Role plays

1.Your partner is going to sell his company's product abroad, but he doesn’t know much about the terms of delivery and methods of payment used in foreign trade. Give him the information he needs and help him to choose the most suitable ones.

2. Textafabrik and the large textile group, represented by Mr. Johnston have been trading successfully for some time. Now they negotiate possible changes in the terms of delivery and methods of payment.

Problem-solving

A supplier based in a foreign country offers you goods with a well-known and prestigious logo on them at a surprisingly low price. At that price you suspect that they must be copies but they would certainly deceive the customer. Would you buy them and market them? Is there anything else you would do?

Answer the questions on the topic:

1. What questions are usually discussed before clinching a deal?

2. What quotation terms do you know? Characterise each of them and explain their pluses and minuses.

3. What methods of payment do you know? Speak about each one.

4. What method is used when:

- you don't know the customer well and the order is rather substantial?

- you don't know the client well but the order is rather urgent and not very large?

- you have been trading for a long time?

5. Which is the quickest/slowest/most reliable/least reliable method?

6. What is the difference between L/C and IL/C?

7. Why is it necessary to know a lot about a potential customer?

Unit 4

Export-Import Documentation

PART 1

DIALOGUE 1

Mr Driscoll, who works for the Freight Forwarding Agency, calls the General Manager of an explosives company. The company specialises in making dynamite for the mining industry.

brockett Hello, Brockett here.

driscoll Hello, Mr Brockett, Driscoll here again.

BROCKETT What's the problem?

DRISCOLL It’s about that consignment of NG explosives for Australia. There's a lot of paperwork involved with the shipment. I want to make sure I’m putting down the cor­rect information on the forms.

BROCKETT Only too glad to help. We've got to comply with all the regulations, else we'll all get in a muddle. What do you want to ask me?

driscoll It's this form I’m filling in for you, the one for dangerous

cargoes ...

BROCKETT Oh, you mean, the application for Special Stowage Order.

driscoll That's the one. I want to check one or two details with you — I've got the form in front of me here.

brockett Fire away!

driscoll I'm looking at the section headed: Number and descrip­tion of packages. Am I right in saying it's two hundred (200) crates of NG explosives? Gross weight... erm...

brockett Gross weight: a hundred and fifteen (115) tons. Net weight: a hundred (100) tons. F.o.b. value: one hundred thousand pounds (£100.000)

DRISCOLL Thanks. I'll note that down. You'll be using fibre-board cases, won't you? And they'll have strong wires round them for safety.

BROCKETT That's right. There'll be twenty cases per crate. Each case weighs twenty-five kilos.

DRISCOLL Uh-huh, I presume you'll be sending the goods by road to Tilbury Docks. They'll go to the container freight station. Right?

brockett Yes. The Transworld Shipping Line can take over from there.

DRISCOLL Let me make a note of that. Place of acceptance of cargo by Transworld... erm ... container freight station, Tilbury. Transworld will pack the goods into the container and unpack at destination.

BROCKETT I also want Transworld to handle the documentation. They can prepare the Bills of Lading and Customs Entry Forms on our behalf.

DRISCOLL How about insurance?

BROCKETT They can arrange our insurance cover. But try to get a low premium for us, Mr Driscoll. Twist their arm a little, if you have to.

driscoll Don't worry. I'll beat them down if possible.

BRОСКEТT That's covered about everything, I think. Oh, by the way, remember that we want extra copies of the Bill of Lading.

DRISCOLL I've already noted that. Maybe I should remind you — when you receive the Shipping Application, make sure you sign the Declaration on the back.

BROCKETT I'll do that. I've got to state the consignment's safely packed, haven't I?

driscoll Yes. That's the main purpose of the Declaration. Now, I'll let you get back to your work.

BROCKETT Thanks. I'm really up to my eyes at the moment. Still call me if you need me.