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Export Order Process and Contract Terms

1. B 2. I 3. F 4. A 5. H 6. E 7. C 8. D 9. G 10. J

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0% found this document useful (0 votes)
68 views4 pages

Export Order Process and Contract Terms

1. B 2. I 3. F 4. A 5. H 6. E 7. C 8. D 9. G 10. J

Uploaded by

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Copyright
© © All Rights Reserved
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Reading:

Part 1: Placing Orders


An export order can be a letter, order form or both. Well-known customers
will probably use a form. An unknown customer or one placing a single order
will probably use a letter. The order shows the terms offered by the customers.
If the terms are not acceptable to the suppliers, they can offer fresh terms to
the customers. Whether the order is by indent or letter, it must have the
following information:
1 The name and address of the customers and the address where they want
to take delivery of the goods if different.
2 The name and address of the suppliers.
3 An order reference number.
4 The date.
5 An exact description of the goods or services needed, including the
quantity, type or model number, size, colour, technical specifications and
catalogue number, where these things apply.
6 The method of payment and the name of the customers' bank .
7 The details of carriage and kind of packing the customers want. If this is left out of
the order the suppliers will carry out the packing and shipping which they usually do
for the country of the customer.

[Link] date by which the customers want to have the goods.


9 The export clause abbreviation. The export clause is part of the contract of sale
between the customers and suppliers. It shows how the other contracts are to be made.
These are about:
a payment through banks
b land transport in both exporting and importing countries
c sea freight (or air carriage)
d insurance.
Some of the transport may be arranged by the suppliers and some by the customers,
depending on the export clause used.

Export clauses show what part of the transport and insurance costs will be paid
by the suppliers and what part by the customers. So fob. (free on board) means
that the suppliers pay transport to the docks and the cost of loading over the
ships rails. The customers pay the sea freight, marine insurance, and all the
transport costs from the port of discharge to their own address.
Incoterms (definitions according to the International Chamber of Commerce)
show exactly what costs should be paid by whom under each export clause. For
example, Incoterms fob. means that all dock dues charged before the ship sails
are paid by the shippers and all dock dues (or port rates) charged after the ship
sails are paid by the importers.
Naturally, if an exporter quotes a price fob. the transport costs under fob. are
costed into the price of the goods. Export clauses simply show who is
responsible for arranging the different stages of the transport.
Gapped text
Export orders or order forms called (1) __indents________must give all the
information needed (2) __by______the suppliers so that they know
(3)__exactly_____ what the customers want. Details like (4)
___model______numbers, technical specifications and order reference
(5)__numbers/mode/code_____ should be included. The customers also
(6)__include/indicate_______what shipping and insurance costs they (7)
__want_____ to include in the price of the (8)__goods/cóignment______ They use
certain abbreviations called export_clause_which show this. The method of
(9)___payment____ must also be mentioned and the (10)_______of the customers'
bank. The order (11)_______ the basis of a contract of (12) __________between the
customers and the exporters. The contract will be made when the (13)_______reply
confirming the order and agreeing (14)_______ the customers' terms. These terms are
(15)_________by exchange of letters or order indent and letter in reply. The contract
(16)________all the other contracts in the (17)______ For instance, it is
decided who is going to arrange transport and insurance.

Part 2:
1. Revoke this contract
2. Binding agreement
3. Invalidate any other clauses and regulations
4. Subject matter of the contract
5. Interest on arrears
6. Reserves all rights
7. Due date
8. Liable for any damages

Here are some extracts from a standard contract between PE in Britain and their
French supplier. Use the 8 expressions above to fill in the blanks to fulfill the extracts:

The…………………………4………………is the delivery of electronic equipment


by TEGID to PE (for specifications of conditions, delivery terms and dates, see
appendix A. unless otherwise provided these specifications are binding to both
contracting parties)
The signature of both contracting parties constitutes a ………2………………………
for the deliveries if the chosen articles; call-off orders will be handled through the
online portal of TEGID. Both sides accept the general standard terms and conditions
of TEGID
TEGID ………6…………….. to select suitable logistical partners to meet scheduled
delivery dates. TEGID is not …………8……………or losses incurred by the logical
partners.
PE agrees to fulfill its payment obligation in 14 calendar days after receipt of the
articles. If the contracting party exceed the ……7………………. by more then 10
calendar days, TEGID will charge an………5………..of 4 % above the base interest
rates of the European central bank, 10 $ will be charged for each reminder
An agreement clause being or becoming void does not ………………
3………………………….
TEGID reserves all rights to …………1………………………….in parts of in full if
PE infringes any of the agreed provisions. A penalty depends on the extent of the
damage incured by TEGID .
Part 3:
Advice on transporting goods internationally by road, sea, air and rail.  Information on
imports, exports, customs, regulations and freight management. Read these extracts.
Which heading (A-J) would contain these information?

1. Although extensive networks allow for speedy delivery, there may be delays as a
result of breakdowns and congestion. There may also be extra toll charges, and there
is more risk of damage to goods while in transit
2. In some cases it is necessary to comply with industry regulations. For livestock,
please refer to the Department of Environment, Food and Rural Affairs (DEFRA)
website. If transporting dangerous goods, see the Health and Safety Executive (HSE)
website for compliance procedures
3. Two options are available: private and public.  Individual traders tend to use the
private option, where the proprietor will take some responsibility for the items. Public
facilities do not accept responsibility for stored goods. Note that meat may not be
stored in either type of facility.
4. Before deciding which mode of transport you wish to use, ask yourself how quickly
the goods need to arrive, how much you can afford to spend, where your goods need
to go and what the infrastructure is like in that location.
5. If you would prefer not to manage the logistics yourself, you can engage another
company to do so. These tend to have detailed knowledge of the relevant rules and
regulations, and can save you time and money by consolidating your shipments with
those of other companies
6. This is the fastest way of delivering goods over long distances.  Fragile and
valuable items can be transported with security and low risk of damage. However, it is
more costly, and there is always the risk of cancellation and delay
7. Generally costs are lower using this method, and it has the added advantage that
containers can be easily transferred to road or rail.  However, the routes and
timetables are usually inflexible, and there will be extra port duties and taxes
8. Although this method is fast and environmentally friendly, the density of the
network will vary, and in most cases, an additional method of transportation will be
required between the depot and the final destination. Services may also be disrupted
due to industrial action or engineering works.  
9. All shipments require a Standard Shipping Note as this helps port authorities to
process your consignments. Dangerous goods should carry a dangerous goods
declaration. If using a freight forwarder, you will also need to complete an Export
Cargo Shipping Instruction
10. Tariffs may need to be paid when transporting goods internationally, although you
should consult your local Inland Revenue office to find out if you are eligible for
some form of relief
A. Assessing your transport needs
B. International road transport
C. International transport by sea
D. International rail transport
E. International air transport
F. Warehousing
G. Documentation
H. Using a freight forwarding sẻrvice
I. Transportation of special goods
J. Taxes

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