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InternationalTradePracticeandOperation1Chapter5Quality,QuantityandPackingofCommodityTeachingObjectives1.Studythemethodstodescribethequalityofcommodity.2.Discussdifferentmeasurementsystemsandthequantityofcommodity.3.Explainpackingandmarkingofcommodity.2Section1NameofCommodity
Thenameofcommodityshouldbeconcreteandspecific,notvagueandgeneralinstipulation.Ifthegoodsdeliveredarenotinaccordancewiththenameinthecontract,thebuyerhastherighttolodgeaclaimagainstthesellerforcompensation,rejectthegoodsorevenrecedefromhiscommitment.
Practice:Case6-5P1073Section2QualityofCommodityThequalityofcommodityreferstotheintrinsicattributeandtheouterformorshapeofthegoods,suchasmodeling,structure,color,luster,taste,chemicalcomposition,mechanicalperformance,biologicalfeatures,etc..
4Section2QualityofCommodityIninternationaltrade,therearetwowaystoindicatethequalityofthegoods,eitherbydescriptionorbysample.Practice:Case4-3P61Howtodescribethequalityofgasoline?Wheretotestanddeterminethequality?5Section2QualityofCommodityDescribetheQuality:SaleByDescriptionBySpecification,GradeorStandardByBrandNameorTradeMarkByNameofOriginByDescriptionandIllustrationDescribetheQuality:SaleBySample
BySeller’sSampleByBuyer’sSample6Section2QualityofCommoditySalebyDescriptionSalebySpecification,GradeorStandardThespecificationofthegoodsreferstocertainmainindicatorswhichindicatethequalityofthegoods,suchascomposition,content,purity,size,length.Thegradeofthegoodsreferstotheclassificationsofthecommodityofonekindwhichisindicatedbywords,numbersorsymbols.Thestandardreferstothespecificationsorgradeswhicharestipulatedandannounced(laiddownandproclaimed)inaunifiedwaybythegovernmentdepartmentorcommercialorganizationofacountrysuchasthechamberofcommerce.7Section2QualityofCommodityIntheinternationalagriculturalandbyproductmarket,thereisacommonlyadoptedstandard,i.e.fairaveragequality(FAQ).FAQreferstotheaveragequalityleveloftheexportcommoditywithinacertainperiodoftime.Forthetradingofwoodandaquaticproducts,goodmerchantablequality(GMQ)isemployedtoindicatethequality.GMQmeansthegoodsisfreefromdefectsandisgoodenoughforuseorconsumption.
8Section2QualityofCommodity2.SalebySampleInmerchandising,asampleisasmallpieceorpartofaproduct,oftentakenoutfromawholelotorspeciallydesignedandprocessed.Artsandcrafts,garments,lightindustryproducts,agriculturalandnativeproducearegenerallysoldbysample.9Section2QualityofCommodityInpractice,representativesamples,orcalledoriginalsamplesortypesamples,areusuallysentbythesellertothebuyer,andatthesametime,duplicatesamplesorkeepsamplesarealwayskeptbythesellerforlaterreference.Whenthesampleisacceptedbythebuyer,thesellerisresponsibleforthedeliveryofthegoodsofthesamequalityasshowninthesample.Salebybuyer’ssampleinChinaisalsocalledprocessingaccordingtobuyer’ssamples.Ifthebuyerfindsithardtomanufactureaccordingtothesample,hemaysendareturnorcountersampleofsimilarqualitytothebuyerforhisacceptance.Thesalethusconcludedisasalebyseller’ssample.10Section2QualityofCommodity3.QualityClauseQualityclauseinasalescontractissubjecttothemethodusedindescribingthesubjectmatterofthecontract.Inthecaseof“SalebySample”,inadditiontothedescriptionofcommodity,samplenumberandsendingdateshouldbeadded;anddetailsofthecontentarerequiredinthecaseof“SalebyDescriptionandIllustration”.11Section2QualityofCommodityQualityToleranceThequalitytolerancereferstothequalitydeviationinternationallyrecognized.Itisadvisabletomakeaspecificmentionofthequalitytoleranceinthecontract,ifnecessary.ISO9000TheISO-9000SeriesofStandardsevolvedbytheInternationalStandardOrganizationhasbeenacceptedworldwideasthenormassuringhighqualityofgoods.TheISO-9000isalsothehallmarkofaquality-orientedsystemforsuppliersandmanufacturers.
12Section3QuantityofCommodityTherearefourmetrologiescommonlyusedininternationaltrade:themetricsystem,theBritishSystem,theUSSystemandtheInternationalSystemofUnits(S.I.).ThemetricsystemofS.I.unitshasbeenuniversallyacceptedandisbeingadoptedinallcountries.13Section3QuantityofCommodityUnitofMeasurementTable5-1(P77)Practice:InCase3-3(P41),whatmeasurementisused?WhatmeasurementisusedinCase4-3(p61)?WhatmeasurementisusedinCase6-5(p107)?WhatmeasurementisusedinCase6-7(p108)?14Section3QuantityofCommodity2.CalculationofWeight
Grossweightreferstothenetweightplusthetareweightofthegoods.NetweightNetweight=grossweight–tareweightTocalculatetare:byactualtare,byaveragetare,bycustomarytare,bycomputedtare.Conditionedweight:theweightderivedfromtheprocess,withwhichthemoisturecontentofthecommodityisremovedandstandardizedmoistureaddedbothbyscientificmethods.Theoreticalweight:CommoditiesthathaveregularspecificationsandfixedregularsizeLegalweight:cans,smallpaperboxes,smallbottles,etc.15Section3QuantityofCommodity3.MoreorLessClause“Moreorlessclause”isoftenusedinthetradingofagriculturalormineralproductsbecauseitisdifficulttoweighthemaccurately.Onealternativemethodisallowing,somepercentagemoreorlessofthequantitystipulated,i.e.themoreorelessclause(alsocalledplusorminusclause).16Section4PackingofCommodity1.FunctionsofPackingAppropriatepackingcouldpreventthedamageofshipment.Packingpromotesaproductbycommunicatingitsfeatures,uses,benefits,andimage.Packing:transportpacking(outerpacking),innerpacking(sellingpacking)andneutralpackingaspertheirdifferentfunctionsinthecirculation.Nudecargoandcargoinbulk,suchasironandsteelplates,oil,coal,etc17Section4PackingofCommodityTransportpackingInnerpackingNeutralpackingProtectthegoodsduringtransportation,easytohandlePromotemarketing,protectthegoodsBreakdowncustomsbarriers18Section4PackingofCommodityTransportpacking:Cases,Bales,CratesorSkeletonCases,Bags,Barrels,Hogsheads,Drums,Casks,Cartons,Container.Innerpacking:sellingpacking,notonlydesignedasaformofprotectionbutalsotoaidmarketingNeutralpackingmakesnomentionofthenameofthecountryproducingthegoodsandthenameofthemanufactureronthecommodityandontheouterandinnerpackages.Practice:InCase4-3(P61),howtopackthegasoline?InCase4-1,howtopackthesugar?HowtopackthegoodsinPro-formainvoiceonpage69?19Section4PackingofCommodity3.LabelingandMarkingTheouter-packingmustbemarkedclearlywithidentifyingsymbolsandnumbersinaccordancewiththecustomerinstructionsinordertoenablethecustomsauthorities,thesteamshipclerksandthecustomertoidentifythepackagesenrouteandattheportofdestination.Marks:theshippingmark,indicativemark,warningmark,weight/volumemark,markoforigin,andproductcodelabel.20Section4PackingofCommodityShippingmarkIndicativemarkWarningmarkWeight/volumemarkMarkoforiginProductcodelabelIdentifytheconsignmenttowhichtheybelongFacilitatehandlingWarnagainstdangerouscargoesFacilitateloadingthegoods/bookingshippingspaceForcustomstaxationStandardbarcodeforproductmarking21Section4PackingofCommodityA
shippingmarkiscomposedofageometricfigure,asimpleidentitycodeorinitials.FourtypesofinformationareincludedinshippingmarksaspertheISOstanda
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