chapter 3 Goods Description and Quantity

1、 Chapter 3 Goods Descriptions and QuantityLearning Objectives Name of Commodity Quality of Commodity Methods of Expressing Quality of Commodity Quantity of CommodityName of Commodity Generally, this clause is relatively simple, we always list the names that in the offer or counter-offer under the ar

2、ticle of Name of Commodity. And sometimes we only write several sentences showing the two parties agreement on the business of some commodity at the beginning of a contract. Name of CommodityAttention: Try to be clear and specific Dont insert unnecessary adjectives Adopt the widely accepted name (cr

3、abapple ) Economize the freight and tariff expenses(thiourea dioxide , Formamidinesulfinic acid ) Quality of goods A. Connotation of Quality B. Significance of Quality in Foreign Trade C. Requirements for Quality in Foreign TradeRepresentation of Quality A. Sale by Samples B. Sale by DescriptionQual

4、ity of Goods In the quality clause we should clearly list the name and detailed qualities of commodities. As commodities are various, the ways showing their qualities are not the same. So the terms of quality must be fit for the characteristics of commodities. Quality Stipulate the flexible range Us

5、e various kinds of expression methods properly Formulate the clause according to actual abilityQuality of GoodsExpression of Product QualityClothSampleBeansDrugsStandardSpecificationTeaCosmeticsAppliancesFurniturePreserved vegetableGradeDescriptionBrandIllustrationOrigina. Sales by Sellers Sample Re

6、presentative Sample Original Sample Type Sample標(biāo)準(zhǔn)樣品 Duplicate Sample Counter Sample Return Sample對(duì)等樣品 b. Sale by Buyers SampleSales by SampleSales by SampleOriginal SampleCounter SampleSample for ReferenceStandard SampleDuplicate SampleSealed SampleRepresentativeIntellectual PropertyBasis of Deliver

7、ySettlement of disputes“Quality to be considered as being about equal to the sample” or “Quality to be similar to the sample” a.Sale by specificationsb.Sale by Gradec.Sale by Standard Fair Average Quality FAQ Good Merchantable Quality GMQd. Sale by Brand or Trade Marke. Sale by name of origin, or by

8、 geographical indicationf. Sale by description & IllustrationSales by DescriptionSales by SpecificationQuality Latitude (品質(zhì)機(jī)動(dòng)幅度品質(zhì)機(jī)動(dòng)幅度)Ex：Rice：Broken Grains 15% Moisture 10% Admixture 2%Tolerance (品質(zhì)公差品質(zhì)公差)（MAX）（MAX）（MAX）How to fix the price? F.A.QSales by StandardG.M.QSales by Trade mark or BrandThe

9、 stable quality should be guaranteed.Contract Clause v Cloth Doll, Quality as per sellers sample No.dated., Quality to be about equal to the sample.v China Grey Duck Down with 90% down content, 1% more or less allowed v China Green Tea Special Chunmee v Tetracycline HCL Tablets (sugar coated) 250mg,

10、 B.P.1973 四環(huán)素四環(huán)素v MAXAM Dental Cream.v Jinhua Ham Sellers ObligationIf the goods do not conform with the contract, the buyer may:q File a claimq Ask for discountq Require delivery of substitute goods q Repair the goodsq Reject the goods or evenq Cancel the contract Quality Clause in Conditions of th

11、e Contract I. Main contents of quality clause In case of “sale by sample”, in addition to the description of commodity, sample number andsending date should be added; if by “Sale by description & Illustration”, details of the contentare required. II. “Quality allowance” and “Quality tolerance” claus

12、e1. Quality allowance A more flexible quality clause for some commodities quality might change because ofnatural wastage .(1) stipulate the range of difference in quality ;(2) stipulate the max or min difference in quality ;(3) stipulate the allowing difference in quality .2. Quality tolerance Allow

13、ing a certain range of common accepted difference, in the quality of some products.Samples of Quality Clauses in ContractsSample NT002 Plush Toy Bear Size 24”Bright Brand Infant Milk PowderFemale Weasel Skin Plate Whole Made 24” , 28” First GradeB601 Tomato Paste 28/30 ConcentrationLive Yellow Eel 7

14、5g and up per pieceChina Sesame seed Moisture (Max) 8%; Admixture (Max) 2%; Oil Content (wet basis ethyl ether extract) 52% basis. Should the oil content of the goods actually shipped be 1% higher or lower, the price will be accordingly increased or decreased by 1%, and any fraction will be proporti

15、onally calculated. The quantity clause mainly includes the quantity and unit of commodity. To facilitate the performance of contract and avoid disputes, the quantity clause should be clear and detailed. In addition , it is improper to use those uncertain words like about 、 circa、approximate to defin

16、e the quantity.Quantity of GoodsQuantity of Goods1. Calculation of QuantityA.The metrology in foreign trade a.The metric system: metric ton=1000 kg.b.The British system:long ton=1016.04690633378 kg.c.US system:short ton=907.184748990598 kg.d.International System of UnitB.Measurement Unit a. By weigh

17、t: kilogram,ton,pound,ounce;b. By capacity:liter,gallon,bushel;c. By number:piece,package,pair,set,dozen,great,ream,unit,head,case,bale,bag;d. By length:yard,meter,foot;e. By area:square yard,square meter,square foot,square inch;f. By volume:cubic yard,cubic meter,cubic foot,cubic inch.C. Methods of

18、 Computing the Weighta.Gross Weight=Net weight +Tareb. Tare= Gross Weight- Net weight c. Net weight = Gross Weight- Tareby real tareby average tareby customary tareby computed tare約定皮重約定皮重d. Other Methodsby conditioned weight公量公量: draw out moisture by scientific method, and add standard moisture by theoretical weight: the weight of commodities with fixed specification and regular volume usually be calculated by its piece. by legal weight: net weight plus direct packing (inner packing) equals legal weight C. Methods of Computing the Weight2. Quant