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ChapterFourTermsofCommodity2LearningobjectivesAfterreadingthischapteryoushouldbeabletoexplainthedifferentwaysofqualitystipulationoutlinethequantitymeasurementunitsandsystemsdescribetheapproachestoweightcalculationunderstandthefunctionsandfeaturesofdifferenttypesofexportpackagingidentifymarkingonthepackingofgoodsforinternationalsalescomposequality,quantityandpackingclausesproperly34.1NameofcommoditySignificanceCISGArticle35:Thesellermustdelivergoodswhichareofthequantity,qualityanddescriptionrequiredbythecontractandwhicharecontainedorpackagedinthemannerrequiredbythecontractIssuesconcerningstipulatingnameinsalescontract:beingclear,specific&precisebeingpracticaladoptingthewidelyacceptedname(HSCode)Note:HS--InternationalConventionforHarmonizedCommodityDescriptionandCodingSystem44.2QualityDefinition:referstotheintrinsicelementsofcommoditiesincludingtheinternalpropertiesoringredientsaswellastheexternalappearance.54.2Quality:waysofqualitystipulationQualityStipulationsCategoriesTypesSalebySpecificationSalebyGradeSalebyStandardSalebyBrandNameorTradeMarkSalebyPlaceofOriginSalebyDescriptionSalebyDescriptionsandIllustrationsSalebySeller’sSampleSalebyBuyer’sSampleSalebySampleSalebyCounterSampleSalebyActualCommodity/SalebyActualQuality64.2Qualitystipulation–SalebydescriptionSpecificationcomprisesomeimportantindicatorssuchascomposition,content,purity,length,size,etc.ExampleChinaSesameSeedMoisture:8%max.Admixture:2%max.Oilcontent:52%basis74.2Qualitystipulation–SalebydescriptionSalebygradebeindicatedsimplybystatingitsgrade,aspresumablythesellerandthebuyeraresupposedtohavereachedaconsensusontheclassificationimplicationofgrades.toavoidmisunderstandingandthesubsequentdisputes,however,itisrecommendedtolaydownsomemajorspecifications84.2Qualitystipulation–Salebydescriptionsalebygrade:exampleFreshHenEggs,shelllightbrownandclean,eveninsizeGradeAA:60-65gmpereggGradeA:55-60gmpereggGradeB:50-55gmpereggGradeC:45-50gmperegg94.2Qualitystipulation–SalebydescriptionSalebystandardwhenspecificationsorgradesarelaiddownandproclaimedinaunifiedway,theybecomestandards.ExampleTetracyclineHCLTablets(SugarCoated)250mg.B.P.1973ChinaNortheastSoybean2006NewCrop,F.A.Q:Moisture15%max.Admixture1%max.104.2Qualitystipulation–SalebydescriptionSalebystandard:F.A.Q.&G.M.QF.A.Q.:indicatingthatthequalityoftheaproductofferedisaboutequaltotheaveragequalitylevelofthesamecropwithinacertainperiodoftime(e.g.ayear.)generallysuitableforagriculturalproducts.G.M.Q.:thequalityofthegoodsofferedaresufficientlygoodtosatisfythepurposesforuseorconsumptionwhicharemutuallyunderstoodbythebuyerandthesellerusedsometimesasthebottom-lineofqualityrequirement.114.2Qualitystipulation–SalebydescriptionSalebybrandnameortrademarktodefinethequalityofsomeproductsbysimplyreferencingtotheirbrandnamesortrademarks.ExamplesSonyTelevisionsHaierRefrigeratorsTigerheadbatteriesPanasonicTelevision,TH-42PV65C124.2Qualitystipulation–SalebydescriptionSalebyorigintousethenameoftheplaceoforiginastheindicationforqualityExampleWest-lakeLongjingTea,Grade1,ZhejiangOrigin134.2Quality–SalebydescriptionSalebydescriptionsorillustrationsspecificdescriptions,sometimeswithillustrationsExamplePanasonicTelevision,TH-42PV65C,qualityandtechnicaldatatobestrictlyinconformitywiththeinstructionsattached.HaierRefrigerator,ModelXXX,qualityandtechnicaldatatobestrictlyinconformitywiththedescriptionssubmittedbytheseller.144.2Qualitystipulation–SalebysampleSalebysampleDefinition:asalewhenthesellerandbuyeragreethatsampleisusedasthebasisofqualityandconditionofthegoodstobedelivered.ExampleTeddyBearSize15,QualityasperSampleX071118A154.2Qualitystipulation–salebysampleSalebyseller’ssamplemadeonthebasisofthesampleprovidedbythesellerSalebybuyer’ssamplemadeonthebasisofthesampleprovidedbythebuyerSalebycountersampleCountersample:areplicamadebythesellerofthesampleprovided,normallybythebuyercountersampleusedasthebasisforqualitytoremovetheriskoftheselleragoodsubstitutetosalebybuyer’ssample164.2QualityIssuesconcerningqualityclauseinsalescontract:adoptingtherightwayavoidingdoublestandardbeingclear,practicalandreasonablemakinguseofQualityLatitudeorTolerancemakingpriceadjustmentwhennecessaryinsertingseller'sprotectingclausewhennecessary174.2QualityQualitylatitude:definitionthepermissiblerangewithinwhichthequalityofthegoodsdeliveredbythesellermaybeflexiblycontrolledQualitytolerance:definitionthequalitydeviationrecognizedinthetrade,whichallowsthequalityofthegoodsdeliveredbythesellertohavecertaindifferenceswithinarange184.2QualityHowtostipulatequalitylatitude/tolerancetostipulateacertainscope,e.g.thewidthofthecottonclothis47/48inches.tostipulate“max”or“min”e.g.Moisture:8%max.Admixture:2%max.tostipulatemoreorlesse.g.duck'sdowncontent18%±1%194.2QualityStipulatingqualitylatitude:examples“Qualityshallbeaboutequaltothesample”“Qualityisnearlythesameasthesample”“Thequalityofthegoodsshippedtobeaboutequaltothesample”“Shipmentshallbesimilartothesample.”204.2QualitySafeguard
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