be reached, neither party can force the other to submit to arbitration. However while resorting to litigation, the plaintiff may take a unilateral action against the defendant without agreement between the two parties in advance.
①The arbitration organization is not an official one. The parties in question can appoint
their own arbitrator respectively, however the third one will be appointed by the arbitration institution. By contrast, judges in litigation should be appointed by the government.
②The award made by arbitrators is final and binding on both parties, that is, neither party
of the dispute shall bring an appeal for revision before a law court or any other organizations. An arbitral award once made has the force of law, but there is no need to register and keep it in a law court. While in the case of litigation, if the parties concerned refuse to obey the verdict, they can retain the right to appeal to a higher court.
96. What are the contents of an arbitration clause?
答：An eligible, effective, complete and accurate arbitration agreement or arbitration clause should have the following elements: place of arbitration, the name of the arbitration body, the applicable arbitration rules, the arbitration award, etc.
Ⅴ. Calculation
41. Company C has a contract to export 10 metric tons of Seafood, to be packed in cartons each of 40 lb. (1 lb＝0.453 58kg), with a 5％ more or less allowed both in quantity
and in amount.
?How many cartons of Seafood can Company C deliver at most? ?How many cartons of Seafood should Company C deliver at least? 解：1 lb＝0.45358kg, so 40 lb＝18.144kg
Maximum: [10×1000kg×(1＋5％)] / 18.144 ＝578.7 (Attention: 0.7 should be deleted here) ＝578 cartons Minimum: [10×1000kg×(1－5％) ] / 18.144 ＝523.6 (Attention: 0.6 should be added here) ＝524 cartons
Answer: ①At most, Company C can deliver 578 cartons of Seafood.
②At least, Company C should deliver 524 cartons.
51. The price quoted by an exporter was “USD38 per case FOB Liverpool”. The importer requested a revised CFR Liverpool price. If the size of each case was 50cm×40cm ×30cm, gross weight per case was 40kg, freight basis was W/M and the quotation for London is USD100 per ton of carriage, plus 20 ％ bunker adjustment factor (BAF) and 10 ％
currency adjustment factor (CAF), what would be the CFR price? 解：W＝40kg＝0.04 m/t M＝50cm×40cm×30cm＝0.5×0.4×0.3
＝0.06cm3 M＞W, M will be used as freight basis for freight calculation Freight per case＝M×basic freight rate×(1＋BAF rate＋CAF rate)
＝0.06×100×(1＋20％＋10％)＝USD 7.8
CFR＝FOB＋Freight＝38＋7.8＝USD 45.80
Answer: The CFR price would be USD 45.80 per case CFR Liverpool.
52. There is one consignment of 10 cartons of leather shoes, measurement of each carton is 50x50x50cm, gross weight of each is 15KG. The air freight rate quoted for the flight required is USD 1.3/KG. How much air freight should be paid to the carrier?
解：W＝15kg (50 × 50 × 50) = 20.83????????3 M =
6000????????M＞W 3Freight＝USD 1.3/kg×20.83×10 cartons＝USD 270.79
Answer: The air freight is USD 270.79.
53. Company A is to deliver a small consignment of Hardware (Total:
120ctn/3cbm/6.5mt) from Shenzhen, China to Berlin, Germany. The LCL ocean freight rate is USD 45.00 per rate ton (1cbm: 1mt). How much is the freight?
解：Total Weight=6.5 m/t
Total Measurement=3 cbm
M > W, so M is used as calculation basis. Total Freight=Basic Freight Rate×Total Quantity
=45.00×6.5=USD 292.50
Answer: The total freight would be USD 292.50.
54. Company B is to export their goods by three 1×20′ FCL Containers from Guangzhou, China to Felixstow, UK. The quotation for FCL ocean freight rate is as follows:
O/F (Ocean freight) rate: USD 750.00/20′ BAF: USD 500.00/20′
CAF: 12% on the freight rate
ISPS: (International ship and port facility security) USD 100.00/20′ How much is the total freight? 解：Total Freight=[O/F×(1+CAF)+BAF+ISPS]×Quantity
=[750×(1+12%)+500+10]×3 =1 350×3=USD 4,050.00
Answer: The total freight would be USD 4,050.00.
55. Company C is to deliver by air 10 sets of Hi-fi Equipments to Paris, France. The total weight is 550 kg and the measurement is 2.5 cbm. The Air freight quoted by a logistics company is as follows:
A/F (Airfreight) rate: CNY 10.00/kg FSC (Fuel surcharge): CNY 11.00/kg SCC (Security surcharge): CNY 1.20/kg How much is the total air freight? 解：Total Freight=550kg Total Measurement: 2.5 m3÷6,000cm3 =2.5×1,000,000 cm3÷6 000cm3=2.5×167≈417kg
W > M, so W is used as the calculation basis. Total air freight=(A/F+FSC+SCC)×Quantity
= (10.00+11.00+1.20)×550=CNY 12,210.00
Answer: The total air freight would be CNY 12,210.00.
61. A Chinese company offered to a British counterpart at USD500 per case FOB
Shanghai. The British importer asked the exporter to offer a CIF price. Suppose the freight is USD 50 per case and premium rate is 0.5％, what would the new offer be?
解：Calculation:
CIF = 500 + 50 = ????????????553
FOB＋F 1= －110％ × R 1－110％ × 0.5%
Answer: The new offer is USD 553 per case CIF Shanghai.
62. Company A transacted with Company B, exporting frozen food under CIF. The total amount of the invoice value was USD 10,00 0. The premium rate was 0. 4％ and the goods were insured for F. P. A. with a markup of 10％. Please calculate the insurance amount and
insurance premium respectively?
解：Calculation
Insurance amount＝CIF×(1＋markup rate)
＝10000×110％＝USD 11, 000
Insurance premium＝CIF insurance amount×insurance rate
＝1100×0.4％＝USD 44
Answer: The insurance amount and insurance premium are USD 11, 000 and USD 44 respectively.
63. Our exporting company offered light industrial products to a British importer at GBP10,000 per metric ton CIF London (insurance for All Risks with 10％ markup and 1％
premium rate). However, the importer intended to effect insurance by himself, as a result, he counter-offered CFR price. What is the CFR price? How much premium should the exporter need to deduct from the CIF price?
解：Calculation: CFR＝CIF×(1－110％×R)＝10000×(1－110％×1％)＝GBP 9890 Insurance premium＝CIF －CFR＝10000－9890＝GBP 110
Answer: The CFR price is GBP 9890 per metric ton CFR London and the exporter should deduct GBP 110 from the CIF price as the premium.