Part Two: International Trade Practice By Liu Chengsheng

Establish the Establish the Business RelationBusiness Relation

建立业务关系建立业务关系

QuotationQuotation报价核算报价核算

Bargain Bargain 还价核算还价核算

Counter OfferCounter Offer还 盘还 盘

Final AgreementFinal Agreement成交核算成交核算

Sign A Contract Sign A Contract 签订合同 签订合同

L/C Inspection L/C Inspection 审核信用证审核信用证

L/C AmendmentL/C Amendment修改信用证修改信用证

CharteringChartering托运订舱托运订舱

Customs ClearanceCustoms Clearance报 关报 关

Insurance/ShipmentInsurance/Shipment投保装船投保装船

Disputes Dealing Disputes Dealing 业务善后业务善后

Documents/Payment Documents/Payment 交单结汇交单结汇

Inter’ Trade Affairs进出口贸易

Whole ProceduresWhole Procedures完整流程

Offer Offer 发 盘发 盘

Chapter X Procedures of International Trade Affairs

I. Business Relation VII. Customs Clearance

II. Quotation VIII. Inspection

III. Offer IX. Insurance

IV.S/C X. Shipment

V. L/C XI. Payment

VI.Chartering XII. Trade Disputes

I. Business Relation

• Market research

• Creditworthiness investigation

• Advertising

• Setting up business relation

I. Business Relation (1)

• The contents of market research: Whether the product is marketable in target market What about the competitors there in the same industrial line The economic, financial, and political stability of the importing country Market price and price trend

I. Business Relation (2)

• The contents of market research: The local laws and regulations governing foreign trade Customs tariffs Port facilities Commercial practices

I. Business Relation (3)

• The sources of info’ in investigation Libraries Government Trade, Professional, and Business Associations Private Business Firms Professional Credit Info’ Service University Research Organizations Foundations Consulates abroad Banks Advertising Media

I. Business Relation (4)

• Forms of Advertising Media Newspaper Magazines Radio and Television Internet Outdoor Advertising

II. Quotation

• Calculation of the cost, expenses, and expected profit

• List of Estimate

• It’ll be published in advertising media or transmitted by mail, telephone, fax or e-mail

III. Offer (Bid)

• Types of offer

Offer with Engagement (Firm offer)

Offer without Engagement

• Offer v.s Bid

Offer both by a seller or buyer

Bid only by buyer

III. Offer (Bid) (1)

• The contents of firm offer Sufficiently Definite descriptions of “book” or “supply” Expiry

• The features of firm offer Complete (including main trading terms) Clear (the terms to be described without ambiguity Final (the terms to be offered without reservation

III. Offer (Bid) (2)

• Counter-offer (Also called as Bargain)

Amendments Additions

Restrictions

Any other revisions

III. Offer (Bid) (3)

• Acceptance

Made by the offeree Accepted completely

Made within the expiry

Transmitted properly

IV. Sales Contract/Confirmation

• Time of signing S/C

• Important terms of a S/C

• Forms of a S/C

• Major contents of a S/C

V. L/C

• To urge the importer to open a L/C

• To inspect the L/C

• To amend the L/C

• To confirm the amended L/C

• To wait for the settlement of payment

VI. Chartering

• Purchasing goods in domestic market• Package of goods• Transport of goods to port of shipment• Getting the goods ready for shipment• Booking shipping space• Shipping• Bill of lading