四川托普信息技术职业学院
毕 业 设 计 论 文
题目 瓷砖出口项目报告
Report on
Polished Porcelain Tiles Export Project
学生姓名 李 倩
学生学号 2005080125
专业方向 商务英语(国际商务英语)
指导教师 王 雪
指导单位 四川托普信息技术学院
Graduation
Thesis / Design
Title: Report on Polished Porcelain
Tiles Export Project
Author of Thesis/Design Li Qian
Student ID No
2005080125
Specialty Business English
(International
Business Direction) _
Thesis Advisor Wang Xue
Advising
Unit
English Department
Date Oct.31, 2007
Chapter 1 Abstract……………………..
……………………………………….1
Chapter
2 Introduction……………………. ………………………………. … 2
Chapter 3 Procedures and
Results………………………………………….3-32
3.1. Flow Chart
of (the commodity) Export Project………………………3
3.2 Preparation
for Exportation………….………………………………3-11
3.3 Conclusion
of Export Contract…………………………………11-15
3.4. Execution
of the Contract…………………………………………16-32
Chapter 4 Conclusion………………… ……………………………………33
Chapter 5 Reference………………..………………………………………34
Chapter6 Acknowledgments………………………………………………..35
Chapter 1 Abstract
The report gave the procedures about
exporting the ceramic tiles (polished porcelain tile, No.570, 800×800) from Guangzhou to
London by Marine transportation.
With the long term objective, the
company not only wanted to make profits but also had the aim of enlarging
market share.
The company did some researches about the
target market on the Internet. Some statistics showed that the ceramic tiles
used for construction and decoration was quite popular in
Business negotiation
between two parties went smoothly. There were some difference with each other, but
at last, the both two sides reached the agreement.
Getting the goods
ready, clearing exporting customs, chartering a ship and booking space, and preparing
documents for bank negotiation also went smoothly. However the shortage and breakage
of the products made the importer send out a letter for claim. After the
careful investigation, the company solved the problem. When these procedures
completed, the all exporting project was over, the company got the expected profit.
Chapter 2 Introduction
In order to make profit for the company, the exporting
department made effort to research the target market (
The purpose of the project was to get the long
term objective rather than the short term objective. One transaction is not our
final aim, and the main purpose is to get into the foreign market. Several
years ago,
With the development of the society, real-estate
industry is developing fast. And the people like the cool feeling of the
ceramic tiles which gave the company a good opportunity to do this export.
Chapter 3 Procedures and Results
3.1. Flow Chart of (the
commodity) Export Project
The following are the flow chart of export, the company made the
exporting according to these contents of the flow.
Preparation before negotiation
↓
Business negotiation
↓
Signing sales contract
↓
Getting goods ready
↓
Urging the importer to open L/C
↓
Checking L/C
↓
Asking the importer for amending L/C
↓
Clearing customs for export
↓
Charting space and booking ship
↓
Arranging insurance
↓
Making out documents
↓
Presenting
documents and obtaining payment
↓
Settlement of claim when possible
3.2 Preparation for Exportation
The purpose of this project was to
establish business relationship with the importer (Overseas Trading Co., Ltd). The
research report found that there were several procedures for exporting, it was
necessary to choose the right target market and do an effective business
negotiation. Credit is very important, every company wants to do business with
the ones which is with good reputation. The company did the market research to
choose the target market about the commodity and the price. Some research
person went to the target market to invest the importer’s credit. At last, two
parties did an effective business negotiation and reached the agreement then
signed the contract.
In order to make profit for the company, choosing a right target market is very important. Market
research was a complicated job, at the very beginning, making profit was seemed
as the only purpose of the company, then the research plan was made out, two
persons who are with experience of exporting department were sent to Europe. All
the jobs made the good preparation for exporting. After the careful research,
it was reported that the long term objective was the purpose because of the
potential market in
⑴ Target Market: To choose
a target market is the important essential factor, the company chose the target
market according to the SWOT (to know the strength, weakness, opportunity, and
the trend of the market) strategies. Compared with the U.S.A market, the
⑵ Commodity: To avoid
possible conflicts, each effort the company made to describe the goods in the
sales contract exactly as the company and the importer intended them to be.
When deciding the name, quality,
quantity of the products, the following point the company considered: the right
name is very important. The persons aboard carefully invested if there was the
same name in London, the result showed that there was no same name in London,
and the name was welcome and was in the right translation.
⑶ Pricing: During
the procedures of calculating the price, the company met some problems and
disputes. Having a good knowledge of the international market levels and making
the comparison of competitor’s price among all similar products in the
international market, the company found that the
Owing to the long term objective the company chose,
the low price strategy was finally adopted.
The company also took foreign exchange rates into consideration.
As the fluctuation of exchange rates may influence the interest of the company
and the importer, in this project, U.S dollars were adopted.
Appendix 1. A Business
Letter Seeking for Business Relations
806 origins Floor,
Tel: (86) 020-8666178 Fax: (86) 020-86682043
attn: Mr. Jameson green
TO: Overseas trading Co., Ltd
25
BA2 9AN
OCT.5, 2007
Dear sir,
We learn your name and address from the Internet that you are one of the
leading importers of Chinese CERAMIC TILEs in
.
We export different types of ceramic TILES, such as Rustic porcelain Polished porcelain tile、 Outside wall tile 、Interior wall tile、
Roofing tile、 Double loading tile 、Glass tile and so on. The advanced production
technologies are from
We appreciate it very much if you’ll send us an early enquiry.
Yours sincerely,
SALLY LEE
Export manager
Appendix 2.
Calculation of Price
The total quantity about 10000 pieces of products
were exported to
When exported the products, there were so many
expenses considered when the company calculated the price, such as purchasing
cost, quantity, domestic charges, foreign charges and profit. The domestic
charges included inland freight charges, certification charges, port charges, interest,
banking charges and so on. The foreign charges included export freight, insurance
premium and commission.
The following is about the price accounting.
1. Cost:
Purchase cost: RMB90/piece Quantity: 10000 VAT rate: 17%
Drawback
rate: 13%
2. Domestic
charges:
Warehouse
charges: RMB 1000 Certificate
charges: RMB 300
Inland
freight charges: RMB 500 Port charges: RMB 1000
Interest
rate: 2.5‰/year, 28days
Banking charges: advising charges RMB 200
and negotiation interest 1.25‰ (on the basis of the unit price invoice value)
3. Foreign charges:
Export
freight: USD 0.5/piece
Export
premium: All risk 0.8% War
Risk 0. 3%
4. Profit: 15% on the basis of CIFC5%
Exchange rate:USD1=RMB7.7/7.8
Calculate the CIFC5%
1
Actual cost=Purchasing cost
–drawback=RMB 90-90÷(1+17%)×13%
=RMB
90-10
=RMB 80
2
Interest=amount× interest rate/360
×days
=RMB 90×(2.5÷360)×28
=RMB 17.5
3
Domestic charges=RMB(1000+500+300+1000+200)÷10000+17.5+1.25‰×CIFC5%
=RMB 0.3+17.5+1.25‰×CIFC5%
=RMB 17.8+1.25‰×CIFC5%
4
Foreign charges =RMB 0.5×7.7+CIFC5%×
(1+10%) (0.8%+0. 3%)
=RMB0. 385+CIFC5%×1.21%
CIF=Actual cost + Charges +profit
=RMB 80+ 17.8+1.25‰×CIFC5%+ 0.385+CIFC5%×1.21% +15%×CIFC5%
=RMB 98.185+16.335%
(1-16.335%) ×CIFC5%=98.185
CIFC5%=RMB 98.185÷ (1-16.335%) = RMB117.3549
=
USD117.3549/7.7
=USD15.24/piece
3.2.3. Customers’
Profiles
Overseas
Trading Co., Ltd is a famous synthetical trading company in London of Britain.
With the good sales channels and credit and business ability in
It took about ten days for the company to do a
business negotiation. On the first day, an E-mail was sent to the importer to
ask for establishing business relationship on Oct.5, 2007, the importer sent a
reply here showing the willingness of cooperation on Oct.6, 2007, and the
company sent out a quotation on Oct.7, 2007. And on Oct.8, 2007, the company got
the count-offer and the importer showed that every terms and condition was acceptable
except the price of the products was much higher, they required a lower price. After
a discussion here, the price was reduced a little, at this time, the importer accepted
the terms and conditions on
On Oct.15, 2007, the representative named Mr. R. Jameson on behalf of the
importing company flied to
The contract effected on Oct.16, 2007, it was investigated
that the company would get the profit about USD22,860.00
Appendix 3. Quotation
806
origins Floor,
Tel: (86) 020-86661789 Fax: (86)
020-86682043
attn:
Mr. Jameson green
TO: Overseas trading Co., Ltd
25
BA2 9AN
OCT.7, 2007
Dear sir,
Thanks for your enquiry of
COMMODITY NAME ITEM NO. MODEL QUANTITY PRICE
Polished porcelain
tile No.570 800×800 10000pieces CIFC5%15.24/P
This is the most favorable price we can
offer. Payment by irrevocable Letter of Credit opened in our favor with the
Bank of
Delivery: Within 3 months of notification
of receipt of Letter of Credit. Then the Marine transportation will effect.
Validity: This quotation is firm for order
dispatched before
We hope that this meets with your approval
and we have not much ready stock on hand.
We’re looking forward to your early reply.
Yours sincerely,
SALLY LEE
Export manager
3.3. Conclusion of Export Contract
From the market research to the
business negotiation, there were some problems and disputes. At the beginning,
everyone in the exporting department discussed the target market, after
researched the foreign market, the project chose
While the company received the
L/C and found that it was irrevocable non-confirmed transferable which was not
in accordance with the contract, then sent an E-mail to the importer and asked
for amendment.