homework-国际贸易实务课后题
Homework of Chapter 3 --Term of Intl. Trade
I. True or False. For the false statement, please state the specific reasons.
1) Price terms are mainly applied to determining the prices of commodities in international trade. ( F Price term is used toindicate the international trade import and export commodity price structure, both parties shall bear their respectiveresponsibilities, the share of the cost borne and risk transfer of ownership and term.)
2) As an exporter, you concluded a deal with an American on basis of EXW; then your transaction risk is reduced theminimum degree. ( T )
3) On CIP terms, the seller must pay the freight rate and insurance premium as well as bear all the risks until the goods havearrived at the destination.
( F This term obliges the seller to contract for insurance and pay the insurance premium for the carriage of the goods inaddition to whatever should be covered under CPT. The transfer of risk happens when the seller delivers the goods to thecarrier he chooses at the place of shipment.)
4) DES means that the seller must deliver the goods to the buyer at the destination on his own charges and at his own risks. (T )
5) If you have signed a contract with a Japanese buyer on the basis of FOBST, you must be responsible for stowing andtrimming the goods at your own expense. ( T )
6) CFR Landed in indicate that the seller must guarantee the arrival of the goods at the destination without any damage.(F The seller is only responsible for covering the transport charges under the contract of carriage, the ocean freight and anyother handling charges due to contingencies or not included in the contract of carriage would fall upon the buyer.)
7) The main difference between a CIF contract and a DES contract lies in the fact that former is a symbolic delivery of goods,whereas the latter is a physical delivery of goods. (T )
8) The common feature of an FOB contract and an FAS contract is that the seller must load the goods on a named ship.(F The common feature of FOB and FAS contract is that the seller is called upon to deliver the goods to a carrier appointedby the buyer. But on FAS terms the seller needs only to put the goods within the reach of the ship’s tackle. It is notresponsible for loading the goods on board.)
9）Both DAT and DAP should be followed by named place of destination. ( T )
10) According to Incoterms 2010 under DAP the buyer is not responsible for unloading the goods from the arriving vehicle atthe place of destination.
(F Under DAP at the time of delivery the risk and cost related to unloading the goods are for the account of the buyer.)II. Suppose you are an exporter and your business place is in China; you judge if the following statements are correct or notand give your reasons.
1)Offer 1,000 bales of Cotton Price Goods at USD 150 per bale FOB New York.
Incorrect. On FOB terms the seller’s responsibilities end when he delivers the goods at the port of shipment, that is, at one ofthe ports of China.
2) We accept your offer for 500 paper cases of Chinese Black Tea at USD 400 per case CIF Shanghai.
Incorrect. On CIF terms the seller pays for transportation and insurance till the goods reach the destination; the terms shouldbe followed by the port of destination.
3) Your order for Bitter Apricot Kernels at USD 15 per kilo CPT Liverpool has already been delivered.Correct. According to CPT terms we can know it.
4) We appreciate your quotation for DD Raincoats at USD 100 per dozen CIP Guangzhou, but the price is rather on the highside.
Incorrect. On CIP terms the seller pays for transportation and insurance till the goods reach the destination; the terms shouldbe followed by the port of destination.
5) Your counter-offer for Fairy Brand Leather Shoes at CAND 50 per pair CFR Vancouver has been well received.Correct.
6) We shall execute as soon as possible your order for 1,000 sets of Flying Fish Typewriters at USD 30 per set FCA Beijing.Correct.
7) We confirm having sold to you 2,000 dozen Pillow Cases at French Francs 50 per dozen FOB Marserlles.
Incorrect. On FOB terms the seller’s responsibilities end when he delivers the goods at the port of shipment, that is, at one ofthe ports in China.
8) Referring to your enquiry of July 15, we quote as follows: Sharp Vacuum Cleaner 500 sets USD 120 per set.
Incorrect. On DES terms the seller must put the goods under the actual control of the buyer at the port destination; a port ofdestination should be attached to DES.
9) We offer Chinese Tin Plate DDP Shanghai Reply here July 10 .
Incorrect. On DDP terms the seller must physically deliver the goods to the buyer at a named place in the import country, thatis, a named place of destination should be added to DDP terms.
10) Our Sales Confirmation No. 9405 for 1,000 Sewing Machines at USD 45CIF Hong Kong is being airmailed today.Correct.III. Case study
1) A Chinese import and export company concluded a Sales Contract with a Holland firm on August 5, 2000, selling a batchof certain commodity. The contract was based on CIF Rotterdam at USD 2500 per metric ton. The Chinese companydelivered the goods in compliance with the contract and obtained a clean-on-board Bill of Lading. During transportation,however, 100 metric tons of the goods got lost because of rough sea. Upon arrival of the goods, the price of the contractedgoods went down quickly. The buyer refused to take delivery of the goods and effect payment and claimed damages from theseller. How would you deal with this case?
In this case, the contract between the seller and buyer was on CIF terms, so it was not right for the buyer not to take deliveryof the goods. According to CIF terms, the seller’s responsibilities ended when he loaded the goods on board of the ship andpaid the freight and insurance premium; the risk separation was the side of the ship; the risks were transferred to buyer orother parties concerned after the seller put the goods on board. Since the documents presented by seller were right andproper, the seller could directly get paid from the Issuing Bank of the L/C.
However, part of the goods got lost due to rough sea, it is not the case because there are other two sub-contracts existing onCIF terms-I/P and Bill of Lading. In this case the buyer could claim damages with the insurance company, but he had to takedelivery of goods. The actual reason for the buyer’s refusal to accept the goods in this case was that the prices of goods weregoing down. This is unjustified.
2) A Chinese trading company E concluded a transaction in steel with a Hong Kong company W on the basis of FOB ChinaPort. Company W immediately resold the steel to Company H in Libya on the terms of CFR Liberia. The L/C form W requiredthe price terms to be FOB C hina Port and the goods to be directly delivered to Liberia. The L/C also required “FreightPrepaid” to be indicated on Bill of Lading. Why did Company W perform so? What should we do about it?
In this case the contract was concluded between Company E and Company W on FOB term, according to which the seller(Company E) ended his responsibilities when he delivered the goods on board the ship at the port of shipment. He did notneed to pay for transportation of the goods or the insurance premium. Therefore, it was not right for W to ask E to pay thefreight and indicate “Freight Repaid” on the Bill of Lading. The reason why W asked E to do that might be that he wanted totransfer the freight charges to E.
However, in practical dealings, foreign trade companies often come across such situations, especially when a contract isconcluded with an agent, who wants to resells the goods. In this case, E might comply with W’s request, but he had toindicated that the freight should be borne by W.
