Contents Chapter One Regulating International Trade ……………………………………… 1 Basic Process of International Trade …………………………………… 2 Overview of Contracts for International Sale of Goods……………… 4 Laws and Regulations Governing International Trade ……………… 9 Chapter Two International Trade Terms …………………………………………… 17 Overview of Trade Terms ………………………………………………… 18 Interpretations of E and F Rules ………………………………………… 28 Interpretation of C Rules ………………………………………………… 37 Interpretation of D Rules ………………………………………………… 49 Considerations in Choosing Trade Terms……………………………… 53 Chapter Three Terms on Subject Matter of the Contract ……………………… 61 Subject Matter of the Contract ………………………………………… 62 Quality of Goods …………………………………………………………… 65 Quantity of Goods ………………………………………………………… 71 Package of Goods ………………………………………………………… 77 Commodity Inspection……………………………………………………… 86 Chapter Four International Cargo Transportation ……………………………… 95 Ocean Transport…………………………………………………………… 96 Other Modes of Transport ……………………………………………… 103 Terms of Shipment ……………………………………………………… 111 Shipping Documents……………………………………………………… 116 Chapter Five International Cargo Transportation Insurance ……………… 127 Risks, Losses and Expenses in Marine Cargo Insurance ……… 128 Marine Cargo Insurance Clause of China …………………………… 134 Insurance of Land, Air and Parcel Post Transportation ………… 143 Insurance Practices in International Cargo Transport …………… 147 Chapter Six Price of Import and Export Commodities …………………… 156 Pricing of Import and Export Commodities ………………………… 157 Accounting of Profit and Loss of Import and Export……………… 164 Pricing Method for Import and Export Commodities ……………… 168 Commission and Discount ……………………………………………… 171 Chapter Seven Receipt and Payment for International Trade ……………… 179 Instruments of Payment ………………………………………………… 180 Remittance and Collection……………………………………………… 190 Letter of Credit ……………………………