Unit 3 Quality of Goods

1、Quality of Goods Description of Goods includes name of commodity & QualityName of Commodity-choose suitable name: relative to tariff, carriage-keep the name in conformity in all documents-use internationally recognized name of commodityImportance of QualityIt determines the price value of the go

2、ods. It exerts a tremendous influence over the sales and prestige of the goods. It involves the fundamental rights and obligations of both parties. Therefore,The quality clause shall bestipulated clearly in business negotiation and conclusion of the contract.outwards appearance: shape, structure, co

3、lor, flavor, luster, etc.inner features: composition, physical and mechanical property, chemical and biological feature, etc. Methods of Stipulating Quality of GoodsBy description*by specification*by grade*by standard*by brand name or trade mark*by name of origin*by description and illustrationBy sa

4、mple*by the sellers sample*by the buyers sample*by counter sampleChinese GroundnutMoisture (max.) 13%Admixture (max.) 5%Oil content (min. ) 44%About standardInternational standard: ISO: International Standards Organization has more than 4000 standards IEC: International Electrotechnical Commission h

5、as over 1580 standardsNational standard: GB14-05(is national standard published in 2005, publication No. is 14)Craft (Guild) Standard 行业(公会)标准Local StandardEnterprise StandardTETRACYCLINE HCL TABLETS（SUGAR COATED）250mg B.P.1980.1980.(B.P.=British Pharmacopoeia) -Its important to indicate the name of

6、 the publication and its version. Pay attention to: FAQFair Average Quality , refers to the average quality level of the export commodity within a certain period of time. -Commonly used for agricultural products and by products.-This kind of standard is quite ambiguous. In fact, it is often used wit

7、h specification. For example,Chinese Groundnut, 1994 crop, FAQ, Moisture (max.) 13% Admixture (max.) 5% Oil content (min. ) 44% GMQFor the trading of wood and aquatic products, GMQ (goods merchantable quality) is employed to indicate the quality. GMQ means the goods is free from defects and is good

8、enough for use or consumption. Sale by Trade Mark or Brand NameT101 MAXAM DENTAL CREAMT101 MAXAM DENTAL CREAM -sale by brand or trade markWe should ensure the stability of the quality.Sale by SampleIn our export business, owing to the feature of some commodities themselves, it is quite difficult to

9、indicate the quality of those goods only by words, thus, sale by sample comes into being. For example, handicraft articles, clothes or native products etc. are usually sold by sample.Sale by the sellers sample Sellers sample Original samplerepresentative sample duplicate sample (keep )standard sampl

10、e (type )Sale by the buyers sample counter sample After the buyer confirms the counter sample, sale by the buyers sample is changed into sale by the sellers counter sample.stipulate the industrial property right clause in the S/C In case the buyers sample results in any disputes of infringement of i

11、ndustrial property, the seller will have nothing to do with it. Sale by the counter sample Samples provided by the buyer are given as the quality standard for the goods to be produced and delivered by the seller. Under such circumstances, to avoid future disputes over the quality of the goods, the s

12、eller usually first reproduces the buys sample and then sends it to the buyer for confirmation. This sample is called counter sample.We can stipulate the industrial property right clause in the S/C.For any goods produced with the designs, trade marks, brands and/or stamps provided by the buyers, sho

13、uld there be any dispute arising from infringement upon the 3rd partys industrial property right, it is the buyers to be held responsible for it.- Generally, this clause can be made in the general transaction terms.About of samples Original SampleCounter SampleReference SampleStandard SampleDuplicat

14、e SampleSealed SampleRepresentative SampleColor SampleDesign SampleSample No. 612 Cloth Doll-Its necessary to indicate the number of sample.Flexible terms of quality： Sometimes the seller should write some flexible terms in the sales contract as follows:* Shipment shall be similar to the sample;* Qu

15、ality to be about equal to the sample;* Quality to be nearly same as the sample.Flexible terms of quality: The quality indexes shall be stipulated flexibly and scientifically. Quality Latitude Clause(品质机动幅度品质机动幅度)-which means that the quality indexes of the goods delivered by the seller may be contr

16、olled flexibly within a certain latitude. Commonly used for primary products .Quality Tolerance Clause(品质公差品质公差)- which means that the quality of the goods delivered by the seller is allowed to have certain differences within a certain range since such differences are usually unavoidable and commonl

17、y accepted as the usage of the same special trade. Normally used in the trade of industrial products.There are 3 ways to stipulate the quality latitude.A.To stipulate a certain scope, for example, the width of the cotton cloth is 47/48 inches.B. To stipulate more or less clause, for example, duck do

18、wn content 18% (1% more or less).C. To stipulate max. or min., for example, Rice Broken Grains (max. ) 25% Admixture (max. ) 1% Moisture (max. ) 15%Flexible terms of quality:Price Adjustment Clause ( (品质增减价条款品质增减价条款) )-Buyer shall accept quality up to 5% with an allowance of 5%. (Price adjustment is

19、 not needed if the tolerance is within certain limit.)Summary of unit 3uMethods of Stipulating Quality of GoodsuFlexible terms of quality Sale by Sample Sale by description Quality Latitude Clause Quality Tolerance Clause Price Adjustment ClauseClothsampleSoybeanMedicinestandardspecificationTeaCosme

20、ticElectric AppliancePreserved szechuan pickleGradeInstructionBrandPlace of origin 我某公司向德国出口一批农产品，合我某公司向德国出口一批农产品，合同规定其所含水份最高为同规定其所含水份最高为15%，杂质不超，杂质不超过过3%，但在成交前我方曾向买方寄过样，但在成交前我方曾向买方寄过样品，订约后我方又电告对方成交货物与样品，订约后我方又电告对方成交货物与样品基本相同，货到德国后，买方验货后提品基本相同，货到德国后，买方验货后提出货物的质量明显比样品差的检验证明，出货物的质量明显比样品差的检验证明，并据此提出索赔并据此提出索赔6000英镑，我公司应如何英镑，我公司应如何处理？处理？CASE STUDYCASE ST