north china institute of science and technology chapter nine: international trade procedure §1...
TRANSCRIPT
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Chapter Nine: International Trade Procedure §1 Launching a Profitable Transa
ction Preparation before the Negotiation
Target Market Business Partner Qualified Negotiation Proper Plan
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Market information
1 Market conditions 2 Consumer's demand conditions 3 Products: structure 、 function 、 types 、
specification 、 quality 、 quantity 、 credit 、packing 、 shipment, services , similar products 。
4 Prices
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Gathering of information Macro policies of government Circumstances of politics Circumstances of law Economic Circumstances Technical Circumstances Commercial Practices
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Know about the information of your opponent
Analysis of your opponent 1 Need analysis 2 Analysis of attitude and the market position 3 Credit investigation ( 1 )资格审查(法人资格、谈判签约代表资格审查) ( 2 )信用审查(履约能力和商业信誉) 4 Time limit of negotiation
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Information of the opponent
1 Actual conditions of the opponent 2 Running conditions of the opponent 3 Negotiating style of the opponent 贪权者 说服者 忠实的执行者 4 Ways of the opponent 强硬型;阴谋型;合作型;不合作型
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Media of gathering information
1 Printed media : newspaper 、 magazine 、 inside publication and specialized book
2 E-wave media : radio 、 TV 3 Statistic data : 4 Specialized organization : bank 、 insurance company 、
research institute 5 Meeting 6 Public places : station 、 dock 、 restaurant 、 shop 、 st
reet 、 amusement places 7 Telegram 、 card 、 ads
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Common methods of gathering information
1 Gather information in public issues 2 Obtain information from some units 3 Gather information by principal 4 Exchange 5 Gather information on spot ( 1 ) Interview ( 2 ) asking ( 3 ) obser
ve ( 4 ) visit ( 5 ) purchase on spot
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Gain information from the employee of the opponent
1 False inviting applications 2 Fired employee 3 Counselor and assistant 4 Help his staff
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Tips for a successful negotiation Qualified Negotiator Negotiating Team Leader Negotiating Brief and Negotiating
Plan
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Qualified Negotiator Shrewdness ( smart ) Patience Adaptability Endurance ( withstand hardship ) Gregariousness ( sociable ) Concentration The ability to articulate Sense of humor
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
§2 Business Negotiation and Establishment of Contract
General Procedures for Trade Negotiation Enquiry Invitation for Offer Offer
Definite Offer Indefinite Offer
Counter Offer Acceptance
Conclusion of Contract
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Layout of Business Letter: 1 Heading 2 Inside Address 3 Salutation 4 Caption 5 Opening
Sentences 6 Body of Letter
7 Closing Sentences 8Complementary
Close 9 Signature 10 Enclosure 11Postscripts
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Style of Business Letter: Block style ( Modern ) Indented style Modified block style
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Style of Envelope Envelope is the same to inside
address; it can adopt indented or modified block style. The address of receiver in the middle left and the stamp is to the right top of the envelope.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Characteristics of business negotiation
( 1 ) The heart of each transaction; ( 2 ) The methods must agreed by the both parties; ( 3 ) Information is open; ( 4 ) Both sides understand the other’s viewpoint; ( 5 ) They achieve common and complementary
objectives acceptable to them. ( 6 ) One side will always arrive at the negotiation
table in position of great power. ( 7 ) Everything is negotiable. ( 8 ) It is the Zero-sum game.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Negotiation models
Win/lose: Negotiations conducted in win/lose manner end with the final result of one side's victory and the other side's loss.Win/win: Negotiations conducted in win/win approach allow both or all sides to obtain a favored outcome, the heart of win/win thinking is the foundation of belief that one person's success is not achieved at the expense of another.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Contents of Trade Negotiation
Contract clauses: Name of commodity quality quantity Packing shipment price payment insur
ance Commodity inspection claim arbitratio
n force majeure General terms and conditions ( 事先达
成协议)
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Enquiry …invitation to offer ( a step to initiate a
potential transaction ) We are interested in 2000 metric tons
each of red beans and green Beans,1999 crop, in bulk and packed in gunny bags. When offering, please state in detail description and origin.
* INTERESTED 2000MTEACH REDBEANS GREENBEANS 1999CROP INBULKAND GUNNYBAGS STATING INDETAIL DESCRIPTN ORIGIN
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Invitation to Offer Is either an enquiry made to get information
about the terms and conditions of a commodity trading, or a conditional suggestion about the transaction. Inquiry is a usual form of Invitation to Offer involving quality, quantity, price, packing, shipment, asking for samples and catalogue. Inquiry can be made by the buyer or the seller, and can be made orally or in writing.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Offer
The difference between OFFER and QUOTATION
An offer is a proposal to enter into a contract V CAN OFA 1000DZ T-SHIRTS USD45.00 PER
DZ FOB DALIAN CARTON PACKING SHIPMT BEFORE THE END OF 2003 IRREVOCABLE SIGHT L/C SUBJECT REPLY HERE 30TH.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Valid terms of an offer
To one or more specific persons Sufficiently definite Indicate the intention of the
offeror to be bound in case of acceptance
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Offer Is a sufficiently definite proposal
for concluding a contract addressed to one or more specific persons indicating the intention of the offeror to be bound in the case of acceptance by the offeree.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Withdrawal and revocation of an offer
Withdrawal An offer becomes effective only after it rea
ches the offeree. So it can be withdrawn prior to their reaching the offeree.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Revocation An offer may be revoked if the revocat
ion reaches the offeree before he has dispatched an acceptance.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Exception:
If indicates, whether by stating a fixed time for acceptance or otherwise, that it is irrevocable;
If it is reasonable for the offeree to rely on the offer as being irrevocable and the offeree has acted in reliance on the offer.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Counter-offer
Is a proposal made by the offeree who does not fully agrees the offer and makes modification or alteration to the offer. Counter-offer is the rejection of the offer and constitutes a new offer.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Counter-offer
A counter-offer is a reply to an offer. A counter-offer is a new offer made by the
offeree. The original offeror is the offeree of the new offer.
Referring to your letter of July 16, we regret that your price is too high to be accepted. Business is not possible unless you make a 2% reduction in the quotation.
·YLJULY16 PRICEHIGH PLSREDUCE BYTWOPCT
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Acceptance
An acceptance is an unconditional assent to an offer. Thank you for your cable of august 15, and we confir
m having sold you 10 metric tons of Writing paper for October shipment. Please do your utmost to open the L/C as soon as possible.
YC15AUG WRTGPAPER 10MT OCTSHIPMT CONFIRMED PLSRUSHLC
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Valid terms of acceptance
made by the offeree contents must conform to that of an offer within the period of time for acceptance ( i
n the validity period ) An acceptance must be indicated by statem
ent or performing on act.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Conditional Acceptance
If the acceptance made by the offeree with some conditions, the offer or can accept or refuse to the conditional acceptance.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Late Acceptance An acceptance of an offer becomes
effectives at the moment the indication of assent reaches the offeree. An acceptance is not effective if the indication of assent does not reach the offeror within the time he has fixed or, if no time is fixed, within a reasonable time.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Withdrawal
An acceptance may be withdrawn if the withdrawal reaches the offeror before or at the same time as the the acceptance would have become effective.
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
§3 Import and Export Operating Procedures
Export Procedures Import Procedures
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Export Procedures Export License Trade Negotiation Cargo Readiness L/C Customs Clearance Shipping Insurance Document and Payment
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Import Procedures Import License Trade Negotiation L/C Booking Shipping Space or Ship Insurance Document Examination and Payment Customs Clearance Taking Delivery and Inspection Claim Settlement of Disputes
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Government control documents Import License Foreign Exchange Export License Certificate of Origin Inspection Certificate Consular Invoice Customs Invoice
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Commercial documents Proforma Invoice Commercial Invoice Quality Certificate Weight Certificate
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Finance documents Application Form for International Money
Transfer Drafts Banker’s Draft Commercial Draft Sight Draft Time Draft Application for Documentary Letter of
Credit Letter of Credit
NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY
Transportation documents Shipping Note Packing List Bill of Lading Consignment Note (rail, road) Air Waybill Parcel Post Receipt Combined Transport Documents Arrival Notification