国贸Chapter_10_Performance_of_the_Contract.ppt

 Overview In international trade, once a sales contract is signed it becomes a legally binding agreement with rights and obligations set out for each party to the contract. The successful performance of the contract, which involves the smooth coordination of different parties, is not only of serious concern for the exporter and importer, but also for the national image on both sides. In practice, the rights and obligations vary according to customer requirements, trade terms, customary procedures, and so on. However, there are always the basic obligations for both parties in each sales contract, which are for the seller to deliver goods as specified in all related documents for the transfer of ownership of the goods and for the buyer to pay and take delivery of the goods. This chapter will briefly introduce the procedures both an exporter and importer need to go through particularly under L/C payment terms. 10. l Export Procedures Sales contracts for export in China are mostly signed under CIF terms and by payment of L/C. Therefore a lot of work is involved in performing this kind of contracts, which mainly deals with the coordination of the goods, L/C, shipment and payment. This can be divided into stages of preparation, production, shipping, documentation and after sales issues. 1 Preparation  1) Obtaining the Buyer’s Guarantee for Payment 2) Information Collection 2 Production 1) Quality Control and Production Management 2) Inspection and Certification 3 Shipping 1) Space Booking 2) Customs Declaration 3) Insurance 4 Documentation for Settlement of Payment 1) Documentation and Negotiation Documentation should be completed with absolute accuracy and clarity. Documents for import and export business can be classified into three types: financial documents including L/C, draft,check and promissory note; commercial documents including invoice, packing list, B/L and insurance policy; documents under the control of the go