1. INTERNATIONAL TRADE LAW
Nandang Sutrisno

2. Defining International Trade Law
Simple:
Sale and purchase activities from one country to another
Broad:
Any activities of exchanging goods or services that are commercial in nature or are aimed at gaining economic benefits involving two or more countries.
Report of General Secretary of UN (Resolution of GA No. 2102/xx/20, December 1965:
International Trade Law:
All norms governing trade relationships that are private law in nature and involving several countries.
New Development:
- Private Law and Public Law
- Coexistence

3. The Scope Sudargo Gautama International Trade Law:
International Sales (and Purchases)
The Contract making
Agency Agreement
Exclusive Sales (and purchases)
Securities (negotiable instruments) and commercial Bank Loan.
The commercial activities governed by the Commercial Code.
Insurance
Carriage
Industrial Property Rights and Copy Rights

4. International Trade Law:
Prof. A. de Mestral
International Trade Law:
General Principles of International Law governing the economic relationships among states.
General Principles of Law
International Agreement
Contract Law:
Sales and purchases
Agency
License
Insurance
Transportation
Banking and Finance
The export-import of goods law

5. 4. Transnational Corporations Law
5. Dispute settlement law, especially the international arbitration law.
6. Taxation.
7. Foreign Direct Investment
8. Transaction of securities.
9. International Banking and Finance, including IMF and World Bank.

6. The Significance of International Trade
Vital component of national and international economy
National and international economic growth
Structural change
Main determinant of economy
Initial step prior to international operation of a business
joint venture
FDI
Licensing System
Efficient means of international operation
Prerequisite: liberalization of trade
4. Integrated part of international business

7. International Trade Process (Proses Perdagangan Internasional)
Sale’s Contract Process
Letter of Credit Opening Process
Cargo Shipment Process
Shipping Documents Negotiation Process

8. Sale’s Contract Process1
PROMOTION E X P O R T I M P O R T E
INQUIRY 2 3
OFFER SHEET
ORDER SHEET 4 5
SALE’S CONTRACT
SALE’S CONFIRMATION 6

9. INTRODUCTION LETTER Dear Sir,
Allow us to introduce our company as a manufacturer and Exporter of rattan furnitures to many countries.
We are enclosing herewith our colourful brochure of our products for you perusal.
We do hope the product will meet your requirement and we shall be very pleased to have your inquiry and valuable order in due time.
In case you need any further information, please do not hesitate to contact us.
Sincerely yours,
PT Rotan Sago
____________________________
Export manager

10. INTRODUCTION LETTER Dear Sir,
We read your advertisement in Trade and Commerce Magazine and understood that you are a reliable importer of lady’s garment and textile in your country.
In this case, allow us to introduce our company specialized in exporting garments and footwear from Indonesia to many department stores as well as to your country.
We are very eager to be one of your supplier and therefore we are attaching herewith our leaflet illustrating our latest model and style of Indonesian lady’s garment and fashions.
We hope to receive your valuable inquiry and order in the shortest possible time.
Truly yours,
KOPERASI SANDANG JAYA
______________________________
Export Department Head

11. LETTER OF INQUIRY FOR A QUOTATION
DAIMEN KABUSHIKI KAISHA
15 CHIODA-KU, TOKYO
April 16, 2006
No. Ref. : 031/Ind/2006
Subject : Wood Crafts – Indonesia
Messr. PT Kerajinan Kayu Indonesia
Jl. Pahlawan No. 10
Yogyakarta – Indonesia
Dear Sir,
We have been informed by your Commercial Attache here in Tokyo that your company is reliable manufacturer and exporter of wood-crafts in Indonesia.

12. We are very interested to import those wood-crafts to Japan and therefore, please send us your offer for the following:
Articles : 1. Wooden Toys
2. Wooden Animals
3. Other Wooden Gift items
Quantity : minimum quantity available for export
Shipment: as soon as possible
Packing : Export seaworthy packing
Please quote CIF Yokohama and specify FOB insurance and freight separately.
Hoping to receive your offer soonest.
Yours faithfully,
DAIMEN KABUSHIKI KAISHA
_________________________
Import Manager

13. OFFER SHEET PT KERAJINAN KAYU INDONESIA
JL. PAHLAWAN NO. 10, YOGYAKARTA – INDONESIA
_______________________________________________________________
April 18, 2006
No. Ref : 01/Exp/IX/2006
Subject : Wood Crafts – Indonesia
Messrs.
DAIMEN KABUSHIKI KAISHA
15 Chioda-Ku
Tokyo – Japan
Dear Sir,
In reply to your inquiry Ref. No. 031/Ind/2006 dated April 16, 2006 we have the pleasure to send herewith our offer (subject to our final confirmation) as follows:

14. ____________________________________________________________________
Items No. Description of Goods Quantity Unit Price Total Price
1 Wooden Car 100 Pcs US$ 5 US$ 500
2 Wooden Bird 100 Pcs US$ 5 US$ 500
3 Wooden Pitcher 100 Pcs US$ US$
____________________________________________________________________ Total FOB Tj. Priok US$ ____________________________________________________________________
Price : FOB Tj. Priok US$ 2000
Insurance W.A. US$
Freight to Yokohama US$
____________
CIF Yokohama US$ 2200
Packing : Item 1 : each car packed into corrugated kraft box. 10 kraft boxes packed in wooden case.

15. ____________________________________________________________________
Packing : Item 2 : each bird packed in corrugated kraft box. 10 kraft boxes packed in wooden case.
Item 3 : one set consisting of 2 (two) pieces of pitcher, packed in a wooden case.
Shipment : May 15, 2006
The cargo will be shipped in container.
Partial shipment is prohibited.
Transhipment at Singapore is allowed.
Payment : By opening an irrevocable and confirmed Letter of Credit on our favour.
Looking forward to your valued order, meanwhile we remain.
Sincerely yours,
Muhammad Noor
Export Manager

16. L/C OPENING PROCESS 1 2 3 IMPORTER (Applicant) OPENING BANK
L/C Application 1
L/C
CON
FIRM
ATION 2
OFF SHORE
ON SHORE 3
EXPORTER
(Beneficiary)
L/C Advice
ADVISING BANK

17. CARGO SHIPMENT PROCESS
OPENING BANK 4 5
CARGO DELIVERY
SHIPPING
AGENT
IMPORTER
CUSTOMS
OFFICE S H I P M E N T
OFF SHORE
ADVISING BANK
ON SHORE 3 1
BOOKING
EXPORTER
SHIPPING
COMPANY 2
BILL OF LADING
CUSTOMS
OFFICE

18. SHIPPING DOCUMENT NEGOTIATION PROCESS
Delivery of Shipping Docs.
IMPORTER
OPENING BANK 5 C O L E T I N G 4
OFF SHORE RE IM
BUR SE ME NT
ON SHORE 3
NEGOTIATION 1
EXPORTER
ADVISING BANK 2
PAYMENT

19. EXPORT L/C CYCLE s 5 1 8 10 4 s 6 2 9 3 7 11 GOODS SELLER BUYER
SALES CONTRACT
L/C 4 s S
Application 6 2 9
DOCUMENTS 3
DOCUMENTS
L/C 7
DOCUMENTS 11 s
ADVISING BANK
ISSUING BANK

20. IMPORT L/C CYCLE s 5 1 10 s 8 9 2 4 6 3 7 11 GOODS BUYER SELLER
SALES CONTRACT
Application s S 8
L/C 9 2 4 6
DOCUMENTS 3
DOCUMENTS
L/C 7
DOCUMENTS 11 s
ISSUING BANK
ADVISING BANK