Transcript International Trade Law

INTERNATIONAL TRADE LAW
Nandang Sutrisno
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
The Scope
Sudargo Gautama
International Trade Law:
1. International Sales (and Purchases)
– The Contract making
– Agency Agreement
– Exclusive Sales (and purchases)
2. Securities (negotiable instruments) and commercial
Bank Loan.
3. The commercial activities governed by the
Commercial Code.
4. Insurance
5. Carriage
6. Industrial Property Rights and Copy Rights
Prof. A. de Mestral
International Trade Law:
1. General Principles of International Law governing the
economic relationships among states.
• General Principles of Law
• International Agreement
2. Contract Law:
• Sales and purchases
• Agency
• License
• Insurance
• Transportation
• Banking and Finance
3. The export-import of goods law
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.
The Significance of International Trade
Vital component of national and international economy
1.
National and international economic growth
– Structural change
– Main determinant of economy
2.
Initial step prior to international operation of a business
– joint venture
– FDI
– Licensing System
3.
Efficient means of international operation
Prerequisite: liberalization of trade
4.
Integrated part of international business
International Trade Process
(Proses Perdagangan Internasional)
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Sale’s Contract Process
Letter of Credit Opening Process
Cargo Shipment Process
Shipping Documents Negotiation Process
Sale’s Contract Process
1
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P
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PROMOTION
INQUIRY
3
OFFER SHEET
ORDER SHEET
5
2
4
SALE’S CONTRACT
SALE’S CONFIRMATION
6
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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
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
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.
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
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:
____________________________________________________________________
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
10
US$
1000
US$
____________________________________________________________________
Total FOB Tj. Priok
US$ 2000
____________________________________________________________________
Price
:
FOB Tj. Priok
US$
2000
Insurance W.A.
US$
40
Freight to Yokohama
US$
160
____________
CIF Yokohama
US$
2200
Packing : Item 1 : each car packed into corrugated kraft box. 10 kraft boxes packed
in wooden case.
____________________________________________________________________
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
Credit on our
: By opening an irrevocable and confirmed Letter of
favour.
Looking forward to your valued order, meanwhile we remain.
Sincerely yours,
Muhammad Noor
--------------------------Export Manager
L/C OPENING PROCESS
IMPORTER
(Applicant)
1
OPENING BANK
L/C Application
2
OFF SHORE
ON SHORE
L/C
CON
FIRM
ATION
3
EXPORTER
(Beneficiary)
L/C Advice
ADVISING BANK
CARGO SHIPMENT PROCESS
OPENING BANK
4
CARGO DELIVERY
5
IMPORTER
CUSTOMS
OFFICE
OFF SHORE
ON SHORE
ADVISING BANK
1
EXPORTER
SHIPPING
AGENT
3
S
H
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P
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BOOKING
BILL OF LADING
CUSTOMS
OFFICE
2
SHIPPING
COMPANY
SHIPPING DOCUMENT
NEGOTIATION PROCESS
Delivery of Shipping Docs.
5
IMPORTER
OPENING BANK
C
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OFF SHORE
ON SHORE
1
2
PAYMENT
RE
IM
BUR
SE
ME
NT
3
NEGOTIATION
EXPORTER
4
ADVISING BANK
EXPORT L/C CYCLE
5
GOODS
SELLER
BUYER
1
8
S
10
SALES CONTRACT
L/C
6
4
2
DOCUMENTS
s
Application
3
9
DOCUMENTS
L/C
7
DOCUMENTS
ADVISING BANK
s
11
ISSUING BANK
IMPORT L/C CYCLE
GOODS
5
BUYER
SELLER
1
10
S
SALES CONTRACT
Application
9
8
L/C
2
4
s
6
DOCUMENTS
DOCUMENTS
3
L/C
DOCUMENTS
7
11
ISSUING BANK
s
ADVISING BANK