＂ＢＥＣ高级全方位训练＂(3)

Acceptance is a statement made by or other conduct of the offerees indicating unconditional assent to an offer. A contract is concluded once the offer is accepted.

3) Conclusion of sales contract

As soon as an offer is accepted, a written sales contract or sales confirmation is usually required to be signed between the buyer and the seller to confirm the sale and stipulate their rights and obligations respectively. A sales contract or sales confirmation contains some general terms and conditions as well as the specific terms that vary with the commodity. But such terms as the names of seller and buyer, the description of the goods, quality and specification, quantity, packing, unit price, amount, payment, date of delivery, shipping, insurance, inspection, claim and arbitration are indispensable. The sales contract or sales confirmation is normally made out in two originals, one for buyer and the other for his seller.

3. Implementation of Contract

Under CIF contract with terms of payment by L/C, the implementation of export contract usually goes through the steps of goods preparation, inspection application, reminding of L/C, examination and modification of L/C, chartering and booking space shipping, shipment, insurance, documents preparation for bank negotiation and the settlement of claims, etc.>

1) Preparing goods for shipment

After a contract is made, it is the main task for the exporter to prepare the goods for shipment and check them against the terms stipulated in the contract. The quality, specification, quantity, marking and the packing should be in line with the contract or the L/C, the date for the preparation should agree with the shipping schedule.

2) Inspection application

If required by the stipulations of the states or contract, the exporter should obtain a certificate of inspection from the institutions concerned where the goods are inspected. Usually, the commodity will be released only after the issuance of the inspection certificate by the inspection organization.

3) Reminding, examining and modifying L/C

In international trade, a banker’s letter of credit is commonly used for the payment of purchase price. In the course of the performance of contract, one of the necessary steps for the seller is to urge the buyer to establish L/C. According to the contract, the buyer should establish the L/C on time, but sometimes he may delay for various reasons. For the safe collection of payment, the seller has to urge the buyer to expedite the opening of L/C. Upon receipt of a letter of credit, the seller must examine it very carefully to make sure that all terms and conditions are stipulated in accordance with the contract. If any discrepancies exist, the seller should contact the buyer immediately fo

r necessary amendments so as to guarantee the smooth execution of the contract.

4) Chartering and booking shipping space

After receiving the relevant L/C , the exporter should contact the ship’s agents or the shipping company for the chartering and the booking of shipping space and prepare for the shipment in accordance with the importer’s shipping instruction. Chartering is required for goods of large quantity which needs full shipload; and for goods in small quantities, space booking would be enough.

5) Customs formalities

Before the goods are loaded, certain procedures in customs formalities have to be completed. As required, completed forms giving particulars of the goods exported together with the copy of the contract of sale, invoice, packing list, weight memo, commodity inspection certificate and other relevant documents, have to be lodged with the Customs. After the goods are on board, the shipping company or the ship’s agent will issue a bill of lading which is a receipt evidencing the loading of the goods on board the ship.

6) Insurance

The export trade is subject to many risk. For example, ships may sink or consignments may be damaged in transit, exchange rates may alter, buyers default or government suddenly impose an embargo, etc. It is customary to insure goods sold for export against the perils of the journey. The cover paid for will vary according to the type of goods and the circumstances. If the exporter has bought insurance for the goods, he will be reimbursed for the losses.

7) Documents preparation for bank negotiation

After the shipment, all kinds of documents required by the L/C shall be prepared by the exporter and the importer and presented, within the validity of the L/C to the bank for negotiation. As to the shipping documents, they include commercial invoice, bill of lading, insurance policy, packing list, weight memo, certificate of inspection, and, in some cases, consular invoice, certificate origin, etc. Documents should be correct, complete, concise and clean. Only after the documents are checked to be fully in conformity with the L/C, the opening bank makes the payment. Payment shall be disregarded by the bank for any discrepancies in the documents.

4. Settlement of disputes

Sometimes complaints or claim inevitably arise in spite of the careful performance of a contract by the exporter and importer. They are likely to be caused by various reasons such as more or less quantity delivered, wrong goods delivered, poor packing, inferior quality, discrepancy between the samples and the goods which actually arrived, delay in shipment, etc. In accordance with specific conditions, complaints and claims may be made to the exporter, importer, insurance company or shipping company. Once disputes arise, it is advised that arbitration is better than litigation, and conciliation is better than arbitration.

2.1.2 General procedures of import transaction