Graduation
Thesis / Design
Title: Report on
Shirts Export Project
Author of Thesis/Design Long Hai Ying
Student
ID No 2005080323
Specialty Business
English
（ International
Business Direction）
Thesis
Advisor Ou Yang Chun
Lie
Advising
Unit
Date
Index
Chapter 1 Abstract
Chapter 2 Introduction
Chapter 3 Procedures and Results
Chapter 4 Conclusion
Chapter 5 Reference
Chapter 6 Acknowledgments
Chapter 1 Abstract
Abstract:
The project title is a report on man’s shirt export project.
The company (supposed the
seller in this project) has made a detailed
investigation to the market, in order to occupy and
develop the market-share from the market
vacancy, and obtain the profit.
This report is a description of the
export commodity, and mainly has the preparation
of before exportation, in an implementation
of the contract and letter of credit fulfilling, and makes
an export business report on the
behalf of the name of the exporter .
In the contract both sides
of the seller and the buyer are the Shanghai Ngggn Textile
development Co., Ltd and Japanese
Osaka Johnson’s S.A Corporation. The third party is
the seller of
this contract.
Keywords: The shirt; Documents; Contract; Claim; compensation.
Chapter 2 Introduction
Introduction:
The company (Johnson’s S.A) searches for the buyer’s information from
the
Chamber of Commerce of Light
Industry and they are interested in the man’s shirt.
the both parties have talks
and negotiate many times, and their agreement is reached
finally.
In the process, the
details of the contract include: the exportation flow,
establishing the export
business relations letter, the price calculation, sending the
plate, the domestic
purchase contract and the sales contract, urging the Buyer to
the open the letter of
credit, the applicant of the letter of credit, the Commercial
Invoice, the bank draft,
the letter sues for damages and the principle compensation
and the claim.
Both The seller and the
buyer want to build the cooperation with each other, and get the
mutual profit.
Chapter 3 Procedures and Results
Procedures and Results
In this contract, there are many steps
for the seller exercises, they are Preparation before negotiation, Business
negotiation, Sign a business contract, Getting goods ready, Urging the importer
for L/C, Checking L/C, Asking the importer for amending L/C when possible,
Clearing customs for export, Effecting shipment, Arranging insurance, Making
out documents, Presenting documents and obtaining payment, Settlement of claim
when possible.
3.1. Flow Chart of (the commodity) Export Project
Preparation
before negotiation
↓
Business negotiation
↓
Signing a business contract
↓
Getting goods ready
↓
Urging the importer for L/C
↓
Checking L/C
↓
Asking the importer for amending L/C when possible
↓
Clearing customs for export
↓
Effecting shipment
↓
Arranging insurance
↓
Making out documents
↓
Presenting documents and obtaining payment
↓
Settlement of claim when possible
3.2 Preparation for Exportation
After the cargoes have been prepared. The seller party should get the export
license from the relevant organization and by the way. The exporter should
advise the importer that the goods have been prepared. Just waiting for loading
and shipping
The
seller’s company carried on the investigation to
The company according to the
social group market investigation
during 30~45 year-old. Then discovering the commodity which
this company produced has the competitive ability and advantages, also can fill
the market vacancy and satisfy the purchase need of the customer
Below is this company's
concrete investigation arrangement:
International Market Investigation and
Study Content
Economic environment Investigation
(1)Japan’s economic structure is firm, as
far as the people known that Japan is a country of few people, but on the
international economic level, the average of the income is three times than china,
comparative with others, the consumer level is high, If the products go into Japan
market, they must be sell well
(2)Because of
This
company wants to get the goal market by the corporation with Japanese Osaka's Johnson’s S.A. after
they understand the information, such as Japan’s consumer habit and the product purchase aspect, then this
company decide the market strategy
This commodity uses 100% cotton and kapok lining manufacture,
the product (the long sleeve white shirt) makes fine and feels softly, the washes
shrinkage is 1%, if put on it, the customer can feel comfortably!
Reasonable-price quality merchandise, because the seller establishes
the service cooperation relations with the Johnson’s S.A Corporation at the
first time, this company quotes the lowest price, hoping this cooperation is
happy, and can establish the long-term partner relations with each other.
Appendix 1.
|
上海南极人纺织品有限公司 SHANGHAI NGGGN TEXTILES
DEVELOPMENT CO.,LTD ADD: ROAD 3978 BLUE EVEN TEL: 86 21-69758118 P.O. 7954124 FAX：86 21-59758791
Email:
www.nanjiren.com.cn To: Johnson’s S.A Tel:06-5648971 Atten: XiaoQuanChunYiLang
Date:
Re：Establishing
the
relationship between the importer and exporter Dear sirs， We come to know through the Commercial Counselor’s Office of the
Chinese Embassy in the morocco the name and address of your firm, we also
learn from them that you are in the market for textile. Our company already had two large-scale branch and development. The
production base more than 1,400staffs,more 15 million consumers, more
than20,000 sell the terminal to proliferate national 30provinces,the city,
the autonomous reign ,reaches as high as 88.9% in domestic brand knowing
rate. And successfully steps in the underwear, the feather clothing. The
skirt. The wool sweater/trousers, the leisure install and the clothing
domain. Our company specializes in exporting textile products to various
foreign counties; we wish to enter business relations with you by the
commencement of some practical transactions To give you a general idea of the various kinds of textile products now
available for export, we are enclosing here our latest brochure and a price
list for your reference. We shall be pleased to give you our lowest quotation
upon receipt of your detailed requirement Yours Faithfully,
LongHai Ying (sale manager) |
Appendix 2
When export our
products, there are so many fee about it, the followed are the various fee,
they are the basis of the price.
Purchase cost:
RMB43.5/piece
Quantity: 10000
VAT: 17%
Drawback rate:14%
Packing charges：RMB1/piece
Inland Freight
charges: RMB 1200
Inspection charges: RMB 250
Quotation Freight charges：RMB100
Port charges: RMB 500
Other Freight
charges：RMB1000
interest rate: 8%/year, 60days
Banking charges: advising charges RMB 200 and negotiation interest 0.5 %(
on the basis of the unit price invoice value)
Profit:10% on the basis of CIF
Exchange rate: RMB=8.25：1
Insurance Rate：0.85%
Packing Rate：USD100/P
Calculate the CIFC3
1
Actual cost=Purchase cost –drawback=RMB
43.5-43.5÷(1+17%)×14%=RMB38.29/P
2 Domestic charges：RMB=1×1000+（1000+250+100+500+1000）+43500×8%/12×2
=1221.6
3
Average for per piece=RMB1221.67÷1000=RMB1.22/P
4
Banking charges= Quotation Freight charges×0.5%
5
Commission= Quotation Freight charges×3%
6
Export Freight charges=100÷1000×8.25
7
Insurance Freight charges= Quotation Freight
chargesRMB100×110%×0.85%
CIFC3=
Actual cost+ Domestic charges+ Export Freight charges+ Commission+ Banking
charges Profit
=38.29+1.22+100÷1000×8.25+ CIFC3 ×3%+ CIFC3×0.5%+ CIFC3×110%×0.85%+
CIFC3×10%
=40.97+
CIFC3 ×0.14435
CIFC3=40.97/ (1-0.14435)
=RMB47.88173
USD=47.88173/8.25=RMB5.63/P
Johnson’s S.A is
a firm in
According to the organizations who build
relationship with Johnson’s S.A said that the reputation of it is good, once
the goods got, this firm would pay the money and do other settlements quickly.
The company has abundant funds, Their major customers distribute in America、Canada and other
developed countries.
Because of the two sides-the seller and the
buyer is far away from each other, the company (the seller’s) gives a telephone
negotiation to the buyer at first. But they are just having a general idea
about each other, the detailed information isn’t clear, in order to build the
relationships with each other at an early date. Two days later, the invitation
customer comes to china discuss the transaction. The customer required that the
good name is Gentleman shirt and the specification is TJ-9818.The quality
should be accordance with the requirement-that is 100%cotton, the company agree
the below words. The payment must be paid by L/C by sight. In order to express
deep faith for this cooperation, the seller asked the buyer prepaid the 10%
value of letter of credit as the deposit.
Speak of the unit price. The buyer quotes USDCIF 5.00 per shirt. For this,
the two parties have a disagreement. The company said, the can grantee the
quality of the company’s goods and the price is so low, because they build the relationship
at the first time, the quotation is the lowest. The purpose of this business is
letting the Japanese know this kind of products. This quotation just is a
promoting price, so they can not change the primary price-USDCIF 5.63. Per
shirt.
At last, the negotiation results are:
The buyer purchase the goods 100%cotton white long sleeve gentlemen shirt
1000pcs and pays 10%value of the letter of credit as the deposit. The unit
price is USDCIF 5.63 per shirt. The left payment will pay to the seller. Once
the commodities received by the buyer, on the claims and compensation. If the
goods have problems in quality、quantity、package、damage. The
buyer has the right to sue for claim and the seller should give the right
compensation, the currency uses USD, The very important point is that the
delivery term is CIF and include the 3% commission. If some contents of the contract
uncovered. The save methods are on the basis of International Trade Practice.
Appendix 3.
|
上海南极人纺织品有限公司 SHANGHAI NGGGN TEXTILES DEVELOPMENT CO.,LTD ADD: ROAD 3978 BLUE EVEN TEL: 86 21-69758118 P.O. 7954124 FAX：86 21-59758791
Email: www.nanjiren.com.cn To:
Johnson’s S.A Tel:06-5648971 Atten: XiaoQuanChunYiLang
Date:10,OCT,2007
Re:
Quotation Dear Sirs, Many thanks for the enquiry of 8th October 2007，we have pleasure in quoting as follows： White long sleeve cotton Men’s shirts as per sample. Able No Payment by irrevocable Letter of Credit opened in our favor with The
Hill Corporate Bank Ltd. Quantity: 1000 shirts Delivery: with in 3 months of notification of receipt of Letter of
Credit Validity: This quotation is firm for orders dispatched before We hope that this meets with your approval, please let us know if you
require any further information or sample Yours Faithfully，
LongHai Ying (sale manager) |
3.3 Conclusion of Export Contract
This contract is
signed by the exporter (Shanghai Ngggn Textile Development Co.,Ltd) and the importer
(Johnson’s S.A) for the deal of 1000pcs gentlemen shirts, in the contract.
There are many responsibilities and rights for both the seller and the buyer.
The cooperation with Johnson' s S.A, from
this company’s profit situation said ,the Shanghai Ngggn textile Co.,Ltd reduced
a part of the budget profit volume, this is as a result of this company's
neglect ,when sending the cargoes to another cargoes shipping ,the goods are
exchanged, such careless directly affected to the company profit, this matter
must be strictly and carefully , but said on the buyer customer side, after
this company discovered the mistake, the seller prepared positively goods which
has recalled the loss that the buyer possibly existed and maintained between
the cooperation friendship relations!
This contract also
regulate that if the buyer is not pay money, and how to deal with this
situation, production enterprise, the seller should note the inspection and the
manufactory whether has the productivity, whether guaranteed the quality、the
quantity、delivered goods on time and whether the
product does have the market competition strength。
The place of this
company need to improved is: The staff’s product knowledge of the company such
as the quality specification, the raw material constitution, the production
cycle and the packing material, the packing method, the product price, the raw
material price, the currency standard in the near future and the foreign currency exchange price as
well as change tendency
In brief, the contract signing
with fulfills is smooth, just few small mistake.
Appendix 4.
日期 DATE:
销 售 合 同
SALES CONTRACT
ORIGINAL
合同号
NO. C-S-01-07-OS/SH
地点 Address：
卖方： 买方：
The seller：
The buyer：Johnson’s s.a
Shanghai
Ngggn Textile Development Co., Ltd
Address：Road 3978 Blue Even Shanghai Address：Number1034 Osaka，Japan
确认售予你方下列货物，其条款如下；
We hereby confirm having sold to you the flowing goods on terms and conditions as stated below：