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quote for CFRC5 %. The premium rate for insurance was 1.05 % and mark-up for insurance was 10%. To get the same export revenue, what would AC's new offer be? CFRC5% New York USD104. 5/case I = CIF x 110% x R
CFRC% = CFR/( 1 - Commission)
4. DD Company offered to sell goods at \of the value\was USD50 per M/T, and the premium rates for \get the same export revenue, what FOB price should the exporter offer? FOB Guangzhou USD1 923.6/M/T I =CIF x 110% x R
CIF = FOB + Freight + Insurance
5. The price quoted by an exporter was \quote for CIF Auckland. If the freight was USD50 per case, 110% of the value was to be insured, and the premium rate for insurance was 0. 8%, what would the new price be? CIF Auckland USD504. 44/case CIF = CFR/( 1 - 110% x R) CFR = FOB + Freight
6. X Company signed a contract to export two machines at an initial price (P0) of USD5 million each. At the time of setting P0, the material price index (M0 ) was 110, the wage index (W0 ) was 120. The contract contained a price revision clause that allowed the final price to be set on delivery.
At the time of delivery, the material price index (M) was 112, and the wage index (W) became 125. If the following ratios remained constant:
A (the management fee and profit as a percentage of the price) = 15% B (the material cost as a percentage of the price) =30% C (the wage cost as a percentage of the price) = 55 % What is the final price (P) ? USD5.14 million
P = P0. ( A + B. M/M0 + C. W/W0 )
7. On Nov. 20th, Lee Co. offered to sell goods to Dee Inc. at USD500 per case CIF London, \here 11/27. \the bid, the market price went over USD500. On Nov. 25th, Dee cabled an unconditional acceptance of Lee's initial offer. Could Lee reject Dee's acceptance?
析:1)11月22日Dee Inc.的回复对价格进行了更改,因此这是一个还盘。当Dee Inc.对报盘进行还盘,原来的报盘就自动中止了。在这个前提下,Lee Co.可以采取任何行动而不须顾虑先前的报价。2)尽管Dee Inc.在原报盘的有效期内又发出了一个无条件接受报盘的回复,但由于之前他们已经进行了还盘,所以此时的接受无效。
答案:Yes.
答题切入点:1)还盘的定义;2)报盘中止的因素。
8. X offered to sell goods to Y, \Two days later, Y cabled back, \ Two more days later, X received Y's L/C requiring immediate shipment. At this time, the market price of the goods went up by 20%. What options did X have to deal with Y?
析:1)Y在两天后的回复中虽然声明接受报盘,但同时要求“shipment immediately”,这是对原报盘的船期“shipment within 2 months”进行了修改,因此构成了一个还盘,原报盘则被中止。2)在这个前提下,再来考虑x都有哪些选择以及哪个是最可能或最好的。
答题切入点:1)还盘的定义;2)报盘中止的因素;3)X可能有的各项选择;4)X最可能选择的做法
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及原因。
Chapter 4 Terms of Commodity I. Multiple choices II. True or false statements 1 C F 2 C F 3 D F 4 D T 5 B F 6 C F 7 C T 8 B F 9 D F 10 B F
III. Calculation
Company C has a contract to export 10 metric tons of Seafood, to be packed in cartons each of 40 lb. (lib =0. 45 358kg), with a 5% more or less allowed both in quantity and in amount. 1. How many cartons of Seafood can Company C deliver at most? 2. How many cartons of Seafood should Company C deliver at least? 1 lib =0. 453 58kg, so 40 lb = 18. 144kg
Maximum: [10x l 000kg x (1 +5%) ]/18. 144= 578.7 (Attention: 0. 7 should be deleted here) = 578 cartons Minimum: [10 xl 000kg x (1 -5% ) ]/18. 144= 523.6 (Attention: 0, 6 should be added here) = 524 cartons Answer: 1) At most, Company C can deliver 578 cartons of Seafood.
2) At least, Company C should deliver 524 cartons.
IV. Explain the following terms 1. quality latitude
Quality latitude means the permissible range within which the quality of the goods delivered by the seller may be flexibly controlled. 2. quality tolerance
Quality tolerance refers to the quality deviation recognized (e. g. by some industry), which allows the quality of the goods delivered to have certain difference within a range. 3. sale by counter sample
A counter sample is a replica made by the seller of the sample provided, normally by the buyer. In a sale by counter sample, the counter sample will replace the original sample and become the final standard of quality of the transaction. By means of a counter sample, the seller would be more comfortable to prepare the mass products according to a sample provided by himself. Even in the worst scenario that the buyer later finds the counter sample does not match with the original, the seller will not carry any responsibility as the counter sample has been confirmed by the buyer. 4. gross for net
In the case of \practice will be adopted when the packing may become an indivisible part of the product, such as tobacco flakes; or the packing material is almost of the same value as that of the goods, like grain and fodder. 5. standard regain
Standard regain (rate) refers to the ratio between the water content and the dry weight of the goods which is accepted in the world market or agreed upon by the seller and the buyer. 6. conditioned weight
Conditioned weight is adopted for some commodities like wool which is not usually packed in a vacuum container and tends to absorb moisture, as the weight of these commodities is likely to be unstable due to the fluctuation of their actual moisture content and varies greatly from time to time, and from places to places. In addition, these products are of high value, it becomes important for the buyer and seller to reach an agreement on the concept of weight. 7. more or less clause
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the seller to deliver the goods with a certain percentage of more or less in quantity accordingly. The use of \practice it is not that easy to control the quantity of goods supplied strictly and exactly.
A more or less clause usually concerns three issues: 1 ) how much more or less should be allowed; 2) which party is entitled to make the decision; and 3 ) how should the more or less portion of the goods be priced. 8. shipping marks
Shipping marks are a type of marking on the shipping packing. It quickens the identification and transportation of the goods and helps avoid shipping errors. International standard shipping marks are usually made up of four parts: 1) Consignee's code; 2) Destination; 3 ) Reference No. and 4) Number of packages. 9. F. A. Q.
F. A. Q. is the abbreviation of \quality of the product offered is about equal to the average quality level of the same crop within a certain period of time (e. g. a year. ). 10. neutral packing
Neutral packing is a special type of marking rather than a type of packing as its name may indicate. While neutral packing is required, no marking of origin or name of the manufacturer should appear on the product, on the shipping packing or sales packaging. V. Short questions
1. What are the two common ways of indicating quality of goods for export?
Sale by description and sale by sample are the two common ways of indicating quality of goods for export. Sale by description is a way to specify the quality of most commodities in international trade. Sale by description may take the form of sale by specification, sale by grade, sale by standard, sale by brand name or trade mark, sale by origin and sale by descriptions or illustrations.
A sale is made by sample when the seller and buyer agree that samples are used as reference of quality and condition of the goods to be delivered. This method is used when it is difficult to describe quality of the commodity by words. According to the supplier of the sample, there are three cases under sale by sample: sale by seller's sample, sale by buyer's sample and sale by counter sample.
2. What are the issues to be concerned when specifying quality clause in a sales contract? When stipulating a quality clause in a sales contract, the following are to be concerned:
~ adopting the right way to stipulate the quality: Sale by description is applicable to commodities of which quality can be expressed by some scientific indices. While sale by sample is adopted when it is difficult to describe quality of the commodity by words.
~ avoiding double standard, either by description or by sample: When samples are required under a sale by description, it is essential to indicate that the sample is for reference only.
~ making use of the quality latitude which allows the seller to have flexibility in controlling the quality because absolute quality is difficult or even impossible to handle.
~ in case of a sample provided by the buyer, making use of protecting clause. 3. What are the common ways to measure the weight of export goods.'?
The common ways to measure the weight of export goods include gross weight, net weight, conditioned weight, theoretical weight and legal weight.
~ Gross weight refers to the weight of the commodity plus the weight of the packing. Gross weight is applicable to commodities of comparatively low value.
~ Net weight means the actual weight of a commodity itself excluding the weight of the packing. According to CISG Article 56, the weight of a commodity is calculated by its net weight unless otherwise stated in the contract.
~ Conditioned weight is adopted for moisture unstable commodities with high value, such as wool.
~ The weight is a theoretical weight when the total weight of the product is calculated by multiplying the total
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quantity and the unit weight, rather than measured actually. Theoretical weight is applicable to commodities of standardized sizes and specifications.
~ Legal weight is the weight of the goods including the immediate, inner, or direct packing of the goods. According to the customs laws and regulations in some countries, legal weight is usually used as the basis for tariff calculation.
4. What are the different ways of calculating the tare when net weight is used?
In international trade, tare can be calculated by actual/real tare, by average tare, by customary tare or by computed tare when net weight is used and the weight of packing, i. e. the tare, must be deducted.
~ Actual/real tare refers to the actual weight of the packing of the commodities. In order to get the actual tare of the goods, each packing of a good has to be weighed in order to get a total.
~ By average tare, the weight of the packing is calculated on the basis of the average. The average tare can be calculated by weighing a part of the packing of the commodities and working out the average when the packing materials are uniform and the specifications of goods are standardized.
~ The packing of some commodities are unified and standardized and the weight of the packing is known and accepted by everyone. In this case, the recognized weight of the packing, which is called the customary tare, can be used in calculating the net weight.
~ Computed tare is the weight of the packing agreed upon by the parties concerned. In this case, the net weight is calculated by deducting the tare previously agreed upon from the gross weight of the commodity. 5. What are the issues to be concerned when specifying quantity clause in a sales contract? When stipulating a quantity clause in a sales contract, the following are to be concerned: ~ adopting the right unit measurements
In international trade, the quantity of commodities is always shown as a specific amount in different measurement units such as weight, number, length, area and volume, etc. Since different commodities have different natures and characteristics, the adoption of measurement units varies. Therefore, the quantity of the contract commodity must be measured in the right measurement unit. ~ being aware of different measurement units
Due to the existence of different measurement systems in the world, traders need to be aware of the consistency of system. A notable fact is that some units in different systems carry the same name though; they are indicating standards of measurement with significant difference. In addition, it is true that due to the local background and customary practice, different countries adopt different systems of measurement. Therefore, traders need to clarify the use of unit and measurement system to avoid unnecessary disputes.
~ making use of the more or less clause which allows the seller to have flexibility in making shipment because absolute quantity is difficult or even impossible to handle .
\the seller to deliver the goods with a certain percentage of more or less in quantity accordingly. The use of \practice it is not that easy to control the quantity of goods supplied strictly and exactly. VI. Case Studies
1. XYZ Company signed a contract to export Red Dates. The contract specified that the dates should be \3\of higher quality, Grade 2, were used as substitutes. The seller proudly marked the invoice, \sold at the price of Grade 3\
(1) Could the buyer refuse to accept the goods? Why or why not? (2) Would you do differently if you were the seller? How?
析:本题的解题要点:1)联合国国际货物销售合同公约第三十五条(1)卖方交付的货物必须与合同所规定的数量、质量和规格相符,并须按照合同所规定的方式装箱或包装;2)合同本身的品质规定是“Grade 3”;3)实际所交货物的品质是“Grade 2”。
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