Chapter 1: Introduction of International Trade

1
Chapter 1 Introduction of
International Trade

• 1.The Characteristics of International
• Trade
• 2.The Type of International Trade
• 3.????????

2
Section 1 The characteristics of
International Trade

• 1. different languages
• 2. different laws and rules
• 3. higher difficulty in market and credit
• investigation
• 4. more complicated in the procedure of
• cargo transportation
• 5. higher risks

3
Section 2 The Type of
International Trade

• 1. Direct Trade (????)
• (1) Export Trade
• (2) Import Trade
• (3) Import Export processing Trade
• 2. Indirect Trade (????)
• (1) Triangular Trade (????)
• (2) Intermediary Trade (????)

4
1. Direct Trade

• (1) Export Trade (????)
• payment in advance (????)

1. sign contract
2. payment
SELLER
BUYER
3. delivery
5
1. Direct Trade

• (2) Import Trade (????)
• payment after delivery(????)

1. sign contract
2. delivery
SELLER
BUYER
3. payment
6
1. Direct Trade

• (3) Import Export processing Trade
• Negotiation (????)

1. sign contract
material
2. delivery
SELLER
SUPPLIER
BUYER
2. payment
7
2. Indirect Trade

• (1) Triangular Trade

3. delivery
SELLER
BUYER
1. sign contract
2. sign contract
4. payment
5. payment
MIDDLEMAN
8
2. Indirect Trade

• (2) Intermediary Trade

BUYER
SELLER
1. sign contract
2. sign contract
3. delivery
4. delivery
5. payment
6. payment
MIDDLEMAN
9
Section 3 ????????

• 1.???????????
• 2.???????(MOEA)???
• 3.?????(???)??
• ???(Board of Foreign Trade BOFT)
• (1)??????
• (2)???????

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Chapter 2 The preparing for
International Trade

• 1. Market Investigation
• 2. Search for our customers
• 3. Credit Investigation

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Section 1Market Investigation

• 1.purpose search for the target market
• 2.path
• (1) http//www.taiwantrade.com.tw/
• (2) other internet website

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Section 2 Search for our
customers

• 1. our Homepage
• 2. http//www.taiwantrade.com.tw/
• 3. trade center show
• 4. visit customers
• 5. professional magazine
• 6. sent letter or email
• 7. others

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Section 3 Credit Investigation

• 1. purpose avoid claim
• 2. path via customers correspondent bank
• 3. required information
• (1) date of establishment president
• (2) line of business
• (3) the net worth
• (4) the annual business volume
• (5) the credit rating record of payment

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Chapter 3The flowchart of
International Trade

• 1. sign contract
• 2. payment remittance(????)
• 3. delivery (shipment)
• 4. Insurance Insurance Company
• 5. customs clearance Customs

seller
bank
buyer
goods
seller
carrier
transport documents
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Section 1 The Determinants of
the flowchart

• 1. The Type of International Trade
• Direct Trade v. s. Indirect Trade
• 2. The Payment Terms
• (1) Payment in advance
• (2) Payment after delivery
• (3) Negotiation
• 3. The Price Terms CIF (or CIP) v. s. others
• 4. Governmental Rules PSI? Permit license?

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The Type of International Trade

• (1) Indirect Trade
• Triangular Trade (including seller?
• middleman and buyer)( p.60)
• (2) Direct Trade
• others (including seller and buyer)
• (p.44?55?57?62?63)

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2. The Payment terms

• 1. Payment in advance by T/T(??)
• payment before delivery
• 2. Payment after delivery
• (1)D/A(????)
• (2)D/P(????)
• (3)O/A(??)
• 3. Negotiation L/C

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3. The Price Terms

• 1. CIF?CIP
• Insurance(??) sellers obligation
• 2. group E ? group F ?group C
• Insurance buyers obligation
• 3. group D
• Insurance sellers obligation

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4. Governmental rules

• 1. PSI (pre-shipment investigation)
• 2. Permit License
• (1) Export Permit License
• (2) Import Permit License

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Chapter 4 INCOTERMS 2000 (????)

• 1. The Rules of Contract
• 2. The determinants of INCOTERMS
• (1)Cost Expenditure
• (2)Risk of Transfer
• (3)Shipping Documents
• (4)Customs Clearance
• 3. The Type of INCOTERMS 2000
• 4. The both parties obligations of
• INCOTERMS 2000

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Section 1 The Rules of Contract

• 1. The International Commercial Terms
• 2. revised by ICC (International
• Chamber of Commerce????)
• 3. 19361953196719761980
• 19901999(1/1/2000 ??)

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3.The Type of INCOTERMS 2000

• 1. group E Departure(??) (named place)
• (1)EXW (Ex Works ??????)
• 2. group F Main Carriage Unpaid(??????)
• (named place or port of
  shipment)
• (1)FCA (Free Carrier ???????)
• (2)FAS (Free Alongside Ship ?????)
• (3)FOB (Free On Board ?????)

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3.The Type of INCOTERMS 2000

• 3. group C Main Carriage Paid(??????)
• (named place or port of
  destination)
• (1)CFR (Cost and Freight ??????)
• (2)CIF (Cost, Insurance and Freight
• ?????????)
• (3)CPT (Carriage Paid To ??????)
• (4)CIP (Carriage, Insurance Paid To
• ?????????)

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3.The Type of INCOTERMS 2000

• 4. group D Arrival(??) (named place of
• destination)
• (1)DAF (Delivered At Frontier ?????)
• (2)DES (Delivered Ex Ship ????????)
• (3)DEQ (Delivered Ex Quay ????????)
• (4)DDU (Delivered Duty Unpaid ?????)
• (5)DDP (Delivered Duty Paid ???????)

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4. The both parties obligation of INCOTERMS
2000
Item The seller must The buyer must
1 Provision of goods in conformity with the contract Payment of the price
2 Licenses, authorizations and formalities Licenses, authorizations and formalities
3 Contract of carriage and insurance Contract of carriage and insurance
4 Delivery Taking delivery
5 Transfer of risks Transfer of risks
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4. The both parties obligation of INCOTERMS
2000
Item The seller must The buyer must
6 Division of costs Division of costs
7 Notice to the buyer Notice to the seller
8 Proof of delivery, transport Document or equivalent Electronic message Proof of delivery, transport Document or equivalent Electronic message
9 Checking, packaging, Marking Inspection of goods
10 Other obligations Other obligations
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Chapter 5 Contract

• 1.???????
• 2.????????
• 3.????????
• 4.??????

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Section 1???????

• ???????????????????????????????????????

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Section 2????????

• 1. Contract (?????)
• 2. Sales Confirmation (?????)
• 3. Agreement on General Terms and
• Conditions of Business (?????)

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Section 3????????

• 1.????
• 2.?????????????
• 3.????????
• 4.??????
• 5.????????
• 6.??????

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Section 4??????

• 1. Title(????)
• 2. Preamble(??)
• 3. Body of Contract(??)
• (1)Basic Terms and Conditions
• (2)General Terms and Conditions
• 4. Witness Clause (??)