1、Chapter Three Commodity,I Name of the Commodity II. Quality of the Commodity III Quantity,I Name of the Commodity,Points to be noted when deciding the commodity name: Commodity name must be clear and specific. It should reflect the usage, nature and special feature. The description of the commodity
2、must be realistic without any modifiers. It is advisable to use commonly accepted name in the international market. Choose proper name to avoid unnecessary import restrictions or additional tariff.,II. Quality of the Commodity,Importance of Quality Requirements for quality Ways to Express Quality Qu
3、ality Clause,Importance of Quality,Definition Importance of quality Condition of Contract,Definition:,Quality of Goods is a combination of the innate quality and appearance. The former refers to the natural property, such as, physical and mechanical capability, chemical components and bio-feature, e
4、tc. The latter refers to the appearance, color, style and transparency.,Importance of quality,Quality of commodity may affect not only the practical value of the commodity but also the price. In the competitive market quality is another decisive factor to gain the market share besides price.,Quality
5、 requirement for export products,Adapt the quality to the requirements of the market and consumerupdate the product quality The quality of export goods must meet the legal requirement of the importing country. The quality of the products must be adapted to the climatic condition, change of the seaso
6、n and mode of sales.,Quality requirement for import products,Import products must meet the health and hygienic requirement The quality of import goods must be decided by the buying power of the local people.,Ways to Express Quality,Quality expressed by goods Quality expressed by description,Quality
7、expressed by goods,Sales by actual quality ：limited application: auction, fair, consignment Sales by sample: garments, shoes, bags, etc. products with different designs and colors which cant be defined scientifically b-1 Quality as per sellers sample b-2 Quality as per buyers sample b-3 Counter samp
8、le b-4 Confirming / approval sample B-5 shipping sample,Quality expressed by description,Sales by Specification of Goods (Contents, purity, length, thickness, ingredients, etc. ) Sales by Grade of Goods (mineral contents or ore) Sales by Standard (FAQ: agricultural produce) Sales by Descriptions and
9、 Illustrations (machinery, instruments, etc.) Sales by Trade Marks or Brand Names ( cars, watches, digital products, etc. anything with famous brand names) Sales by Name of Origin (any place that is famous for producing sth. E.g. Maotai wine.),Fair Average Quality (FAQ),c-1 Average quality of one ye
10、ars crop: (It is decided by selecting samples after harvesting and announcing the result of the sampling.) c-2 Average quality of a season or a shipment month.,Quality Clause:,“Quality is to be considered being about equal to the sample” Set quality tolerance e.g. 35% Set size or weight range: 35/36
11、 inch in width; 4.55 lbs/dz,Quantity,Units of Quantity Means of Measuring Quantity Quantity terms,Units of Quantity,Weight :ton, kg. lb. ounce mineral, grain, etc. Number: set, bar, cake, piece, dozen, ream(令）,gross(罗12dzs) bag, bale etc Length: meter, inch(.0254), yard(.9144), feet(.3048=12in), etc
12、. cloth, rope Area: square meter, square feet, etc. carpet, glass sheet, leather Volume: cubic meter, wood, natural gas Capacity: liter, quart ，bushel; grain, liquid,Means of Measuring Quantity,Net Weight Gross Weight Gross for Net TARE皮重 Conditional Weight公量 公量=干净重x (1+公定回潮率）,Quantity terms:,Be spe
13、cific Set quantity tolerance Specify the price for more or less quantity,Quantity by Weight,Metric system: Metric ton /MT(1000kg), kg, gram/g, British system: Long ton/LT (1016.04kg), pound/lb (453.6g), ounce/oz(35.27g) American system: Short ton/ST(907.18kg),Quantity by number,Piece, pair, set（套），d
14、ozen （打）， Roll（卷），ream（令），gross（箩）bag (sugar: Cuba:133kg，Brazil: 60kg), bale（包）(Cotton: China:250lbs, Am: 480lbs, Brazil:396.8lbs, Egypt: 730lbs),Quantity by length,Used for cable, rope, silk and piece-goods Meter/m: 100cm Centimeter/cm, millimeter/mm Foot/ft: 30.48cm Yard/yd: 91.44cm Inch/in: 2.54c
15、m Mile: 1609m,Quantity by Area,Used for glass, carpet, fur, leather Square meter Square foot Square yard,Quantity by Volume(体积）,Used for natural gas or chemical gas Cubic meter Cubic foot Cubic yard,Quantity by Capacity（容积）,Used for grain or liquid Bushel: (linen seeds: 56lbs, oat: 32lbs, bean and w
16、heat: 60lbs) Liter (wine): Gallon (oil):,Quantity tolerance,More or less clause: The total quantity is allowed 3% or 5% more or less than contracted quantity.,The reasons for more or less clause,As the loading of bulk goods, such as, oil, coal, grain or mineral products, may not be so accurate, it i
17、s necessary to include more or less clause to avoid discrepency caused by inaccurate quantity.,Questions for review,1. What is FAQ 2. How many kinds of sample are used in international trade? What are they? 3. How much is a long ton, short ton? 4. What is “more or less clause”? Why is it necessary?,
