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Import and Export
| A. | Pleased to meet you, Mr. Bently. Let’s get down to business. You see, an import/export transaction usually requires a lot of complicated documentation. |
| B. | True. Unfortunately, I’m not quite at subject. Many different arrangements have to be made and this can be difficult when one firm is dealing with another firm on the other side of the world. Well, I’d just like to say that there should be a lot of specialists involved. |
| A. | I take your point. Let’s dot the “i”s and cross the “t”s.Firstly, there should be a shipping agent and/or a freight forwarder (forwarding agent) who takes responsibility for the documentation and arranges for the goods to be shipped by air, sea, rail or road. Moreover, these services may also be carried out by the supplier’s own export department, if they have the expertise. |
| B. | Oh, definitely. Also there are airlines, shipping lines, railway or road haulage firms to transport the goods. |
| A. | Sure. We must bear in mind that both the importer’s and exporter’s banks will be involved in arranging payments if a letter of credit or a bill of exchange is used. |
| B. | And what about customs officers who may examine the goods, check import or export licences and charge duty and/or VAT? |
| A. | Yes, of course. At this point we must consider the manufacturer or a chamber of commerce to issue a Certificate of Origin, if this is required by the importer’s country. |
| B. | Sorry to butt in, but why don’t you mention an insurance company or insurance broker to insure goods in transit? |
| A. | Oh, it just escaped my mind ... I should also mention an export credit insurance company (such as Hermes* in Germany). |
| B. | Will there be a lawyer if a special contract has to be drawn up? |
| A. | That’s right. This brings me to my next point. You see, many import or export deals are arranged through an exporter’s agent or distributor abroad - in this case the importer buys from a company in his own country and this company imports the goods. Alternatively, the deal may be arranged through an importer’s buying agent or a buying house acting for the importer, or through an export house based in the exporter’s country. In this situation, the exporter sells directly to a company in his own country, who will then export the goods. |
| B. | And what about prices for exports? |
| A. | Prices for exports may be quoted in the buyer’s currency, the seller’s currency or in a third “hard” currency (e.g. US dollars, euros or yens). The price quoted always indicates the terms of delivery, which conform to the international standard Incoterms. The terms of delivery that are most common depend on the kinds of goods being traded and the countries between which the trade is taking place. |
| B. | I see... Surely you’d admit that methods of payment also vary. |
| A. | Fair enough. Let me clarify that for you. Methods of payment may be on a cash with order basis (or cash deposit with order), on open account (as in most domestic trade, where the buyer pays the supplier soon after receiving the goods), by irrevocable letter of credit or by bill of exchange. Exporters and importers often prefer the security of payment by confirmed irrevocable letter of credit when dealing with unknown firms in distant countries. |
| B. | I always thought that trade between countries within a free trade area and within the European Union is simpler, and many firms pay for goods by cheque and use their own transport to deliver goods across frontiers. |
| A. | Er, yes, no special customs documentation is required for trade between firms in different parts of the EU, but VAT rates vary from country to country. Well, that’s all I have today for the moment, thank you for listening. |
| B. | Thank you for clarifying the matter for me. |
Task 1. Report the dialogue. Use the following reporting verbs:
| · to acknowledge · to admit · to believe · to conclude · to agree · to apologize for something | · to try to find out whether · to add · to emphasize · to remark · to offer · to suggest that ... |
Task 2. Work with a partner. Look at the dialogue and discuss what A. and B. say about the following subjects.
a.documentation, required by an import/export transaction
b.who takes responsibility for the documentation and arranges for the goods to be shipped
c.different methods of payment and people arranging them
d.the need for an insurance company or insurance broker
e.the specifics of import or export deals
Task 3. Say it in English:
• организовывать перевозку грузов по железной дороге
• я не очень разбираюсь в этом вопросе
• страховать транспортируемые товары
• к тому же, в дополнение
• страховое свидетельство
• безотзывный аккредитив
• коносамент
• компания, страхующая экспортное кредитование
• сертификат происхождения товара
• транспортная морская накладная
• расставим точки над "i"
• закупочная организация
• экспедиционное агентство, организующее перевозки партий грузов или перерабатывающее экспортно-импортные грузы
• налог на добавленную стоимость в разных странах разный
• железнодорожное или автодорожное агентство
• торгово-промышленная палата
• оплата с наличным расчетом при выдаче заказа
• экспедитор, агент по погрузке и отправке товаров
• переводной вексель
• соответствовать принятой в мире международной торговой терминологии
• взимать таможенную пошлину и/или налог на добавленную стоимость (НДС)
• доставлять товары за границу
• условия поставки
• указывать цены в твердой валюте "третьей страны"
• таможенник
Task 4. Produce your own dialogue about documents needed in international trade and the meaning of Incoterms. Make a full use of the underlined helpful phrases from Dialogue 1 and Supporting Materials:
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