trade.

Passage Twelve

Advice Instructions packages sailing informing loaded

Before shipment, the buyer generally send his shipping requirements to the seller, ___________the seller in writing of the packing and marks, mode of transportation, etc., known as the Shipping ___________. On the other hand, the seller (or the exporter) usually sends a notice to the buyer immediately after the goods are ___________on board the ship, advising him of the shipment, especially under FOB or CFR terms. Such a notice, known as the Shipping ___________, may include the following: Contract and/or L/C No., name of the commodity, number of ___________, total quantity shipped, name of vessel and its ___________ date and sometimes even the total value of the goods. Passage Thirteen

turn determined meet calculate left investments

Insurers may refuse to underwrite a certain risk either because they cannot ___________ the likelihood of its happening, or because they lack the financial strength to cope with it. That financial strength is ____________ by the size of their capital and surplus----what is ____________ once an insurer’s liabilities have been deducted from its assets which include premiums and income from ___________. Most regulators require insurance companies to___________ minimum solvency standards for this capital and surplus. Insurers may also ____________ down risks because they cannot buy reinsurance---insurance for insurers. Passage Fourteen

Customs authorities work closely with the central bank to ____________ that goods are only imported or exported in accordance with current regulations. They have to ____________ duty, where applicable, on a weight or quantity basis or ad valorem; and they must ____________ that the goods are being sold at the current market rate ruling in the country of origin to prevent dumping and the illegal transfer of funds outside the country.

Customs ____________ are required for both imports and exports. Some commodities may be actually shipped before an entry is ____________; in this case the shipping note sent to the wharf-masters will be ____________“Pre-entry not required”.

Passage Fifteen

terms languages according presented differ conformity

It is not a simple job to make all documents errorless because the requirements ___________ from country to country, for example, types of documents needed, forms of documents, contents of documents, ___________ used in the documents, etc. To ensure timely payment, exporters should check all the documents carefully before these documents are ___________. In general, it is important to maintain ___________ between all the documents relating to the same transaction. For example, the description of goods, the value of the goods, and other ___________ in different documents should be the same. If documentary credits are used, then all the documents must be made out ___________ to the L/C terms. More details should be given when documents are discussed individually. Passage Sixteen

beneficial maintained settled litigation arise alternative

In international trade, when disputes ____________ between the exporter and the importer, it can be ____________ through friendly consultation, mediation, arbitration or litigation. Friendly negotiation or mediation is the best method of all and____________ to both parties. If the disputes are settled by this way, friendly business relationship is to be ________ between exporters and importers. If the disputes cannot be settled through amicable negotiation or mediation, arbitration will be the next best____________, as ___________ is usually costly and time-consuming.

VI. Translate the following English sentences into Chinese.

1. International trade is the exchange of goods and services between countries. It is also known as world trade, foreign

trade or overseas trade.

2. Trade may occur because of economies of scale, that is, the cost advantages of large-scale production.

3. Visible trade refers to exports and imports of goods, while invisible trade refers to an exchange of services or assets

between countries.

4. If a country’s exports exceed its imports, it has a trade surplus and the trade balance is said to be positive. If imports

exceed exports, the country has a trade deficit and its trade balance is said to be negative.

5. A tariff is a tax levied on a commodity when it crosses the boundary of a customs area which usually coincides with

the area of a country.

6. A quota limits the imports or exports of a commodity during a given period of time.

7. Under the trade form of agent, the principal sets the retail price, retains title and controls the goods, and the profits

and risks of losses remain with the principal unless the agent is a del credere one.

8. Unlike agents, distributors buy from the principals on their own account and take title to them and resell them to their

customers in their area.

9. Countertrade is an umbrella term that includes all forms of the exchange of goods for goods.

10. In this way, the two countries can exchange their products without using their limited reserve of foreign exchanges. 11. Offset is a practice in which the seller has to undertake some sort of activity favorable to the importer in addition to

the supply of the capital goods.

12. The goods exported on the consignment remain the title to the exporter. The exporter is not paid until the goods are

sold in the overseas market.

13. Trade terms, also called price terms or delivery terms, are an important part of a unit price in international trade,

standing for specific responsibilities and obligations of both the buyer and the seller.

14. It is a set of uniform rules or the interpretation of international commercial terms defining the costs, risks, and

obligations of buyers and sellers in international trade.

15. FOB means that the seller delivers when the goods pass the ship’s rail nominated by the buyer at the named port of

shipment.

16. Hence, the “C”-terms are different from all other terms because they contain two “key” points, one indicating the

point to which the seller is bound to arrange and bear the costs of carriage and another one for the allocation of risk. 17. Therefore, the “D”-terms mean arrival contracts, while the “F” and “C”-terms mean shipment contracts and the

“E”-terms mean departure contracts.

18. For example, it is appropriate to select CIF if the term of payment agreed by the parties is documentary L/C but not

appropriate to select DES.

19. In order to make sure of this, he may first provide a sample produced according to the buyer’s original sample and

send it to the buyer for confirmation. This sample is a counter sample.

20. FAQ means a quantity of a product that is offered not on a particular quality specification but on the basis that is equal

to the average quality of the current group or recent shipment.

21. Tolerance means the permissible range within which the quality supplied by the seller may be either superior or

inferior to the quality stipulated in the contract.

22. It is sometimes difficult to ship the exact quantity of the commodity, then a “more or less clause”, also called “plus or

minus clause”, may be used to allow some tolerance in the quantity.

23. Generally speaking, unless there is a stipulation that the quantity of the goods must not be exceeded or reduced, a

tolerance of 5% more or 5% less will be permissible.

24. Packing should be designed according to the need of the cargo. Bulk cargoes require little packing. General

merchandises require adequate packing of various types.

25. The container transport offers a door to door service under FCL/FCL, door to cfs (container freight station) service

under FCL/LCL(less than Container Load), cfs to cfs service under LCL/LCL, and cfs to door service under LCL/FCL.

26. This means the carriage of cargos by at least two modes of transport on the basis of a multimodal transport contract

and only one multimodal transport operator (MTO) is responsible for taking the cargo from the consignor and delivering them to the consignee.

27. Under a FOB, CFR or CIF contract, port of shipment is usually proposed by the exporter and is stipulated in the

contract when confirmed by the importer.

28. “Partial shipment” is also called shipment on installments. It means that the goods under one contract are shipped in

different terms or by different lots.

29. The losses can fall into total loss and partial loss. Total loss of goods can further be divided into actual total loss and

constructive total loss. Partial loss can be either general average or particular average.

30. General average is in use when both the ship and the goods on board are endangered and the captain, for the safety of

the ship and the goods on board, intentionally and reasonably does some sacrifices or makes some expenses. Particular average means a partial loss suffered by part of the cargos.

31. It should be noted that “All Risks” does not, as its name suggests, really cover all risks.

32. No additional risk can be purchased to insure goods independently. Additional risks include general additional risks

and special additional risks.

33. An open policy covers these shipments, as soon as they are made, under the previous arrangement between the

insured and the insurer.

34. A unit price consists of four parts, which are currency unit, unit price figure, measuring unit and price terms.

35. Total amount, as its name suggests, is the sum of the money for one business transaction. It equals to the unit price

multiplied by the quantity of the goods.

36. Money of account is the currency used for price calculation. Money of payment is the currency for settlement. 37. An exchange proviso clause may be stipulated in the contract to reduce the foreign exchange risks.

38. Commission may be indicated in price clause which is called plain commission. It is often represented by a capital

letter “C” followed a percentage of commission rate which is inserted into the price term. 39. The unit price is not a net price but a commission-included price.

40. Then the local bank entrusts the correspondent bank to pay the money to the seller by mail transfer (M/T), telegraphic

transfer (T/T) or demand draft (D/D).

41. It is a kind of banker’s credit, which means that the banker is responsible to pay money and tender documents on

behalf of both parties.

42. A confirmed L/C means the undertaking of a bank in the exporter’s country besides that of opening bank. It means

that the confirming bank will pay if the issuing bank cannot pay.

43. The person who draws the draft, usually the exporter, is called the drawer, and the person to whom the draft is drawn

is called the drawee. There is another party, payee, the person receiving the payment.

44. D/P calls for actual payment against transfer of shipping documents. There are D/P at sight and D/P after sight. 45. Inspection certificates are used to show whether the goods are in conformity with the terms of contract.

46. Sometimes, a penalty clause should be included in the contract in case one party fails to carry out the contract such as

non-delivery, delayed delivery, delayed opening of L/C.

47. In case of a force majeure event, the party who quotes the clause should give prompt notice to the other party within

the specified time limited.

48. An award is the decision made by the arbitration tribunal.

49. An arbitration agreement or the arbitration clause in the contract shall provide that which party is to bear the

arbitration fees.

50. Under L/C term of payment, the exporter looks to the bank for payment instead of relying on ability or willingness of

the importer to pay, but the exporter cannot get payment unless he obeys all the terms in the L/C.

51. By issuing a credit, the bank assumes full responsibility for payment after the proper drafts and documents have been

presented.

52. Beneficiary is the party in whose favor the L/C is issued, and who is entitled to receive the payment, that is, the

exporter.

53. In this step, the buyer shall fill up the application with commodity name, quality, quantity, unit price, total value, trade

term, date of payment, packing, shipping period and so on. It is very common for a buyer to clearly specify a period of validity of the L/C.

54. Generally speaking, the L/C should arrive to the seller at least 15 days before the time of shipment to allow sufficient

time to check and amend, if necessary, the L/C and to arrange shipment.

55. If the notification involves two or more clauses, he relevant parties have to accept or reject them all according to

practice, and can not accept one part while reject the other parts of them.

56. Forwarding agents are experts in the transportation field with an up-to-date and specialized knowledge of different

modes of transport and relative freight rates.

57. Freight can be calculated per metric ton on weight (weight ton) and this method is marked with “W”. It can be also

calculated on measurement ton and this method is marked with “M”.

58. For valuable cargoes, ad valorem freight rate is charged in proportion to the estimated value of the cargo and this

method is marked with “Ad Val.”

59. The characteristics of air freight are that the freight is charged for airport to airport (single trip) only, and it is the

freight only, excluding other charges such as customs fees and storage fees.

60. Demurrage and dispatch are considered as a way of encouraging timely shipment. 61. A bill of lading represents the title to the goods.

62. The liability undertaken by the insurance company is on the basis of insurance coverage.

63.Should the buyer wish to have the protection of greater cover, he would either need to reach an

agreement with the seller and specify definitely in the contract or to make his own extra insurance arrangement.

64. The insured amount is the highest compensation amount undertaken by the insurer, and it is also the foundation for

calculating the insurance premium.

65. So both the insurance clauses adopted in different countries and the international trade practices stipulate that the

insured amount may be a certain percentage over the actual value of the insured goods.

66. Insurance underwriters take a number of specific factors into consideration when they decide on the rate of insurance

premium.

67. Generally speaking, the premium for one insurance contract is equal to the insured amount multiplied by the premium

rate.

68. Cargo transport insurance is usually taken out on “warehouse to warehouse” basis.

69. If the insured amount is not specified in the sales contract, according to the usual practices, it is the CIF or CIP price

plus 10% CIF or CIP price.

70. In case of loss or damage, the consignee shall determine who will be responsible for the loss or damage, and thus

determine the party against whom he should raise a claim.

71. Any person who files a claim should have the insurable interest.

72. The importer or the exporter must submit declarations to customs on goods entering or leaving Chinese territory. 73. Only after release by the customs may the cargo be discharged or loaded.

74. The examination of the cargo by the customs is a measure to prevent any illegal cargos being imported into or

exported from China.

75. Over-landed cargo is cargo discharged at a port in excess of the amount contracted for.

76. Over-carried cargo relates to goods, destined for a port but not actually discharged there, due to error or overweight,

and which are carried on to the next port.

77. A shipping order covers cargo intended for export, and a Bill of Lading refers to goods intended for import. 78. The involvement of customs is essential as duty is abated on damaged goods.

79. The general rates apply to the goods imported from and produced or manufactured in countries or regions with which

China has concluded no agreement for reciprocal tariff preference. The preferential rates apply to the goods imported from and produced or manufactured on countries or regions with which China has concluded such an agreement.

80. The customs valuation of import and export goods shall be determined by the customs on the basis of the transaction

value of the goods.

81. In the case that the duties are over-levied, the customs, upon discovery, shall refund the money without delay

82. The exporter is responsible for ensuring that the documents for the transport of the goods are complete, accurate and

properly and promptly processed in accordance with the sales contract.

83. Shipping note, packing list, bill of lading, consignment note and multimodal transport document are all examples of

this category.

84. The accordance between documents and L/C and between documents and documents are the key in L/C settlement. 85. In L/C settlement, banker’s negotiation is merely based on L/C and documents rather than on the terms of sale or the

condition of the goods sold.

86. He should submit the documents to banks for negotiation before the maturity and presenting date of L/C.

87. The negotiating bank in turn collects the payment from the paying banks, exchanges the foreign exchange collected

for local currency.

88. If the bank confirms that the documents were correct, he will send them to importer for further examination.

89. Disputes about buyer’s refusal or failure to fulfill an obligation as stipulated in the contract mainly cover non-payment,

late payment, failure to take delivery of the goods and so on.

90. No matter whether the arbitrators are appointed by the two parties themselves or selected from the panels, they should

remain impartial and the number of them should be odd.

91. The parties should automatically execute the arbitral award within the time limit specified in the arbitral award.

92. But there are also other cases in which the buyer intentionally lodges a claim against the seller due to the decline of

the market price or for some other unfavorable factors. Such a claim is commonly known as a market claim.

VII. Translate the following English sentences into Chinese.