School of International Economics Chapter 3: Quantity of Goods 商品的数量

School of International Economics Quantity of Goods Refers to the weight, number, length, volume, area, capacity, etc. which are indicated by different measuring units.  According to the legal stipulations of some capitalist countries, the quantity of the goods delivered by the seller must be in conformity with that stipulated in the contract.

School of International Economics Quantity of Goods Article 52, Item 2 in the “ United Nations Convention on Contracts for the International Sale of Goods ” stipulates:  If the seller delivers a quantity of the goods greater than that provided for in the contract, the buyer may take delivery or refuse to take delivery of the excess quantity. If the buyer takes delivery of all or part of the excess quantity, he must pay for it at the contract rate.

School of International Economics A: Calculating Methods of Quantity of the Goods 1.Calculating Units of Quantity of the Goods 2.Methods of Calculating Weight

School of International Economics A: Calculating Methods of Quantity of the Goods 1. Calculating Units of Quantity of the Goods  The adoption of measuring units is decided by the nature of the goods.  The measuring systems in different countries are not the same, the measuring units and measuring methods are accordingly different.

School of International Economics 1. Calculating Units of Quantity of the Goods Measuring Units Adopted in China  Weight( 重量 ): Usually used for mineral products, agricultural and by-products, it includes gram, kilogram, ounce( 盎司 ), pound( 英镑 ), metric ton( 公 吨 ), long ton( 长吨 ), short ton( 短吨 ), etc.  Number( 个数 ): Constantly used for measurement of industrial products and general products, it includes piece, pair, set, dozen, gross( 罗 ), ream( 令 ), etc.

School of International Economics 1. Calculating Units of Quantity of the Goods Measuring Units Adopted in China  Length( 长度 ): Mostly used for textile products, metal cords, etc., it includes meter, foot( 英尺 ), yard( 码 ), etc.  Area( 面积 ): Often used for glass, textile products, etc., it includes square meter( 平方 米 ), square foot( 平方英尺 ), etc.

School of International Economics 1. Calculating Units of Quantity of the Goods Measuring Units Adopted in China  Volume( 体积 ): Generally used for timber, chemical gases, etc., it includes cubic meter( 立方米 ), cubic foot( 立方尺 ), cubic yard( 立方码 ), etc.  Capacity( 容积 ): Mostly used for grain, petroleum, etc., it includes litre, gallon( 加仑 ), bushel( 蒲式耳 ), etc.

School of International Economics 1. Calculating Units of Quantity of the Goods Commonly used measuring systems in international trade:  SI (International System of Units) 国际单位制  Metric System 公制  U.S, System 美制  British System 英制

School of International Economics 1. Calculating Units of Quantity of the Goods “ Measurement Act of the People ’ s Republic of China ” :  Legal measuring units of the nation: SI and the other measuring units selected by our country.

School of International Economics 1. Calculating Units of Quantity of the Goods Attention:  Since different countries adopt different measuring systems, the same name of the measuring unit does not always refer to the same quantity. Example: “ Ton ” Metric system: metric ton = 1,000Kg. British System: long ton = 1,016Kg. U.S, System: short ton = 907Kg.

School of International Economics A: Calculating Methods of Quantity of the Goods 2. Methods of Calculating Weight  Gross Weight  Net Weight  Conditioned Weight  Theoretical Weight

School of International Economics A: Calculating Methods of Quantity of the Goods 2. Methods of Calculating Weight  Gross Weight （毛重） : The gross weight refers to the weight of the cargo itself plus the tare （皮重）, i.e., the weight of the cargo plus the weight of the packing material.  Net Weight （净重） : The net weight is the actual weight of the goods. The tare is not included. “ Gross for Net ”

School of International Economics Net Weight “ Gross for Net ” ( 以毛作净 ) Some cargoes,  Such as tobacco flakes, news reels whose packing are not convenient to be calculated by net weight,  Or those, the values of the packing materials are almost the same as the values of the cargoes themselves, such as grain, fodder, etc., are often calculated by gross weight, which is called “ Gross for Net ” in international trade. Example: Northeast China soybean, 1,000 M/T, packed in single new gunny bags, 100 kilograms per bag, gross for net

School of International Economics Net Weight Methods of Calculating the Tare  Actual Tare  Average Tare  Customary Tare  Computed Tare

School of International Economics Net Weight Methods of Calculating the Tare  Actual Tare: ( 实际皮重 ) In order to get the actual tare of the goods, we shall calculate the weight of each packing of the goods one by one for the whole lot.  Average Tare: ( 平均皮重 ) As the packing materials and specifications of some cargoes are uniform, we can get the average tare by weighing a part of the cargo packing.

School of International Economics Net Weight Methods of Calculating the Tare  Customary Tare: ( 习惯皮重 ) As for more unified packing, we can take the weights of them commonly accepted by the market as the customary tares.  Computed Tare: ( 约定皮重 ) We may take the agreed packing weight as a standard, so that it is unnecessary to weigh any more.

School of International Economics A: Calculating Methods of Quantity of the Goods 2. Methods of Calculating Weight  Conditioned Weight: ( 公量 ) In order to get the conditioned weight, we shall first of all by a scientific method abstract water from the cargo, then put the standard water content in it. Example: such as cotton, wool, raw silk, etc.

School of International Economics Conditioned Weight Formula of Calculating the Conditioned Weight Conditioned weight = actual weight x (1+ standard regaining rate of water) 1+ actual regaining rate of water  Standard regaining rate of water: is the ratio between the water content and the dry weight of the cargo which is accepted on the world market.  Actual regaining rate of water: is the ratio between the actual regaining water content in the cargo and the actual dry weight. Example: the accepted international standard regaining water content of wool and raw silk is 11%

School of International Economics A: Calculating Methods of Quantity of the Goods 2. Methods of Calculating Weight  Theoretical Weight: ( 理论重量 ) Some fixed cargoes, have unified shapes and measurements, as long as the specification is identical, the size is conformable, the weight will be about the same, we can calculate the weight according to the number of pieces. Example: such as tin plate( 马口铁 ), steel plate( 钢板 ), etc.

School of International Economics B: Quantity Clause in the Contract The basic contents of the quantity clause are the quantity to be delivered and the measuring unit to be used.

School of International Economics B: Quantity Clause in the Contract As to the goods calculated by weight, we should clearly stipulate the specific calculating method, such as the gross weight, net weight, conditioned weight, etc. Example: Chinese rice, 500M/T packed in gunny bags, 50kg. each, net weight.

School of International Economics B: Quantity Clause in the Contract The weights of some goods are not easy to be accurate. In order to avoid disputes during the fulfillment of the contract, both parties shall determine the delivery quantity reasonably and flexibly in the contract.  More or Less  About or Circa or Approximate

School of International Economics Two ways to stipulate the quantity latitude 1. More or Less ( 溢短装条款 )  In the contract, we can stipulate that the seller may deliver the goods with a certain percentage more or less in quantity according to the agreed quantity latitude.  The more or less clause is usually at the seller ’ s option.

School of International Economics 1. More or Less ( 溢短装条款 ) Example:  “ Shandong Peanut, 800,000 M/T, 1995 Crop. F.A.Q. with 5% more or less both in quantity and amount to be allowed at the seller ’ s option. ” 800,000 x 5% = 40,000 M/T 5% more: 800, ,000 = 840,000 M/T 5% less: 800,000 – 40,000 =760,000 M/T

School of International Economics 1. More or Less As to the purchase price of the goods more or less delivered, 2 ways to calculate:  According to the unit price stipulated in the contract  According to the market price when the cargo is shipped

School of International Economics Two ways to stipulate the quantity latitude 2. About or Circa or Approximate ( 约量 )  The quantity of the goods is not exact.  As to the word “ about ”, the implications are different in different countries.  The Uniform Customs and Practice for Documentary Credits of International Chamber of Commerce stipulates that “ about ” should be interpreted as not exceeding 10% of the total quantity.