- Export License is the first document a seller has to prepare when he intends to export commodities that are under export control of his country.
- Certificate of Inspection is a document indicating the results of the inspection issued by a government institution, surveyors of chamber of commerce or an independent service company.
- Booking Note (B/N) is a form to be filled out by the exporter providing the carrier or the shipping agent all the necessary particulars about the shipment to book shipping space.
- Shipping Order is a notice to the shipper (exporter) from the carrier or his agent, indicating that goods are received for loading.
- Customs Clearance for Export Commodity issued by the customs or the authorized institution evidencing the customs clearance for the export commodity, showing customs clearance number, the information of the goods, the contract number, and the voyage.
- Mate’s Receipt is issued and signed by the mate of the shipping vessel indicating that the goods have been loaded on board the vessel or the goods have been received by the vessel for loading and can be exchanged for the on board Bill of Lading.
- Certificate of Origin is a document certifying the origin of the goods or the place/ country of manufacturing.
- Insurance policy is the contract made between the insurer and the insured, which is issued by the insurer and confirmed by the insured.
- A bill of lading is a document which is issued by an ocean carrier to a shipper with whom the carrier has entered into a contract for the carriage of goods.
- Packing List is a document made out by the seller stating the detailed content of each individual shipment.
- Bill of Exchange is a written instrument which contains an unconditional order whereby the drawer directs the drawee to pay a definite sum of money to the payee or to his order.
- The buyer, also known as the drawee in the collection practice. He is the one who owes the indicated amount and who is mentioned as drawee on the bill of exchange drawn by the seller.
- A collection means an arrangement whereby the seller draws a draft on the buyer and authorizes his bank to collect.
- If there is no specific provision, the draft under a letter of credit should draw on the ____.
- A letter of credit not mentioning it is non-transferable will be seen as transferable.
- In international trade clean collection is more frequently used than documentary collection.
- Under collection though the seller collects payment through banks, it is not guaranteed that he will receive the money as collection is still based on commercial credit.
- Since under L/C the seller gets payment from a party independent of the buyer, it is the safest mode for him.
- Using a third currency in collecting payment is the best protection against currency risk for the seller.
- For a confirmed credit, the confirming bank holds the same liability as the issuing bank.
- For any additional coverage, it should go with one of the three types of basic insurance coverage, FPA, WPA or AR.
- The duration of Basic Insurance refers to the period throughout which the insurance company undertakes an insurance liability.
- Total loss refers to the loss of the entire value of the subject matter to the insured, normally involving the maximum amount for which a policy is liable.
- Special additional coverage such as war risks, strikes and so on must be taken out together with FPA, WPA or All Risks.
- In ocean marine insurance, natural calamities include heavy weather, earthquake, tsunami, flood, collision, etc.
- According to "Ocean Marine Cargo Clause of the People's Insurance Company of China", the basic coverage that is the least extensive is ______.
- Risks such as "failure to delivery risk" or "rejection risk" fall within the category of ____.
- The main document adopted by the insured to make claims against the insurer is _____.
- According to "Ocean Marine Cargo Clause of the People's Insurance Company of China", the coverage which cannot be effected independently is ____.
- Perils of the sea, such as vessel being stranded or grounded covered in an insurance policy is one kind of ___.
- An Order B/L refers to the one made out to the order of a named person in the bill, which may be transferred or negotiated after endorsement.
- Basic freight is charged for carriage of goods from the port of shipment to port of destination.
- A (An) ____B/L refers to one that is made out to a designated consignee.
- A clean B/L is issued by the seller to the buyer to certify that the goods delivered are in apparent good condition.
- Since straight B/L bears higher risk than the open B/L, it is rarely used in international transportation.
- The liner has a regular line, port, timetable and comparatively fixed freight.
- In international cargo transportation, the most widely adopted bill of lading is ______.
- Bill of lading are usually made out in a full set including several originals and copies.
- A "freight to be collected" B/L is acceptable to the buyer when the contract is based on ____.
- A( An) ______ represents title to the cargo.
- "China Northeast Soybean 2006 New Crop, F. A. Q" is an example of sales by brand name.
- In the case of sale by descriptions or illustrations, clauses such as “quality and technical data to be in conformity with the description submitted by the seller” are to be stipulated in the contract.
- Theoretical weight is applicable to the commodities of identical or standardized sizes and specifications, such as tin plate and steel plate.
- According to CISG, unless otherwise stipulated in the contract, the payment for the more or less portion of the goods shall be calculated at the contract rate.
- Transport packing, also called shipping packing, outer packing or big packing, is used mainly to keep the goods safe and sound during transportation.
- Weight or volume marks are marks indicating the volume or the gross weight or net weight of the package to facilitate loading, unloading or booking shipping space.
- If the price is calculated by the weight of the goods, the gross weight should be used unless stipulated otherwise in the contract.
- According to UCP600, "about" allows the quantity to be _____ more or less.
- "2000 pairs of shoes" is an example of using ____ to specify quantity.
- _____ is NOT frequently used in international trade.
- Terms of Payment is not an important factor influencing the financing and risk.
- Sales Cost refers to the costs of international marketing and sales activities, for example, advertising, sales trip expenses, commissions intermediary services.
- In the quotation, US$1200 per M/T CIFC3% New York, CIFC3% refers to give the buyer 3% discount.
- If the export price is USD100 per carton, CIFC3% London, what is the net price?
- If the net price is USD980 per piece, commission rate is 2%, then please quote the price with commission.
- If the export price is USD100 per M/T CIF Hamburg less 2% discount, what is the actual rice?
- There is a rule of thumb in international trade stating that any transaction having a profit margin over 10% is a good deal.
- If an effective offer is accepted unconditionally, a contract can be achieved.
- Discount is a deduction on the original price given to the buyer as incentive.
- The commission payment of an FOB price should be calculated based on the FOB net price.
- According to the Incoterms 2010 under CIF if the goods get loose from the hook and fall into the sea during the loading stage, _____ should hold liable for the loss.
- Among all the Incoterms _____ imposes the minimum obligation and cost to the seller.
- Among all the Incoterms _____ imposes the minimum obligation and cost to the buyer.
- The term CIF should be followed by ______.
- FOB and CFR share one thing that ______.
- The D terms are the arrival contract terms.
- Under ____ term it is especially important for the seller to provide shipment notice to the buyer.
- FOB is a shipment contract term, indicating actual delivery.
- Under the FOB term, ____is paying for the necessary handling of goods until they are loaded on board the vessel.
- FOB is a shipment contract term.
- A country usually offers protection to its domestic industries by taxing imports of different foreign goods.
- If the importer asks for additional insurance coverage, the exporter is expected to effect insurance as required and the expense shall be for the exporter’s account.
- Nations sometimes restrict exports of critical raw materials, high technology, or equipment when such export might harm its own security.
- If goods need to be inspected, the exporter should obtain the mandatory inspection certificates from the authorized institutions before shipping.
- When economies of scale are realized, even though the average cost of each unit is reduced, more profits are able to be generated from selling more units to more markets.
- Besides, the differences in tastes, preferences and consumption patterns cause a nation to import the same item from other nations even if it has enough of a particular item to meet its needs.
- China, has the comparative advantage in the production of textile products and thus will benefit its economy by exporting these goods or exchanging these goods for the products of other nations.
- International trade transactions can refer to the importation and exportation of goods from one country to another.
- The different distribution of the world's resources can not determine the patterns of world trade.
- ____,____,____ and many other reasons are all responsible for the boom in international trade.
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