Unit Nine

Packing

Learning Objectives

To describe the functions of packingTo understand several types of packingTo learn different Marks of packingTo know how to send a packing instruction

1. The functions of packing

Packing is of great importance in foreign trade. Whatever mode of transport is adopted, most of the

goods to be transported need packing before they are sent. Not only does packing help promote sales, reduce warehousing cost, freight and damages, it also reflects a country’s achievements in science, technology, art and culture.

The functions of packing

The ultimate purpose of packing is to keep the transported goods in perfect condition with nothing missing on arrival. Good packing must be able to stand the roughest transportation. It has been estimated that as much as 70% of a11 cargo loss could be prevented by proper packaging and marking.

2. Types of packing

(1)Large packing ／ outer packing Large packing/outer packing is packing for

transportation. Transport packing is done mainly to keep the goods safe and sound during transportation ．It must not only be solid enough to prevent the packed goods from any damage ， but also be pilferage-proof, easy to store ， convenient to load and unload ．

(2) Small packing ／ inner packing

Small packing ／ inner packing is packaging for sales. Sales packing is done mainly to push sales. It aids marketing, consumer advertising, display, presentation, protection, handling and self-service retailing. It is now universally recognized as a decisive aid in selling household consumer goods. It can be realized in various forms and with different materials as long as it is nice to look at ， easy to handle and helpful to the sales ．

3. Marking

（ 1 ） Transport marks

（ 2 ） Directive marks

（ 3 ） Warning marks

（ 1 ） Transport marks Transport marks often consist of:

1) consignor’s or consignee’s code name ， 2) number of the contract or the L ／ C ， 3) the port of destination ， 4) numbers of the packed goods ， 5) the name of the country of origin of the goods,

6) weight and dimensions

All of these can greatly facilitate identification and

transportation ．For example ：

KDK

KUWAIT

Nos. 1-100

MADE IN CHINA

100×45×45cmGross weight: 47 kilosTare: 2.5 kilosNet weight: 43.5 kilos

(2) Directive marksDirective marks are eye-catching figures and concise

instructions concerning manner of proper handling,

storing, loading and unloading of the packed goods ．For example ： USE NO HOOKS

TOP

OPEN THIS END

DO NOT STOW ON DECK

NOT TO BE THROWN DOWN

LIFT HERE

SLING HERE

TO BE KEPT UPRIGHT

KEEP FLATTHIS SIDE UPTO BE KEPT COOLKEEP DRYKEEP AWAY FROM HEAT GUARD AGAINST WET/ DAMPDO NOT DROPHANDLE WITH CARE

（ 3 ） Warning marksWarning marks are obvious symbols or words to warn people

against the hidden danger of inflammables, explosives and

poisonous products ． Various warnings are to be stenciled on

the packages for the benefit of both the owner and the carrier ， such as ：

DANGEROUS GOODS ACID WITH CARE

POISON INFLAMMABLE

EXPLOSIVE FRAGILE

GLASS—WITH CARE PERISHABLE

Generally speaking ， the seller should bear in mind that safe reliable and convenient outer packing and creative ， elegant and attractive inner packing are what he must strive for ．

Guidelines for Writing4. Letters regarding packing issues

1. Buyer giving instructions of packing2. Exporter giving suggestions of his customary packing3. Packing requirements concerning outer packing4. Packing requirements concerning shipping marks5. Packing requirements concerning inner packing6. Clarifying packing clause7. Improper packing causing damage

Guidelines for Writing1). Buyer giving instructions of packing

when the buyer places an order, he / she must state clearly and accurately all the terms of transaction. Thus, exporter can get accurate instructions concerning packing and marking here, which can be illustrated by the following example.

DE DOLLY ENTERPRISES PTE. LTD.Mildlink Plazza, Singapore 0718

Tel: 3000000 Fax: 30000001 E-mail: electronic@yahoo.com

16 August 2008Nantong Electronics Co., Ltd.2088 Jiefang BoulevardNantong, Jiangsu Province

Dear Sirs,With reference to our recent exchange of correspondence, we confirm having placed with you the following order:Description of Article: Tiger Brand Transistor RadioModel: MF-101Quantity: 7,200 setsPrice: US$12.50 per set CIFC3% Kuwait

Specimen letter-1

Packing: Each set in a box, 12 sets to a cardboard carton and 96 sets to a wooden case.Shipment: To be made in three equal monthly installments, beginning from August 2008Payment: By confirmed, irrevocable L/C payable by draft at 60 days’ sight to be opened 30 days before the time of shipment.We trust that you will give special care to the packing of the goods lest they should be damaged in transit.Please mark the cases with our initials KES in a triangle, under which reach the destination KUWAIT with order number CT3344 below again. Your close co-operation will be highly appreciated.

Yours truly, Alan Koh

Guidelines for Writing2. Exporter giving suggestions of his customary

packing When inquired about the packing, the seller can

recommend his customary packing of the goods concerned to the buyer and also indicate clearly that he may accept any required packing at the expense of the buyer. Meanwhile, it is appreciated that the buyer informs the seller of any fears about the packing. Eventually the buyer and seller reach the agreement through detailed discussion.

Shanghai South Import & Export Co., Ltd. 1880 central Avenue, Shanghai, China Tel: 0215888008 Fax: 0215888800 E-mail:

south@hotmail.comSeptember 5, 2007

The Martin Tool Co., Ltd.Suite 302, Peirson Plaza, Nelson Street, Vancouver, CanadaDear Sirs,In reply to your letter of the 31st August inquiring about the packing of our Trip Scissors, we wish to state below:Our export Trip Scissors are packed in boxes of one dozen

each, 100 boxes to a carton. The dimensions are 17 cm high, 30 cm wide and 50 cm long with a volume of about 0.026 cubic meters. The gross weight is 23.5 kg while the net weight is 22.5 kg. As to

Specimen letter-2

the shipping marks outside the carton, in addition to the gross, net and tare weights, the wording “MADE IN THE PEOPLE’S REPUBLIC OF CHINA” is also stenciled on the package. Should you have any special preference in this respect, please let us know and we will meet you to the best of our ability. Taking this opportunity, we would like to inform you that we used to pack our scissors in wooden cases but after several trial shipments in carton packing, we found our cartons just as seaworthy as wooden cases. Besides, cartons are less expensive, lighter to carry and cost lower freight. So, nowadays more and more clients prefer carton packing to wooden case packing. We trust that you will agree to our opinion and accept our carton

packing.We thank you in advance for your early reply.

Yours faithfully, Zhou Xiao

The Martin Tool Co., Ltd Suite 302, Peirson Plaza, Nelson Street, Vancouver,

Canada Zip Code: V5B 5A3 Tel: (604) 7788390 E-mail:

martin@gsmail.comSeptember 9, 2007

Shanghai South Imp & Exp Co., Ltd.1880 central Avenue, Shanghai, ChinaDear Sirs,In reply to your letter of the 5th September concerning the packing of our Trip Scissors, we have enquired of some of our clients about the packing in question. They say ：

Specimen letter-3

1. Such cartons are easy to cut open because the cardboard of which the cartons are made is rather thin, thus making pilferage become possible.2. If and when the goods a re to be transshipped at a certain port. the cartons will stand in the open on the wharf and ， in heavy rains ， be subjected to damage

as the cartons will surely be soaked ．3. During loading and unloading ， the cartons are to

be piled up ； Hence breakage is unavoidable because the cartons are too thin to stand heavy pressure.4. The insurance companies, on knowing this, will shift their responsibilities to the goods being packed in cartons not fit for ocean transportation and refuse compensation for losses ．

From the above comments, you can readily see that our

clients are justified in their anxieties over your packing.

As far as packing is concerned, they prefer wooden

cases to cartons for future shipments ．We sincerely hope that you will take this matter into

consideration and make necessary improvements so as

to avoid unforeseen troubles arising from faulty packing.

Your early response will be much appreciated.

Yours Sincerely,

Mark Richard

Shanghai South Import & Export Co., Ltd. 1880 central Avenue, Shanghai, China

Tel: 0215888008 Fax: 0215888800 E-mail: south@msn.comSeptember 11, 2007

The Martin Tool Co., Ltd.Suite 302, Peirson Plaza, Nelson Street, Vancouver, CanadaDear Sirs,We thank you for your letter of September 9 ， informing us of your clients comments on our packing. We have discussed the matter with the competent department here and wish to explain as follows ：1.The cartons we use are up to standard and fit for ocean

Specimen letter-4

transportation. For years we have used these cartons in our

shipments to many continental ports to the entire satisfaction of

our clients. Moreover, the insurance companies have accepted

such packing for WPA and TPND.

2. These cartons are well protected against moisture by plastic

lining. Thus garments packed in them are not so susceptible to

damage by moisture as those packed in wooden cases.

3. The cardboard used for making cartons is light but compact.

It keeps down packaging costs and helps customers save on

freight.

4 . Your clients’ anxieties over packing are presumed ． We are

confident that the insurance company can be made to pay the

necessary compensation for any loss or losses from pilferage

and breakage caused by using such cartons.

Please tell your clients that their fears are unwarranted.

Nowadays, except for bulk cargo ， nude cargo and huge

machinery, most commodities are packed in cartons. To pack

garments in wooden cases is obsolete. For future shipments, we

are experimenting with special cartons, in which garments are

hung on dress-hangers. These cartons can be containerized,

so that the garments will not twist.

We highly value your comments ， which will help improve our

work. If you find any defect in our last shipment, please do not

hesitate to let us know. We assure you of our cooperation and

await your further orders.

Yours sincerely, Zhou Xiao

The Martin Tool Co., Ltd Suite 302, Peirson Plaza, Nelson Street, Vancouver, Canada

Zip Code: V5B 5A3 Tel: (604) 7788390 E-mail: martin@gmail.com

September 14, 2007Shanghai South Imp & Exp Co., Ltd.1880 central Avenue, Shanghai, China

Dear Sirs,Your letter of September 11th has been carefully noted. We have approached our clients about the packing ， and after our repeated explanations ， they say they will have no objection to your packing the garments in cartons if you guarantee that you will pay compensation in all cases wherein they cannot get

Specimen letter-5

indemnification from the insurance company for the reason that the cartons used are not seaworthy ．We deem it our duty to inform you of this and consider it a tacit understanding that should the insurance company refuse compensation, you would hold yourselves responsible for the losses our clients might sustain on account of your using such cartons.We think you will understand that our candid statement is made for our mutual benefit as packing is a sensitive subject, which often leads to trade disputes.We appreciate your cooperation.

Yours sincerely ，

Mark Richard

Guidelines for Writing 3). Packing requirements concerning outer

packing Outer packing is designed to protect goods from

damage and theft and facilitate transport, loading and unloading while being carried from one place to another. Safety, together with convenience, will be the focus. In the letter concerning packing, the exporter usually give the detailed description to avoid the possible trade disputes and also ensure the buyer that the goods will arrived safely and in good condition.

Make-Up Leather IndustryMain Street New Hamza Ghouse,

P.O.Box-2142, Sialkot-51310, Pakistan. Tel: 92-432-541767 Fax: 92-432-5428488

E-mail: makeup@brain.net.pk Web Site: www. Makeupleather.com

March 25, 2007 Nanjing Leather Co., Ltd. No. 118 Jiefang Road,Nanjing, ChinaDear Sirs ，Thank you for your letter of March 22, informing us that the subject goods could be shipped. With regard to the packing for the above order ， the goods should be packed in tin-lined water-proof woolen bale ， each bale wrapped in oil

cloth ， and 10 bales packed in one case. Packing in sturdy wooden cases is

Specimen letter-6

essential. Cases must be nailed ， battened and secured by overall metal strapping. Rope or metal handles should be fixed to the cases to facilitate carrying. No grip-holes should be left in the cases ． All cases are to be marked as usual ， but please number them consecutively from No.40. Kindly stencil our shipping marks in letter 4 inches high ， and give gross and net weight on each case.We hope that the result of packing turns out to be satisfactory for our customers. If so ， you may continue using this packing in the future. As soon as the goods reach us, we shall let you know.

Yours truly ， Susan

Guidelines for Writing 4). Packing requirements concerning shipping marks As a necessary part of outer packing, marking

serves important function during transit. The outer packing of exports is usually marked clearly with the identifying symbols and numbers in accordance with the instructions of the customer in order to enable the customs authorities, the steamship clerks and the customer to identify the packages en route or at the port of destination. In addition, outer packing will bear some indicative / warning marks with weight and

measurement of the packages, which enables the carrier to choose suitable means of transport and calculate freight.

New Textiles Import & Export Corporation180 Changan Road, Beijing 100000, China

Tel: 010-64000000 Fax: 010-64000001 E-mail: newtextile118@yahoo.com.cn

April 12, 2006Sunlight Textiles Imp. & Exp. Corp.,2458 Empire Road, SydneyAustralia

Dear Sirs,

We enclose the countersigned copy of contract No. 250 of April3, for 360 bales of printed cottons. The letter of credit is on its way to you.With regard to the packing for the above order , please mark our initials KT in a triangle, destination and our order number

Specimen letter-7

should be stenciled ． In addition ， directive marks KEEP

DRY ， KEEP AWAY FROM PRESSURE ， etc ． should also be

indicated.

We have made a footnote on the contract to that effect ． We

hope you will find it in order and pay special attention to the

packing ．We look forward to receiving your shipping advice and

thank you in advance.

Yours faithfully ， Dawei Xu

Guidelines for Writing 5). Packing requirements concerning inner

packing Inner packing, also named as sales

packing, is done mainly to push sales. Successful inner packing can save cost, energy and time that will be spent on marketing. Therefore, the buyer also lays emphasis on it.

ABC Trading Corporation9 Alexander Street, London, England

E-mail:progress@hotmail.comTel: (44) 456-3367 Fax:(44) 456-3395

3rd June, 2007Far East Trading Company688 Tianya Street, Haikou 570000,Hainan Province, China

Dear Sirs ，

In reply to your e-mail of May 26 ， we regret having forgotten to mention the inner packing requirements of Bee Brand Brown Sugar we ordered at the Guangzhou Spring Fair this year. Now we have discussed the matter with our customers. They request as follows ：

Specimen letter-8

As brown sugar is moisture absorbent especially in hot rainy

seasons ， it should be packed in kraft paper bags containing 20

small paper bags of 1 kilogram net each, two kraft paper bags to

a carton lined with water-proof paper.

We hope the above requirements will be acceptable to you and

look forward to your early reply.

Yours sincerely ， Black Smit

Far-east Trading Company, Ltd.180 Changan Road, Beijing 100000, China

Tel: 010-64000000 Fax: 010-64000001 E-mail: textiles@yahoo.com.cn

April 20, 2007 Pacific Textiles Imp. & Exp. Corp.2458 Empire Road, SydneyAustralia

Dear Sirs,

Reference is made to our Order No.330 of March 5th covering 5000 pieces of Girls’ Swimsuits. We are pleased to inform you that the above-mentioned shipment ex s. s. “xxx” has arrived at our end sagely and in good condition.

Specimen letter-9

As a matter of fact, the goods are found to be of excellent quality, while the packing is only middling, having a certain leeway to improve. Frankly speaking, you can compete successfully in the world market in a good many commodities, but you lose out to others just because you fail to pack the goods properly. You will understand that with so many brands of the same commodity competing for sale here, merchandise is forced not only to give value but to be seen to give value. In order to help sell the goods, we suggest that you make some improvements in your packing as soon as possible.

Yours truly,

Zhen Lan

Guidelines for Writing 6). Clarifying packing clause Packing clauses stipulated in the contract should be

mutually discussed and determined before shipment. Any obscure expressions must be clarified otherwise trade disputes may be caused. In trade practice, in order to save any possible trouble and disputes, ambiguous packing terms like “seaworthy packing”, “customary packing” and “seller’s usual packing” should be avoided.

April 27, 2007Dear Sirs,

Sales Confirmation No. T-LONG1352We have received your letter dated April 23 enclosing the above sales contract in duplicate but wish to state that after going through the contract we find that the packing clause in the contract is not clear enough. The relative clause reads as follows:Packing: Seaworthy export packing ， suitable for long distance transportation.In order to eliminate possible future trouble ， we

would like to make clear beforehand our packing requirements as follows ：

Specimen letter-10

The tea under the captioned contract should be packed in international standard tea boxes, 24 boxes on a

pallet, and 10 pallets in an FCL container. On the outer packing please mark our initials SCC in a diamond ， under which the port of destination and our order number should be stenciled. In addition ， warning marks KEEP DRY ， USE NO HOOK ， etc, should also be indicated.We look forward to receiving your shipping advice and thank you in advance.

Yours faithfully ， Fred Jockey

Guidelines for Writing 7). Improper packing causing damage In international sales transaction, improper

packing will lead to damage or losses, consequently, resulting in complaints or claims.

May 27, 2006

Dear Sirs,

On May 20th, we received your consignment of 40

cardboard cartons of steel screws. We regret to inform

you that 10 cartons were delivered damaged and the

contents spilled, leading to some losses.

We accept that the damage was not your fault but feel

that we must modify our packing requirements to avoid

future losses.

Specimen letter-11

We require that future packing be in wooden boxes of 20

kilos net, each wooden box containing 40 cardboard packs of 500 grams net.Please let us know whether these specifications can be met by you and whether they will lead to an increase in your prices.We look forward to your early confirmation.

Yours faithfully ， Phillip David

May 18, 2008

Dear Sirs,

We have duly received the fifteen cartons of cameras

under our Order No. xxx of 5th May but regret to inform

you that upon examination, we found three cartons of

them were badly damaged and probably can not be

accepted by our customers.

Apparently it was due to the improper packing. In our

opinion, the export cartons used were not sufficiently

strong to protect these cameras.

Specimen letter-12

This is the second time in the first half of this year we have had cause to write to you about the same matter and we find it hard to understand why precautions could not be taken to prevent a repetition of the earlier damage.Please go into this matter promptly and send us the replacements of the damaged three cartons by air as quickly as you can as we are badly in need of the goods.

Yours faithfully, Simon Richler