Chapter 1 A Brief Introduction to International Trade 1

1.1 Reasons for International Trade 1

1.2 Forms of International Trade 3

1.3 Problems in International Trade 8

Notes to the Text 9

Exercises 11

Chapter 2 Price Terms 13

2.1 Function and Classification of Price Terms 13

2.2 Commonly Used Three Price Terms to Sea and Waterway Transportation 15

2.2.1 FOB 15

2.2.2 CFR 19

2.2.3 CIF 22

2.3 Commonly Used Three Price Terms to Any Mode of Transportation 26

2.3.1 Interpretation of FCA, CPT and CIP 26

2.3.2 Comparison Between FOB, CIF, CFR and FCA, CIP, CPT 27

2.4 Other Price Terms 28

2.4.1 EXW (EX Works��Named Place) 28

2.4.2 FAS (Free alongside Ship��Named Port of Shipment) 28

2.4.3 DAF (Delivered at Frontier��Named Place) 29

2.4.4 DES (Delivered EX Ship��Named Port of Destination) 29

2.4.5 DEQ (Delivered EX Quay��Named Port of Destination) 29

2.4.6 DDU (Delivered Duty Unpaid��Named Place of Destination) 30

2.4.7 DDP (Delivered Duty Paid��Named Place of Destination) 30

2.5 ��Incoterms 2010�� and ��Incoterms 2020�� 31

Notes to the Text 33

Exercises 37

Chapter 3 Name, Quality, Quantity and Packing of Commodity 39

3.1 Name of Commodity 39

3.2 Quality of Commodity 41

3.2.1 Sale by Sample 42

3.2.2 Sale by Description 44

3.3 Other Quality Clauses 48

3.4 Quantity of Commodity 50

3.4.1 System of Measurement 50

3.4.2 Interpretation of Weight 52

3.4.3 Quantity Allowance 53

3.5 Packing and Marking of Commodity 56

3.5.1 Functions and Determinants of Packing 57

3.5.2 Transport Packing 58

3.5.3 Marking 60

3.5.4 Sales Packaging 63

3.5.5 Packing Clause in the Sales Contract 65

Notes to the Text 66

Exercises 68

Chapter 4 International Cargo Transport 71

4.1 Parties Involved in Transport 71

4.2 Modes of Transport 72

4.2.1 Marine Transportation 72

4.2.2 Railway Transportation 76

4.2.3 Air Transport 77

4.2.4 International Multimodal Transport 78

4.2.5 Container Transport 79

4.2.6 Road Transport 83

4.2.7 Land Bridge Transport 84

4.2.8 Postal Transport 84

4.2.9 Pipelines Transport 84

4.3 Transportation Documents 84

4.3.1 Bill of Lading 85

4.3.2 Sea Waybill 91

4.3.3 Rail Waybill 92

4.3.4 Air Waybill 92

4.3.5 Container Bill of Lading 93

4.3.6 Multimodal Transport Bill 93

4.3.7 Parcel Post Receipt 94

4.4 Procedures of Booking Space 94

4.5 Shipment Clause in International Trade Contract 95

4.5.1 Time of Shipment and Delivery 95

4.5.2 Port of Shipment and Port of Destination 97

4.5.3 Partial Shipment and Transshipment 98

4.5.4 Shipping Advice 99

4.5.5 Lay Days, Demurrage and Dispatch 100

Notes to the Text 101

Exercises 104

Chapter 5 International Cargo Insurance 107

5.1 The Coverage of Marine Cargo Insurance 107

5.2 Ocean Marine Cargo Clauses of CIC 110

5.3 London Insurance Institute Cargo Clauses 114

5.4 Insurance Clauses in Sales Contract 116

Notes to the Text 119

Exercises 121

Chapter 6 International Payment 123

6.1 Payment Options for Domestic Trade 123

6.2 Payment Instrument 124

6.3 Payment Methods 128

6.4 Payment Clauses in the Contract 141

6.5 Summary Risk Lever of Different Modes of Payment 142

Notes to the Text 142

Exercises 145

Chapter 7 Inspection and Going Through Customs 148

7.1 Commodity Inspection 148

7.2 Going Through Customs 154

Notes to the Text 160

Exercises 162

Chapter 8 Disputes, Claims and Arbitration 164

8.1 Disputes 164

8.2 Claims 165

8.3 Arbitration 167

8.4 Force Majeure 170

Notes to the Text 172

Exercises 173

Chapter 9 International Trade Procedures and Documentation 176

9.1 Procedures of an Export Transaction 176

9.2 Procedures of an Import Transaction 179

9.3 International Trade Documentation 181

Notes to the Text 190

Exercises 191

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