1. Lecture 10 Packing

2. I. The types of packing
II. Packing terms in foreign trade
III. Different kinds of transportation packing and their packaging containers
IV. Packing marks
V. Packing List and Weight List

3. I. The types of packing
Packing is usually classified into two categories:
Inner packing/ small packing, i.e. packaging or sales packing.
Outer packing/ large packing, i.e. packing for transportation.

4. II. Packing terms in foreign trade
Packing terms in foreign trade usually include the form of packing, the packing materials, the packing cost and the trademark of the goods.

5. The form of packing and the packing materials
are decided by the characteristics of the commodities and means of transportation.

6. in cardboard cartons, containing 30 dozen each.
In gunny bags, 50kg net to each
In tin-lined waterproof wooden cases, each piece wrapped in oil-cloth, 20 pieces packed in one case

7. Sometimes, when both sides in the transaction are regular clients or the goods are familiar to each other, the following particular clauses would be used.
according to seller’s usual export packing
packing in the same way as shipped for the previous order

8. The cost of packing
is usually included in the export price of commodities.

9. The wording “including export packing” or “packing charges included” in the unit price terms indicates that the quotation includes the cost of packing suitable for export. Sometimes, a sentence “special packing is subject to extra charges” or the like can be seen in a quotation, because some importers/buyers may ask for a change or an improvement in packing, for instance, they want to use wooden cases instead of cardboard cartons. In this case, the extra expenses for the special packing should be borne by the buyer.

10. Some quotations do not include the cost of packing
Some quotations do not include the cost of packing. If so, the clause “export packing is for the buyer’s account” will be stipulated in the contract accordingly.

11. Sometimes, the buyer may require particular packing for his ordered goods. In this case, an arrangement for the specific form of packing, the materials used, and the way of payment should all be stipulated in detail in the contract.

12. The trademark, according to international trading practice, is usually decided by the seller, no need to be stipulated in the contract. If the buyer wants to designate a trademark for his ordered goods by himself, there should be some agreement jointly approved by both parties for this purpose.

13. As a common practice of insurance in international trade, the insurance company is not held responsible for the compensation for losses or damages caused by improper packing.

14. It is the seller who will be liable for any damage to the goods on account of improper packing and for any rust damage attributable to inadequate protective measures taken by the seller himself. In such a case, any losses and expenses incurred in consequence thereof will al be borne by him.

15. Therefore, the packing clause is essential in foreign trade contracts
Therefore, the packing clause is essential in foreign trade contracts. Usually the following stipulation is included in a purchase contract: “the ordered goods must be packed in new strong wooden cases/cardboard cartons suitable for long distance ocean transportation and well protected against dampness, moisture, shock, rust and rough handling.”

16. Furthermore, in order to secure the quality of import goods and prevent plant diseases and insect pests, many countries have their own regulations prohibiting some kinds of materials to be used for transportation packing.

17. For example, the US stipulates that wooden cases for import goods must be made of pesticide-treated lumber; otherwise, the goods will be rejected and be fined. As to the padding between the inner and outer packing, in many countries, restrictions are also placed against the use of some materials. In the US, Canada, Japan and New Zealand, such materials as rice straws, hay and other unclean materials susceptible to parasite and injurious insects are strictly forbidden to be used as padding.

18. For all the reasons mentioned above, the exporter must pay close attention to the packing of his exports, trying his best to meet the needs of the buyer. The important factors in packing are efficiency and economy, which make the export prices more reasonable, facilitate the handling of the goods and ensure their safe arrival at the destination port.

19. III. Different kinds of transportation packing and their packaging containers
In international trade, packing chiefly means the packing of packed cargo for transportation, which falls into two categories.

20. 1.single piece transportation packing
2.unitization

21. 1.single piece transportation packing
1) case (C/cs)
2)crate (Crt/ Crts)
3)Carton (Ctn/ Ctns)
4) Bag (Bg/Bgs)
5)Sack (SX/Sxs)
6)drum (Drm/ Drms)
7)Bale (Bl, Bls)

22. 1)case (C/cs)
A case is a strong container made of wood. Sometimes a thinner wooden case may be used with metal bands or wire passed around it. For extra strength, a case may have a batten. The inside of a case may be “lined” with various kinds of materials, such as damp-resisting paper, tin-foil, etc., to prevent damage by water, air or insects.
Cases are usually used for packing dry cargo/ dry goods.

23. 2)crate (Crt/ Crts)
A crate is also a case, but not fully enclosed. It has a bottom and a frame. Sometimes, open on the top. Crates are often built for carrying particular things. Machinery packed in crates needs a special bottom of skid to facilitate safe handling.

24. 3)Carton (Ctn/ Ctns)
A carton is made of light but strong cardboard or fibreboard with double lids and bottoms, fixed with glue, adhesive tapes, metal bands, wire or staples. Sometimes a bundle of several cartons is made up into one package, tightened by metal bands.
Cartons are used for packing dry cargo/goods. TV sets and fridges are also packed in tough cartons.

25. 4) Bag (Bg/Bgs)
A bag is made of strong paper, linen, canvas, rubber or plastics.
Bags are used for handling some bulk cargoes such as cement and fertilizers.

26. 5)Sack (SX/Sxs)
A sack is a large bag , usually made of jute for holding cereals, such as rice, wheat, soy beans, etc.

27. 6)drum (Drm/ Drms)
A drum is a cylinder-shape container for carrying, chemicals, paint, etc. It is usually made of metal. Some dry non-inflammable chemicals or powders are packed in cardboard or wooden drums.

28. 7)Bale (Bl, Bls)
A bale is a package of soft goods such as cotton, wool, sheepskin, etc., tightly pressed together and wrapped in a protective material. The usual size of a bale is 30*15*15 inches. When necessary, a bale can be strengthened with metal bands.

29. 8)Carboy
A carboy is a large container protected in a metal or wicker cage with soft packing between the glass and the cage. It is usually used for holding corrosive liquids such as sulphuric acid.
Besides, there are some containers for inner packing. Such as box (made of metal, paper, wood, or plastics), paper packet, can/tin and bottle. They are not designed for transportation but for sales.

30. 2.unitization
This kind of packing is to put a number of single piece transportation packing into a much larger package, for more efficient loading and unloading of goods with less expenses. This way of packing is used to unitize break bulk cargo. Unitization of transportation falls into the following three categories:

31. flexible bag container
palletization
containerization

32. flexible bag container
a flexible bag container is a big round or square-shaped bag of synthetic fiber. A flexible bag can hold cargo in bulk from one to four tons.

33. Palletization
Palletization is also named “pallet shipment” or “palletized load”. A pallet is made of wood or metal, on which a number of small sized packages are bundled up in a much bigger unit for transportation. It is more efficient and more economical in handling goods than using manual labor. However, the size of a unit is limited and the goods are rather easy to be damaged. Hence, palletization is being replaced by container transportation gradually.

34. Containerization
Containerization is the most efficient and important way of transportation in international trade all over the world today. The term “container” in “containerization” here is not of its usual meaning as an instrument for holding something such as a box, a bottle or a can. It is a strongly built very large metal case in rectangle shape for holding non-standardized goods in separate packing for transportation. A container can be used repeatedly, suitable for mechanical handling, no matter whether on land, at sea or by air.

35. The dimensions of a standard container is 8. 8. 40(30/20)feet
The dimensions of a standard container is 8*8*40(30/20)feet. In recent years, many kinds of containers have been in use to meet the various needs of diversified, fast developing international trade.
Besides the most commonly used dry cargo containers, there are bulk container, flat rack container, garment hanging container, open-top container, open-side container, side-door container, open-side container, fridge container, steel mesh container, tank container, livestock container and so on. Virtually, containerization of transport has been fully realized in international trading practice today.

36. Practice in international trade has convincingly proved that containerization of transport has a lot of advantages:

37. the enormous cargo capacity of a container enables it to hold various kinds of non-standardized bulk cargo to save much shipping space.
It is so strongly built and with special device for mechanical handling, that a great deal of manual labor and cost can be saved.

38. Its metal framework is strong enough for its repeated use
Its metal framework is strong enough for its repeated use. This characteristics make it vastly superior to any traditional packing containers.
It can be locked firmly to avoid any risks of goods getting lost or mislaid during transit.

39. The much faster speed in loading and unloading by mechanical handling greatly reduces the time for a container ship to stay in port, consequently greatly increases the number of sailing.
Different kinds of containers satisfy the need of diversity in containerization of transport.

40. IV. Packing marks
Packing marks are marks are marks in words, geometric figures and Arabic numerals stenciled on the transportation packing for recognition of goods in transit, storing, commodity inspection and customs declaration to secure safe delivery. Packing marks should be made before shipment according to a certain requirement.

41. There are three kinds of packing marks used on export packages.
1)shipping mark
2) subordinate mark
3) indicative marks/ care marks and warning marks/caution marks

42. 1)shipping mark shipping mark
A shipping mark is also called “cargo mark” or “case mark”. The purpose of using a shipping mark is for easy recognition of goods in loading, unloading and piling, so as to avoid wrong delivery and damages of goods in transit. A shipping mark consists of three parts as follows:

43. A. The main mark, which is symbolized in a geometric figure with words or letters inside or outside it as the code name of the shipper or the consignee. If the code name is the consignee’s, it is called the consignee’s distinctive marks.
The following geometric figures are often used as main marks in international trade:
B. the port mark—the destination port C. the case number/package number—the serial number of the cases

44. 2)subordinate mark
Which is an official mark required by authorities of either the exporting country or the importing country or by the consignee. A subordinate mark usually includes the country of origin of the goods, the weight (gross and net), the measurement and import license, if there is any. As to our country, the Chinese relevant law of foreign trade stipulates that all export commodities should be marked with “Made in china” or “made in the PRC”, with the exception that the commodities are to be packed in neutral packing, required by the buyer.

45. 3)indicative marks/ care marks and warning marks/caution marks

46. These two kinds of marks are also given the names as special directions or special instructions which regards manner of handling, loading unloading and lifting of goods. They are stenciled on the packages in graphs and words for the benefit of both the carrier and the consignee.

47. Indicative mark reminds people of the characteristics of the goods which are breakable, easy to be damaged or easy to deteriorate. Examples are: Do not drop, To be kept cold, Handle with care, Perishable, Open this end, Lift here.

48. Warning mark is chiefly for the handling of hazardous/ dangerous commodities such as inflammable, poisonous, corrosive and radioactive substances and explosive. For china’s exports, there are two sets of warning marks in use. One is issued by the Chinese government, the other by a relevant organization of the United Nations. As a rule, all the hazardous commodities to be exported from our country should be stenciled with both china’s and the UN’S warning marks, so as to avoid any possibility of the vessel not being allowed to pull in to shore for unloading the dangerous goods at the destination port.

49. ⅴ. packing list and weight list
1)A packing list is a commercial document prepared by the exporter recording the various contents of a specific lot of goods for the importer’s convenience in taking delivery. A packing list is also called “specification of contents” or “packing specification”.

50. Actually, it is a supplementary document to the invoice
Actually, it is a supplementary document to the invoice. All packed cargo should be provided with a packing list, except that the whole lot of goods are the same thing without any difference in pattern, color, size, etc. in such a case, only the quantity or the amount of goods and the number of cases or cartons should be stated in the invoice.

51. Some countries exercise a system of imports inspection
Some countries exercise a system of imports inspection. Hence, all packed goods for import should be provided with a packing list for this requirement.

52. 2) weight list
If the quality and other specifications of a whole lot of goods are the same except that the weight of each piece is different, a weight list, not packing list, is needed then. A weight list is also called a “weight note” or a “weight memo”.

53. In countries exercising imports inspection, if the actual weight of the import cargo is not in accordance with the weight in the relevant weight list, the importer will be punished by the Customs House consequently. Therefore, some importers will ask the sellers to provide a “weight certificate” issued by a notary public instead of a weight list by the sellers themselves.