International Trade

Zhejiang Normal University

 Chapter 6 Packing

Review

What are the measuring units usually used in our

country?

Methods of Calculating Weight

Exercises
 Weight（重量）
Number（个数）
Measuring Units

Length（长度）
Area（面积）
Volume（体积）
Capacity（容积）
Package（包件）
1．Weight Calculation（重量的计算）
1) By Gross Weight（按毛量）
2) By Net Weight（按净重）
3) Conditioned Weight（公量）
4) Theoretical Weight（理论重量）
5) Legal Weight（法定重量）

2．More or Less Clause（溢短装条款）

 Chapter 7 Packing

Contents of this Chapter

Function Marking
of Kinds of of
Packing Packing Package
 Introduction

Packing, in business practice, is one of the

most important problems that confront the
merchants engaged in foreign trade. It needs
more care in export trade than domestic trade.
The real art of packing is to get the contents
into nice, compact shape that will stay in
perfect condition with nothing missing during
the roughest journey.
 Section One The function of Packing

1 Problems in Transport?

2 Purpose of Packing?

3 Practical suggestions for packing methods

 1 Problems in Transport

2 Purpose of Packing

3 Practical suggestions for packing methods

 Section Two Kinds/types of Packing

The kinds of cargoes are various in international

trade, from the view point of whether they need
packing, they fall into three kinds:

Packed Cargo
（ （
Nude Cargo

（
裸 散 Bulk Cargo 包
装 装 装
货 货 货
） ） ）
 Nude Cargo

 Nude cargoes or nude packed commodities refer to

those kinds of cargoes whose qualities are more
stable and to be shipped without any packages or in
simple bundles. They are not easy to be influenced
by outside circumstances and they become single
pieces of their own. They are difficult to be packed
or do not need any packing, such as steel products,
lead ingot, timber, rubber, automobile, etc.
 2) Cargo in Bulk/Bulk Cargo
 Cargo in bulk refer to those goods which are
shipped or even sold without packages on the
conveyance in bulk, such as oil, ore, grain, coal, etc.
 Bulk shipment is usually applicable for large
quantity of commodities that are to be shipped by
means of transport with special purposed shipping
equipment.
 Bulk shipment has the advantages of space saving,
quick handling and lower freight.
Packed Cargo

 Most of commodities in international trade need

certain degree of packing during the shipping,
storing and sales process.
 Packed cargoes refer to those which need
shipping packing, marketing packing or both.
Packing Containers

Barrel
Packing Containers
Packing Containers
Packing Containers
Packing Containers
Packing Containers
Packing Containers
Packing Containers
 Transport/Shipping Packing and Sales
/Marketing Packing（运输包装和销售包装）

1) Transport/shipping (outer packing)（运输包装）

2) Sales/Marketing Packing（销售包装）

3) Neutral Packing (中性包装)

 The two kinds of shipping packing

(1) Single piece packing（单件运输包装）P137

(2) Collective packing（集合运输包装） P137

(1) Single piece packing（单件运输包装）P137

 The cargoes are packed as a single unit, i.e., a

measuring unit, in the transportation process.
Single piece packing can be sub-divided into
the following two kinds:
 —According to style: cases, drums, bags, bales,
bundles, etc.
 —According to material: cartons, wooden
cases, iron drums, wooden casks, plastic casks,
paper bags, gunny bags, plastic bags, etc.
(2) Collective packing（集合运输包装） P137

 Collective packing is also called group shipping

packing by which a certain number of single
pieces are grouped together to form a big packing
or are packed in a big container. Collective
packing can be classified into:
① Container（集装箱） ② Pallet（托盘）

③ Flexible container（集装包和集装袋）
 Brands designated by the buyer

 refersto the packing that the goods should be

packed according to the trade marks and brands
by the buyer.
 As to the goods to be ordered regularly in large
quantities for a long time by foreign customers,
in order to expand sales, we can accept trade
marks designated by buyers with indicating the
mark of the manufacturing country, that is, the
neutral packing with brands designated by the
buyers.
 Sometimes we may accept trade marks or
brands designated by buyers from foreign
countries, but under the trade marks and
brands, we indicate “Made in the People’s
Republic of China” or “ Made in China”. In
some other cases, we may accept the
designated trade marks or brands and at the
same time, under the trade marks or brands
we indicate that the goods are made by a
factory in the buyer’s country, i.e., trade
marks or brands and origins designated by the
buyers.
Section Three Marking of Package 包装标志

Classification of Marking Package 包装标志的分类

When talking about transport packing, the packing mark
(or marking of package) of course has to be referred to.
Packing mark or recognition mark refers to different
diagrams, words and figures which are written, printed, or
brushed on the outside of the shipping packing in order that
it is easy and convenient for goods’ loading, unloading, store,
inspection and discharge. Package should not be marked
with crayons, tags or card. The best method of marking is to
stencil the marks on the outside of the package. Some
exporters paint the marks with a brush and indelibleink. All
in all, mark should be permanent and easily read at a glance.
According to the uses of the packing mark,
it can be divided into

1) Shipping Marks（运输标志）

2) Indicative Marks（指示性标志）

3) Warning Marks（警告性标志）

4) Supplementary (or Additional )Marks（附加标志）

 1) Shipping Marks（运输标志）

Shipping marks are marks of simple designs, some

letters, numbers and simple words on packages, often stenciled,
that serve as identification of the consignment to which they
belong. It is one of the most important elements which are
agreed on by the exporter and the importer in a sales contract.
The shipping mark consists of

Name or code of destination;

Code of consignee or consignor;

Piece number, serial number, contract number or

license number.
Simple shipping marks are generally
made up of four parts:

(1) Consignee’s code

(2) Consignor’s code

(3) Name or code of Destination

(4) Package number/piece number

 2) Indicative Marks（指示性标志）

 We usually make use of the simple, noticeable

design, remarkable diagrams and simple words
on the packages to remain the relative workers of
the items for attention when they load, unload,
carry and store the goods, such as:
 HANDLE WITH CARE,
 THIS SIDE UP (See Fig.7-3), etc.
 Printed in black color generally.

P143
 3) Warning Marks（警告性标志）

The warning mark is also called dangerous cargo

mark or shipping mark for dangerous commodities,
which is brushed/printed clearly and definitely on the
shipping packing of the inflammable, explosive,
poisonous, corrosive or radioactive goods, so as to give
warnings to the workers/dockers/crew.

Warning marks are usually made up of simple geometrical

diagrams, word descriptions and particular pictures, as to which,
every country usually has its own stipulation.

P 144
4) Supplementary (or Additional )Marks（附加标志）

Supplementary marks are any official marks

required by authorities. Some countries require the
country of origin to be marked on every package,
and weight and dimensions may also be required.

Packing terms in the contract are extremely important

for the exporter. They are often written in this way: “Goods
must be packed in…”. Sometimes the buyer may ask the
exporter to pack the goods in his design. If his requirements
can be met by you, you can accept his terms. Otherwise, try
to persuade the buyer to adopt your own or traditional
packing instead. Sometimes neutral packing is offered.
Package Mark

Indicativ
Shipping mark e mark

Warning
mark
Original mark

---- Stencil the marks on the two faces/sides

(front and back side) on the outer package.
 运输标志的构成
*目的地的名称或代号；
* 收货人和发货人的代号；
* 件号、批号、合同号或许可证号。

收货人
三角形的运输标志

目的港

整批货物600件中
整批货物总共600件
的第一件
合同号
 常用指示性标志

滑动开门 滑动开门 推开 拉开
SLIDE SLIDE PUSH PULL

WATERPROOF THIS SIDE UP FRANGIBLE NO HOOKS

防潮 此端朝上 易碎品 禁用钩
WARNING MARKS
（警告性标志）

当心火灾—易燃物质 当心火灾—氧化物 当心爆炸—爆炸性物质

Case Study
 One Chinese export company exported some goods to
Canada, valued at $800 000. The contract stated that it
should be packed in plastic bags, marks with English and
French on each item. But the Chinese company used
other packaging instead in the actual delivery, and still
used only English marks. The foreign merchant, in order
to adapt to the requirements of the local market and sales,
hired people to change the packing and shipping marks.
Then he asked for claim against the Chinese company.
The Chinese company recognized something wrong, so
compensated the customer.
 Question:
 Try to analyse the case.
[Answer]
At present, many countries made regulations about packaging and labeling for
commodities sold in the market and the imported goods must conform to the
regulations, or else they will be prohibited for import or sale in the market.
Label is a sign which is attached on the goods or packaging referring to the
country, manufacturer, name of goods, goods components, quality
characteristics, use method, etc. In making the sales package label, we should
pay attention to the relevant state regulations for the administration of the
label. Some developed countries often avail of these regulations as means of
import restrictions which should cause enough attention. For example, in the
European Union, there has a series of merchandise; basic content is
commodity itself or packaging must with correct tags that can be fully read,
and understandable. From this perspective, the seller failed to strictly,
according to contract, perform prescribed packing conditions which shall be
deemed to be the obligation to a breach of contract. Our company has two
faults, one is changing packaging materials, although the quality of goods
itself is not affected; the another fault is that the mark is not stipulated
according to the contract, due to the products’ belonging to the French area,
the filling is often in French. Anyhow, in order to successfully export, we
must understand and adapt to the special requirements of different state
regulations, in order to reduce unnecessary trouble
 An Australian company dealt with us in cotton for
many years. One day they sent us a coat, saying that
the coat was a sample made by a garment factory
with our dyeing cloth under our export contract. It
was said that the two sleeves of the sample coat had
obvious difference, proving that the supply quality
color of our end was bad and couldn’t be used. They
requested to return all the garments sewn and make
another delivery of the same quality and quantity as
being stipulated in the contract.
 Question:
 So, how should we reply? Why?
[Answer]
We have nothing to do with the case and shall refuse
compensation. Reasons are:
(1) The contractor has delivered the cotton to the
clothes vendors and that means an acceptance of our
goods. Whoever has accepted the goods, the buyer
has lost the right of return and requirements of the
replacement goods.
(2) Article 82 of the United Nations Convention on
Contracts of the International Sales of Goods
stipulates: if the buyer can not return the goods that
is according to the actual receipt, he lost the right of
return and requirements of the replacement goods.
 British Moore Company with the condition of CIF, bought
from LanTuo company 300 cases of canned fruit in
Australia. The contract with a provision reads: “Packed in
carton, 30 tins in each carton.” It was found that 150 cases
that the seller delivered were 30 tins in each carton, the
rest were 24 tins per box. The buyer refused the goods
while the seller argued that 30 tins per box is not an
important part of the contract, and with the quality, no
matter it was 30 or 24 tins per box, it was correspond to
the contract’s quality requirement, therefore, the buyer
should accept.
 Question:
 Please analyse the case.
[Answer]
The law in some countries divides the sale into two
categories, sale by sample and sale by illustration. The
latter includes a very wide scope, not only involves
goods quality issues, also including quantity, even in
the contract on shipment, packaging and goods with
the statement. According to the British business law, all
the “explanation” items are the elements of the contract.
If they are violated, the buyer is entitled to the
rejection of the goods and may lodge a claim. In this
case, the British law believes that packaging belongs to
“explanation” part that is vital and since the seller
made a breach of contract, the buyer had reasons to
refuse all the goods, and also could accept the part
fulfilling that are with the provisions and rejecting the
rest and claim for damages.