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Unit Nine

Unit Nine. Packing. Learning Objectives. To describe the functions of packing To understand several types of packing To learn different Marks of packing To know how to send a packing instruction. 1. The functions of packing. Packing is of great importance in foreign trade.

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Unit Nine

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  1. Unit Nine Packing

  2. Learning Objectives • To describe the functions of packing • To understand several types of packing • To learn different Marks of packing • To know how to send a packing instruction

  3. 1. The functions of packing • Packing is of great importance in foreign trade. • Whatever mode of transport is adopted, most of the goods to be transported need packing before they are sent. Not only does packing help promote sales, reduce warehousing cost, freight and damages, it also reflects a country’s achievements in science, technology, art and culture.

  4. The functions of packing • The ultimate purpose of packing is to keep the transported goods in perfect condition with nothing missing on arrival. Good packing must be able to stand the roughest transportation. It has been estimated that as much as 70% of a11 cargo loss could be prevented by proper packaging and marking.

  5. 2. Types of packing • Large packing／outer packing Large packing/outer packing is packing for transportation. Transport packing is done mainly to keep the goods safe and sound during transportation．It must not only be solid enough to prevent the packed goods from any damage，but also be pilferage-proof, easy to store，convenient to load and unload．

  6. (2) Small packing／inner packing Small packing／inner packing is packaging for sales. Sales packing is done mainly to push sales. It aids marketing, consumer advertising, display, presentation, protection, handling and self-service retailing. It is now universally recognized as a decisive aid in selling household consumer goods. It can be realized in various forms and with different materials as long as it is nice to look at，easy to handle and helpful to the sales．

  7. 3. Marking （1）Transport marks （2） Directive marks （3） Warning marks

  8. （1） Transport marks Transport marks often consist of: 1) consignor’s or consignee’s code name， 2) number of the contract or the L／C， 3) the port of destination， 4) numbers of the packed goods， 5) the name of the country of origin of the goods, 6) weight and dimensions

  9. All of these can greatly facilitate identification and transportation． For example： KDK KUWAIT Nos. 1-100 MADE IN CHINA 100×45×45cm Gross weight: 47 kilos Tare: 2.5 kilos Net weight: 43.5 kilos

  10. (2) Directive marks Directive marks are eye-catching figures and concise instructions concerning manner of proper handling, storing, loading and unloading of the packed goods． For example： USE NO HOOKS TOP OPEN THIS END DO NOT STOW ON DECK NOT TO BE THROWN DOWN LIFT HERE SLING HERE TO BE KEPT UPRIGHT KEEP FLAT THIS SIDE UP TO BE KEPT COOL KEEP DRY KEEP AWAY FROM HEAT GUARD AGAINST WET/ DAMP DO NOT DROP HANDLE WITH CARE

  11. （3）Warning marks Warning marks are obvious symbols or words to warn people against the hidden danger of inflammables, explosives and poisonous products．Various warnings are to be stenciled on the packages for the benefit of both the owner and the carrier，such as： DANGEROUS GOODS ACID WITH CARE POISON INFLAMMABLE EXPLOSIVE FRAGILE GLASS—WITH CARE PERISHABLE

  12. Generally speaking，the seller should bear in mind that safe reliable and convenient outer packing and creative，elegant and attractive inner packing are what he must strive for．

  13. Guidelines for Writing 4.Letters regarding packing issues • Buyer giving instructions of packing • Exporter giving suggestions of his customary packing • Packing requirements concerning outer packing • Packing requirements concerning shipping marks • Packing requirements concerning inner packing • Clarifying packing clause • Improper packing causing damage

  14. Guidelines for Writing 1). Buyer giving instructions of packing when the buyer places an order, he / she must state clearly and accurately all the terms of transaction. Thus, exporter can get accurate instructions concerning packing and marking here, which can be illustrated by the following example.

  15. Specimen letter-1 DE DOLLY ENTERPRISES PTE. LTD. Mildlink Plazza, Singapore 0718 Tel: 3000000 Fax: 30000001 E-mail: electronic@yahoo.com 16 August 2008 Nantong Electronics Co., Ltd. 2088 Jiefang Boulevard Nantong, Jiangsu Province Dear Sirs, With reference to our recent exchange of correspondence, we confirm having placed with you the following order: Description of Article: Tiger Brand Transistor Radio Model: MF-101 Quantity: 7,200 sets Price: US$12.50 per set CIFC3% Kuwait

  16. Packing: Each set in a box, 12 sets to a cardboard carton and 96 sets to a wooden case. Shipment: To be made in three equal monthly installments, beginning from August 2008 Payment: By confirmed, irrevocable L/C payable by draft at 60 days’ sight to be opened 30 days before the time of shipment. We trust that you will give special care to the packing of the goods lest they should be damaged in transit. Please mark the cases with our initials KES in a triangle, under which reach the destination KUWAIT with order number CT3344 below again. Your close co-operation will be highly appreciated. Yours truly, Alan Koh

  17. Guidelines for Writing 2. Exporter giving suggestions of his customary packing When inquired about the packing, the seller can recommend his customary packing of the goods concerned to the buyer and also indicate clearly that he may accept any required packing at the expense of the buyer. Meanwhile, it is appreciated that the buyer informs the seller of any fears about the packing. Eventually the buyer and seller reach the agreement through detailed discussion.

  18. Specimen letter-2 Shanghai South Import & Export Co., Ltd. 1880 central Avenue, Shanghai, China Tel: 0215888008 Fax: 0215888800 E-mail: south@hotmail.com September 5, 2007 The Martin Tool Co., Ltd. Suite 302, Peirson Plaza, Nelson Street, Vancouver, Canada Dear Sirs, In reply to your letter of the 31st August inquiring about the packing of our Trip Scissors, we wish to state below: Our export Trip Scissors are packed in boxes of one dozen each, 100 boxes to a carton. The dimensions are 17 cm high, 30 cm wide and 50 cm long with a volume of about 0.026 cubic meters. The gross weight is 23.5 kg while the net weight is 22.5 kg. As to

  19. the shipping marks outside the carton, in addition to the gross, net and tare weights, the wording “MADE IN THE PEOPLE’S REPUBLIC OF CHINA” is also stenciled on the package. Should you have any special preference in this respect, please let us know and we will meet you to the best of our ability. Taking this opportunity, we would like to inform you that we used to pack our scissors in wooden cases but after several trial shipments in carton packing, we found our cartons just as seaworthy as wooden cases. Besides, cartons are less expensive, lighter to carry and cost lower freight. So, nowadays more and more clients prefer carton packing to wooden case packing. We trust that you will agree to our opinion and accept our carton packing. We thank you in advance for your early reply. Yours faithfully, Zhou Xiao

  20. Specimen letter-3 The Martin Tool Co., Ltd Suite 302, Peirson Plaza, Nelson Street, Vancouver, Canada Zip Code: V5B 5A3 Tel: (604) 7788390 E-mail: martin@gsmail.com September 9, 2007 Shanghai South Imp & Exp Co., Ltd. 1880 central Avenue, Shanghai, China Dear Sirs, In reply to your letter of the 5th September concerning the packing of our Trip Scissors, we have enquired of some of our clients about the packing in question. They say：

  21. Such cartons are easy to cut open because the cardboard of which the cartons are made is rather thin, thus making pilferage become possible. 2. If and when the goods a re to be transshipped at a certain port. the cartons will stand in the open on the wharf and，in heavy rains，be subjected to damage as the cartons will surely be soaked． 3. During loading and unloading，the cartons are to be piled up；Hence breakage is unavoidable because the cartons are too thin to stand heavy pressure. 4. The insurance companies, on knowing this, will shift their responsibilities to the goods being packed in cartons not fit for ocean transportation and refuse compensation for losses．

  22. From the above comments, you can readily see that our clients are justified in their anxieties over your packing. As far as packing is concerned, they prefer wooden cases to cartons for future shipments． We sincerely hope that you will take this matter into consideration and make necessary improvements so as to avoid unforeseen troubles arising from faulty packing. Your early response will be much appreciated. Yours Sincerely, Mark Richard

  23. Specimen letter-4 Shanghai South Import & Export Co., Ltd. 1880 central Avenue, Shanghai, China Tel: 0215888008 Fax: 0215888800 E-mail: south@msn.com September 11, 2007 The Martin Tool Co., Ltd. Suite 302, Peirson Plaza, Nelson Street, Vancouver, Canada Dear Sirs, We thank you for your letter of September 9，informing us of your clients comments on our packing. We have discussed the matter with the competent department here and wish to explain as follows： 1.The cartons we use are up to standard and fit for ocean

  24. transportation. For years we have used these cartons in our shipments to many continental ports to the entire satisfaction of our clients. Moreover, the insurance companies have accepted such packing for WPA and TPND. 2. These cartons are well protected against moisture by plastic lining. Thus garments packed in them are not so susceptible to damage by moisture as those packed in wooden cases. 3. The cardboard used for making cartons is light but compact. It keeps down packaging costs and helps customers save on freight. 4 . Your clients’ anxieties over packing are presumed．We are confident that the insurance company can be made to pay the necessary compensation for any loss or losses from pilferage

  25. and breakage caused by using such cartons. Please tell your clients that their fears are unwarranted. Nowadays, except for bulk cargo，nude cargo and huge machinery, most commodities are packed in cartons. To pack garments in wooden cases is obsolete. For future shipments, we are experimenting with special cartons, in which garments are hung on dress-hangers. These cartons can be containerized, so that the garments will not twist. We highly value your comments，which will help improve our work. If you find any defect in our last shipment, please do not hesitate to let us know. We assure you of our cooperation and await your further orders. Yours sincerely, Zhou Xiao

  26. Specimen letter-5 The Martin Tool Co., Ltd Suite 302, Peirson Plaza, Nelson Street, Vancouver, Canada Zip Code: V5B 5A3 Tel: (604) 7788390 E-mail: martin@gmail.com September 14, 2007 Shanghai South Imp & Exp Co., Ltd. 1880 central Avenue, Shanghai, China Dear Sirs, Your letter of September 11th has been carefully noted. We have approached our clients about the packing，and after our repeated explanations，they say they will have no objection to your packing the garments in cartons if you guarantee that you will pay compensation in all cases wherein they cannot get

  27. indemnification from the insurance company for the reason that the cartons used are not seaworthy． We deem it our duty to inform you of this and consider it a tacit understanding that should the insurance company refuse compensation, you would hold yourselves responsible for the losses our clients might sustain on account of your using such cartons. We think you will understand that our candid statement is made for our mutual benefit as packing is a sensitive subject, which often leads to trade disputes. We appreciate your cooperation. Yours sincerely ， Mark Richard

  28. Guidelines for Writing 3). Packing requirements concerning outer packing Outer packing is designed to protect goods from damage and theft and facilitate transport, loading and unloading while being carried from one place to another. Safety, together with convenience, will be the focus. In the letter concerning packing, the exporter usually give the detailed description to avoid the possible trade disputes and also ensure the buyer that the goods will arrived safely and in good condition.

  29. Specimen letter-6 Make-Up Leather Industry Main Street New Hamza Ghouse, P.O.Box-2142, Sialkot-51310, Pakistan. Tel: 92-432-541767 Fax: 92-432-5428488 E-mail: makeup@brain.net.pk Web Site: www. Makeupleather.com March 25, 2007 Nanjing Leather Co., Ltd. No. 118 Jiefang Road, Nanjing, China Dear Sirs， Thank you for your letter of March 22, informing us that the subject goods could be shipped. With regard to the packing for the above order，the goods should be packed in tin-lined water-proof woolen bale，each bale wrapped in oil cloth，and 10 bales packed in one case. Packing in sturdy wooden cases is

  30. essential. Cases must be nailed，battened and secured by overall metal strapping. Rope or metal handles should be fixed to the cases to facilitate carrying. No grip-holes should be left in the cases．All cases are to be marked as usual，but please number them consecutively from No.40. Kindly stencil our shipping marks in letter 4 inches high，and give gross and net weight on each case. We hope that the result of packing turns out to be satisfactory for our customers. If so，you may continue using this packing in the future. As soon as the goods reach us, we shall let you know. Yours truly， Susan

  31. Guidelines for Writing 4). Packing requirements concerning shipping marks As a necessary part of outer packing, marking serves important function during transit. The outer packing of exports is usually marked clearly with the identifying symbols and numbers in accordance with the instructions of the customer in order to enable the customs authorities, the steamship clerks and the customer to identify the packages en route or at the port of destination. In addition, outer packing will bear some indicative / warning marks with weight and measurement of the packages, which enables the carrier to choose suitable means of transport and calculate freight.

  32. Specimen letter-7 New Textiles Import & Export Corporation 180 Changan Road, Beijing 100000, China Tel: 010-64000000 Fax: 010-64000001 E-mail: newtextile118@yahoo.com.cn April 12, 2006 Sunlight Textiles Imp. & Exp. Corp., 2458 Empire Road, Sydney Australia Dear Sirs, We enclose the countersigned copy of contract No. 250 of April3, for 360 bales of printed cottons. The letter of credit is on its way to you. With regard to the packing for the above order , please mark our initials KT in a triangle, destination and our order number

  33. should be stenciled．In addition，directive marks KEEP DRY，KEEP AWAY FROM PRESSURE，etc．should also be indicated. We have made a footnote on the contract to that effect．We hope you will find it in order and pay special attention to the packing． We look forward to receiving your shipping advice and thank you in advance. Yours faithfully ， Dawei Xu

  34. Guidelines for Writing 5). Packing requirements concerning inner packing Inner packing, also named as sales packing, is done mainly to push sales. Successful inner packing can save cost, energy and time that will be spent on marketing. Therefore, the buyer also lays emphasis on it.

  35. Specimen letter-8 ABC Trading Corporation 9 Alexander Street, London, England E-mail:progress@hotmail.com Tel: (44) 456-3367 Fax:(44) 456-3395 3rd June, 2007 Far East Trading Company 688 Tianya Street, Haikou 570000, Hainan Province, China Dear Sirs， In reply to your e-mail of May 26，we regret having forgotten to mention the inner packing requirements of Bee Brand Brown Sugar we ordered at the Guangzhou Spring Fair this year. Now we have discussed the matter with our customers. They request as follows：

  36. As brown sugar is moisture absorbent especially in hot rainy seasons，it should be packed in kraft paper bags containing 20 small paper bags of 1 kilogram net each, two kraft paper bags to a carton lined with water-proof paper. We hope the above requirements will be acceptable to you and look forward to your early reply. Yours sincerely， Black Smit

  37. Specimen letter-9 Far-east Trading Company, Ltd. 180 Changan Road, Beijing 100000, China Tel: 010-64000000 Fax: 010-64000001 E-mail: textiles@yahoo.com.cn April 20, 2007 Pacific Textiles Imp. & Exp. Corp. 2458 Empire Road, Sydney Australia Dear Sirs, Reference is made to our Order No.330 of March 5th covering 5000 pieces of Girls’ Swimsuits. We are pleased to inform you that the above-mentioned shipment ex s. s. “xxx” has arrived at our end sagely and in good condition.

  38. As a matter of fact, the goods are found to be of excellent quality, while the packing is only middling, having a certain leeway to improve. Frankly speaking, you can compete successfully in the world market in a good many commodities, but you lose out to others just because you fail to pack the goods properly. You will understand that with so many brands of the same commodity competing for sale here, merchandise is forced not only to give value but to be seen to give value. In order to help sell the goods, we suggest that you make some improvements in your packing as soon as possible. Yours truly, Zhen Lan

  39. Guidelines for Writing 6). Clarifying packing clause Packing clauses stipulated in the contract should be mutually discussed and determined before shipment. Any obscure expressions must be clarified otherwise trade disputes may be caused. In trade practice, in order to save any possible trouble and disputes, ambiguous packing terms like “seaworthy packing”, “customary packing” and “seller’s usual packing” should be avoided.

  40. Specimen letter-10 April 27, 2007 Dear Sirs, Sales Confirmation No. T-LONG1352 We have received your letter dated April 23 enclosing the above sales contract in duplicate but wish to state that after going through the contract we find that the packing clause in the contract is not clear enough. The relative clause reads as follows: Packing: Seaworthy export packing，suitable for long distance transportation. In order to eliminate possible future trouble，we would like to make clear beforehand our packing requirements as follows：

  41. The tea under the captioned contract should be packed in international standard tea boxes, 24 boxes on a pallet, and 10 pallets in an FCL container. On the outer packing please mark our initials SCC in a diamond，under which the port of destination and our order number should be stenciled. In addition，warning marks KEEP DRY，USE NO HOOK，etc, should also be indicated. We look forward to receiving your shipping advice and thank you in advance. Yours faithfully， Fred Jockey

  42. Guidelines for Writing 7). Improper packing causing damage In international sales transaction, improper packing will lead to damage or losses, consequently, resulting in complaints or claims.

  43. Specimen letter-11 May 27, 2006 Dear Sirs, On May 20th, we received your consignment of 40 cardboard cartons of steel screws. We regret to inform you that 10 cartons were delivered damaged and the contents spilled, leading to some losses. We accept that the damage was not your fault but feel that we must modify our packing requirements to avoid future losses.

  44. We require that future packing be in wooden boxes of 20 kilos net, each wooden box containing 40 cardboard packs of 500 grams net. Please let us know whether these specifications can be met by you and whether they will lead to an increase in your prices. We look forward to your early confirmation. Yours faithfully， Phillip David

  45. Specimen letter-12 May 18, 2008 Dear Sirs, We have duly received the fifteen cartons of cameras under our Order No. xxx of 5th May but regret to inform you that upon examination, we found three cartons of them were badly damaged and probably can not be accepted by our customers. Apparently it was due to the improper packing. In our opinion, the export cartons used were not sufficiently strong to protect these cameras.

  46. This is the second time in the first half of this year we have had cause to write to you about the same matter and we find it hard to understand why precautions could not be taken to prevent a repetition of the earlier damage. Please go into this matter promptly and send us the replacements of the damaged three cartons by air as quickly as you can as we are badly in need of the goods. Yours faithfully, Simon Richler

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