Exercises练习
I.True or False
1.You have to obtain the right for import and export before you can import in your companies’ own name.( )
2.You cannot open an L/C with a bank if the underlying transaction is not real.( )
3.When you agree to an amendment to the L/C advised from the exporter,you should notify your consent both to the exporter and the issuing bank.( )
4.For import,we need to arrange for a ship to pick up the goods at a foreign port if the deal is concluded under FOB.However,under CIF,the exporter shall book the space and ship the goods to a Chinese port.Therefore,the cargo risk we assume under FOB is greater than that under CIF.( )
5.The procurement cost of imported goods includes the procurement price,the import duty and other taxes.( )
6.The CIF price includes the sea freight and insurance premium which covers the distance till the named port of destination,but the exporter is under no obligation to make sure the goods reach the port of destination.( )
7.Among the methods of payment,L/C is more reliable to exporters,while D/P and D/A are more popular with importers.( )
8.An inspection for import could only be conducted at the port of destination.( )
9.Quality is an integral part of a sales contract.If the merchandise does not conform to the agreed upon quality,the importer has the right to make a claim or even reject the goods.( )
10.The Customs has no governing power over import of goods that are not subject to statutory inspection.( )
II.Multiple Choice Questions
1.Which of the following documents grants you the fundamental right for import and export?( )
[A]The import license.
[B]The import quota.
[C]The Form for Registration as a Foreign Trade Dealer.
[D]The duty exemption certificate for import.
2.Which of the following quotations is a CORRECT syntax of Incoterms rule for import to China?( )
[A]$55 per carton FOB Shanghai
[B]$90 per carton CIF Tianjin
[C]$55 per carton FCA Zhengzhou
[D]$90 per carton FAS Ningbo
3.Which of the following is NOT a possible reason for the wide adoption of FOB for import to China?( )
[A]The exporter doesn’t want to bear the risk of the freight rate rising.
[B]The exporter doesn’t want to bear the trouble of international transport.
[C]It helps the importer save on foreign exchange.
[D]It helps the exporter save on foreign exchange.
4.Which one of the following practices regarding the time of opening an L/C is NOT appropriate?( )
[A]The L/C should be opened within the deadline if any such deadline is stipulated in the contract.
[B]The L/C should be opened when the exporter notifies his/her readiness for shipment.
[C]The L/C should be opened when the exporter confirms the time of shipment.
[D]The L/C should be opened at the importer’s convenience.
5.When a shipment for import is covered All Risks as per CIC under Incoterms CIF,( ).
[A]the exporter bears all risks when the cargo is en route
[B]the importer bears all risks when the cargo is en route
[C]the insurance company bears all risks after the cargo is loaded on board the vessel
[D]responsibility for the cargo transfers from the exporter to the importer when the cargo is loaded on board the vessel
6.An inspection term of a contract reads “Shipping weight,landed quality”,which means( ).
[A]inspection at the port of destination is final
[B]inspection in the exporting country and re-inspection in the importing country are combined as criteria for acceptance of the goods
[C]inspection at the loading port is final
[D]inspection of weight at the loading port and of quality at the destination port are combined as criteria for acceptance of the goods
7.Which is(are)the possible outcome(s)when a batch of imported goods subject to a statutory inspection doesn’t pass the inspection?( )*
[A]It may be returned to the exporting country.
[B]It may be destroyed under the supervision of the Customs.
[C]It may be rectified and resold in China.
[D]It may still be sold in the Chinese market.
8.Under an import transaction by L/C,the exporter has presented complying documents for negotiation,but the importer finds the goods defective upon arrival at the port of destination,then,( ).
[A]the importer can instruct the issuing bank not to reimburse the negotiating bank
[B]the issuing bank should be responsible for the discrepancy between the goods and documents
[C]the importer should not make payment to the issuing bank
[D]the importer should make payment to the issuing bank but make a claim on the exporter as per the contract
9.Which of the following payment term is most favorable from an importer’s perspective?( )
[A]Cash in advance.
[B]Open account.
[C]Documentary collection.
[D]Documentary credit.
10.Which one of the following statements is TRUE about making a claim upon receiving the goods?( )
[A]You can make a claim any time after the goods arrive at destination.
[B]The claim must be supported with necessary evidence,such as a certificate of re-investigation issued by an agreed upon or recognized inspection authority or institution.
[C]You may only make a claim on the exporter.
[D]You may only make a claim on the carrier.
III.Case Study
1.Suppose you are a seafood importer,and now considering importing a batch of frozen white shrimp from Ecuador.How would you negotiate terms of quality and inspection with the exporter to make sure the shrimp is safe and not contaminated by the new corona virus?Discuss in groups,draft your contract terms and submit them as group work.
2.A Chinese company imported coca beans from a Brazil merchant.The goods were to be delivered in two shipments.The payment method was by L/C at sight issued by Bank of China,with one L/C for each shipment.After each shipment,the exporter presented the documents within the validity period to his bank for negotiation.Once having examined the documents for the first shipment and finding no discrepancies,the bank negotiated the payment to the exporter and Bank of China reimbursed the negotiating bank.However,when the first shipment arrived,the importer found the quality of the goods was not in conformity with the contract,so she asked Bank of China not to pay for the second shipment,but the Bank refused.Do you think Bank of China did the right thing?
3.Jyemey Dental Co.,Ltd.,a dental hospital group in China,imported a medical equipment through an agency for the opening of a new hospital.The contract had stipulated that the allowed period for claim should be within 30 days after the arrival of the goods at the port of destination.After the goods were unloaded at the port of destination,the agency transferred the goods to the hospital without delay.As Jyemey’s new outpatient building had not been built up,the equipment could not be installed and tested.Half a year later,the building was completed,the equipment was installed and tested,and it was found that the equipment could not work properly.Reinspection by the commodity inspection authority of China proved that the equipment was second-hand,so Jyemey asked the agency to make a claim,but the exporter refused to compensate Jyemey for the loss,and Jyemey suffered a great loss.What lesson should we learn from this case?
IV.Calculations
1.A Chinese company is going to import raw milk from Rotterdam.The exporter’s offer is €500 per M/T CIF Shanghai(for 110% of the CIF value).If the sea freight from Rotterdam to the Chinese port is€110,and the insurance premium rate is 2%,what is the FOB price of this transaction?
2.We are making an enquiry about almonds to an American exporter,and it quotes us $155 per case CIF Shenzhen.If the FOB price of the American company is $140,the sea freight is $10 per case,and the insurance premium rate is 0.5%,will the exporter accept our counteroffer at $145 per case CIF Shenzhen?
【注释】
[1]http://chinawto.mofcom.gov.cn/article/ap/p/202105/20210503063176.shtml.