Chapter 1 Customer Development and Business Negotiation 1
Ways to Find a Customer 1
1.1 Trade Fair 1
1.2 Yellow Pages 1
1.3 Businesses-to-Business Gateways 2
1.4 Search Engines 3
1.5 Foreign Agencies 4
1.6 Foreign Wholesalers 4
1.7 Commission Agents 4
International Market Research 5
1.8 Market Research 5
How to Conduct Market Research？ 6
1.9 Primary Research 6
1.10 Secondary Research 7
General Procedures to Conclude a Contract 8
1.11 Enquiry 8
1.12 Offer 8
1.13 Counter-Offer 9
1.14 Acceptance 9
Writing a Developing Letter 9
1.15 Discussion 9
1.16 What Makes a Qualified Developing Letter？ 10
1.17 Developing Letter Modification 11
1.18 Some Tips to Write a Developing Letter 11
1.19 Group Work 12
1.20 How to Tackle the Most Common B2B Sales Objections 13
1.21 Discussion 14
Chapter 2 Description of Goods 16
Quality of Goods 16
2.1 Methods of Describing Quality of Goods 16
2.2 Quality Allowance or Tolerance 17
Quantity of Goods 18
2.3 Units of Measurement 18
2.4 Conversion of Different Measurement 18
2.5 Methods of Calculating Weight 19
2.6 More or Less Clauses 19
2.7 Quantity in L/C Transitions 20
Packaging of Goods 20
2.8 Transport Packaging 20
2.9 Sales Packaging 20
2.10 Shipping Marks 20
2.11 Shipping marks in ISBP 2013 21
2.12 Neutral Packing 21
Chapter 3 Incoterms 22
Brief Introduction of Incoterms 22
3.1 Brief Introduction of International Trade Terms 22
3.2 Role of Trade Terms 23
3.3 Directions of Incoterms 2010 23
3.4 Classification of the 11 Incoterms 2010 Rules 23
3.5 Explanations of Terms Used in the Incoterms 2010 Rules 24
3.6 Group Study 24
Specific Explanations of Trade Terms 25
3.7 Group Work 69
3.8 Group Discussion 70
3.9 Tips to Select a Trade Term 70
Calculating the Export Prices 71
3.10 Converting of the Export Prices under Different Trade Terms 71
3.11 Cost of Export 72
3.12 Export Price 73
After-Class Practice 75
True or False Judgement 75
Multiple Choices 75
Chapter 4 Instruments of International Payment 77
Bill of Exchange 77
4.1 Main Parties of Bill of Exchange 77
4.2 Main Items of Bill of Exchange 77
4.3 General Procedures to Use a Draft 78
4.4 Classification of Draft 80
Promissory Note 80
4.5 Main Parties of Promissory Note 81
4.6 Main Items 81
4.7 Classification of Promissory Note 81
Check 81
4.8 Main Parties of Check 81
4.9 Main Items 82
4.10 Classifications of the Check 82
4.11 Comparisons among the Three Types of Instruments 82
After-Class Practice 83
True or False Judgement 83
Multiple Choices 83
Chapter 5 Traditional Ways of International Payment 84
Remittance 84
5.1 Main Parties 84
5.2 Workflow of T/T 85
5.3 Utilization of Remittance in International Trade 85
Collection 86
5.4 Main Parties of Documentary Collection 86
5.5 Types of Collection 87
5.6 Ways of Releasing Documents 87
5.7 General Cautions and Notes 90
After-Class Practice 91
True or False Judgement 91
Multiple Choices 91
Chapter 6 Letter of Credit 92
Related Concepts 92
6.1 Definition of Letter of Credit in UCP600 92
6.2 Characteristics of Credit 93
6.3 Role of Credit 93
6.4 Discrepancy 94
Banks in Letter of Credit 94
6.5 Issuing Bank's Roles and Responsibilities 94
6.6 Advising Bank's Roles and Responsibilities 94
6.7 Nominated Bank's Roles and Responsibilities 95
6.8 Negotiating Bank's Roles and Responsibilities 95
6.9 Confirming Bank's Roles and Responsibilities 95
6.10 Paying Bank's Roles and Responsibilities 95
6.11 Reimbursing Bank's Roles and Responsibilities 95
SWIFT Messages in Letters of Credit 96
6.12 Main SWIFT Message Types Used in L/C Transactions 96
6.13 MT 700 Issuing a Documentary Credit 97
Workflow of Letter of Credit 99
6.14 Issuing a L/C 99
6.15 Checking and Amendment 100
6.16 Recommended Steps to Check a L/C 101
6.17 Preparing Documents 101
6.18 Availability of L/C 102
Types of Letter of Credit 106
6.19 Confirmed and Unconfirmed Documentary Credit 106
6.20 Sight,Deferred,Acceptance and Negotiation Credit 106
6.21 Transferable Letter of Credit 107
6.22 Back-to-Back Letter of Credit 108
6.23 Usance Credits Payable at Sight 109
After-Class Practice 109
True or False Judgement 109
Multiple Choices 109
Chapter 7 Modern Methods of International Payment 111
PayPal 111
7.1 Procedures to Use PayPal as the Seller 112
7.2 Advantages of PayPal Payment 112
7.3 Disadvantages to the Sellers 112
West Union 113
7.4 The Procedures to Use Western Union Money Transfer as a Seller 113
7.5 Characteristics of West Union 113
Credit Card 113
7.6 Procedures to Use a Credit Card Payment for the Seller 114
7.7 The Advantages and Disadvantages to Use Credit Card 114
Chapter 8 International Trade Financing 115
Export Bill Discounting 115
8.1 Application Scope 115
8.2 Process 115
Bill Purchase 116
8.3 Functions 116
8.4 Process 117
Packing Loan 117
8.5 Functions 117
8.6 Process 117
Two-Factor Export Factoring 118
8.7 Features 118
8.8 Process 119
Forfaiting 119
8.9 Functions 120
8.10 Features 120
8.11 Process 121
Issuing L/C with Credit Line 121
8.12 Functions 121
8.13 Process 122
Import Bill Advance 122
8.14 Features 122
8.15 Process 122
Import Hui Li Da 123
8.16 Features 123
8.17 Process 123
Multi-Currency Import Hui Li Da 124
8.18 Features 124
Two-Factor Import Factoring 125
8.19 Features 125
8.20 Process 125
Shipping Guarantee 126
8.21 Features 126
8.22 Process 126
8.23 Case Study 126
Chapter 9 International Cargo Transportation 129
Marine Cargo Transport 129
9.1 Advantages 129
9.2 Limitations 129
9.3 Parties Involved in the Chain of Marine Transport 129
Liner Transport 131
9.4 Main Features of Liner Transport 131
9.5 Liner Freight 132
9.6 Basic Standards for Charging Liner Freight 132
Chartering Transport 133
9.7 Features of Chartering Transport 133
9.8 Types of Chartering Transport 134
9.9 Relevant Legislations 136
Air Transportation 137
9.10 Advantages of Air Transportation 137
9.11 Limitations of Air Transportation 138
9.12 Types of Air Transportation 138
9.13 Air Freight 139
Multimodal Transportation 139
9.14 Advantages of Multimodal Transportation 139
9.15 Limitations of Multimodal Transportation 140
9.16 MTO 140
9.17 Relevant Legislations 140
Container Transportation 140
9.18 Relative Terms 141
9.19 Different Types of Container Shipping 141
9.20 Container Rates 142
After-Class Practice 142
True or False Judgement 142
Multiple Choices 142
Chapter 10 Transport Documents 144
Bill of Lading 144
10.1 Bill of Lading in Letters of Credit Transactions 144
10.2 Special Hints on Bill of Lading from ISBP 2013 146
10.3 Workflow of Bill of Lading 146
Classification of Bill of Lading 146
10.4 Bearer,Order and Straight Bill of Lading 146
10.5 Received for Shipment and on Board Bill of Lading 147
10.6 Through,Combined,and Multimodal Transport Bill 147
10.7 Multimodal/Combined Bill of Lading in L/C Transactions 148
10.8 Comparisons between Through and Combined Bill of Lading 148
10.9 Special Hints on Transport Document Covering at Least Two Different Modes of Transport from ISBP 2013 149
10.10 Freight Prepaid Bill 149
10.11 Long Form and Short Form Bill of Lading 149
10.12 Clean and Unclean Bill of Lading 150
10.13 Charter Party Bill of Lading 150
10.14 Charter Party Bill of Lading in L/C Transactions 150
10.15 Special Hints on Charter Party Bill of Lading from ISBP 2013 151
10.16 House and Master Bill of Lading 151
10.17 Difference between House and Master Bill of Lading 152
10.18 Is Freight Forwarder's Bill of Lading Acceptable under L/C Transactions？ 152
10.19 L/C Example with House Bill of Lading Presentation 152
10.20 Ante-Dated and Advanced Bill of Lading 153
10.21 Stale Bill of Lading 153
10.22 Electronic and Telex/E-mail Release Bill of Lading 155
Sea Waybills 156
10.23 When Sea Waybills are Used 156
10.24 Presentation of Sea Waybill 157
10.25 Similarities and Differences of Straight B/L and Sea Waybills 157
10.26 Sea Waybill in L/C Transactions 157
10.27 Special Hints on Non-Negotiable Sea Waybill 158
Air Transport Document/Air Waybill 158
10.28 Air Transport Document/Air Waybill in L/C Transactions 160
10.29 Special Hints on Air Transport Document from ISBP 2013 160
10.30 Master and House Air Waybill 161
10.31 Main Features of a Master Air Waybill 161
10.32 Main Features of a House Air Waybill 161
Road Transport Document/Road Consignment Note 162
10.33 Road Transport Document/Road Consignment Note in L/C Transactions 162
Rail Transport Document/Rail Consignment Note 163
10.34 Rail Transport Document/Rail Consignment Note in L/C Transactions 164
After-Class Practice 164
True or False Judgement 164
Multiple Choices 165
Chapter 11 Transport Insurance for International Trade 166
Importance of Cargo Insurance 166
11.1 Cargo Insurance 166
11.2 The Consequences of not Insuring Your Goods 166
11.3 Insurance Terms and Duties 167
11.4 Managing the Risk 167
Risk Coverage 168
11.5 Risks 168
11.6 Marine Losses（Total Loss and Partial Loss） 169
11.7 Total Loss 169
11.8 Partial Loss 170
11.9 Maritime Charges 170
Institute Cargo Clauses 171
11.10 Types of Insurance under ICC 2009 171
11.11 Institute Cargo Clauses（A） 172
11.12 Exclusions 172
11.13 Duration（Transit Clause） 173
11.14 Termination of Contract of Carriage 173
11.15 Institute Cargo Clauses（B） 174
11.16 Institute Cargo Clauses（C） 174
11.17 Institute War Clauses（Cargo） 174
11.18 Institute Strikes Clauses（Cargo） 174
PICC（People's Insurance Company of China） 174
11.19 Types of Marine Cargo Insurance under PICC 2009 175
11.20 Exclusions 175
11.21 Duration 176
Liability Insurance for Freight Forwarders 177
11.22 Insurance Mediation Directive（IMD） 177
11.23 Advising the Freight Forwarder 177
11.24 Right of Lien 178
Obtaining Cargo Insurance 178
11.25 Open Cover 178
11.26 Voyage Policy 179
11.27 How to Claim on Your Policy 179
11.28 Pursuing Litigation 180
After-Class Practice 180
True or False Judgement 180
Multiple Choices 180
Chapter 12 Other Clauses in International Trade 182
Arbitration 182
12.1 The Definition of Arbitration 182
12.2 Characteristics 183
12.3 The Differences between Arbitration and Legal Actions 183
Force Majeure 184
12.4 Definition of Force Majeure 184
12.5 Stipulate the Force Majeure Clause in a General Way 184
12.6 Stipulate the Force Majeure Clause in a Way to List the Contents 184
12.7 Stipulate the Force Majeure Clause in a Way to Colligation 185
References 186