1、SEIB OF GDUFS1Chapter 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 calculat
2、ionunderstand 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 a
3、re of the quantity,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 Q
4、ualitylDefinition: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 in
5、dicators such 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 suppos
6、ed to have reached 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 b
7、rown and clean,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.Example
8、lTetracycline 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 th
9、e average quality 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 sellerlu
10、sed sometimes 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
11、 batteries lPanasonic 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 desc
12、riptions or illustrations 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 de
13、scriptions submitted 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 X071118ASEI
14、B OF GDUFS154.2 Quality stipulation sale by sample lSale by sellers samplemade on the basis of the sample provided by the sellerlSale by buyers samplemade on the basis of the sample provided by the buyerlSale by counter sampleCounter sample:a replica made by the seller of the sample provided,normall
15、y by the buyercounter 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
16、use of Quality 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
17、 tolerance: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 c
18、loth is 47/48 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
19、the goods shipped 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.
20、”For any cotton 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 o
21、f quantity 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 Briti
22、sh System the 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 lnet weightNet weight=Gross weight Tare If not
23、stipulated,considered to be net weight ltare calculation actual/real tare average tare,customary tarecomputed tare lgross 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 sta
24、ndard moisture 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 sa
25、les contract: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 me
26、tric pairs,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&MarkingFunction
27、s of PackingProtecting 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 StowageInsuranceTranspor
28、tation Cost 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
29、 GDUFS334.4 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&MarkinglIndic
30、ative marksto draw attention for proper handlingExamplesFRAGILEKEEP DRYSEIB OF GDUFS364.4 Packing&MarkinglWarning marksto indicate dangerous cargoesSuitable for dangerous goods such as explosive,inflammable,corrosive and radioactive cargosExamplesEXPLOSIVESPOSIONSEIB OF GDUFS374.4 Packing&MarkinglRe
31、levant 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 propert
32、y right.SEIB OF GDUFS384.4 Packing&MarkinglContents 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
