final exam subject export import management discuss the major differences between dap at buyers warehouse in tokyo and ddp at buyers warehouse in tokyo

1 MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY – COLLEGE OF BUSINESS SCHOOL OF INTERNATIONAL BUSINESS & MARKETING FINAL EXAM SUBJECT: EXPORT – IMPORT MANAGEMENT Student: Lê Anh Hoàng Student IDr: 31191023326 Class: IBC05 - K45 Hồ Chí Minh, 24 tháng năm 2022 “Q1 Seller agrees to deliver the goods to buyer under the term of DDP at the warehouse of the buyer in Tokyo, Japan The goods were transported and unloaded at the port and kept at customs shed for inspection and payment of duties The buyer was notified of the arrival of the merchandise and its location Before the buyer picked up the goods, the customs shed (including the merchandise in it) was destroyed by fire The buyer claims refund of the purchase price, stating that buyer did not receive the goods.” - “Is the seller responsible? Why?” - “Discuss the major differences between DAP at buyer’s warehouse in Tokyo and DDP at buyer’s warehouse in Tokyo.” Answer - “Is the seller responsible? Why?” Yes The risk is transferred under DDP terms when the goods are cleared and duty paid (but not unloaded) and delivered to the agreed-upon location The products have been unloaded at the port and have not been delivered to the buyer's warehouse in Tokyo, Japan, therefore the seller retains responsibility for the goods However, in this case to reduce liability and costs, there are two ways that the seller must do: Previously purchased insurance Under the rules of DDP, the seller has the option to purchase insurance to protect their rights, decrease risks, and prevent damage to the seller's shipment of goods before the risk is transferred to the buyer If the seller has previously agreed with the insurer, the seller may be repaid an amount equivalent to the value of the cargo or a portion of the shipment Case of force majeure If the buyer and seller agreed in the previous sale contract to a force majeure situation In this instance, the seller's expenditures can be minimized or avoided entirely, depending on the contract's agreement between the seller and the buyer final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo - “Discuss the major differences between DAP at buyer’s warehouse in Tokyo and DDP at buyer’s warehouse in Tokyo.” Answer “DAP at buyer’s warehouse” “DDP at buyer’s warehouse” Import clearance & duties Buyer must bear import duties, seller must bear import duties, import clearance documents import clearance documents and necessary costs for import and necessary costs for import clearance TRANSFER OF RISKS clearance “When the goods are placed at “When the goods cleared and the buyer's disposal at the duty paid (not unloaded) are agreed destination (not placed unloaded and not cleared).” at the destination.” Q2 “What is the difference between marginal pricing and cost-based pricing? Provide examples” Answer Marginal pricing Cost-based pricing is a pricing technique that is a pricing strategy that grounds involves setting a product's a product's cost of creation, price at or slightly above its manufacture, and delivery on the variable production cost When cost of producing, making, and Definition prices are set for a specific delivering it A product's pricing length of time, this technique is is derived by adding a percentage often employed When a of the manufacturing cost to the company has a limited amount selling price in order to generate a of unused production capacity profit final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo agreed final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo that it either wants to use or can't sell for a better price, this happens Raises Profits Easy to Calculate Customers that are exceedingly Cost-based pricing systems, such price sensitive will exist as cost-plus and break-even, are Unless a corporation was preferred by businesses because willing to engage in marginal they are simple Simply add a cost pricing, this group would profit not buy from it If this is the manufacturing cost, or establish a case, a corporation may be able price Advantage margin simply to based the on the to benefit from these clients on manufacturing cost Regardless of a part-time basis whatever option you choose, Gain Entry to Markets production Marginal cost pricing can be costs will be covered used to gain entrance into a Ensures Profit market if a firm is ready to Cost-based pricing might aid in forfeit earnings in the short maintaining term However, by doing so, it margin This is one of the few is more likely to attract pricing strategies that guarantees price-sensitive clients, who are a profit If you price your goods more likely to quit if price and services in relation to their points rise production Increase Sales of Accessories generate money regardless of the and a administrative steady costs, profit you will If customers are willing to pay state of the industry a high price for product Simple for Customers to accessories or services, using Understand marginal cost pricing to sell a On occasion, you may need to product on a regular basis and boost the pricing of your goods final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo then profiting from future sales and services A price increase may make sense would irritate most customers, but if you blame it on growing production costs, it will be much easier to defend the increase without getting mired down in industry jargon While cost-based pricing systems offer certain advantages, they also have some disadvantages Let's take a closer look at them down below Long-Term Pricing Isn't Not Possible Competition-Aware and Demand-Aware The approach is unsuitable for Cost-based pricing does not take long-term price setting since it demand or competition into produces prices that not consideration Companies must reflect a company's expenses Disregards fixed be aware of all costs related with a product's sale Competitors will the current make more money if they create the same product for less money market price Pricing is set at the bare and sell it for the same price To minimum using marginal cost be competitive, you'd either have pricing Any firm that uses this to keep costs low or demand a system to decide its pricing on higher price a regular squandering basis a may be Results in Different Prices significant Compared to the Market amount of profit that could Cost-based have been collected if prices yields pricing prices frequently that final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo differ final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo Disadvantage were set at or near market rate considerably from market rates This might imply that a company Encourages Customers from is selling a product at an absurdly high or cheap cost People are the Periphery If a firm uses marginal cost pricing frequently and then tries to raise its prices, it may discover that it is selling to people who are particularly price sensitive and will desert it A firm that uses this pricing approach on a regular basis will discover that it needs to keep prices low in order to profit, which is ineffective if the company wants to it at a lower price and buyers are willing to pay the higher price If you price much more than the competitors, on the other hand, move higher-service, market segment into will almost likely lose customers You will lose money Costs are the main focus a product if a competitor is selling you immediately make willing to pay that much for a a higher-quality in either situation Because no company sells its product in a vacuum, it's almost always vital to consider what your competitors are doing Could Result in Manufacturing Inefficiencies Cost-based pricing can also result in inefficient manufacturing and production Because the cost is passed on to the client, expense-based pricing minimizes the need for a company to scrutinize the manufacturing process This means that, rather than optimizing manufacturing procedures, implementing organizations a cost-based final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo strategy may inflate unintentionally their Streamlining processes supplier and production costs is an important way for a company to save costs and increase revenues Could Result in Unethical Practices On the other side, cost-based pricing may lead to unethical production practices If you're trying to maximize profits based on production costs, you can find yourself cutting corners while keeping the markup the same That's why cost-based providers, like Everlane in the cost-based pricing example below, must maintain openness Example Hoang is the owner of Hoang Hoang Lee is the owner of a Motorbikes, a private company smartphone manufacturing In his first year in operation, he company The whole cost of produced and sold ten bikes for making a smartphone for him is $100,000, despite the fact that $1,000 Hoang Lee calculated the they cost $50,000 to produce selling price by adding 10% of He proceeded to make and sell the cost to get at $1,100, which is 15 motorbikes for $150,000 in the amount at which consumers the second year, with a may purchase it ($1,000 + 10% * final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo manufacturing cost of $75,000 $1,000) First, we figure out how much the entire cost has changed That increased from $50,000 to $75,000 in this example, a $25,000 difference increase in The increment numbers from 10 to 15 is then calculated and multiplied by The difference in total price ($25,000) is then divided by the change in quantity (5), yielding a marginal cost of $5,000 per motorbike Q3 “Discuss the procedure of L/C at sight Compare the role and responsibility of banks in documentary collections and letters of credit.” Answer Definition L/C at Sight A letter of credit (LC) at sight is one that is due immediately (within five to ten days) when the seller satisfies the letter of credit's terms For vendors who frequently ship to foreign purchasers, this sort of LC is the quickest method of payment Procedure “1 Buyer applies for and opens a the L/C with issuing bank Issuing bank issues the L/C, forwarding it to advising bank Advising bank notifies seller the L/C Seller delivers goods to the buyer Once the terms of L/C have been met Seller forwards documents as stipulated in L/C to advising bank final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo Advising bank will pay for the seller within 5-10 days ( The seller will sign a sight-draft (or not) to demand payment Advising bank forwards documents to issuing bank for review Issuing bank reviews and accepts, issuing bank pays the seller’s bank (advising bank) Issuing bank forwards documents to buyer Buyer makes payment or his /her account is debited” “Compare the role and responsibility of banks in documentary collections and letters of credit.” ROLE Seller bank Documentary collections Buyer bank - Remitting bank - Collecting bank - Receive documents from - Receive documents from seller remitting bank - forwards documents to - Presents documents to Buyer collecting bank - Collect money from buyer or - Advises seller of sign time draft with buyer acceptance or remits payment - Advises remitting bank of acceptance or remits payment Letters of credit - Advising/ Confirming bank - Issuing/ Opening bank - Notifies seller the L/C - Do registration procedures - Receive documents as and open L/C for buyers stipulated in L/C from seller - Issues the L/C forwarding it - Forwards documents to to advising bank issuing bank for review - Reviews and accepts, issuing - Receive money from bank pays the seller’s bank Issuing bank (advising bank) - Pays seller as specified in - Forwards documents to the L/C buyer and collect money from final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 10 buyer - Documentary collections Responsibility Letters of credit - Only collect money when - Made when the buyer requested by the seller - Get the registers and opens the seller's payment of L/C documents and send them - Receive documents and to the buyer check, review whether the - Do not check the right documents are consistent and wrong, legality of the with the signed contract or document the goods not shipped might not conform - Goods are guaranteed to to the goods specified be delivered in accordance - No guaranty of payment with the contract by any bank - Protect the seller when - No protection against the order is canceled As payment of LC is the buyer order cancellation - The payment is not made is required to open and until after the goods are register for payment of LC shipped The buyer and Issuing bank had to enter into a contract and agree arrangements on to legal protect both the seller and the buyer - Quick payment final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 11 - Secure payment Q4 “ABC Trading Co, Vietnam (seller) agrees to sell coffee of 200 tons for XYZ Co., Japan (buyer) The contract will be signed from 10 April, 2022 Payment will be made by irrevocable L/C at sight Analyze the errors, the missing points in the sales contract:” “1 Commodity: Coffee Quality: as sample Quantity: 200 T more or less 5% at the seller’s option or buyer’s option Price: USD1,500/T Payment: By L/C to be opened not later than April, 2022 The buyer will present following documents: - Pro Forma Invoice - Certificate of Quality and Quantity - Packing List - Bill of Lading marked Freight prepaid made out to order of any bank - Certificate of Insurance two copies - Certificate of Origin form D Delivery: not later than April, 2022 Port of loading: Osaka, Japan Port of discharge: Saigon, Vietnam Partial shipment: allowed The buyer will advise the seller the name of vessel not later than five (05) days before shipping date by fax Arbitration: all disputes arising out of this contract or breach thereof which cannot be settled amicably by the parties concerned shall be settled by the Arbitration Other term: the contract will come into force from 11 April, 2022 The contract is made in two (02) copies in English.” Answer “The errors, the missing points in the sales contract:” final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 12 - Missing name of contract, contract number - Missing contract signing date: Date: 10 April, 2022 - Missing seller’s and buyer’s company, sales representative and purchasing representative, seller's and buyer's address, and seller's and buyer's phone and fax numbers - Lack of consent lines of both parties when performing the contract Commodity: Coffee The missing The description is not detailed enough Wrong Coffee Right Vietnam Robusta Coffee Quality: as sample The missing It is not clear which sample, where the sample is located, whether it has been sent or not, whether the two parties have agreed on the sample or not, lack of information Wrong as sample Right According to the sample that both parties agreed on (Sample NoXXXX) Quantity: 200 T more or less 5% at the seller’s option or buyer’s option final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 13 The errors Ton symbol in the contract is MT, not T, more or less 5% but there must be a specific party to make this decision Wrong 200 T more or less 5% at the seller’s option or buyer’s option Right “200 MT more or less 5% at the buyer’s option.” Packaging description is missing Price: USD1,500/T The errors, missing Ton sign in contract is MT, missing port of destination, missing year of incoterm, missing Total Amount Wrong USD1,500/T Right UNIT PRICE: USD 1,500/MT CIF Osaka port, incoterms 2010 TOTAL AMOUNT: 300,000 USD (+/-5%) SAY: United States Dollar three hundred thousand Delivery terms must be set before payment Delivery: not later than April, 2022 Port of loading: Osaka, Japan Port of discharge: Saigon, Vietnam Partial shipment: allowed The buyer will advise the seller the name of vessel not later than five (05) days before shipping date by fax final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 14 The errors, missing Missing terms of delivery, time of delivery, Port of loading and Port of discharge is wrong “The buyer advise the seller the name of vessel” is wrong Wrong “not later than April, 2022 Port of loading: Osaka, Japan Port of discharge: Saigon, Vietnam Partial shipment: allowed The buyer will advise the seller the name of vessel not later than five (05) days before shipping date by fax” Right Time of delivery: not later than 25 april, 2022 Term of delivery: CIF “Port of loading : Saigon, Vietnam Port of discharge : Osaka, Japan Partial shipment: allowed The seller will advise the buyer the name of vessel not later than five (05) days before shipping date by fax” “Payment: By L/C to be opened not later than April, 2022 The buyer will present following documents: - Pro Forma Invoice - Certificate of Quality and Quantity - Packing List - Bill of Lading marked Freight prepaid made out to order of any bank - Certificate of Insurance two copies - Certificate of Origin form D” final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 15 The errors, missing Information about payment terms is missing, Issuing bank and Notifying bank is missing, Lack of time to present documents and payment time, Missing documents, the buyer will present is wrong, how many copies are missing, wrong C / O, insurance and certificate of origin lack of information who issued it, Bill of lading Full name must be entered, time of open L/\C is wrong Wrong “By L/C to be opened not later than April, 2022 The buyer will present following documents:” “- Pro Forma Invoice” - Certificate of Quality and Quantity - Packing List - Bill of Lading marked Freight prepaid made out to order of any bank - Certificate of Insurance two copies - Certificate of Origin form D Right “Payment will be made by irrevocable L/C at sight for 100% of invoice value, L/C to be opened not later than 13 April, 2022.” - Issuing bank: (Japan) - Notifying/advising bank: (Việt Nam) The seller will present following documents: - Pro Forma Invoice in two copies - Commercial invoice in three originals final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 16 - “Certificate of Quality and Quantity issued by Manufacturer in two copies” - “Packing List in two copies” - “Bill of Lading marked Freight prepaid made out to order of seller bank” - Certificate of Origin form VJ issued by Chamber of Commerce in two copies - Insurance certificate issued by Chubb Company in VietNam in two copies Missing insurance Insurance: Insurance for the contracted items shall be covered by the seller under an All Risk Policy for at least 110% of the CIF invoice value and will be blank endorsed with claims payable at destination in the currency of the draft, covering: Institute Cargo Clauses (A) Institute War Clauses (Cargo) “Arbitration: all disputes arising out of this contract or breach thereof which cannot be settled amicably by the parties concerned shall be settled by the Arbitration.” The errors, missing Lack of conditions when an opposing party refuses to be adjudicated, must be a particular arbitrator, in a particular court, lack of provisions after the arbitration award Wrong “All disputes arising out of this contract or breach thereof which cannot be settled amicably by the parties concerned shall be settled by the Arbitration.” final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 17 Right “All disputes arising out of this contract or breach thereof which cannot be settled amicably by the parties concerned shall be settled by the International arbitration center in Viet Nam, After the arbitration award, if the buyer wins, the seller will compensate the buyer for damage, if the seller wins, the buyer will compensate the seller's losses.” Missing signatures of buyer and seller Q5 “Base on sale contract in question 4, write the sale contract correctly and completely?” SALE CONTRACT Date: 10 April, 2022 Contract number: 1512001 Between: ABC Trading Co, Vietnam (seller) Address: Fax: Represented by: Hereinafter referred to the seller And: XYZ Co, Japan (buyer) Address: Fax: Represented by: Hereinafter referred to the buyer Both parties have agreed to sign the contract with the following terms and conditions Commodity: Vietnam Robusta Coffee Quality: According to the sample agreed by both parties (Sample NoXXXX) Quantity: 200 MT more or less 5% at the buyer’s option final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 18 Packaging: All goods to be packed in export standard packing appropriated for transport, loading, unloading and transshipment, in new single jute bags Guaranteeing the specifications and supporting the collision during the carriage until they discharge in good safety in OSAKA port Price: UNIT PRICE: USD 1,500/MT CIF Osaka port, incoterms 2010 TOTAL AMOUNT: 300,000 USD (+/-5%) SAY: United States Dollar three hundred thousand Delivery: Time of delivery: not later than 25 april, 2022 Term of delivery: CIF “Port of loading : Saigon, Vietnam Port of discharge : Osaka, Japan Partial shipment: allowed The seller will advise the buyer the name of the vessel not later than five (05) days before shipping date by fax Payment: will be made by irrevocable L/C at sight for 100% of invoice value, L/C to be opened not later than 13 April, 2022.” - Issuing bank: (Japan) - Notifying/advising bank: (Việt Nam) The seller will present following documents: - Pro Forma Invoice in two copies - Commercial invoice in three originals - Certificate of Quality and Quantity issued by Manufacturer in two copies - Packing List in two copies Bill of Lading marked Freight prepaid made out to order of seller bank - Certificate of Origin form VJ issued by Chamber of Commerce in two copies - Insurance certificate issued by Chubb Company in VietNam in two copies Insurance: Insurance for the contracted items shall be covered by the seller under an All Risk Policy for at least 110% of the CIF invoice value and will be blank endorsed with claims payable at destination in the currency of the draft, covering: Institute Cargo Clauses (A) Institute War Clauses (Cargo) final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 19 “Arbitration: all disputes arising out of this contract or breach thereof which cannot be settled amicably by the parties concerned shall be settled by the International arbitration center in Viet Nam, After the arbitration award, if the buyer wins, the seller will compensate the buyer for damage, if the seller wins, the buyer will compensate the seller's losses.” 10 Other term: the contract will come into force from 11 April, 2022 The contract is made in two (02) copies in English Signature FOR THE SELLER FOR THE BUYER Q6 “As seller, discuss the steps to implement the sales contract as in question 5.” 1.Receive notification from Advising bank that the buyer has registered and opened the payment of L/C Following the completion of a successful sale contract using the L/C payment mechanism The buyer will next visit the issuing bank to register and create an L/C payment account The issuing bank will then tell the advising bank in the buyer's country that the seller has established a letter of credit, and the advising bank will notify the seller once again Hire transport (ship) to deliver the goods to the buyer Because in the contract under CIF terms, the seller will have to pay shipping costs Prepare goods and documents After the estimated date of departure of the ship is available, the seller's job is to urgently get the goods ready At the same time, it is also necessary to arrange to prepare the necessary documents related to the export shipment Packaging the goods as agreed in the contract and transfer to the port Customs clearance for export Prepare a set of documents for export procedures, including: ● Foreign trade contracts ● Commercial invoice final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo 20 ● Packing slips ● Unloading slip (issued by the port when the goods are unloaded at the port) ● Referral Send Shipping Instruction to shipping line, confirm Bill of Lading content, get original Bill of Lading (if any) Buy insurance, make C/O “The seller will advise the buyer the name of the vessel not later than five (05) days before shipping date by fax.” “Seller forwards documents as stipulated in L/C to advising bank” 10 Receive payment within days to 10 days In the sale contract to use the payment method L/C at sight 11 Settlement of contract disputes (if any) 12 Closed storage after finishing and receiving payment the seller will record the revenue in the accounting books and contract termination Turnitin final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo final.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyofinal.exam.subject.export.import.management.discuss.the.major.differences.between.dap.at.buyers.warehouse.in.tokyo.and.ddp.at.buyers.warehouse.in.tokyo