Савчук. Foreign trade

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FAS – FREE ALONGSIDE SHIP (… '

')

FOB – FREE ON BOARD (… ' ')

' ")

DEQ – DELIVERED EX QUAY & (…

*) (… ' ' ")

DDU – DELIVERED DUTY UNPAID & ' * (…

' ' ")

DDP – DELIVERED DUTY PAID , * (… ' ' ")

Read and translate the following:

(1)

Dear Sirs,

Will you please quote us a price for the supply of 50 (fifty) Airflow bicycles fitted with “New World” three-speed gears, standard brakes, saddle and pump.

Please quote f.o.b. for delivery not later than March. Cash against documents.

Yours faithfully,

T. Robertson.

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And the reply:

(2)

Dear Sirs,

We acknowledge with thanks your inquiry of the 30th November for 50 Air flow bicycles with fittings as specified.

The price for these will be $110 f.o.b., and we can promise you delivery not later than March.

We note that if you decide to place this order, you will pay cash against documents.

Yours faithfully,

B. Hardwell

Export Manager

Then follows the actual order:

(3)

Dear Sirs,

Please supply 50 Airflow cycles fitted with “New World” three-speed gears, standard brakes, saddle and pump for $ 110 f.o.b. as quoted in your letter of 5th December 200…,

Delivery March. Cash against documents.

Yours faithfully,

Roberttson

On receipt of the indent the London Cycle Co. acknowledges the order:

(4)

Dear Sirs,

We acknowledge with thanks your order dated the 11th December for 50 Air flow cycles as specified at a price of $ 110 f.o.b. for delivery in March. The cycles are crated and sent to the London docks. The London Cycle Company, which we

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will imagine to be a firm with a large export department, handles its own shipping business.

Yours faithfully,

B. Hardwell

Export Manager

Answer the following questions:

1.What does an order form show?

2.What does an export clause show?

3.What does fob. stand for?

4.What does foq. stand for?

5.What does cif. stand for?

6.What does fad. stand for?

7.What does ex-works stand for?

8.What does fas. stand for?

9.In a fob. contract what expenses do the sellers pay?

10.In a foq. contract what expenses do the buyers and sellers pay?

BUSINESS TALKS

Act as an interpreter:

A:Could you tell me about export orders?

B:% ", " - '?

A:What information should I include in an Export Order Form?

B:# ' ' " +

* ' ' , : ' ' , + ' +, ) , ,

, , ", ' ", ,

. .

: I see, I know that in foreign trade there are several terms of delivery, socalled Incoterms.

86

B: # * , ) + - , ' " - ' " *- +, "

( " " + 1- ' '.

: Could you name some mostly wide used terms?

B: 2 (, 1 « '», « '"», « » «!, - - ».

: Yes, I know what FOB means. It means that the seller arranges and pays for delivery over the ship’s rails and the buyer arranges and pays for sea freight, insurance, delivery and import taxes. Also the buyer has to find an appropriate vessel for the seller. What does FCA term mean?

B: . « '"» ' ", " +

* * ( " '

'" ' .

: Well, what does CIF term mean?

B: . ! ' ", " + ,

* " ' " '. & + '

- - , - '

' ". /, ! + '

' - '

'.

Translate the following into English:

O" " () '" , ( "

- , '. # '

- '"

- *

- . & - ! %

' (" , 1 * "

- ) '. & - /$ - + (". , ' '

- , + - "

1 +,

. # ' ' -

" - , ",

87

. # "

(" - , " -

' ".

Translate the following sentences into English:

1. . « '» ' ", " + " *

' ,

4 ' ( :', . .).

2. & «& '"» ( +,

' ' ) " '

' , , ' *,

+ 1- .

3. . « » ' ", " + ,

*4 " ' " ' '. 5 ' ", " 1 -

.

4. & + ' - - , -

' ' ",

, ( - , ' () '

, - + .

5. /, (, " + ' '

' ' * 4

- ' ( ' ', 1 "4

() – .

6. #, " ' " – -, «

'», « '

», ' ( - – "

, + /$

.

Export documents are numerous because there are so many organizations involved in export transactions. The services carried out by each organization are represented by a contract and this is shown by a document.

To make it easier to remember them, export documents can be divided into 5 groups. These are as follows: documents of despatch which are to do with the movement of goods from the exporter inside the country to the docks or airport; shipping documents which concern the movement of goods from one country to another; customs forms and official invoices which are special documents required by the importing country and have to be prepared by the exporter. Finally, there are bank documents concerned with payment.

Apart from Customs forms, most of the above are printed in English, though many of them are printed in other languages too. However, we need to understand, not only the language of export documents, but also their layout and the export procedures they represent. For even the forms are printed in other languages than English, export procedures are nearly the same all over the world and their layouts are becoming standardized. This process is being helped by the work of SITPRO (Simplification of International Trade Procedures Board) and many of their forms are widely used.

SITPRO: SIMPLIFYING INTERNATIONAL TRADE

SITPRO Limited, formerly The Simpler Trade Procedures Board, was set up in 1970 as the UK©s trade facilitation agency. Reconstituted as a company limited by guarantee in April 2001, SITPRO is one of the Non-Departmental Public Bodies

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for which the Department of Trade and Industry has responsibility. It receives a grant-in-aid from the Department. SITPRO is dedicated to encouraging and helping business trade more effectively and to simplify the international trading process. Its focus is the procedures and documentation associated with international trade.

SITPRO©s mission is to Make International Trade Easier. The following strategic objectives underpin this mission:

-influencing the simplification of international trade procedures;

-promoting best trading practices;

-developing and promoting international standards for trade documentation;

-working towards better border regulations and the removal of international trade barriers; and

-remaining the world©s premier trade facilitation agency.

SITPRO©s work is guided by its Board and its Advisory Groups. At any time there are about 100 executives and specialists taking part in this work.

THE STANDARD SHIPPING NOTE

The Standard Shipping Note (SSN) enables the shipper to complete one standard document for all consignments irrespective of port or inland depot. By doing so, it provides the receiving authority with complete, accurate and timely data as well as providing all those with an interest in the consignment with adequate information at each movement stage, until final loading on board the vessel or aircraft. The greatest benefit of using the SSN is that receiving authorities receive clear and precise information on how the goods should be handled.

The SSN has been widely and successfully used throughout the UK and has now been updated to take account of changing transport techniques and cargo handling practices, and the introduction of the New Export System (NES).

The SSN should accompany deliveries (general cargo, unit load, containerized) from factories or warehouses to inland clearance depots, groupage depots, ports, airports and other cargo terminals.

However, the SSN must not be used if the delivery includes items classified as hazardous by reference to the relevant national and international regulations applicable to the intended modes of transport. If goods are classified as dangerous in these regulations, the SITPRO Dangerous Goods Note (DGN) 1999 version should be used instead. This incorporates the dangerous goods declaration, shipping and stowage instructions, and container/vehicle packing certificate and is for use by all transport modes except air.

Remember: any inaccuracies and omissions in the data you provide may add confusion, extra costs and delay consignments.

Below are given numbers of boxes and appropriate completion instructions:

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1 - Exporter Name and address of exporter including postcode. 2 - Customs reference/status.

This box should be used by the exporter (shipper) to declare the Unique Consignment Reference (UCR) for the export movement.

For consignments moving by air, including courier, express and fast parcel services, the use of the Air Waybill Number (a unique consignment reference for airfreight) may be used.

3 - Booking number. Booking reference number of carrier (shipping line, airline).

4 - Exporter©s reference. Consignment reference designated by the exporter.

5 - Forwarder©s reference. Consignment reference designated by the forwarder (if any).

6 - Consignee. May be used for name and address of importer/consignee. However, completion of this box is not mandatory.

7 - Freight Forwarder. Name, address of freight forwarder (if any), including postcode.

8 - International Carrier. Name of shipping line, air transport operator or combined transport operator.

9 - Other UK transport details. Information required in this box will differ depending on the consignment in question and the specific information and procedural requirements of receiving authorities and shipping lines.

10 - Vessel/flight no and date and port/airport of loading. Vessel name or flight number and date (if known) and the port or airport of loading e.g. MV Canadian Explorer, Liverpool.

11 - Port/airport of discharge and destination. Name of the port/airport of discharge and the ultimate destination (if inland carriage is included) e.g. Casablanca, Marrakech.

12 - Shipping marks in full, initials or abbreviated name of consignee or buyer, reference number, destination, package number. Alternatively for full container loads the container/seal number may be inserted.

-Number and type of packages - e.g. 25 cartons.

-Description of the goods - it is essential that a full, clear, plain language description of the goods is given to assist HM Customs in export processing and examination (if any).

-Package dimensions of abnormal loads.

-Non-hazardous special stowage requirements (e.g. acceptable temperature requirements).

13A - Gross Weight. The weight of the merchandise in its export packing in kilograms for each separate goods description.