Chapter Five Types of Business Negotiation Structure nSales of Goods nInvestment nTechnology Transfer On Sales of Goods nWhat Should Be Negotiated nQuality nQuantity nPacking nPayments nShipment nInsurance nClaim and Arbitration nTips for sales negotiationWhat Should Be NegotiatednAll terms concerning the transactionnSpecific clauses in a contractQuality nSale by sample;nSale by description and illustration;nSale by trademark or brand;nSale by place of origin;nSale by specification, grade or standard.Methods of Stipulating Quality of CommodityMethodsnSale by Description （凭说明买卖）nSale by Sample （凭样品买卖）nSale as it is (看货成交)Sale by DescriptionnSale by Specification, Grade or Standardn（凭规格，等级，标准）nSale by Brand Name or Trade Markn（凭品牌或商标）nSale by Name of Originn（凭产地名称）nSale by Description and Illustration n（凭说明书和图样）Grade ContentGradeTungsten Trioxide (Min.)Tin (Max.)Arsenic (Max.)Sulphur (Max.)Superior 1 270% 65% 65%0.2% 0.2% 0.1%0.2% 0.2% 0.2%0.8% 0.8% 0.8%Quality negotiation tipsnOrder a sample before committing to a purchase order nUse Pre-Shipment Inspection Services. nPacking nIn case failure to ensure that the quality of the goods delivered is in accordance with the contract or sample. Units of measurement for quantitynWeight: metric ton, kilogram, pound, ounce, gram,nNumbers: piece, pair, set, dozen, grossnLength: meter, foot, yard, mile, inch,nArea: acre, square yard, square footnVolume: cubic meter, cubic yardnCapacity: liter, gallon, bushel, etc.Packing nImportance of packingnPreventing or minimizing the damage of shipment;nPromoting product sales;nAvoiding possible rejection of the shipment by the buyer.Types of PackingnThree types of commodities nBulk CommoditiesnNude Packed Commodities nPacked CommoditiesnThree types of packingnTransport PackingnSales Packing nNeutral PackingTransport PackingnAlso called big packing or outer packingnCharacteristics of Transport PackingnBe solid and durable and adaptable to changing climates;nBe uniformnAs small and light as possible nTypes of Transport PackingTypes of Transport PackingnBags/SacknCartonnCase nCrate nDrum nBale nCannCarboynContainernPalletTypes of Containersn干货集装箱（Dry Cargo Container） 罐式集装箱（Tank Container） 20Steel Reefer with Meat Hang System20钢质挂肉冷藏箱 Sales PackingnSales packing (inner packing, small packing or immediate packing) is mainly used for the purpose of promoting sales.nA silent salesman nFunctions of sales packingnFor Display and salenFor Identification of the commoditynFor consumer convenience in useFor Display and SalenPiling-up PatternnHanging-up PatternnSpreading-up PatternPictures For Identification of the commoditynTransparent pattern and windowed patternnCustomary Packing PatternPictures For Consumer Convenience nPattern for Carrying aboutnPattern for Easy OpeningnPattern for Spraying outnPattern for Forming a Complete SetnPattern for Showing off a GiftPictures PackingnAvoid using unclear terms such as seaworthy packing and customary packing nSpecial request for packingnThe shipping marks nIndicative marksShipping MarksnThe importance of and consistency in using shipping marks nPacking, invoice, insurance policy, certificate, bills of lading, etc.nISO standard shipping marks:nSimple and clearnProper position, durable colornNo advertising allowedComponents of Shipping MarksnConsignee or Consigners CodenAbbreviations: TEC, ITCnReference Number nNumber of sales contract, L/C, etc.nPort of Destination nPackage NumbernThe total number of the whole lot of consignment and individual package number ne.g. NO.28/800Indicative MarksnIndicative Marks refer to the requirements and matters which need serious attention for the process of transporting, loading, unloading and storing goods. Payments nPayment Terms nHow to Protect Yourself Against Payment Risk Payment TermsnAmount of paymentnTime of paymentnConditions of paymentnMethods of paymentMethods of paymentnRemittance nmail transfer (M/T) ntelegraphic transfer (T/T), nremittance by bankers demand draft, D/DnCollection nDocuments against payment (D/P)nDocuments against acceptance (D/A)nLetter of credit (L/C) BeneficiaryRemitting BankPaying BankRemitter123Workflow of M/T ,T/T1 application and payment 2. telegraph or mail the order3. payment 143Workflow of D/D1. Application and payment2. Draw the Bankers Demand Draft3. Send the Draft4. Demand for payment of draft2RemitterRemitting BankPaying BankBeneficiary3Documentary Collection Documentary collection is a method of effecting payment for goods whereby the seller ships goods to the buyer, but instructs his bank to collect a certain sum from the buyer in exchange for the transfer of relevant documents.Drawee/importerRemitting bank Collecting bank123Workflow：D/P(1) shipment (2) present documents(3) send documents and Instructions(4) advise the importer7456 (5) make payment or acceptance and get documents(6) send funds(7) pay the exporterPrincipal/exporter Terms nPrincipal is the one who