1. How is General Agreement on Tariff and Trade abbreviated?

2. When was it established?

3. Was it originally established as a permanent institution?

4. Did it become one?

5. What were its member countries?

6. Where were its headquarters?

7. What was the aim of the Agreement?

8. Was the aim achieved?

9. When were the greatest tariff reductions made?

10. On whose initiative was it done?

11. How were those reductions called?

    2. Translate into Ukrainian:

       1. The President proposed his initiative as he had been impressed by the tariff reductions achieved by the E.E.C. and E.F.T.A.

       2. The Kennedy Round tariff reductions were the greatest achieved by GATT.

       3. The countries agreed not to show trading discrimination towards each other.

       4. They agreed to consult when tariff changes were considered.

       5. They agreed to work to reduce tariff barriers.

       6. The conferences of GATT achieved greater success than any other conferences on trade.

       7. Now it has been substituted by World Trade Organization.

    3. Sum up what, the text says about: The Kennedy Round

UNIT 4

THEME: CONTRACTS

Lesson 1

CONTRACTS

After the prospective buyer receives the offer he carefully studies it. Then, very often, he has a few talks or exchanges letters with the prospective seller. After the two parties come to an agreement about terms and conditions of the transaction they sign a contract.

Contracts usually contain the following information:

• Date of the contract

• Place or city

• Reference number

• Names of the buyer and the seller

• Description of the goods

• Price and the total value

• Terms of delivery

• Terms of payment etc.

Here is a part of a specimen contract:

Contract № 32-1

Moscow September 4^th, 1994

Foreign trade company Chemico, Moscow, hereinafter referred to as the Sellers, on the one part, and Messrs. Petro Co., Liverpool, England, hereinafter referred to as the Buyers, on the other part, have concluded the present Contract to the following effect:

The Sellers have sold and the Buyers have bought on c i f terms 10 000 kgs. of Chemicals ST to be delivered in the fourth quarter of 1994. Partial shipments are allowed. The quality of the Chemicals is to be confirmed by certificate issued by a competent independent and recognized laboratory. The Chemicals are to be packed to plastic bags.

The price is 175 English pounds sterling per kilo c i f Liverpool. The total value of the Contract is GBP

1750,000 (one million seven hundred and fifty thousand English pounds sterling).

The date of the bill of lading issued in the name of the Buyers is to be considered the date of delivery.

Payment for the Chemicals delivered under the present Contract is to be made by a letter of credit on the

presentation of the following documents:

1. Sellers' Commercial Invoice

2. Full set of clean on board Bills of Lading

3. Quality Certificate issued by the laboratory

4. Weight Certificate issued by the recognized company

5. Certificate of origin issued by the Chamber of Commerce and Industry

Insurance Policy issued by the State Insurance company. Payment is to be made through the National Bank, Liverpool.

Vocabulary Study

prospective to exchange

to come to an agreement term

condition

transaction

reference number

reference

value

delivery

payment

hereinafter

to refer to smb. as Sellers- майбутній обмінюватися

договорюватися, приходити до згода

строк, термін —

умова

угода

номер зазначення зазначенн

цінність, коштовність

доставка

оплата

надалі

називати когось продавцем

to the following effect partial-

partial shipment to confirm- to issue- recognized letter of credit by letter of credit invoice

bill of lading (cKop.b/l)

clean on board b/1

Chamber of Commerce & Industry

to provide ціль

для наступної цілі

частковий -

часткове відвантаження

підтверджувати

видавати

визнаний

акредитив

за допомогою акредитиву

рахунок

коносамент

чистий коносамент

торгівельно-промислова палата

дазати можливість, давати

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання;

I. Answer the following questions about the specimen contract:

1. What two parties concluded the contract?

2. What goods were sold under the contract?

3. At what price were they sold?

4. How were the goods to be delivered?

5. How were they to be packed?

6. What date was to be considered the date of delivery?

7. On what terms were the goods to be delivered?

8. What document was to confirm the quality of the goods?

П. Complete as in the text:

1. After the prospective buyer receives the offer he ...

2. Then, very often, he has a few talks or ...

3. After the parties come to an agreement...

4. Contracts usually contain ...

III. Sum up what the text said about:

the preparatory work before the contract is signed the usual information the contract specifies

W. Translate into English:

Платіж повинен бути здійснений по акредитиву Проти наступних документів Комерційний рахунок

Повний комплект чистих бортових коносаментів

Сертифікат якості

Ваговий сертифікат

Сертифікат про походження

Торгівельно-промислова палата

Страховий поліс

Надати гарантію першокласного банку Купити товар на умовах сіф Ліверпуль

Вартість складає 175 англ. фунтів стерлінгів за метричну тонну, по умовам сіф Ліверпуль

Lesson 2

COMMERCIAL INVOICES

Commercial invoices are usually issued by sellers or sellers' banks after the goods are shipped. Together with shipping documents invoices are usually sent to the buyers' bank for payment. Commercial invoices generally contain the following information:

• Number and date of the invoice ⁴

• Number and date of the contract

• Date of delivery

• Number and date of the transport document

• Description of the goods

• Price per unit

• Quantity

• Total amount to be paid

Here is a part of a specimen invoice:

Invoice № R04-22
*	Date: 27 November, 1994
Contract reference: Contract 32-1 of 4 September. 1994
Payment terms: bv letter of credit
Sold to: Petro Co., Liverpool, England
Shipped: by Hafta Co., Liverpool, England
Vessel: Alexander Pushkin
Date of shipment: 20 November, 1994
Port of shipment: Riga
Port of destination: Liverpool
Description: Chemicals ST c i f Liverpool
Quantity: 5000 kgs.
Unit price: GBP 175.00 per kilo
Total amount: GBP 875,000.00
Currency: English Pound Sterling
Bank: United Bank, Liverpool