Chapter1　GeneralIntroductionto

InternationalTrade 1

1.1WhatIsInternationalTrade 3

1.2TheImportanceofInternationalTrade 3

1.2.1InternationalTradeRestrictions 4

1.2.2DifferencesBetweenInternationalTradeandDomesticTrade 4

1.3WorldTradeOrganization 5

1.3.1Overview 5

1.3.2FunctionsoftheWTO 6

1.3.3BasicPrinciples 6

1.3.4Missions 6

1.3.5FormalStructure 7

1.4MainProcedureofInternationalTrade 9

1.4.1BasicProcedureofExport 9

1.4.2　BasicProcedureofImport 12

1.5RelativeInternationalPracticeand

Laws 13

1.6OverviewofContract 15

1.6.1TheFunctionsofaWritten

Contract 15

1.6.2TheEssentialFeaturesofa

LegallyBindingContract 16

1.6.3TheGeneralContentsofaSales

Contract 16

1.7OverviewofThisBook 18

KeyTermsandWords 20

Exercises 20

Chapter2InternationalTradeTerms 22

2.1IntroductiontoTradeTerms 24

2.1.1Warsaw-OxfordRules1932 24

2.1.2RevisedAmericanForeignTrade

Definitions1941 26

2.1.3InternationalCommercial

Terms 28

2.2IntroductiontoIncoterms2010 29

2.3Incoterms2000vs.Incoterms2010 54

2.4IncotermsandContract 64

2.5ChoiceofTradeTerms 65

KeyTermsandWords 66

Exercises 67

Chapter3TermsofCommodity 70

3.1NameofCommodity 72

3.1.1CommodityNamingMethods 72

3.1.2HSCode 73

3.1.3NameClausesintheContract 73

3.2QualityofCommodity 74

3.2.1QualityStipulationMethods 75

3.2.2QualityLatitudeandQuality

Tolerance 81

3.2.3QualityClausesinthe

Contract 82

3.3QuantityofCommodity 82

3.3.1UnitofMeasurement 83

3.3.2Calculationofweight 85

3.3.3QuantityAllowanceClauses 87

3.3.4QuantityClausesinthe

Contract 88

3.4PackingofCommodity 89

3.4.1TransportPacking 90

3.4.2SalesPacking 96

3.4.3NeutralPackingand

DesignatedBrand 98

3.4.4PackingClausesin

theContract 98^[1]

KeyTermsandWords 101

Exercises 102

Chapter4InternationalCargo

Transport 106

4.1　Containerization 108

4.1.1FeaturesofContainer

Transportation 109

4.1.2TypesofContainer 109

4.1.3FreightofContainer

Transportation 110

4.2ModesofTransportation 112

4.2.1MarineTransport 112

4.2.2AirTransportation 125

4.2.3　RailwayTransportation 126

4.2.4InternationalMulti-modal

Transport 126

4.2.5　LandBridgeTransport 127

4.2.6　PostalTransport 127

4.2.7　PipelinesTransport 127

4.3　ShipmentClausesinsalesContract 128

4.3.1TimeofShipmentandTimeof

Delivery 128

4.3.2PortofShipmentandPortof

Destination 129

4.3.3ShippingAdvice 130

4.3.4PartialShipmentand

Transshipment 130

4.3.5LayTime,Demurrageand

Dispatch 131

KeyTermsandWords 133

Exercises 133

Chapter5InternationalCargoTransport

Insurance 136

5.1PrinciplesofCargoInsurance 138

5.1.1PrincipleofInsurable

Interest 138

5.1.2PrincipleofUtmost

GoodFaith 138

5.1.3PrincipleofIndemnity 139

5.1.4PrincipleofProximate

Cause 140

5.2TheDefinitionofInsurance 140

5.3Partiestotheinsurance 141

5.3.1Insurer 141

5.3.2Insured 142

5.3.3Brokers 142

5.4MarineInsurance 142

5.4.1Risks 143

5.4.2　Losses 143

5.4.3Expenses 145

5.5ScopeofInsuranceCoverage 146

5.5.1BasicCoverage 147

5.5.2　AdditionalRisks 148

5.6CoverageofMarineCargo

InsuranceofICC 152

5.6.1　InstituteCargoClausesA 152

5.6.2　InstituteCargoClausesB 153

5.6.3　InstituteCargoClausesC 153

5.6.4MajorExclusion 155

5.7　ProceduresofMarineInsurance 155

5.7.1GatherInformation 155

5.7.2ChoosetheInsurance

Coverage 156

5.7.3GetQuotes 156

5.7.4PaytheInsurancePremium 156

5.7.5PurchasetheInsurance

Policy 157

5.7.6LodgeanInsuranceClaim 158

5.8　InsuranceClausesinContract 159

KeyTermsandWords 161

Exercises 162

Chapter6PriceofGoods 165

6.1PriceElements 167

6.1.1PricingPrinciples 167

6.1.2　PricingConsideration 168

6.1.3　PricingMethods 169

6.1.4PricingComposition 172

6.1.5CurrencyOption 174

6.2Calculationof?Price 175

6.3ExportCostAccounting 177

6.4CommissionandDiscount 178

6.4.1PriceIncludingCommission 179

6.4.2Pricewithdiscount 179

6.5PriceClauseinSalesContract 180^[1]

KeyTermsandWords 181

Exercises 181

Chapter7CreditInstruments 183

7.1SummaryofInstruments 185

7.1.1DefinitionofInstruments 185

7.1.2EssentialFeaturesofNegotiable

Instruments 185

7.1.3FunctionsofNegotiable

Instruments 186

7.1.4TheLegalSystemof

Instruments 187

7.2BillofExchange(Draft,Bill) 189

7.2.1DefinitionofBillof

Exchange 189

7.2.2ContentsofaBillof

Exchange 190

7.2.3TheActsofBillsof

Exchange 193

7.2.4TheClassificationof

theDrawer 197

7.2.5TheOrderofMaking

Recourse 199

7.3PromissoryNote 199

7.3.1DefinitionofPromissory

note 199

7.3.2TheDefinitionfromtheNegotiable

InstrumentsLawofthePeopleu2019s

RepublicofChina 200

7.3.3TheKeyElementsinthe

PromissoryNote 200

7.3.4ClassificationofPromissory

Notes 201

7.3.5DifferencesBetweenaPromissory

NoteandaBillofExchange 201

7.4Check(Cheque) 202

7.4.1DefinitionofCheck 202

7.4.2ClassificationofCheck 203

7.4.3DifferencesBetweenaCheckand

aBillofExchange 203

KeyTermsandWords 204

Exercises 204

Chapter8InternationalPaymentand

Settlement 208

8.1Remittance 210

8.1.1　TheDefinitionof

Remittance 210

8.1.2　PartiestoanRemittance 210

8.1.3TheClassificationof

Remittance 211

8.1.4Reimbursementof

RemittanceCover 214

8.1.5CanceltheRemittanceor

RefundtheImbursement 215

8.1.6TheApplicationofRemittancein

Internationaltrade 216

8.2Collection 217

8.2.1DefinitionofCollection 219

8.2.2NatureofCollection 219

8.2.3ProcedureofDocumentary

Collection 219

8.2.4TheInvolvedPartiesin

Collection 220

8.2.5TypesofCollection 220

8.2.6TheProperty,Advantagesand

Disadvantages 223

8.2.7TheRulesofUniformRulesfor

Collections522(URC522) 223

8.2.8　PointsforAttentionfor

Collection 224

8.2.9RiskandProtectionforExporters

andImporters 224

8.2.10Financingunderthe

Collection 225

8.3TheLetterofCredit 227

8.3.1ThedefinitionofL/C 227

8.3.2PartiestoaLetterofCredit 228

8.3.3TheProcedureofCreditL/C 230

8.3.4CharacteristicsofaLetterof

Credit 238

8.3.5TheUseofaLetterofCredit 238

8.3.6ContentsofaLetterof

Credit 239

8.3.7TheVarietiesofDocumentary

Credit 240

8.3.8OtherSpecialCredits 244

8.3.9CombinedUseofDifferent

MethodsofPayment 248

KeyTermsandWords 250^[1]

Exercises 252

Chapter9Inspection,Claims,Force

MajeureandArbitration 260

9.1Inspection 262

9.1.1TheImplicationofCommodity

Inspection 263

9.1.2TheImportanceofCommodity

Inspection 263

9.1.3ImportandExportCommodity

Inspection 264

9.1.4TimeandPlaceof

Inspection 264

9.1.5InspectionStandard 266

9.1.6InspectionCertificate 267

9.1.7InspectionClause 268

9.1.8Inspectionprocedures 268

9.2Claim 269

9.2.1BreachofContract 271

9.2.2LiabilitiesofBreachof

Contract 271

9.2.3ValidTermforClaim 272

9.3ForceMajeure 273

9.3.1DefinitionofForceMajeure 273

9.3.2FeaturesofForceMajeure 273

9.3.3ConsequencesofForce

Majeure 274

9.3.4ForceMajeureClause 274

9.4Arbitration 276

9.4.1TheDefinitionofArbitration 276

9.4.2CharacteristicsofArbitration 277

9.4.3ArbitrationClauses 277

KeyTermsandWords 280

Exercise 280

Chapter10BusinessNegotiationand

Establishmentof

Contract 283

10.1TheGeneralProcessofBusiness

Negotiation 285

10.2Enquiry 287

10.2.1TypesofEnquiry 287

10.2.2GuidelinesforWritingEnquiries

andReplies 288

10.3Offer 289

10.3.1TheMeaningofanOffer 289

10.3.2TypesofanOffer 289

10.3.3FourNecessaryConditionsof

aFirmOffer 291

10.3.4TimeofValidityorDurationof

anOffer 292

10.3.5WithdrawalorRevocationof

anOffer 294

10.3.6TerminationofanOffer 294

10.4Counter-offer 295

10.5Acceptance 296

10.5.1TheMeaningof

Acceptance 296

10.5.2EffectiveTimeof

Acceptance 297

10.5.3LateAcceptance 297

10.5.4WithdrawalofAcceptance 298

10.6ConclusionofContract 299

10.6.1NecessaryConditionsof

anEffectiveContract 299

10.6.2FormsofaWritten

Contract 299

10.6.3StructureofaWritten

Contract 299

KeyTermsandWords 306

Exercises 307

Chapter11ExportingandImporting

Procedures 311

11.1ExportingProcedures 314

11.1.1PreparationStageofExport

Contract 315

11.1.2NegotiationStageofExport

Contract 317

11.1.3PerformanceStageofExport

Contract 320

11.2ImportingProcedures 343

11.2.1PreparationStageofImport

Contract 344

11.2.2NegotiationStageofImport

Contract 346

11.2.3PerformanceStageofImport

Contract 347

KeyTermsandWords 355

Exercises 356

Chapter12ModesofInternational

Trade 358

12.1AgencyandDistribution 359

12.1.1Agency 359

12.1.2Distribution 360

12.2Consignment 361

12.2.1Definition 361

12.2.2Features 361

12.2.3TheAdvantagesandDisadvantages

ofconsignment 362

12.3TendersandAuction 363

12.3.1Tenders 363

12.3.2Auction 365

12.4CounterTrade 366

12.4.1MainReasonsWhyCounterTrade

isEmployed 366

12.4.2SpecificFormsofCounter

Trade 367

12.5FuturesTrading 369

12.5.1IntroductiontoFutures

Trading 369

12.5.2MainTypesofFutures

Traders 371

12.5.3DangerofFuturesTrading 372

12.6E-commerce 372

12.6.1DefinitionofE-commerce 373

12.6.2TypesofE-commerce 374

12.6.3BenefitsofE-commerce 376

12.6.4LimitationsofE-commerce 377

12.6.5TipsforRunningasuccessful

E-commerceBusiness 378

12.6.6TheFutureofE-commerce 379

KeyTermsandWords 380

Exercises 381

References 382^[1]