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Subject Matter : Description, Quality, Quantity and Packing

Subject Matter : Description, Quality, Quantity and Packing. Chapter 2 Quality Chapter 3 Quantity Chapter 4 Packing Requirement. Chapter 2 Quality.  Aims and Requirements  2.1 Name of Commodity  2.2 Quality of Goods  Case Study. Aims and Requirements. Aims:

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Subject Matter : Description, Quality, Quantity and Packing

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  1. Subject Matter:Description, Quality, Quantity and Packing • Chapter 2 Quality • Chapter 3 Quantity • Chapter 4 Packing Requirement

  2. Chapter 2Quality  Aims and Requirements  2.1 Name of Commodity 2.2 Quality of Goods Case Study

  3. Aims and Requirements Aims: To grasp the methods of expressing Quality; To learn how to write Quality Clause in contract. Teaching Methods: Discussion, Case Study, English Teaching Key Points: Sale by Sample, Sale by Description, Tolerance Clause, Quality Clause

  4. 2.1 Name of Commodity  2.1.1 Name of Commodity  2.1.2 Points for Attention

  5. The name of the commodity contracted, an indispensable component of the “Description”, is a main basis for delivery of goods. • It has a bearing on the right and duties of both importers and exporters, i.e. if the goods delivered are not in accordance with the name or description contracted, the buyer has the right to lodge a claim against the seller for compensation, reject the goods or even recede from his commitment.

  6. 2.1.1 Name of Commodity Clause 1. Use world standardized name e.g. Apple Wine, Cider 2. Definition or Description for Goods e.g. Style: Necklace set Length: 18”/8’ Material: Freshwater pearl, gemstone Color: Many color Weight: 200g

  7. 2.1.2 Points for Attention 1. The content must be specific and concrete. e.g. Commodity: Bean 2. Seeking truth from facts. e.g. Commodity: Quality Green Tea 3. World standardized names are advisable. e.g. 品名:病毒唑(利巴韦林) 4. Proper choice of name helps : 1)Reduce customs tariff 2)Facilitates import and export 3)Brings down freight

  8. 2.2 Quality of Goods  2.2.1Definition  2.2.2 Methods of Expressing Quality  2.2.3 Quality Clause

  9. 2.2.1 Definition Quality of goods refers to the Intrinsic quality and outside form or shape of the goods, such as chemical composition, mechanical performance, biological features, modeling, structure, color and luster, and taste of a commodity.

  10. Demands for export/import quality • UN Convents for the International Sale of Goods: The goods delivered by the seller must be up to the standard required in the contract. If the seller fails to do so, the buyer is entitled to claim damages, repairs, and substitutes, or reject goods, or sometimes even cancel the said contract.

  11. What is ISO9000? • What is SA8000? • Give some common used international quality certifications ?

  12. 2.2.2 Methods of Expressing Quality Actual Quality (1) By Physical Products Sale by Seller’s Sample Sales by Sample Sale by Buyer’sSample CounterSample/ Return Sample/ Confirming Sample

  13. Sales by Actual Quality or by Seen It applies to some special types of goods such as jewelry, paintings, arts and crafts in consignment, auction and showing this kind of business. • Sales by Sample (1) Sale by Seller’s Sample Original Sample (原样)/ Type Sample (标准样品) Keep Sample (留样)/ Duplicate Sample (复样) Notice: a. The Original Sample and the Keep Sample should be marked the same number and sending date for later reference; b. The Keep sample should be kept in safe(Sealed Sample)。

  14. (2) Sale byBuyer’s Sample/ Processing on Order a. The seller should take such practicalities into consideration as raw material supply, processing technique, available equipment to ensure a sound fulfillment of the contract; b. Contract should be clearly defined: If the buyer’s sample cause any problem of third party rights such as industrial property rights, it has nothing to do with the seller; c. Use cautiously, cause the seller generally does not want to accept this way。

  15. (3) Return Sample /Counter Sample/ Confirming Sample • Actual conversion from Buyer’s Sample to Seller’s Sample 1. Sample ITC in Hubei exporter DTC in U.S. Importer 2. Copy Sample 3. ConfirmedAcceptance

  16. Attention: (1)Random sample, be representative, average quality; (2)Keep sample should be kept in safe for later reference; (3)“Counter Sample” are better than “Buyer’s Sample”; (4)Pattern Sample;Lab Dip;Washed Sample ; (5)Tolerance clauses are commonly used as follows: Quality to be considered and being about equal to the sample; Quality to be similar to the sample.

  17. Bleached Cotton Shirting:30s×38s, 72×69,38in×123.6yd Sale by Specification China Green Tea: Art. No. 5001 Special Longjing Grade 1 Sale by Grade Tetracycline HCL Tablets (Sugar Coated)250mg. B.P.1997 Sale by Standard (F.A.Q or G.M.Q) (2) Sale By Description Sale by Brand Name Or Trade Mark Sale by Description and Illustration West-lake Longjing Tea Zhejiang Origin Sale by Name of Origin

  18. 2.2.3 Quality Clause • Quality Tolerance – refers to the quality deviation, internationally recognized. • Flexible Ranges ⅰ. A given range e.g. Cotton Fabric width 35/36in. ⅱ. A limit, such as max or min. e.g. Belgian Flavor Animal Chocolate cocoa solids min. 26% black chocolate min. 25% milk solids min. 14% ⅲ. A more or less clause e.g. Grey Duck Feather Down content 18% (1% more or less)

  19. 天羽牌女式衬衫 颜色:粉、蓝、黄均衡搭配 型号:PM27-81 尺码:每打尺码搭配为小/3,中/5,大/4. 男童夹克 面料:梭织,全棉 里料:梭织,100%涤纶 型号:BJ213 具体款式和要求按客户2007年3月5日确认样。 Exercises

  20. Answer • Tianyu Women’s Shirts Colors:Pink, blue and yellow equally assorted Style/Type/Model No. PM27-81 Size: S/3, M/5 and L/4 per dozen. • Boys’ Jacket Style No. BJ213 Shell: Woven, 100% cotton Lining: Woven, 100% polyester As per the confirmed sample of Mar. 5, 2007.

  21. Case Study 1 • Our company exported some kinds of agricultural products to France, it is stipulated in the contract that:“Moisture—14 % Max, Impurity—2.5% Max” .But we sent the sample to the buyer before concluded, and inform the buyer by fax that the goods we delivered is similar to the sample. When the goods arrived in France, the buyer inspected the goods and found that the quality of goods is 7% lower than the sample, and of course they raise a claim for USD 7000. • Question: Do you think the buyer’s claim is reasonable, why?

  22. Case Study 2 • A Chinese export company exported some boxes of apple to Japan, according to the contract two parties concluded, the apple should be Grade Two. But when the seller make the shipment, they found some of the apple was corrupt because of damp weather , so in order to deliver the goods in time, the seller arrange goods immediately and sent the apple (Grade One) instead, and the Chinese company still marked “ Price be still fixed on Grade Two.” • Question: Do you think whether the exporter fulfill the duty on contract? Why?

  23. Case Study 3 • 某公司与越南某客商凭样品成交达成一笔出口镰刀的交易。合同中规定复验有效期为货物到达目的港后 60 天。货物到达目的港经越商复验后,未提出任何异议。但事隔半年,越商来电称:镰刀全部生锈,只能降价出售,要求按成交价的 40% 赔偿其损失。我方接电后,立即查看我方留存的复样,也发现类似情况。 • 分析:我方应否同意对方的要求?为什么?

  24. Case Study 4 • 我国某公司对美国出口高档瓷器一批,凭我方样品成交。合同中规定:“货到目的港60天内复验,索赔有效”条款。货到经复验后,并未提出异议。事过一年,对方来电称:“这批瓷器全部釉裂,必须按原价降低60%,否则全部退回。”接电后,经查验我方留存之复样,也发现釉下裂纹。 • 分析:我方应如何处理?

  25. Case Study 5 中港柑皮品质纠纷案 • 广东省 XH 县传统盛产柑子,并形成了一种优质品种,称为“XH 柑”。XH 柑品质上乘,一直享誉东南亚地区。XH 县某出口公司曾与某港商订立了一项向香港出口大宗柑皮的合同。合同中的品质条款仅规定: “XH 种柑皮”,货物交收后,港商提出异议,称这些柑皮不是 XH 县当地产的,因为他已派人调查了全县所有产地,即使全县生产的柑子也无法剥出这么多皮。我方出口公司解释,合同仅规定: “XH 种柑皮”,只要是XH 品 “种”的柑皮就符合合同规定。对方认为,合同规定:“XH 种柑皮”,必须是在 XH 县当地 “种”植的柑皮才是符合合同要求的,双方各持己见,最终,还是中方为维持双方业务关系而赔偿港方了事。

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