1. The Form of a Sales Contact 1.Words & Expressions 2.Activities for Comprehension

2. 1.Words & Expression (1)Shipping mark; (2) on consignment; (3) force majeure;Shipping markon consignmentforce majeure (4) CFR;(5) FOB; (6) a certificate of origin; (7) notifying bank;CFRFOBa certificate of originnotifying bank (8) the International Commercial Chamber Publication 500;the International Commercial Chamber Publication 500 (9) B/L;(10) through bill of lading;(11) shipping documents;B/Lthrough bill of ladingshipping documents (12) consular invoice; (13) usance L/Cconsular invoiceusance L/C

3. (1)shipping mark A shipping mark is a mark used to identify goods or cargos. It hastens the process of identifying goods particularly where the goods are in large numbers or a wide variety. The mark is usually of a particular shape, for example a diamond shape and the company's or consignee's name is included as well.

4. (2) on consignment With the provision that payment is expected only on completed sales and that unsold items may be returned to the one consigning: The retailer accepted the shipment on consignment. (3) force majeure A French term literally translated as "greater force", this clause is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations. This clause is meant to benefit both parties in a contract. Force majeure would come into play, for example, when you buy a house. If the house is destroyed in a fire caused by a lightning strike, neither party remains obligated.

5. (4) CFR (Cost and Freight) A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier. Under CFR, the seller does not have to procure marine insurance against the risk of loss or damage to the goods during transit. Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery, payment when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance. The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms (such as the American Uniform Commercial Code), but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms. It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.

6. (6) FOB (Free On Board) A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail. When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier. Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery and payment, when the risk of loss shifts from the seller to the buyer, as well as who pays the costs of freight and insurance. The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce. These are often identical in form to domestic terms, such as the American Uniform Commercial Code, but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms. It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.

7. (6) a certificate of origin ( CO ) A document declaring in which country a commodity or good was manufactured. The certificate of origin contains information regarding the product's destination and country of export and is required by many treaty agreements before being accepted into another nation. Trade restrictions, tariffs, embargoes and duties can all be affected by the certificate of origin. Because some nations limit or ban imports from certain countries, all incoming goods would be required to have a CO. To encourage imports from specific nations, governments may lower the duty on goods if accompanied by a CO from those countries.

8. (7) notifying bank A bank in a foreign country to which another bank in the domestic country sends a letter of credit on behalf of a client. The notifying bank honors the letter of credit and transfers requested funds to the client. A notifying bank is also called an advising bank. (8) the International Commercial Chamber Publication 500 The International Chamber of Commerce (ICC; French: Chambre de commerce international (CCI)) is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 130 countries have interests spanning every sector of private enterprise. A world network of national committees keeps the ICC International Secretariat in Paris informed about national and regional business priorities. More than 2,000 experts drawn from ICC’s member companies feed their knowledge and experience into crafting the ICC stance on specific business issues. The UN, the World Trade Organization, and many other intergovernmental bodies, both international and regional, are kept in touch with the views of international business through ICC. The ICC was the first organization granted general consultative status with the United Nations Economic and Social Council.

9. (9) B/L (Bill Of Lading) A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination of the good being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver. For example, suppose that a logistics company must transport gasoline from a plant in Texas to a gas station in Arizona via heavy truck. A plant representative and the driver would sign the bill of lading after the gas is loaded onto the truck. Once the gasoline is delivered to the gas station in Arizona, the truck driver must have the clerk at the station sign the document as well.

10. (10) through bill of lading A bill of lading that allows the transportation of goods both within domestic borders and through international shipment. The through bill of lading is often required for the exportation of goods, as it serves as a receipt or carriage contract for the products. As with any bill of lading, this document outlines the type and quantity of transported good and notifies the shipper of its destination. A transporter can move products both within a country and export them, often by air, with a through bill of lading. The through bill contains an "inland bill of lading", which is the documentation required for domestic transportation. If the shipper wants to move the goods across the ocean, the through bill of lading will not be adequate. An "ocean bill of lading" will be required for any goods moving across the sea.

11. (11) shipping documents A shipping list, packing list, waybill, packing slip (also known as a bill of parcel, unpacking note, packaging slip, (delivery) docket, delivery list, manifest or customer receipt), is a shipping document that accompanies delivery packages, usually inside an attached shipping pouch or inside the package itself. It commonly includes an itemized detail of the package contents and does not include customer pricing. It serves to inform all parties, including transport agencies, government authorities, and customers, about the contents of the package. It helps them deal with the package accordingly.

12. (12) consular invoice A document certifying a shipment of goods and shows information such as the consignor, consignee and value of the shipment. A consular invoice can be obtained through a consular representative of the country you're shipping to. The consular invoice is required by some countries to facilitate customs and collection of taxes. A consular invoice also has a copy of the commercial invoice in the language of the country, giving full details of the merchandise shipped. In general, the purpose is to provide the foreign customs authority with a complete, detailed description of the goods so that the correct import duty can be levied.

13. (13) usance L/C A letter of credit payable at a determined future date after presentation of conforming documents

14. 2.Activities for Comprehension (1)What should be listed in a sales contract? (2) How different is a contract from a confirmation? (3) What bank can open an L/C for you as an exporter? (4) What would happen if an L/C had a mis-spelt word? (5) Why should the L/C be transferable when the deliverer of a consignment is someone else other than the exporter?