Exercise 3
I. What are the definition of the following concepts?
1. Gross Weight
毛重
Gross weight is the sum of total weight of the commodity itself and the tare(the package weight). That’s to say it refers to the net weight plus the tare weight of the goods.
毛重是指商品本身的重量加上皮重（包装的重量），也就是净重和皮重的总重量。
2. Conditioned Weight
公量
Conditioned weight is obtained with the moisture content of the commodity removed by scientific methods and the standardized moisture added.
公量即用科学即用科学方法抽出商品所含的水分，再加标准水分求的的重量。
3. Gross for net
以毛作净
As the goods are of low value, in international trade, we often calculated it as is gross weight instead of net weight.
以毛（重）作净（重），国际贸易中，有些价值较低的产品，可以采用“以毛作净”的办法计重，就是把货物的毛重当作净重来计算价格。
4. TEU
标准箱
When calculating the circulating quantity of container, we often take the 20-foot container as a measuring unit,i.e,TEU (Twenty-foot Equivalent Unit) to indicate it, it means “being equal to a 20-foot unit”
集装箱的一种最常用的规格，一般计算集装箱流通量时，都以这种规格为一个标准单位，称为”TEU”，意为：“20英尺相当单位”。
5. Neutral Packing
中性包装
The Neutral Packing means that there is neither a name of the origin , nor a name and address of the factory / manufacturer , nor a trade mark , a brand , or even any words on the (outer or inner)  packing of the commodity and the commodity itself.
中性包装是一种既不标明生产国，厂商的地名和名称，也不标明商标和牌子的包装。
II. True or False. For the false statements, please state the specific reasons.
1. The quantity term of goods is one of the conditions of an effective sales contract. ( T )
2. In international trade, only the Metric System is allowed to indicate the quantity of goods. ( F )
The commonly used systems in the world are the Metric System, the British System and the U.S. System.
目前国际上通用的度量衡制度有米制、英制和美制。
3. If the parties to a sales contract do not in advance agree upon whether the quantity of goods is determined by gross weight or net weight, it will be determined by gross weight. ( F )
It is customary to calculate the weight by net weight if the contract does not stipulate definitely by gross weight or by net weight.
如果合同中没有明确规定是用毛重计量还是用净重计量，按惯例应按净重计量。
4. Net weight refers to the actual tare of all the packing materials. ( F )
Net weight is the actual weight of commodity without the addition of the tare.
净重即货物自身的实际重量，不包括皮重。
5. Conditioned weight is, in fact, the actual weight of the moisture of a certain commodity. ( F )
Conditioned weight is obtained with the moisture content of the commodity removed by scientific methods and the standardized moisture added.
公量即用科学即用科学方法抽出商品所含的水分，再加标准水分求的的重量。
6. According to the CISG, if the quantity delivered by the seller is greater than of the contract, the buyer can refuse all the goods. ( F )
The buyer just can refuse the part which is greater than of the contract.
买方仅可以拒绝超出合同的部分。
7. If a buyer has taken delivery of the excess quantity, he holds the right of not paying for it. ( F )
The buyer should pay for it. Under the “more or less” clause, the payment for the over-load or under-load will be made according to the contract price or at the market price at the time of shipment.
买方需要付款。如签有溢短装条款，在溢短装部分按合同规定的价格计价，或按装船时间的市价计算价格。
8. The More or Less Clause in a sales contract allows the seller to deliver as more or as fewer goods as possible. ( F )
The More or Less Clause in a sales contract allows the seller to deliver as more or as fewer goods as possible within a certain range.
9. The only weakness of delivering fewer goods than stipulated is that the seller gets less paid. ( F )
If without the certain range, The seller may not be paid.
10.Usually we can learn from shipping marks the destination and weight of the goods in transit. ( T )
11.Indication marks are to show the capacity and place of origin of the goods in transit. ( F )
Shipping Marks are to show the capacity and place of origin of the goods in transit.
12.Warning marks are to warn those who move goods of possible danger. ( T )
III. Case studies
1. A Chinese export company sold 25 metric tons of Donkey Meat to a Japanese client. As stipulated in the contract, the goods were to be packed in 1500 boxes with a net weight of 16.6 kilos per box. If the goods were packed according to stipulations, the total weight was 24.9 metric tons, the remaining 100 kilos might not be delivered. When the goods arrived at the Japanese port, the Japanese Customs Officers checked them and found that each box contained 20 kilos, not 16.6 kilos. Therefore, this shipment amounted to 30 metric tons. However the goods totaled 24.9 metric tons in weight on the documents, and the payment was also effected against 24.9 metric tons. Thus 5100 kilos of Donkey Meat were free of charge. Worst of all, because of the discrepancy between the net weight on the documents and the actual weight, Japanese Customs thought the export company helped its client to evade duties. Then how are we to deal with this issue? What lessons can we draw from this case?
答：我方损失的原因是没有按照合同或信用证上规定的数量装货，深究原因系我们工作脱节，管理不善造成。因为数量是买卖双方签订合同时定下来的重要交易条件，少了买方不干，多了进口国家海关也不会放行。如果进口商申报的数量与到货数量不符，海关会认为是企图逃漏关税，海关有权罚没，至追究刑事责任。此案告诉我们，不按合同规定办理，违约方必然要承担责任。我方只能按照单据上标注的24.9吨收款，余下的5.1吨驴肉白白送给了客户。这样惨重的教训应当记取。
在处理问题上，我方可以就包装问题和进口方协商，可以按合同规定的包装重量重新包装。另一方面，也可以通过协商，将有多的商品按低价报关出售给进口方，避免了重新包装所需的来回运费。而就出口方的角度来说，在合同上有关运量的条款不应该太过绝对，应使用溢短装条款，以避免因商品数量问题而引起的纠纷。
2．An export company received a letter of credit issued by a Canadian merchant thought his bank, the amount of the credit being 1074.08 Canadian dollars to be used for the purchase of 100 dozen of men’s and women’s gloves respectively. The credit provided that partial shipments were not allowed. In the course of arranging the shipment, the export company found some gloves to be of inferior quality; therefore, the company shipped 98 dozen respectively in order to ensure the quality of the gloves, thinking that, according to the stipulations in the Uniform Customs and Practice for Documentary Credit (International Chamber of Commerce Publication No.500), 5% less of the shipment was allowed. But the Issuing Bank refused to effect payment on the excuse of non-conformity between the documents and the credit. Was what the Issuing Bank did reasonable? Why ?
答：银行的做法是不合理的。根据UCP 500规定，货物比原来少5%是被允许的。而出口方的数量是正是在该范围内，所以银行是必须付钱给出口方的。
3．Company WY concluded a business in 5000 bicycles with a foreign company. The contract asked for 4000 in back and 1000 in blue. However, in preparation of the goods。 However ,in preparation of the goods ,WY found that black and other colors were available, but blue-colored bicycles were out of stock. The person in charge thought that WY were on good terms with this customer, and that the customer was in urgent need of these bicycles, there should be no problem in delivering bicycles of other colors. Consequently, without contracting the customer, WY shipped 300 in orange red, 300 in green and 400 in red instead of the 1000 bicycles in blue as required by the original contract. When the relevant documents were the goods were not in conformity with the contract. How do you think this case should be deal with? Was the buyer justified in refusing the bikes?
答：在卖方没有把蓝色自行车缺现货的消息告诉买方的情况下，擅自将1000台蓝色自行车换成别的颜色，买方可按照销售合同的规定，拒收整批货物的。在国际贸易中，卖方应该将问题和客户及时反映，双方再协商再决定，以避免造成不必要的纠纷。
4. The ABC company exported a consignment of silk. As the shipping marks in the relevant L/C were not clear, the person in charge thought that the L/C did not stipulate the shipping marks. He then, made the shipping marks himself. As a result, discrepancies occurred between the made shipping marks and those stated in the L/C. The buyers, therefore, refused to pay for the documents. However, after negotiation, the buyers agreed to pay only when the ABC company had reduced the original prices by 10 per cent. What lesson can we learn from this case?
Answer: The most important lesson we can learn is that, it is essential for the
exporter to present documents in accordance with the stipulations of the relevant LC.
In this case, finding the shipping marks illegible on the LC, the export salesman in the ABC Company, instead of asking the buyer for clarification, decided the shipping marks himself. This constituted discrepancy between the documents and the LC.
Article 14 of the UCP500 clearly indicates, “When the Issuing Bank authorizes another bank to pay, incur a deferred payment undertaking, accept draft(s), or negotiate against documents which appear on their face to be in compliance with the terms and conditions of the Credit…” It is clear that the documents presented must be in conformity with the stipulations in the L/C.
IV. Calculate and answer question
We import 20 M/T wool from New Zealand. In the S/C, there indicate “20 M/T”. When we receive the wool, we find that the actual regaining rate of water is highly up to 33%. How much do we loss in this transaction? In the S/C, what kind of quantity clause is suitable for us to avoid such un-necessary losses?
答： 根据 
损失量=20-20×(1+11%）/1+33%=3.3M/t
因此为了避免损失，应该采用公量计重的方法。