality shall be about equal to the sample”“Quality is nearly the same as the sample”“The quality of the goods s
19、hipped to be about equal to the sample”“Shipment shall be similar to the sample.”SEIB OF GDUFS204.2 QualitylSafeguard Clause:examples“It is the buyer rather than the seller who shall be responsible for any disputes arising from the infringement of the third partys intellectual properties.”For any co
20、tton piece goods produced with the design,trade marks,brands,and/or stampings provided by the buyer,should there be any disputes arising from the infringement upon the third partys industrial property rights,it is the buyer to be held responsible for it.SEIB OF GDUFS214.3 QuantitylUnits of quantity
21、calculation Weight:metric ton,tonne,kilogramme,long ton,short tonNumber:piece,dozen,set Length:meter,kilometer,yard,foot,inch)Area:km2,yd2,ft2 Volume:km3,yd3,ft3 Capacity:liter,gallon,quart,pint,bushel SEIB OF GDUFS224.3 QuantitylMeasurement systemsthe Metric Systemthe U.S.Systemthe British System t
22、he International System of Units(S.I.)SEIB OF GDUFS234.3 QuantitylWays to stipulate weight gross weightnet weightgross for netconditioned weighttheoretical weightlegal weightSEIB OF GDUFS244.3 Quantitygross weightgross weight=net weight+Tare l net weightNet weight=Gross weight Tare If not stipulated
23、,considered to be net weight l tare calculation actual/real tare average tare,customary tarecomputed tare l gross for netGoods priced by their gross weight instead of the net SEIB OF GDUFS254.3 QuantitylConditioned weightConditioned weight:equals to the dry weight of a commodity plus the standard mo
24、isture content Conditioned weight =Dried net weight x(1+Standard regain rate)SEIB OF GDUFS264.3 QuantitylTheoretical weightTheoretical weight=Unit weight x QuantitylLegal weightLegal weight =Net weight+Tare(immediate packing)SEIB OF GDUFS274.3 Quantity Issues concerning quantity clause in sales cont
25、ract:clear,specific and avoid ambiguity quantity latitude(more or less clause)llatitude:how much more or less?ldecision:at whose option?lpricing:contract rate or market price?SEIB OF GDUFS284.3 QuantitylExamples of more or less clause:800 metric tons,5%more or less at sellers option20,000 metric pai
26、rs,the sellers are allowed to load 5%more or less,the price shall be calculated according to the unit price in the contract1,000 metric tons 5%more or less,at Buyers option with more or less portion priced at the market price at the time of shipment.SEIB OF GDUFS294.4 Packing&MarkingFunctions of Pac
27、kingProtecting GoodsFacilitating DeliveryReducing CostPromoting sales SEIB OF GDUFS304.4 Packing&MarkinglFactors determining packingNature Properties of Cargo Mode of the TransportCustoms or Statutory Requirements General Fragility of CargoWeatherEase of Handling and StowageInsuranceTransportation C
28、ost SEIB OF GDUFS314.4 Packing&MarkinglTypes of packingSales packing Transport Packing lunit packing:drums,cases,bags,boxes.lcollective packing:pallet,flexible container SEIB OF GDUFS324.4 Packing&MarkinglTypes of marking Shipping marksIndicative marksWarning marksSupplementary marks SEIB OF GDUFS33
29、4.4 Packing&MarkinglFunctions of shipping marksto quickens the identification to help avoid shipping errorslContents of Shipping marksConsignees code Destination Reference No.Number of packagesSEIB OF GDUFS344.4 Packing&MarkinglExample of shipping markSEIB OF GDUFS354.4 Packing&MarkinglIndicative ma
30、rksto draw attention for proper handlingExamplesFRAGILEKEEP DRYSEIB OF GDUFS364.4 Packing&Markingl Warning marksto indicate dangerous cargoesSuitable for dangerous goods such as explosive,inflammable,corrosive and radioactive cargosExamplesEXPLOSIVESPOSIONSEIB OF GDUFS374.4 Packing&MarkinglRelevant
31、issues concerning markingNeutral Packinglno marking of the name of the country producing the goods and/or the name of the manufacturerOEMlshort form of Original Equipment Manufacturer.luse the brand name or trade mark designated by buyers on their manufactured goods lissues concerning property right
32、.SEIB OF GDUFS384.4 Packing&Markingl Contents of packing clause in a sales contract packing method lthe material,dimensions,unit weight,filling material and reinforcement conditions if applicablelExamples In new iron drums of 175 kg net each In new single jute bags,100 kg net each packing cost shipping markslat sellers optionlat buyers option,the relevant shipping marks should reach the seller xx days before the time of shipment 祝您成功！
