9-Inpe.ppt

Lesson Nine Inspection, Force Majeure Arbitration Time to be consumed : 3 class periods Teaching goals to be attained: ---Helping Ss. learn how goods should be inspected; ---Getting Ss. get to know the process of making claims. Commodity Inspection The inspection of commodities refers to that inspection institutions should examine the quality, quantity, packing, etc. of commodities delivered by the seller in order to make sure that the goods are exactly in conformity with the terms of sales contract or the stipulations of documentary credit. Necessity of Inspection To a seller: ----He wants to control the quality of the goods so that his image will not be damaged and the market will be developed. ----He wants to prove with an inspection document that goods delivered have met the relevant contract terms. To a buyer: ----He wants to make certain that goods delivered to him are exactly the goods described by the contract. For a claim: ----With inspection certificate, it is easy to determine who should be responsible for the losses of/or damages to the goods. Time and Place of Inspection The time and place of inspection stipulates when and where the inspection should be conducted and is associated with terms of delivery used. e.g. EXW---products be inspected at the factory or warehouse; DDU---products be inspected at the named place in the country of importation. There are three ways to stipulate the place and time of inspection. 1) To make inspection before shipment 2) To make inspection after shipment 3). To make inspection in Export country and make reinspection in Import country This method is widely used in international trade because it is comparatively convenient and reasonable to both the buyer and the seller. It admits the inspection certificate provided by the seller and gives the buyer the right to make reinspection as well. Commodity Inspection Co