Contents Introduction 1 Section 1 Introduction to International Trade 2 Section 2 Reasons for International Trade 6 Section 3 International Trade Restrictions 9 Section 4 Forms of International Trade 12 Chapter One General Procedures of Import & Export Transaction 19 Section 1 The Necessary Works before Import and Export Transaction 20 Section 2 General Procedures of Business Negotiation 22 Section 3 Implementation of Contract 27 Section 4 Import Procedures 29 Section 5 Export Procedures 31 Chapter Two Name, Quality, Quantity and Package of Commodity 37 Section 1 Name of Commodity 38 Section 2 Quality of Commodity 38 Section 3 Quantity of Commodity 43 Section 4 Package of Commodity 46 Chapter Three Trade Terms 53 Section 1 Trade Terms and Incoterms 54 Section 2 Trade Terms in Incoterms 2010 60 Chapter Four International Cargo Transportation 69 Section 1 Ocean Transport 70 Section 2 Ocean Transport Documents 74 Section 3 Container Transport 78 Section 4 Other Modes of Transport 80 Section 5 Transportation Clause 84 Chapter Five Cargo Transportation Insurance 91 Section 1 Brief Introduction of Cargo Transportation Insurance 92 Section 2 The Content of Cargo Transportation Insurance 94 Section 3 Marine Insurance Coverage and Clauses 97 Section 4 London Insurance Institute Clause 101 Section 5 Insurance of Land, Air and Postal Transportation 102 Section 6 Insurance Clauses in Sales Contract 103 Section 7 Practice on Marine Cargo Insurance 104 Chapter Six Means of Payment in International Trade 109 Section 1 Currency Payment 110 Section 2 Bill of Exchange 110 Section 3 Promissory Note and Check 114 Chapter Seven Commercial Letter of Credit 117 Section 1 The Concept of Letter of Credit 118 Section 2 The Procedures of Letter of Credit 120 Section 3 The Characteristic and Function of Letter of Credit 123 Section 4 Types of Letter of Credit 124 Section 5 The Clauses Concerned L/C in Sales Contract 129 Section 6 Checks and Amendment of Letter of Credit 131 Chapter Eight Other Payment Terms 141 Section 1 Remittance 142 Section 2 Collection 143 Section 3 Letter of Guarantee and Standby Letter of Credit 148 Section 4 International Factoring 150 Section 5 The Option for Varied of Settlement 150 Chapter Nine The Methods to Price the Imports and Exports 153 Section 1 Price Principles Strategy and Method 154 Section 2 The Selection of Money of Account and Precautions 158 Section 3 Foreign Exchange Rate 159 Section 4 Commission and Discount 160 Section 5 The Price Calculation of Export 162 Section 6 Price Clause in Sales Contract 165 Chapter Ten Customs Formalities and Commodity Inspection 167 Section 1 Customs Formalities for Import and Export 168 Section 2 Commodity Inspection 171 Chapter Eleven Claim, Force Majeure and Arbitration 177 Section 1 Claim 178 Section 2 Force Majeure 181 Section 3 Arbitration 182 Appendix One UCP600 (English-Chinese Bilingual Version) 187 Appendix Two United Nations Convention on Contracts for the International Sale of Goods (1980) 187 Appendix Three Answers for Exercises 187