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CUSTOMS TARIFFS, TAXES AND DUTIES

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Part III
CUSTOMS

Unit VIII
CUSTOMS TARIFFS, TAXES AND DUTIES

EPISODE 1

Customs Tariffs in Russia

In every country import-export rates are supposed to fulfil four functions:

  •  to protect home producers from foreign competition in order to increase their own competitiveness in the domestic market;
  •  to limit exporting products in which there is a shortage in this country and to regulate foreign trade transactions for political interests;
  •  to supply local consumers, both legal entities and individuals1, with products which are not produced in this country or produced insufficiently;
  •  to provide the state budget with additional financial resources.

In order to put these issues into practice2, the Russian government changed its import rates in 1994. The change of import duties3 affects mostly the status of foodstuff imports. Inflation and the subsequent price increases for energy, equipment and other materials make storage, processing the products and their packing very expensive. Foreign suppliers have the opportunity to sell products at lower prices, though sometimes their products are of lower quality. Food intervention of imported goods has led to the reduction in the production of some agricultural products inside Russia. So the change of customs tariffs is based on an objective necessity to protect local commodity producers and does not conflict with the General Agreement on Tariffs and Trade. Customs duties are levied only on those types of products which are produced in sufficient quantities.

The level of imposition by import rates4 was increased at an average of five to seven percent. Formely, the import rates were calculated as a percentage of the customs value of the imported goods. At the present time there is a universal order for introducing rates as an absolute sum for the imported unit (kilogram, liter, piece) value. For some types of agricultural products, mainly fruits and vegetables, seasonal duties with limited duration are in force.

Apart from the duties on foodstuffs the duties on some types of industrial products have also been increased. This step of the government is related to the fact that during the last several years Russian industry has experienced difficulties connected with the success of sale of imported cars, electronics, and some other types of industrial import. Duty rates have been increased on different transport vehicles, on completing articles5 for assembling electronics and computers, on consumer electronics6 and on metal-cutting machines. The minimum duty sums per one item for cars depend now on the engine volume and the year of production.

The regulations for granting a delay in payment for import duties have also been changed. Previously, the delay was permitted for a period of no more than thirty days. This delay was granted to the importer with no additional fees or expenses. Under the new regulations, this period is prolonged up to sixty days, but a certain interest is collected7 throughout the whole duration of the delay.

Export duties in Russia were set up in 1992. At that time world prices were much higher than internal ones and export was highly profitable, though it seriously hurt the level of domestic consumption8. Nowadays, in relation to the increase in domestic prices, the existence of export duties negatively affects the ability for long-term export deals9. So export duties are supposed to be cancelled in future.

Vocabulary Notes on the Text

1 legal entities and individuals - юридические и физические лица.

2 to put something into practice - применять что-л. на практике.

3 import duties - ввозная таможенная пошлина.

4 the imposition by import rates - налогообложение на импорт.

5 completing articles - комплектующие,

6 consumer electronics - бытовая электроника.

7 to collect an interest - взимать проценты.

8 domestic consumption - потребление внутри страны.

9 long-term export deals - долгосрочные экспортные сделки.

Exercises on the Text

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

inflation; intervention; imposition; consumption; resourses; entities; tariffs; vehicles; materials; status; electronics; energy; shortage; percentage; engine; foodstuff; insufficient; subsequent; industrial; levied

3. Match the verbs in the list close in meaning:

to fulfil; to effect; to protect; to levy; to limit; to grant; to develop; to restrict; to compete; to influence; to expand; to defend; to purchase; to contest; to perform; to buy; to introduce; to relate; to impose; to allow; to present; to connect

4. Answer the following questions:

  •  1) When did the Russian government change import duties rates?
  •  2) What did this change mostly effect?
  •  3) What was the result of inflation?
  •  4) How does food intervention influence the home agriculture?
  •  5) On what are customs duties levied?
  •  6) On what do the duty sums for cars depend?

5. Explain the meaning of the following terms in English:

the state budget; import duties; export duties; inflation; customs tariffs; imposition; industrial import; seasonal duties; consumption; General Agreement on Tariffs and Trade

6. Use each of these collocations in sentences of your own:

to protect home producers; to regulate trade transactions; to supply local consumers; to put smth. into practice; not to conflict with international practice; to produce in sufficient quantities; to be in force; to increase export/import duties on; to experience difficulties in smth.; to levy extra charges on

7. Give English equivalents of:

внутренний рынок (4 варианта); местные потребители; местные производители товара; юридические и физические лица; дополнительные финансовые ресурсы; ставки импортной пошлины; продовольственные/промышленные товары; оборудование; хранение, переработка и упаковка товаров; таможенные тарифы; ввозная таможенная пошлина; уровень налогообложения; стоимость единицы товара; сезонные пошлины; комплектующие; уровень внутреннего потребления; в среднем

8. Retell the text according to the following plan:

  •  1) The functions of import-export rates.
  •  2) Customs tariffs as an objective necessity to protect a local market.
  •  3) The increase of import rates.
  •  4) The problem of export duties.

Vocabulary and Speech Exercises

9. Insert appropriate prepositions:

1. All taxes, customs duties and other charges levied__connection __the performance__this Contract__Russia are to be paid__the Sellers and those levied outside Russia are to be paid__the Buyers.

2. The simplest form__a tariff is one which consists__a single column levying the same rate__duty__all imports.

3. __addition__customs duties proper, many countries levy extra charges__one kind or another. The most common form is a surtax charged as a percentage__the duty.

4. The internal taxes are__a different kind. They are collected__imports__many countries. These are usually levied__the same rate as__similar products__domestic origin. Included__this category are sales taxes, excise taxes, V.A.T., turnover and transaction taxes, and the like.

10. Give the English equivalents of:

налоговая ставка; таможенные сборы; взимать налог (3 варианта); дополнительное налогообложение (2 варианта); внутренний (федеральный) налог; налог на продажу; акцизный сбор; налог с оборота; налог на добавленную стоимость; взимать определенный процент от стоимости товара за хранение

11. What do we call?

1) duty charged on certain goods and services produced and sold within the country (i.e. tobacco, beer, wines and spirits);

2) a tax charged as a percentage of the retail price of goods;

3) an extra tax on imports, in addition to ordinary customs duties;

4) a continuing rise in prices;

5) a tax charged not only on retail prices but also on the prices charged by manufacturers and wholesalers;

6) an indirect tax, charged as a percentage of the selling price of an article or commodity

12. Read and translate the following text using a dictionary if necessary:

Tariff Systems

All over the world tariff systems can be classified into four main types. The first type is represented by a single column tariff which consists of one list of duties with a single duty rate for each article, applicable equally to imports from all countries. Duty reductions arranged by countries exercising such a system are usually universal for all the other countries. Germany, Japan, the Scandinavian countries are amidst those practising the single column tariff.

The second type used in customs practice is a maximum-minimum tariff. This involves the setting-up of two columns of duties in the tariff. The lower rate is applicable to countries enjoying most-favoured-nation treatment whereas the higher to other countries. Sometimes maximum-minimum tariffs include only one column (usually called the minimum tariff) and the rates of the maximum tariff are calculated by applying a percentage increase or multiplier to the minimum rates. France and Spain are among the countries using such a system.

The countries where a general-conventional tariff is used start with a single column of duties and proceed to establish a second column of conventional duties in negotiations with other countries. This second column contains only the items on which conventional rates have been settled and does not, therefore, cover all tariff items, to which the general tariff is applied. The conventional rates are correspondingly common mostly with the countries of the most-favoured-nation treatment.

And the fourth type of customs tariff is a preferential tariff. This one represents an import duty at a specially low rate on goods from a country that is being favoured. Usually preferential tariff is applied to the countries of the same group. Thus, within the European Economic Community preferential rates are exchanged exclusively between the countries developing the respective spheres and are not extended to outside countries.

13. Choose corresponding Russian terms for:

1) a single duty rate

таможенный режим

2) duty reductions

конвенциональная пошлина

3) most-favoured-nation treatment

коэффициент

4) conventional duty

режим наибольшего благоприятствования

5) preferential treatment

преференциальные ставки

6) minimum rates

единая тарифная (налоговая) ставка

7) multiplier

минимальные ставки

8) tariff treatment

скидки таможенных пошлин

9) preferential rates

преференциальный режим налогообложения

14. Answer the following questions:

1) What is the simplest form of tariff?

2) Who usually pays taxes, customs duties and other charges for commodities on the territory of the Seller?

3) What is the most common form of an extra charge regarding import duties?

4) In what way are the internal taxes on imports collected?

5) What internal taxes do you know?

6) What is the difference between a sales tax and a turnover tax?

7) What countries exercise preferential tariffs?

8) What is the difference between a single column tariff and a maximum-minimum tariff?

9) What do conventional rates mean?

15. Say whatever you know about:

  •  1) the four functions of export-import rates;
  •  2) main tariff systems;
  •  3) the internal taxes collected on imports.

EPISODE 2

Free Econimic Zones (FEZ)

A: I say, did you hear anything about free economic zones?

В: What actually interests you about them?

A: Well, I have a lot of questions. What are they? Who organized them? What is...

В: Not so many questions at once, please. Free economic zones were formed on the initiative of local authorities with the permission of the central government of Russia. They are considered to be independent territory economic structural formations1 with a special currency-financial, legal, customs and organizational-social system.

A: What are they meant for?

В: Their main objective is to provide more favourable conditions for the development of foreign economic links.

A: Does that mean that they are created to protect the interests of foreign capital?

В: Exactly. They are supposed to attract foreign investments, technologies2 and products into the Russian economy. And not only this. In addition, these zones should help in the development of domestic production on the basis of modern achievements in science and technology.

A: Are all these zones alike?

В: No, they are not. As a matter of fact, they are divided into three groups.

A: What kind of groups are they? Could you describe them in detail, please?

В: Certainly. The first group includes customs which are frontier zones. They are usually created at sea or river ports, at large frontier railway junctions and at airports. The second group are scientific engineering zones3.

A: What are they intended for?

В: Foreign potential is attracted here to develop some of the directions in science and engineering, and to achieve advanced gains4 in modern technology. But the largest and the most important is the third group, that is general economic zones. Usually they represent a part or the whole of the territory of the administrative region or area and also large port cities.

A: Are free economic zones given any special rights?

В: Of course they are. Being an integral part of the territory of the country, a free economic zone enjoys the main right to define its social and economic policy independently if this does not contradict the rules and laws of Russia. It means that authorities of the zone can regulate export-import transactions, set the order of entry, exit and stay for foreign citizens on its territory, establish direct foreign economic and cultural links.

A: What are tax privileges in a free economic zone?

В: Authorities of the zone have the right to carry out budget and taxation politics of their own within its territory. They independently develop the system of taxation, set financial and other privileges starting with world tax rates5 and preferences6.

Vocabulary Notes on the Text

1 territory economic structural formations - территориально-экономические структурные образования.

2 technologies - технологические разработки.

3 scientific engineering zones - научно-технические зоны.

4 to achieve advanced gains - добиться больших достижений.

5 tax rates - налоговые ставки.

6 preferences - льготные таможенные пошлины.

Exercises on the Dialogue

1. Read and translate the dialogue.

2. Give English equivalents of the following Russian phrases:

по инициативе местных властей; с разрешения центрального правительства; независимые структурные образования; обеспечить наиболее благоприятные условия; защитить интересы иностранного капитала; привлекать иностранные инвестиции; отечественное производство; технологические разработки; современные достижения науки и техники; пограничные зоны; крупные железнодорожные узлы; регулировать экспортно-импортные операции; установить порядок въезда, выезда и пребывания; установить льготные таможенные пошлины

3. Answer the following questions:

  •  1) How are free economic zones (FEZs) formed?
  •  2) What is the most important economic characteristic of a FEZ?
  •  3) What is the objective of such zones?
  •  4) What are these zones supposed to do?
  •  5) Where are they usually organized?
  •  6) How many groups are free economic zones divided into?
  •  7) What can you say about the first group of FEZs?
  •  8) What can you say about the second group of FEZs?
  •  9) What is the third type of FEZs?
  •  10) What rights does a FEZ enjoy?
  •  11) What are the privileges in FEZs?
  •  12) Why are foreign investors attracted to FEZs?

4. Retell the dialogue:

  •  a) on the part of the speaker A;
  •  b) on the part of the speaker B;
  •  c) on your own part.

Vocabulary and Speech Exercises

5. Read and translate the following dialogue. Report it as close to the text as possible.

Paying Customs Duties and Taxes

A. What kind of taxes must be paid to the Customs Authorities before the goods are handed over to legal entities and individuals?

В. Well, the taxes that must be paid on importation include as a rule customs duties, value-added tax and some special import taxes.

A. How can I know the rates of customs duties?

B. Customs duties for all types of goods are printed in the Customs Tariff which is available in bookshops.

A. What is ad valorem duty and how is it calculated?

В. Ad valorem duty is a tax charged as a percentage of the value of the goods, as distinguished from a fixed duty or tax. Calculation of ad valorem duty is based on the GIF value of goods, that is on cost, insurance and freight charges. Note, that freight charges should always be included in the customs value.

A. I see. And are all imported goods liable to VAT?

В. Most of them, there is only a small number of exemptions. The tax rate is a fixed percentage of the customs value plus any customs duties and taxes collected by the Customs on importation.

A What does a special tax mean?

B. This is a kind of tax to which only certain types of goods are subject.

A How are tax rates settled?

B. Tax rates are decided by the Government Authorities, each year in connection with the passing of the Budget. Tax rates can be changed from year to year.

6. Explain the meaning of the following terms in English:

ad valorem duty; GIF; a tax rate; a cost; freight charge; to be liable; a special tax; the Customs; a fixed duty

7. Make up sentences of your own to illustrate the meaning of the following terms:

ad valorem duties; value-added tax; special import taxes; freight charges; the Customs Tariff

8. Give a free translation of the following text in English in the form of a dialogue between a customs official and an interviewer. Work in pairs:

Вести из Пулковской таможни

Относительно новостей из Пулковской таможни следует отметить, что с 1-го июля были введены новые ставки таможенных пошлин. Теперь пошлины взимаются за ввоз отдельных видов продуктов питания. Сейчас много говорят о том, что ставки этих пошлин слишком высокие, что они остановят импорт в Россию, и люди будут испытывать голод. Это, конечно, не так. Если вы помните, около месяца назад уже были введены пошлины на некоторые продукты питания. За то время, пока они действовали, цены на продовольственные товары даже упали. Совершенно очевидно, что цены на внутреннем рынке нашей страны, как и в любой другой, определяются прежде всего покупательной способностью населения (consumer demand). Так всегда было и будет. Прибыль, получаемая компаниями, торгующими продовольственными товарами, достаточно велика, чтобы уплачивать пошлины из доходов этих компаний, а не из карманов потребителей.

Одновременно с введением новых ставок таможенных пошлин на продукты питания отменен НДС на ввоз многих видов технологического оборудования. Список довольно внушительный.

Есть изменения и для частных лиц, причем достаточно серьезные. Если вы помните, у нас разрешен беспошлинный ввоз (duty free import) товаров на сумму до $ 20 000. Все, что ввозилось сверх этой суммы облагалось единым таможенным платежем в 60%. Сейчас эта сумма снижена до 30%. Эта мера разумна и вполне в духе либерализации. Растет средняя заработная плата, растет и количество товаров, которые может ввозить частное лицо. Также снижен единый таможенный платеж при вывозе товаров.

Таковы новости Пулковской таможни. В заключение хотелось бы приезжающим пожелать спокойного пребывания в нашем прекрасном городе, тем же, кто уезжает - чувствовать себя на таможне спокойно. Главное - не пытаться обмануть таможню, тогда никогда никаких проблем не возникнет.

WRITING PRACTICE

Despatch of Goods: Packing and Marking

Nothing is more infuriating to a buyer than to find his goods damaged or partly lost on arrival. The buyer has a right to expect his goods to reach him in a perfect condition and the seller has to organize the despatch of goods in such a way that the problems which might occur during the transit should be as less serious as possible. The important assets1 of export distribution are packing and marking.

Packing is intended to protect goods from all types of different hazards. Cargo in transit2 may be threatened by natural phenomena or by man-made problems which include pilferage. The damage to a consignment of goods may also be caused by its proximity to another shipment. So the general aim in all packing is not only to make the goods secure during the journey, but at the same time to make the package as small and light as possible. Transport costs on land usually depend on the weight but on the sea the size of the package is also significant.

To handle the problems that face export despatches, in many large export firms special departments for export packing have been established and the whole problem is under regular control. They also may employ a forwarding agent3 to do packing for them.

The marking of goods is very important because an unmarked consignment4 may be mislaid at some stage. Even worse, the unmarked goods become practically untraceable5. At the same time, marking should not reveal any excess information about the contents of the goods in order to avoid the risk of theft.

For correspondence, the following specialized terms of packing containers are useful to know:

bag (пакет),

case (прочный ящик, скрепленный рейками)

bale (тюк, кипа),

crate (решетчатая тара),

barrel (бочонок, деревянная бочка),

container (контейнер),

box (ящик из дерева или металла),

drum (цилиндрический контейнер),

bundle (связка, пачка),

sack (мешок),

carboy (бутыль, баллон),

tin/амер. саn (маленький металлический

carton (картонная коробка),

контейнер, консервная банка).

There are three principle types of marking, which are usually done by paint or ink through a metal stencil6 on export packages:

(a) The consignee’s own distinctive marks, which are registered and play the role of identification. These marks, including the name of place of destination, serve as the address on an envelope.

(b) Any official mark required by authorities of the country of export or import. Some countries require the name of the country of origin of the goods to be marked on each package, others - weights and dimensions7 or both.

(c) Special directions or warnings. Here you will find some special instructions regarding manner of handling, loading, lifting and various warnings both for the owner’s and the carrier’s benifit8.

Below are the most widespread examples:

Handle with care

Осторожно!

Glass - with care

Осторожно, стекло!

Acid - with care

Осторожно, кислота!

Fragile

Осторожно, хрупкий груз!

To be kept cool

Хранить в прохладном месте

Use no hooks

Не пользоваться крюками

Stow away from heat

Держать вдали от нагревательных приборов

Keep dry

Беречь от влаги

Do not drop

Не бросать

Do not stow on deck

Не складывать на палубе

This side up

Верхняя часть

Open this end

Открывать здесь

Lift here

Поднимать с этого конца

Perishable

Скоропортящийся продукт

Inflammable

Огнеопасно

Warnings and directions may be also represented by stencilling symbols that are understood by speakers of any language. For example:

Vocabulary Notes on the Text

1 an important asset - важная особенность.

2 in transit - в пути.

3 a forwarding agent - экспедитор.

4 an unmarked consignment - немаркированный груз.

5 the goods become practically untraceable - товары практически невозможно отследить.

6 through a metal stencil - по металлическому трафарету.

7 weights and dimensions - размеры и вес.

8 both for the owner’s and the carrier’s benifit - в интересах как владельца груза, так и перевозчика.

Vocabulary and Speech Exercises

6. React to the statements according to the pattens. Use the words and phrases given below the patterns.

Exercises

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

carrier; cargo; assets; hazards; dimensions; transit; pilferage; theft; consignment; consignee; phenomena; acid; proximity; crate; stencil; infuriating; untraceable; forwarding; inflammable; perishable; regular; official; mislaid; distinctive; required

3. Translate the following English collocations:

to make something secure; to handle a problem; to be under regular control; to play the role of identification; to be mislaid; to become untraceable; to reveal excess information about something; to avoid the risk of theft; through a metal stencil; for somebody’s benefit

4. Use the collocations of the previous exercise in sentences of your own.

5. Explain the meaning of the following terms in English:

transport costs; a forwarding agent; destination; export distribution; an unmarked consignment; to give an excess information; a metal stencil; the manner of handling; stencilling symbols

6. Give English equivalents of the following Russian words and expressions:

a) содержимое; природные явления; близость; баллон; решетчатая тара; связка (пачка); цилиндрический контейнер; осторожно, хрупкий груз; скоропортящийся продукт; трафарет; размеры; вес; партия товара; не бросать; огнеопасно

b) груз; упаковка; маркировка; отправка; отправитель; получатель; экспедитор; место назначения; созданные человеком проблемы; в отличном состоянии; при перевозке; перевозка по морю/воздуху; безопасность

7. Answer these questions:

  •  1 ) What are the important assets of export distribution?
  •  2) What can happen to cargo in transit?
  •  3) Why is it important to keep the package as small and light as possible?
  •  4) What are the functions of a forwarding agent?
  •  5) What kinds of packing containers can you name?
  •  6) Why is it important to mark the goods in a proper way?
  •  7) What are the three principal types of marking?
  •  8) How can warnings and directions be represented?

8. Insert appropriate words from the box given below and translate the letter:

Dear Sirs,

We are thankful to you for your letter of 23 June, and can … that we are still offering our range of peripherals at the prices quoted in our ...

We understand your ... with packing and can assure you that we shall take every possible ... to ensure that our products would reach you in perfect condition.

For your information, ... is packed as follows: each device is ... in ... and packed in cartons, ten to a carton, separated from each other by corrugated paper ... ; we put on each carton symbols representing the following ... and directions: USE NO HOOKS, STOW AWAY FROM HEAT, DO NOT DROP.

We hope this has answered all your questions and we ... to receiving orders from you.

to look forward to, tissue paper, confirm, to wrap, concern, initial offer, cargo, dividers, precaution, warnings

9. Translate into English:

Уважаемые господа!

Благодарим вас за ваше письмо от 2 июля. Мы рады сообщить вам, что груз был доставлен очень быстро, но, к сожалению, в ящике № 17 были не все детали, которые мы заказали. Очевидно, ошибка произошла при упаковке.

Мы будем вам благодарны, если вы пришлете нам недостающие детали в ближайшее время или если вы пришлете вашего агента-экспедитора, который поможет нам наладить аппаратуру.

С уважением...

10. Make up a letter from your firm to an English engineering firm ordering some special machine. Give packing and marking instructions.

11. Write a letter of order using the information given below and some other details about packing and marking given in the main text.

Each device is placed in its individual cardboard box. The boxes are then packed in strong cardboard cartons. The cartons, in their turn are placed in strong wooden crates. Since the crates are specially made to hold several cartons, there is no danger of movement inside them. The crates are lined with waterproof material. The lids are secured by nailing, and the crates themselves are strapped with metal bands.

In case the consignment sent to a firm needs trans-shipment it will be necessary to mark the details required by the authorities of the country of trans-shipment.

SPEECH PRACTICE

1. Role-play. Express your agreement with the following statements. Add whatever information you can. Use the following formulas of agreement:

I quite agree here...

That’s right...

Practically so…

Quite so...

Yes, indeed...

 

1) One of the main functions of import-export rates is to provide the state budget with the additional financial resources.

2) Formely in the Russian Federation the import rates were calculated as a percentage of the customs value of the imported goods.

3) The minimum duty sums per item established for cars depend now on the engine volume.

4) Previously, a delay in payment for import duties was granted for a period of no more than 30 days.

5) Export duties are expected to be cancelled in future.

6) The internal taxes on importation are usually levied at the same rates as on similar products of domestic origin.

7) All customs tariff systems can be classified into four main types.

8) A maximum-minimum tariff involves the setting-up of two columns of duties.

9) The conventional rates are used mostly with the countries of most-favoured-nation treatment.

10) A preferential tariff is applied to the countries of the same group.

11) Calculation of ad valorem duty on imported goods is based on CIF value of goods.

12) Most of imported goods are subject to VAT.

13) Special taxes change from year to year in connection with the passing of the Budget.

14) The important assets of export distribution are packing and marking.

15) There are three principal types of marking.

16) The higher the value of goods, the better should be the packing.

2. What do you think would happen if:

  •  1) the import duty on foodstuffs in our country were abolished?
  •  2) the goods dispatched were unmarked?

3. Role simulation. Discuss the following points:

1) Packing and marking instructions for any cargo you choose (a dialogue between a seller and a customer).

2) The importance of collecting customs duties and taxes (a dialogue between a customs official and a sceptical tax payer).

3) Objectives and advantages of Free Economic Zones (a dialogue between a foreign businessman and a Russian enterpriser planning to establish a joint venture on the territory of a FEZ).

4. Make up a report on one of the following topics:

  •  1) The role of the Customs in collecting customs duties and taxes.
  •  2) The system of customs duty imposition in the USA and the EC-countries.
  •  3) The regulations of import and export duties in Russia.

Unit IX
CUSTOMS FORMALITIES (I)

EPISODE 1

Export-Import Documentation

The acquisition of overseas customers is only the first step in selling goods abroad. The job is not complete until a consignee has physically received the consignment and the consigner has been paid. The final part of the order cycle involves completing the documentation requirements1, arranging the transport and ensuring the payment.

Every exporter can recall a horror story related to problems with documentation. Of course, some problems may be unavoidable, but in too many cases it is the exporter who has not been punctual enough in providing the required documents.

Errors in documentation cost money. The first consequence of a mistake is a delay to the consignment which may be kept in a warehouse under customs control. Whenever the delay occurs, storage charges2will become payable almost immediately, and they have a tendency to rise as the delay extends.

The storage charges have to be paid in full. The warehouse operator will simply refuse to release the goods3 until all charges have been settled. The customs warehouses are not meant for long-term storage, that is why most customs authorities exercise their power4 to seize goods5 which have not been cleared through customs within a certain period.

The other danger of delay is the loss of confidence by the customer. Moreover, any delay in delivery will immediately lead to a deferment in settlement of the invoice, which will affect cash flow6.

Documentation for export is not complicated. Many of the forms required for importing goods are the same as for exporting. These include invoices, packing lists7, the certificate of origin8, the CMR form9, bill of lading10 and air waybill11. The first three forms are issued by the consignor, the rest should be completed by carriers.

The basic document used both in export and import is a commercial invoice. The details that will always appear in it are the names, addresses and other information about the consignor and the consignee and a full description of the goods. Other details on the invoice will be the marks and numbers of the packages, the price and terms of sale. Normally, every invoice should contain a statement about the origin of the goods and in some cases it is compulsory to state the country of origin.

The other document frequently requested is a certificate of origin, which should be completed before the goods are exported. Usually certificates of origin are obtainable from chambers of commerce.

A packing list will detail the contents of a consignment. It contains the number and kind of packages, their contents, the net and gross weight (in kilograms as a rule) and the full dimensions and total size of each package.

Vocabulary Notes on the Text

1 to complete the documentation requirements - выполнить требования по оформлению документации.

2 storage charges - плата за хранение; складские расходы.

3 to release the goods - снять арест с товара; "выпустить", "растаможить" товар.

4 to exercise one’s power - воспользоваться своей властью (правами).

5 to seize goods - наложить арест на товары.

6 cash flow - баланс оборотных средств.

7 a packing list - упаковочный список.

8 the certificate of origin - сертификат происхождения.

9 the CMR form - транспортная накладная (Си-Эм-Ар-форма).

10 bill of lading - коносамент, морская (транспортная) накладная.

11 air waybill - авиагрузовая накладная.

Exercises on the Text

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

acquisition; consequence; consignee; cycle; requirements; deferment; certificate; charges; contents; dimension; invoice; origin; weight; punctual; obtainable; payable; compulsory; frequent; total release; complete; arrange; ensure; occur; exercise; seize; contain; issue; require.

3. Explain the meaning of the following words and phrases in English:

cash flow; a certificate of origin; a commercial invoice; contents; a consignor; a packing list; storage charges; to clear goods

4. Find in the text English equivalents of the following:

a) под таможенным контролем; таможенные власти; вес и объем каждого упаковочного места; баланс оборотных средств; ошибки в документации; потеря доверия; содержимое; условия оплаты; дополнительные расходы; вес нетто и брутто

b) наложить арест на имущество; выполнить требования по оформлению документации; снять арест с имущества (товара); оплатить перевозку полностью; указать страну отправления

5. Answer the following questions:

1) When is the job of selling goods abroad considered to be completed?

2) What does the final part of the order cycle involve?

3) What can every exporter recall?

4) What is the first consequence of a mistake in documentation?

5) Why will the warehouse operator refuse to release the goods?

6) What are the other consequences of delay in delivery?

7) What are the main documentation forms required for exporting as well as for importing goods?

8) What is a commercial invoice?

9) From where are certificates of origin usually obtainable?

10) What should a packing list detail?

6. Sum up the contents of the text according to the following plan:

1) Errors in documentation and their possible consequences.

2) A commercial invoice as one of the main document’s required for exporting and importing goods.

3) A certificate of origin and a packing list.

Vocabulary and Speech Exercises

7. Read and translate the following:

1) The commercial invoice contains the names and addresses of the Sellers and the Buyers, a full description of the goods delivered including the weights and numbers and marking of all the cases, the price per unit and the total value of the consignment. It also states the port of shipment and the date, the terms of delivery and the terms of payment. It is signed by an authorized person on behalf of the Sellers.

2) The Sellers shall inform the Buyers by cable or telex within 48 hours since the sailing date about the ship’s name and her sailing date, the number of the Bill of Lading and the quantity of the goods shipped.

3) In every SAD, there is a box which requires the commodity code of the particular consignment to be inserted. The commodity code is usually a nine- or eleven-digit number which relates to a particular consignment. All these numbers come into the customs tariff.

4) Companies which import into the EC-countries require a nine-digit commodity code whereas imports to the rest of the world require an eleven-digit classification. This is a general rule and there are no exceptions, particularly with agricultural products.

8. Ask questions in English to which the following Russian sentences are the answers and supply the answers:

1. а) Одним из основных документов, используемых во внешнеэкономической деятельности при транспортных операциях, является коммерческий инвойс.

б) Он содержит все необходимые сведения об отправителе и получателе груза, а также данные о маркировке и нумерации груза, стоимости товара и условиях запродажи.

2. Упаковочный лист состоит из детального описания содержимого поставки; нумерации и типа упаковки, веса нетто и брутто, всех параметров и суммарного объема каждого упаковочного места.

3. а) Сертификат происхождения - это документ, удостоверяющий, что данный импортируемый товар изготовлен в данном месте.

б) Сертификат происхождения позволяет таможенным органам определить, следует ли классифицировать товар согласно преференциальному тарифу.

с) Выдается он обычно торговыми палатами.

9. Denote the following by a single word:

  •  1) to get the shipping papers passed by the Customs;
  •  2) to allow goods to be taken away from the customs warehouse;
  •  3) to declare formally that a certain stated fact is true;
  •  4) to fix as a price;
  •  5) an addressee to whom goods are sent;
  •  6) a bill relating to the sale of goods or services;
  •  7) the amount of cash by a business during a specified period.

10. Read and translate the text:

Customs Documents

The following documents should be presented to the Customs or be enclosed with the accounts when goods are declared:

  •  Customs declaration, filled in and complete, with customs duties and taxes calculated and entered on the form.
  •  Bill of Lading, freight document, notice of arrival or similar document issued in connection with buying or selling the goods (one copy will be kept by the Customs if the Customs declaration is surrendered at the customs house).
  •  Documents of origin when customs clearance of goods from certain countries under the terms for preferential trade is claimed, for example EEC or EFTA countries.
  •  Licences, permits, etc. for goods which are subject to import restrictions (not all types of goods can be imported freely).
  •  Other documents requested by the Customs in order to determine the correct customs tariffs (duty rates, etc.), weight, quantity or value of the goods.

Relevant documents are catalogues, folders, weight specifications or contract documents.

11. Give English equivalents of:

счета; заполненная полностью; таможня (здание); на условиях преференциальной торговли; Европейское сообщество; Европейская ассоциация свободной торговли; рекламная книжечка (складывающаяся); разрешение (документ)

12. Retell the text "Customs Documents" enlarging it by any additional information.

EPISODE 2

Customs Control of the Cargo

Customs Officer: Good morning. Who’s the captain here?

Captain: Good morning. My name is Brook. What can I do for you?

Customs Officer: Customs control. Please be ready to complete customs formalities. What cargo do you carry?

Captain: Machinery equipment and chemicals.

Customs Officer: What kind of chemicals?

Captain: Carbon oil1.

Customs Officer: How is it packed?

Captain: It’s packed in 500 kg drums made of steel, with double hooping as reinforcement2.

Customs Officer: Where did you have the cargo loaded and what ports did you call on your way?

Captain: All details of our route as well as the names of the consignor and the consignee are marked in the shipping documents.

Customs Officer: O.K. Can I see them?

Captain: Certainly. Here they are. The Bill of Lading, the Invoice, the Insurance Policy and two Certificates...

Customs Officer: Excuse me, you’ve said you are earring some kind of equipment?

Captain: Right. It’s machinery equipment. And why?

Customs Officer: I can’t see the Test Certificate3.

Captain: But is it necessary? We are delivering this equipment not for the first time.

Customs Officer: Doesn’t matter. The set of the documents4 should be complete with each consignment. It’s one of the required formalities which are carried out within the customs regulations5. In other case the cargo won’t be cleared.

Captain: I see. Do you need the original?

Customs Officer: Yes. Only original documents are considered to be valid while going through the customs clearance.

Captain: Oh, God! What shall we do then? I will contact with the consignor for this certificate straight away, and no doubt they will sent it by DHL6 immediately. But it will take time and our turnround7 is only two days. The day after tomorrow the ship is due to sail off. Otherwise we shall have to pay the demurrage8 to the shipowner.

Customs Officer: We’ll do it in the following way. I’ll give you a permit for unloading. After unloading the cargo will be stored at the customs warehouse awaiting release from Customs Control.

Captain: And how much are storage charges?

Customs Officer: For three days the cargo is stored free of charge. Then for each day of delay you should pay the penalty9 at the rate of $ 60.

Captain: I see. The only thing left is to hope for the good job of the express post.

Customs Officer: Hope dies the last.

Vocabulary Notes on the Text

1 carbon oil - бензол.

2 with double hooping as reinforcement - скрепленные двумя обручами для крепости.

3 the Test Certificate - сертификат заводских испытаний.

4 the set of the documents - комплект отгрузочных документов.

5 within the customs regulations - в рамках таможенных правил.

6 DHL - "Ди-Эйч-Эль" - международная экспресс-почта.

7 turnround - время на оборот судна в порту разгрузки, выполнение формальностей и т.д.

8 demurrage - плата за простой судна; "демередж".

9 penalty - штраф.

Exercises on the Dialogue

1. Read and translate the dialogue.

2. Give the English equivalents of:

таможенный контроль; выполнять таможенные формальности; маршрут; страховой полис; сертификат заводских испытаний; комплект отгрузочных документов; иметь юридическую силу; экспресс-почта; плата за простой судна; судовладелец; бесплатный; штраф

3. What do we call?

1) money paid to a shipowner in accordance with a charter-party if the charterer delays the sailing of the ship;

2) a payment of money for breaking a law;

3) a written document by which the insurer in return for a payment is to pay a certain sum of money if a stated event happens;

4) a regular course taken by a transport service;

5) something that has to de done because a rule has to be obeyed.

4. Explain the meaning of the following terms in English:

cargo; consignor; consignee; customs clearance; demurrage; penalty; permit;

5. Answer the following questions:

1) What are the questions asked by the Customs officer before checking up the documentation?

2) What are the shipping documents?

3) What is marked on the shipping documents?

4) What are the required Customs formalities?

5) What kind of documents are valid?

6) In what cases is the demurrage paid to the shipowner?

7) What did the Customs officer promise to give?

8) What will happen to the cargo after unloading?

6. Reproduce the dialogue in parts.

Vocabulary and Speech Exercises

7. Conduct the following two-way translation:

1. Через какие таможенные формальности должен пройти пассажир, прибывающий в нашу страну или убывающий из нее?

Like in most countries all formalities through which an incoming/outgoing passenger must pass in Russia, include passport and visa control, health control and customs inspection of the passenger’s baggage.

2. Что конкретно должен делать человек при въезде или выезде из страны?

When the passenger enters or leaves the country he must fill in an entry/exit declaration which he must present then to a customs officer.

3. Существуют л и какие-либо определенные инструкции по заполнению въездной или выездной декларации?

Yes, certainly. All the points of the declaration should be answered in full words and in block letters.

4. Что именно должен пассажир указать в декларации?

The passenger is to fill in his name, citizenship, country of residence, permanent address and purpose of his visit. He also should declare all dutiable articles and currency he is having.

5. Что будет, если он не укажет всю имеющуюся у него валюту в декларации?

Money not declared and therefore concealed from the customs control is liable to confiscation as smuggling. The violation of currency regulations is regarded as a criminal offence.

6. Какова судьба предметов, которые были указаны в декларации, но вывоз которых или запрещен или ограничен таможней?

Prohibited or restricted articles having been declared are usually detained, and the traveller can collect them on his way back.

7. По предъявлении какого документа эти вещи выдаются?

On presentation of the entry declaration which must be kept by the passenger for the duration of his stay in the country. He is to present it together with the exit declaration when leaving the country.

8. Какие вопросы может задать таможенный инспектор пассажиру, проходящему таможенный контроль?

The customs officer may ask the passenger to open, unpack and repack his belongings for inspection. And the owner of the luggage is obliged to answer all the questions on the contents of his luggage and present any article for customs examination.

8. Explain the following terms in English:

confiscation; concealment; customs declaration; customs inspection; currency; offence; prohibited articles; restricted articles; smuggling

9. Choose corresponding Russian words for:

1) exit declaration

печатными буквами

2) in block letters

полностью

3) criminal offence

въездная декларация

4) concealment

личные принадлежности, вещи

5) belongings

содержимое

6) dutiable

задерживать

7) smuggling

сокрытие

8) passport control

таможенный досмотр

9) detain

подлежащий обложению пошлиной

10) customs inspection

уголовное преступление

11) entry declaration

паспортный контроль

12) on presentation

по представлению (предъявлению)

13) contents

контрабанда

14) liable

выездная декларация

15) in full

выезжающий

16) outgoing

подлежащий чему-л.

10. Complete the following sentences:

1) The customs formalities through which all incoming or outgoing passengers must pass include...

2) While entering or leaving the country a passenger must...

3) In the declaration the passenger should fill...

4) All the points of the declaration should be answered...

5) The passenger should declare also...

6) Money not declared is...

7) The violation of currency regulations is...

8) Prohibited or restricted articles are usually...

9) The detained articles are given out on presentation of...

10) The Customs Officer being in charge of the customs inspection may...

11. Complete the dialogues and reproduce them in parts:

A. Customs Inspection of the Baggage

Customs Officer: Will you show your things, please.

Passenger: _____________________________________.

Customs Officer: How many pieces do you have?

Passenger: _______________________________________.

Customs Officer: Do you have anytning to declare?

Passenger: _______________________________________.

Customs Officer: This quantity is not liable to duty. And what do you have in your suitcase?

Passenger: __________________________________________.

Customs Officer: Thank you, that’s all.

Passenger: __________________________________________.

B. Customs Control of the Cargo

Customs Officer: Good morning! I’m here to complete customs formalities. What goods are you carrying?

Captain: ____________________________________.

Customs Officer: Can I see the shipping documents?

Captain: ____________________________________.

Customs Officer: I can’t see the Bill of Lading.

Captain: ____________________________________.

Customs Officer: I see. Do you have any prohibited or restricted goods or live animals?

Captain: ________________________.

Customs Officer: Do you have a certificate for it?

 Captain: ________________________.

Customs Officer: Thank you. Now you can start the unloading. And I’ll have a look around the ship.

12. Translate into English:

a) - У вас есть разрешение на беспошлинный ввоз оборудования?

- Нет, но мы просим вас оказать нам содействие в получении разрешения на беспошлинный ввоз.

b) - Вы приняли меры по таможенной очистке?

- Да мы подготовили необходимые документы. Наш груз не подлежит обложению таможенными пошлинами.

c) - Вы заполнили таможенную декларацию?

- Да, конечно.

- Предъявите, пожалуйста. У Вас есть вещи, ограниченные для ввоза и вывоза за границу?

- Нет, только личные вещи.

- Это необходимо указать в декларации. Напишите "не имею". Вы неправильно ответили на вопрос пункта 4. Нет, нет, поправки в декларации не разрешаются. Перепишите, пожалуйста.

13. Make up short dialogues discussing the following points:

  •  1) the formalities through which incoming/outgoing passengers must pass;
  •  2) the main points of the declaration;
  •  3) dutiable, prohibited and restricted articles.

WRITING PRACTICE

Shipping and Forwarding1

A lot of correspondence regarding transport is between firms in the same country: for example, sellers make arrangements with forwarding agents or shipowners, while buyers frequently have to contact agents or carriers in their own country when goods are to be collected from a harbour, airport or railway station.

The seller or buyer - depending upon which party is responsible under the terms of payment for transport arrangements2 - has to know how much it will cost to deliver his goods. If he is going to deal with regular shipments between specific ports, he will know the normal freight rates and will be kept informed about the changes. But in other cases he will have to make enquiries, as in the following letters:

1. Dear Sirs,

Please quote us your freight rate for cased machinery equipment3 for shipment from Liverpool to St.Perersburg and let us know when you will be sailing to Russia during the next two months.

Yours faithfully,...

2. Dear Sirs,

We are about to make up an order for a customer in Naples, and in accordance with the terms of the letter of credit the consignment has to be shipped by 23 June at the latest.

Please inform us whether your "Italica" will be able to meet the requirements and kindly quote us a rate for the voyage.

We are looking forward to hearing from you.

Yours faithfully,...

Habitually, a shipping line issues a sailing card that gives particulars of loading and sailing dates of some cargo vessels sailing between some specific countries. If sailings are infrequent, space has to be reserved in advance.

Further you will find the possible replies to the letters 1) and 2):

1. Dear Sirs,

We have received you enquiry of..., and can advise you that our current freight rate4 for cased machinery equipment, Liverpool - St.Petersburg, is ... per metric tonne or per 10 cubic metre5.

We sail twice a week, and the whole voyage takes five days. We enclose our sailing card for "S.S. Night Star" and our shipping instruction form. We would appreciate it if you would kindly complete and return the latter as soon as possible.

Yours faithfully,...

2. Dear Sirs,

In reply to your letter of ..., we are pleased to inform you that "Italica" will be receiving cargo from 20 to 27 of June inclusive, and is expected to commence loading on 23rd. We see no reason why your goods should not be on board by this date, but suggest that the three containers should be delivered to the ship on the opening date.

We look forward to assisting you. Yours faithfully,...

If the consignor finds the rate acceptable, he will send an advice note6 to the shipowning firm or agents:

Dear Sirs,

Thank you for your letter of ... We have noted that your "S.S. Night Star" is receiving cargo for Liverpool on the 9th of this month, and are making arrangements for our equipment to be delivered to the ship.

We are enclosing your shipping instructions form, duly completed.

Yours faithfully,...

After the arrangements have been made, the senders will inform the customers that the merchandise is on the way. This type of communication is known as an advice of dispatch7, and normally the information is typed on a printed form and sent together with a cover note8.

Vocabulary Notes on the Text

1 shipping and forwarding - перевозка и экспедиторские операции.

2 transport arrangements - обязательства по транспортировке груза.

3 cased machinery equipment - крупное оборудование, упакованное в специальные ящики.

4 freight rate - фрахтовая ставка.

5 per metric tonne or per 10 cubic metres - за метрическую тонну или за 10м3.

6 an advice note - уведомление, извещение.

7 an advice of dispatch - уведомление об отгрузке.

8 a cover note - свидетельство о временной страховке груза, "ковернот".

Exercises

1. Read and translate the text.

2. Translate the following words and phrases and learn their pronunciation:

machinery equipment; voyage; vessel; merchandise; harbour; freight rates; quote; particulars; shipping instructions form; dates of loading; inclusive; cubic metres; frequently; habitually; current; twice; acceptable

3. Give English equivalents of the following Russian words and expressions:

a) железнодорожная станция; регулярные поставки; фрахтовые ставки; судовое расписание; бланк-инструкция по отгрузке; экспедитор; до 27 июня включительно; дата погрузки; груз; должным образом заполненный; по открытой дате

b) договариваться о чём-л.; зарезервировать заранее место для груза; связаться с экспедитором; начать погрузку; выслать документ о временной страховке груза; сообщить о фрахтовой цене; вложить расписание (движения корабля)

4. Answer the following questions:

1) With whom should arrangements be made regarding transport?

2) How can goods be transported?

3) In what case will you know the normal freight rates?

4) What should you do if you are not informed about the changes in sailing dates?

5) What kind of letter should you send if you want to know the freight rate for the shipment of some special equipment?

6) What kind of letter should you send if you want your consignment to be shipped at the nearest possible date?

7) What is a sailing card?

8) What must you do if the sailings are infrequent?

9) What kind of letter would you receive in reply to your enquiry concerning the freight rates?

10) What kind of reply could you receive to your order of cargo shipment on a certain date?

5. Sum up the contents of the text according to the plan:

  •  1) The regular actions of customers and carriers regarding the transportation of cargo.
  •  2) Different types of enquiry letters.
  •  3) Different types of reply letters.

6. Translate the letter from the shipping agent to the exporter paying attention to the underlined words and expressions:

Dear Sirs,

We have proceeded with the shipments of your goods to Roma as requested but regret to inform you that we have encountered a problem.

It would appear that regulations governing the packing of imported goods have recently been modified. On arrival at the port of entry, local customs authorities impounded the landed cargo because the crates were not standard. The goods will be released only if they are repacked and after payment of a special fee imposed for shipments which are resubmitted for clearance.

In view of the fact that your goods must meet a strict delivery deadline we have proceeded with recrating but must warn you of the additional costs incurred.

Yours faithfully...

7. Translate the letter into English:

Уважаемые господа!

Настоящим подтверждаем получение товаров, которые мы у вас заказывали два месяца тому назад и которые были вчера доставлены на наш склад.

Количество отгруженного товара совпадает с отгрузочной накладной. Товар в отличном состоянии и отвечает нашим требованиям.

Перед тем как оформить новый заказ, мы хотели бы получить заверение, что вы сможете поставить товар в строго оговоренный срок.

Мы хотим подчеркнуть, что задержка в поставке обходится нам дорого, и полагаем, что при создавшихся условиях ваш экспедитор мог бы избежать трудностей с таможенной очисткой груза, выполнив новые правила по упаковке.

Мы также хотим подтвердить, что не готовы оплачивать расходы по хранению на таможенном складе.

С уважением...

8. Write a letter to a firm of shipping agents in Finland and ask them to quote for the collection of some cases of tools from a firm in Helsinki and the shipment of them to your nearest port.

9. As a firm of forwarding agents you have been asked to advise on the forwarding of a consignment of textile machinery parts. Write a letter and ask by what route the merchandise is to be sent; give your advice on the matter.

SPEECH PRACTICE

1. Role-play. Agree or disagree with the following statements. Give your reasons. Use these formulas:

For agreement

For disagreement:

That’s right...

Quite the opposite...

Exactly...

That’s wrong...

Undoubtedly...

I don’t think so...

1) The order cycle while selling goods abroad is complete after a consignee has physically received the consignment.

2) Errors in documentation cost money.

3) The storage charges must be paid in full.

4) A commercial invoice is obtainable from chambers of commerce.

5) The set of shipping documents should be complete with each consignment.

6) Money not declared while going through the customs control is detained and the traveller can collect it on his way back.

7) A customs officer has no right to ask a passenger to show him personal belongings.

8) If the consignor finds the rate of freight acceptable, he will send an advice of despatch.

2. Say a few words about:

  •  1) The formalities through which incoming/outgoing passengers must pass.
  •  2) The main points of the declaration.
  •  3) Dutiable, prohibited and restricted articles.
  •  4) The set of documents necessary to declare goods.

3. Express your views on the following statements:

  •  1) There are too many articles liable to Customs duties.
  •  2) It is very convenient to make previous transport arrangements.

4. Role simulation. Make up dialogues on the topics below and act them out.

1) Your friend is going abroad by air for the first time. Explain to him the system of going through the Customs.

2) You have just returned from a business trip to England. Compare the regulations valid for the English and the Russian Customs concerning luggage and money.

3) Explain to your friends how it is necessary to fill in the customs declaration.

Unit X
CUSTOMS FORMALITIES (II)

EPISODE 1

Transport Documentation

Every mode of transport has its own specific document which remains the same irrespective of the method of transportation. For air transport it is the air waybill, referred to as the AWB, while for sea transport it is the bill of lading shortened frequently to the B/L. For international road freight1, the consignment note2 completed by the haulier3 is the CMR note.

The bill of lading is one of the oldest documents used in international trade. Bills of lading used to be issued either by shipping lines4 or by freight forwarders5 and also by the International Federation of Freight Forwarders Association (FIATA). All Bs/L are fairly similar in appearance, the only difference is the name of the shipping line stated at the top. Details of the shipment appear in the body of the document with the space for signatures at the bottom. The reverse side is filled with the detailed description of the conditions of carriage which become important when something goes wrong.

The B/L serves to fulfil three main functions. It’s first function is to act as a receipt of goods6, as it will include full details of the number of packages at the description of the goods.

The B/L is also the contract of carriage7 between the shipper and the shipping line.The bill is completed after the ship has left the port, as only then can the shipping line complete the parts of the bill regarding the name of the vessel and the sailing date.

The third function of the B/L is as a document of title8. This means that anyone who presents the B/L can take delivery of goods.

The CMR is normally completed by the haulier and available for signature by the sender when the goods are collected. The CMR will contain all the relevant information about the load and the details of the trailer and the carrier. The first copy of the CMR remains with the sender, the second accompanies the goods and the third is retained by the carrier. Upon the charge of the goods, the consignee will be asked to sign the CMR. There is space on the CMR for the exporter (or importer) to add any information which might assist the haulier.

The air waybill is used for all airfreight; it is completed either by the airline or the airfreight forwarder who will establish the document9. Unlike the bill of lading, the air waybill is not a document of title; it acts as a consignment note. The number in the top right-hand corner is unique and is used to identify the goods at all stages of their journey as well as when they are collected by the consignee, so it is important to let your customer have the air waybill number as soon as possible.

The waybill is also used as an accounting document with charges added as the goods move through various stages of their journey.

There is one more specific export/import document, which was introduced in January 1988 and replaced many of the existing customs forms. It is called the Single Administrative Document (SAD)10 that acts as a customs declaration. The SAD is used throughout the European Community and, apart from language differences, all member states of the EC use the same form. The SAD is an eight-part document which accompanies the goods from door to door; some parts of this form are filled by the exporter, some by the freight forwarder at the time of export and other parts - by the freight forwarder handling the import.

Vocabulary Notes on the Text

1 international road freight - международные автодорожные перевозки.

2 the consignment note - транспортная накладная.

3 a haulier - владелец грузовика (трейлера).

4 a shipping line - судоходная линия.

5 a freight forwarder - транспортный агент, экспедитор.

6 a receipt of goods - грузовая квитанция.

7 the contract of carriage - контракт на перевозку.

8 a document of title - товарораспорядительный документ.

9 to establish a document - дать юридическое подтверждение документу.

10 the Single Administrative Document - Единый административный документ.

Exercises on the Text

1. Read and translate the text.

2. Explain the meaning of the following words and phrases in English:

a CMR form; a bill of lading; an air waybill; a carrier; a consignment note; a haulier; a freight forwarder; a document of title; a trailer

3. Translate into English:

автодорожная накладная; коносамент; транспортная накладная; авиагрузовая накладная; грузовая квитанция; товарораспорядительный документ; международные перевозки (2варианта); перевозчик; владелец грузовика; трейлер (автоприцеп); транспортный агент (агент по погрузке и отправке товаров); судоходная линия

4. Answer the following questions:

  •  1) What modes of transportation do you know?
  •  2) What are the specific documents for each mode of transportation?
  •  3) By whom are bills of lading issued?
  •  4) What is the only difference in their appearance?
  •  5) How should the bill of lading be filled?
  •  6) What functions does the bill of lading fulfil?
  •  7) By whom is the CMR completed?
  •  8) What information does the CMR contain?
  •  9) What is the air waybill?
  •  10) What is the function of the air waybill?
  •  11) What document was introduced in 1988?
  •  12) Where does SAD function?
  •  13) Of how many parts does SAD consist?
  •  14) By whom are the different parts of SAD filled in?

5. Sum up the contents of the text according to the plan:

  •  1) The bill of lading.
  •  2) The CMR.
  •  3) The air waybill.
  •  4) The SAD.

Vocabulary and Speech Exercises

6. Complete the following sentences using the appropriate words and word expressions from the box below:

commodity; import or export documents; penalty; the Customs; duties and taxes; restrictions; importing or exporting; Customs authorities; importable; customs regulations; for control; violation; delivered; customs clearance; customs tariff; receipts; declared; customs declaration

1) If your line of business involves__ __ __of goods, you will come into contact with the__ __. All goods must be__and presented__ __.

2) Declaring a__involves giving the Customs authorities information about the commodity, which they need in order to determine the correct__ __for the commodity. This information which includes weight, quantity, value and etc., forms the basis for calculating customs__ __ __.

3) Some goods, for example foodstuffs, clothes or flowers may be subject to__; the other types of goods, such as narcotics are not __at all. __of these regulations can result in severe__.

4) As the importer or exporter it is your responsibility to fill in a__ __and present it to__ __for__ __. When you declare goods, you submit the necessary__ __ __ __to the Customs. The goods will not be__until invoice, freight document, licences, permits and other documents demanded by the Customs and__ __have been presented.

5) Before you can sell or make use of the goods, you need__from the Customs, showing that customs duties and taxes have been paid.

7. Give English equivalents of:

сфера коммерческой деятельности; войти в контакт с кем-л.; представить на контроль; таможенные органы; таможенные сборы и пошлины; ограничения; наркотические и лекарственные средства; заполнить декларацию; лицензия; таможенная служба; ввозимый; нарушение; наказание; таможенная очистка

8. Make up questions in English to which the following Russian sentences would be the answers. Do a two-way translation, using both the statements and the questions:

1) Если вы занимаетесь экспортно-импортными операциями, вам необходим контакт с таможенной службой, поскольку весь товар должен быть задекларирован и представлен для таможенного контроля.

2) Задекларировать товар означает снабдить информацией, которая необходима таможенным органам для правильного определения таможенного тарифа.

3) Основой для исчисления таможенных сборов и пошлин являются данные о весе товара, его количестве, стоимости и т.д.

4) Под нарушением таможенных правил имеется в виду импорт товаров, ввоз которых или запрещен или строго ограничен.

5) Для того чтобы пройти таможенную очистку, необходимо заполнить декларацию и представить ее таможенным властям.

6) Вместе с декларацией таможенной службе должна быть представлена вся экспортно-импортная документация.

7) Как правило, экспортно-импортная документация включает в себя коммерческий инвойс, транспортную накладную, разного вида сертификаты, лицензии и разрешения.

8) Для того чтобы можно было торговать импортным товаром, необходимо иметь квитанцию, удостоверяющую, что все таможенные сборы и налоги уплачены.

9. Say a few words about:

  •  1) the declaring of goods;
  •  2) the violation of customs regulations;
  •  3) the export-import documentation.

10. Give a free translation of the following:

Транспортные средства (vehicles), временно ввозимые в Российскую Федерацию, должны быть вывезены за пределы Российской Федерации не позднее дня установленного таможенным органом Российской Федерации. В противном случае они должны быть либо заявлены к иному таможенному режиму (other customs regime), либо помещены на склады временного хранения

(temporary storage warehouses) владельцами которых являются таможенные органы Российской Федерации. При этом оформленные на данные транспортные средства удостоверения изымаются таможенными органами и в трехдневный срок пересылаются в таможенные органы, их выдавшие, для снятия с контроля.

При неполучении таможенным органом, который произвел оформление удостоверения, в течение 15 дней после окончания срока, на который оно было выписано, экземпляра удостоверения либо извещения об его изъятии другим таможенным органом сведения о таких транспортных средствах передаются региональному таможенному управлению (Regional Customs Department), в регионе деятельности которого расположен таможенный орган. Таможенное управление в недельный срок извещает письменно по оперативным каналам связи таможенные органы, расположенные в регионе деятельности, а также другие региональные таможенные управления и подразделения ГАИ (State automobile inspection) МВД (the Ministry of Inner Affairs) России о нарушении сроков обратного вывоза таких транспортных средств с территории Российской Федерации. Материалы на транспортные средства, ввезенные физическими лицами, постоянно проживающими на территории Российской Федерации, направляются в таможенные органы, в регионе деятельности которых проживают указанные лица постоянно, для принятия мер, предусмотренных таможенным законодательством Российской Федерации.

11. Speak on:

  •  1) The role of the Customs in importing and exporting goods.
  •  2) The problem of FEZs in the Russian Federation.

EPISODE 2

A Fresh Look At Customs Intelligence1

An Interview with the Director of the Intelligence Office2 of the U.S. Customs Service.

Interviewer: Since assuming the helm of3 Customs Intelligence last year, what is your perception of the role of the Office of Intelligence within the Customs?

Director: I see the role of the Office of Intelligence as providing national guidance4 and functional direction while the field intelligence managers5 provide direct management.

Interviewer: What are some of your long-term objectives for the Office of Intelligence?

Director: The most important long-term objective is to develop our analysts, through training, as experts in specific subjects. These experts would have deep knowledge not only of the intelligence process, but also of the particular Customs program - drugs, fraud, technology transfer, etc.

Interviewer: Since your appointment as the Director of Intelligence, has the Intellegence Program made any impact on the Customs enforcement mission6?

Director: Intelligence is totally integrated into the Customs enforcement mission. The following example of this integration comes immediately to mind. The Intelligence Operations Centre7 received the information that the vessel "RIO" had departed from Colombia for Belgium with cocaine hidden in a shipment of bananas. The Resident Agent in Charge confirmed the information and the vessel was placed on lookout8 in the TECS9. Intelligence analysts noticed similarities in modus operandi10 with another vessel also reported to be smuggling cocaine. After a thorough research and analysis, information emerged which described a possible technique that the smuggling organisation would use. Intelligence reported the information to the Customs Attache in Paris, who then passed it to the Belgian Customs. On July 25 the Belgian Customs inspected "RIO"and discovered 75 kilograms of cocaine secreted in ashipment of bananas.

Interviewer: Is there anything else you would like to comment on during this interview?

Director: Yes, most definitely. As you probably know, the Office of Intelligence is the clearinghouse for some of the most sensitive information within the Customs, information on national defence as well as on Customs investigations. To protect this information, the U.S.Customs needs individuals of the highest caliber in terms of trustworthiness and integrity. One of my goals as Director is to ensure that we recruit and hire only those who meet these strict security standards. Integrity and the pursuit of exellence are the cornerstones I want to use to build and further develop the Customs Intelligence Program.

Vocabulary Notes on the Dialogue

1 tne Customs Intelligence - таможенная разведывательная служба.

2 the Office of Intelligence - разведывательное управление.

3 to assume the helm of - взять на себя управление.

4 national guidance - руководство в масштабах страны.

5 field manager - ответственный за конкретное направление.

6 the Customs enforcement mission - правоохранительная деятельность таможенной службы.

7 the Intelligence Operations Centre - оперативный центр разведывательного управления.

8 to be placed on lookout - взять под контроль.

9 the TECS (the Treasury Enforcement Communications System) - банк данных, содержащихся в компьютерной системе управления.

10 modus operandi - лат. способ действия.

Exercises on the Dialogue

1. Read and translate the dialogue.

2. Find in the text English equivalents of the following:

взять на себя управление таможенной разведывательной службой; понимание роли разведывательного таможенного управления; отвечать за общее руководство и основные направления; обеспечивать непосредственное (прямое) руководство; долгосрочные цели; контрабанда научно-технических открытий; влияние на правоохранительную деятельность таможенной службы; оперативный центр разведывательного управления; клиринговая (расчетная) палата для наиболее секретной информации; таможенные расследования; соответствовать строгим стандартам офицера службы безопасности

3. Answer the following questions:

1) What are the roles of the Office of Intelligence within Customs?

2) What is the role of the field intelligence manager?

3) What is the most important objective of the new Office of Intelligence?

4) What are the experts supposed to acquire?

5) What are the relations between the functions of the Intelligence Office and the Customs enforcement mission?

6) What information did the Intelligence Operations Centre receive?

7) What happened after this information had been received?

8) What did the Intelligence analysts notice when they arrived in Belgium?

9) How did the Belgian Customs discover cocaine on board the vessel?

10) What kind of information should be protected?

11) What qualities are required from the people working at the Customs?

12) What will help to further develop the Customs Intelligence program?

4. Sum up the contents of the dialogue according to the plan:

1) The Office of Intelligence within the Customs: its role and objectives.

2) An example of cooperation between the Intelligence Operation Centre and the Customs.

3) The Director’s point of view on the development of the Intelligence Office within the Customs.

Vocabulary and Speech Exercises

5. Read and translate the following text:

Abridged from Pulcovo Aviation Enterprise Inflight magazine.

The struggle against smuggling and violation of Customs regulations has always been closely connected with the political and economic situation in our country. It possesses particular features of its own, which depend upon the situation in question.

A common reason for violation of customs regulations has always been and still is foreign currency; an enormous quantity of it continues to be exported from Russia, both legally and illegally. From an analysis of currency offences it is concluded that there are definite categories of people who commit these offences.

To the first category belong those who do so out of ignorance of Customs legislation: for them Customs regulations and their liability to them is something that is abstract and has nothing to do with them; failing to declare all their foreign currency when crossing the boarder seems to them to be a minor offence, and the decision by Customs to impose a fine of 100% of the value of the illegally imported currency comes like a bolt from the blue. Incidentally, this is the minimum sanction for such an offence.

The second category of foreign currency smugglers are those who are leaving for countries with unstable political situation and a high crime rate. Fear of revealing the amount of their savings and of being robbed leads to the failure to declare their money to Customs.

The third category consists of people who deliberately provide false information about the money they are carrying. As a rule, they do this with the aims of not providing information about the cash they are exporting and of concealing their personal finances from the tax authorities.

The most effective way to fight these offences will be to bring the Customs legislation into good order, particularly in the section concerning Customs declarations, where there are appreciable gaps.

6. Give English equivalents to the following words and phrases from the text above:

борьба с контрабандой; нарушения таможенных правил; по незнанию таможенного законодательства; мелкое правонарушение; при пересечении таможенной границы; решение таможни о наложении штрафа в размере...; минимальная санкция; нестабильная политическая ситуация; страна с высоким уровнем преступности; личные сбережения; умышленно давать недостоверные сведения; налоговая служба; привести в надлежащее состояние таможенное законодательство; ощутимые пробелы

7. Give the main ideas of the text of Exercise 5 in the form of a dialogue between an interveiwer and a customs official. Use the collocations of Exercise 6.

8. Complete the following dialogue:

At the Air Terminal

Robert Davis is returning from Europe. His plane has just landed
at Heathrow Airport.

Customs Officer: ___________________________________?

Davis: Yes, I am.

Customs Officer: __________________________________?

Davis: Yes, of course.

Customs Officer: __________________________________?

Davis: No, only three days.

Customs Officer: _____________________________________?

Davis: Oh, only in Europe. Germany, France and Belgium, actually.

Customs Officer: __________________________________?

Davis: Nothing, actually. I’ve been on a business trip, not a holiday.

Customs Officer: __________________________________.

Davis: Oh, I see.

Customs Officer: __________________________________?

Davis: No, nothing. I went to the wrong gate, that’s all.

9. Translate into English:

а) Таможенник: Приготовьте, пожалуйста, ваш багаж для досмотра.

Пассажир: Мне показывать весь багаж?

Таможенник: Да, таковы наши правила. Иногда пассажиры скрывают нелегально провозимые вещи в одежде, игрушках, книгах. Наша обязанность предотвращать контрабанду. А это что такое?

Пассажир: Это образцы тканей, которые я везу на выставку.

Таможенник: У вас есть на них грузовая декларация?

Пассажир: К сожалению, у меня только разрешение от моей фирмы.

Таможенник: В таком случае я вынужден задержать ваш багаж до тех пор, пока вы не предъявите декларацию.

b) Таможенник: У вас есть вещи, подлежащие декларации?

Пассажир: У меня есть несколько предметов из золота, которые я везу в качестве подарка своим друзьям.

Таможенник: Согласно нашим таможенным правилам, вы можете ввозить в нашу страну золотые изделия, но вы обязаны указать их в декларации.

Пассажир: Мне нужно платить на них пошлину?

Таможенник: Нет. В настоящее время пассажиры платят пошлину в основном на ввозимые товары. Таким образом государства защищают свой рынок.

10. Conduct a two-way translation:

A. Мы хотели бы обсудить сегодня с вами вопрос о таможенной очистке оборудования.

B. I am at your service, but I’d like to remind you that the construction is being carried on a "turn-key" basis.

A. Да, вы правы. Наша ответственность в строительстве велика.

B. That’s why I believe it would be logical if you were responsible for customs clearance of the equipment.

A. Мы хотели бы объяснить вам свою позицию. Вы, конечно, понимаете, что объем оборудования очень большой и у нас уйдет много времени и средств на выполнение таможенных формальностей.

B. We agree that it will take a lot of time. And what would you suggest?

A. Было бы неплохо, если бы вы смогли получить разрешение на беспошлинный ввоз груза для нашего объекта. Тем более что это предусмотрено таможенными правилами для объектов подобного типа.

B. Well, it sounds quite reasonable. We agree to see to customs clearance ourselves.

WRITING PRACTICE

Chartering of Ships

When the senders of goods have very large shipments to make, especially when it concerns bulk cargoes, it is of greater advantage to them to have a whole ship at their disposal. They do not need to buy the ship but can hire it, and this is called "chartering".

The chartering of ships, being a highly specialized business, is usually done through the intermediary of brokers. In London, for example, there is a special center called the Baltic Exchange1 where the brokers operate, in much the same way as stock and share brokers on a stock exchange.

Ship brokers have an expert knowledge of rises and falls in rates for chartered ships, and the trends of the market. This is a very competitive business and there are no fix rates in it as in the case of the line companies2: tramp3 rates fluctuate very rapidly, depending upon supply and demand.

The contract between the shipowner and the charterer is called a charter party4, and it is a long and rather complicated document. A charter party may be for the carriage of goods from one specified port to another, and is known as a voyage charter5, or it may cover a period of time and is known as a timecharter6.

Much of business of chartering is done regularly by cable or fax. The following is an example of letter written from charters to brokers:

...We have signed the contract for the supply of computers, over the next seven months, to South America, and shall be glad to know if you can fix us a time charter for a suitable vessel.

The question of speed must be considered as the ship should be able to make five voyages in the time, allowing three days for loading and unloading on each voyage.

In view of the general slowness of the market at the moment we hope that you can get us a really good offer.

Some very large enterprises have their own fleet of ships, especially when they need to ship their raw material regularly from another part of the world; this is also the case when they specialize in one type of commodity, such as oil or coal.

It is obvious that such specific cargoes as oil, coal or grain, require special vessels for their transport. Grain in bulk, for example, is carried in ships that can be loaded and unloaded by special apparatus - pouring the grain into the holds of the ship and sucking it out for unloading, which avoids the long process of loading and unloading sacks. For loading and unloading of ships, ship agents - who are connected solely with ships (unlike forwarding agents) may offer their services.

The following is an example of offer of services from ship agents:

...We see from Lloyd’s List that your M.V.Saturn is expected to discharge at their port next week, and we would be very happy to offer you our services as agents.

Our firm has had considerable experience, having been established here for 50 years, and we are acting as agents to all Anglo-Saxon chartered vessels calling at this port.

You can rely on us to provide your vessel a quick turnround7, and we might also mention that we can deal. with all matters concerning crews.

If you decide to have us as agents we are sure you will be fully satisfied with the results.

Vocabulary Notes on the Text

1 the Baltic Exchange - Балтийская биржа.

2 line companies - линейные судоходные компании.

3 a tramp - "трамп" - грузовое судно, не работающее на фиксированных рейсах.

4 a charter party - договор на чартерное фрахтование; чартер.

5 a voyage charter - рейсовый чартер.

6 a time charter - тайм-чартер.

7 turnround - время, необходимое на оборот судна.

Exercises

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

shipowners; brokers; crews; bulk; cargo; exchange; tramp; fleet; slowness; apparatus; chartering; intermediary; raw; sucking; fluctuate; secure

3. Give English equivalents of:

а) гавань; судовладелец; насыпной или наливной груз; биржевой маклер; фондовая биржа; рейсовый чартер; тайм-чартер; сырье; судовой агент; судовая команда; морской агент/экспедитор; дата отхода судна; навалом (о грузе); включительно; через посредничество брокеров

b) колебаться (о цене); наводить справки (делать запрос); отплывать, отбывать

4. Answer the following questions:

1) In what cases do the senders prefer to have a whole ship at their disposal?

2) What is the chartering of ships?

3) How is the chartering business usually done?

4) Where do ship brokers operate?

5) What should a ship broker know?

6) What’s the difference between the operation of line companies and chartering business?

7) What is a charter party?

8) What types of charter parties can you mention?

9) How is the business of chartering done nowadays?

10) What did the charters ask the brokers for in their letter?

11) Why is it necessary to consider the speed of the chartered vessel?

12) What services did the ship agents offer in their letter?

13) What information did they give about their firm?

14) What did the agents promise to do in case their services would be accepted?

5. Sum up the contents of the text according to the following plan:

  •  1) The general characteristics of chartering business.
  •  2) A letter from charters to brokers.
  •  3) An offer of services from ship agents.

6. Translate the following letter into English:

Уважаемые господа!

Мы рады сообщить вам, что мы нашли, на наш взгляд, подходящее судно для вашего груза. Это - грузовое судно, вместимостью ... тонн, выполняющее чартерные рейсы еженедельно.

Оно несколько больше, чем требуется вам, но владельцы согласны предоставить вам льготные расценки для тайм-чартера.

Мы надеемся, что вы найдете их условия приемлемыми, и как только мы получим от вас подтверждение, мы сразу же подготовим договор на чартерное фрахтование.

С уважением...

7. Write to some ship brokers and ask them to charter a ship for loading of a cargo of oil; give them necessary particulars about port and time.

8. Write a letter from a ship broker concerning the shipment to the USA and point out the need for speed because of the probable closing of certain ports due to ice.

SPEECH PRACTICE

1. Agree with the following statements. Enlarge upon the matter:

1) Every mode of transport has its own specific document.

2) The bill of lading serves to fulfil three main functions.

3) SAD replaces many of the existing customs forms.

4) If your line of business involves exporting or importing of goods, you will come into the contact with the Customs Authorities.

5) A common reason for violation of customs regulations has always been foreign currency.

6) The chartering of ships is a highly specialised business.

2. Discuss the following points:

  •  1) Customs regulations are too strict in our country.
  •  2) A Customs officer should have a special training to carry his work efficiently.

3. Speak about:

  •  1) the procedure of customs clearance;
  •  2) the role of Customs Intelligence.

4. Make up dialogues and act them in pairs:

1) between an interviewer and a Customs official working at the Customs Investigation Department;

2) between a customs officer and a passenger trying to carry out restricted and prohibited articles.

Unit XI
PAYING IN FOREIGN TRADE

EPISODE 1

Types of Payments in Foreign Trade

Payment of goods supplied in the local trade is a rather simple matter. It is made either in advance or within a sensibly short period after delivery. If a buyer fails to pay, there comes legal action1 after which payment can be enforced.

The matter is different in foreign trade because a great deal of time is spent on correspondence, despatch and delivery. It is here that banks play a fundamental part. Their services have to be paid for, but are not expensive and always necessary - the bank comes into each transaction at this or that stage.

Payments in foreign trade are usually made by:

  •  1. banker’s transfer;
  •  2. bill of exchange;
  •  3. letter of credit.

As well as in the local trade, payment may be made a) in advance; b) on open account.

Payments in advance are used 1) when a buyer is in urgent need; 2) when a buyer is unknown to a seller; 3) in the case of a single isolated transaction. The method of payment in these cases will probably be by banker’s draft or banker’s transfer.

Open account terms are granted by a seller to a buyer of unquestionable reputation2 in whom he has complete confidence, e.g. regular customers, agents or distributors. In these cases payment is made quarterly by bill of exchange or banker’s transfer.

The banker’s transfer is a mere transference of money from the bank account of a buyer in his own country to the bank account of the seller in the seller’s country. It is only necessary for the customer to send a letter of instruction to his bank - or use a special form. The transfer is executed at current rates of exchange3 and subject to any exchange control regulations of the countries concerned.

The bill of exchange (B/E) is a written order from a creditor to a debtor to pay on demand or at a specified date a stated sum of money to a person named on the bill, or to his order. The bill is drawn by the creditor on the debtor, and is sent to the debtor or his agent to pay or accept4 (to acknowledge the debt). The debtor accepts it through signing his name on the front of the bill, together with the date. The bill becomes now legally binding5, and the acceptor must meet it at or before the due date. Failure to meet the bill on the due date will result in total discredit for the creditor, and legal action can follow. Ал unpaid bill is called "dishonoured"6, and the creditor can protest7 it, which gives him the right to prosecute8 the debtor.

The letter of credit (L/C) is the most generally used method of payment in the export trade. It starts with the buyer who instructs his bank to issue the L/C for the amount of the purchase and in favour of the seller. The buyer’s bank sends this instruction, a special printed form containing full details of the transaction, to its agent (a bank cooperating with it) in the seller’s country. On receiving the instruction, the agent bank informs the seller about the credit. The seller can now carry out the buyer’s order, knowing that when he has done so, the money will be paid at once by the agent bank. The buyer is equally secure, because the agent bank will pay on his behalf only if the conditions of the transaction are completely executed by the seller.

A L/C may be paid to the seller not immediately upon execution of the order. If there is an agreement between the seller and the buyer the agent bank can accept a bill of exchange drawn by the seller on the agent bank. The buyer gets credit and the action is absolutely safe for the seller, who can discount the bill for ready cash if he needs it.

Vocabulary Notes on the Text

1 legal action - судебное разбирательство.

2 unquestionable reputation - безупречная репутация.

3 at a current rate of exchange - по текущему курсу обмена валюты.

4 to accept - акцептировать (принимать).

5 legally binding - имеющий обязательную силу.

6 "dishonoured" - не оплаченный в установленный срок, букв. "обесчещенный".

7 to protest the bill - опротестовать вексель.

8 to prosecute - преследовать в судебном порядке.

Exercises on the Text

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

acceptor; creditor; debtor; discredit; failure; reputation; transference; transaction; binding; fundamental; urgent; isolated; unquestionable; subject to; equally; quarterly; debt; acknowledge; legally

3. Give English equivalents of the following:

а) акцептор; дебитор; кредитор; банковский счет; банковский перевод; переводной вексель; аккредитив; текущий курс обмена валюты; день оплаты; авансом; по открытому счету; поквартально; юридически обязательный; неоплаченный в установленный срок; акцептировать; опротестовать вексель; преследовать в судебном порядке

б) судебное разбирательство; единичная (разовая) сделка; безупречная репутация; полная дискредитация; полностью доверять; подлежать (подвергаться) чему-л.; по требованию

4. Explain the meaning of the following in English:

acceptor; creditor; debtor; a bill of exchange; a letter of credit; a banker’s transfer; to accept

5. Answer the following questions:

  •  1) What types of payments in foreign trade do you know?
  •  2) In what way may they be made?
  •  3) When are payments in advance used?
  •  4) What is the method of payment in such cases?
  •  5) Whom are open acount terms granted to?
  •  6) In what way is payment in these cases made?
  •  7) What is the banker’s transfer?
  •  8) What is necessary for a customer to do while paying by banker’s transfer?
  •  9) What is the bill of exchange?
  •  10) When does the B/E become legally binding?
  •  11) What is the letter of credit?
  •  12) How does it work?
  •  13) Why are both the buyer and the seller secure?

Vocabulary and Speech Exercises

6. Fill in the required prepositions:

1) Payment__goods__the home trade is made either__advance or__a reasonably short period__delivery.

2) There is little time lost__correspondence and__delivery.

3) A bill__exchange is an order__written form addressed__one person__another, to pay__demand or__a named date a certain sum__money__a person named__the bill, or__his order.

4) The banker’s transfer is carried__ __current rates__exchange.

5) This transaction is simple and may be speeded__ __cabled instructions if desired.

6) The L/C is ideal__ individual transactions or__series, it gives protection__both the seller and the buyer.

7. Read and translate the text. Pay attention to the words in bold type:

One of the important features of the bill of exchange is that it is negotiable. It means that it can be used by the holder to pay his own debts. To do this, the holder of the B/E must endorse it, i.e. sign his name on the bill before handing it in to the next holder.

The owner of the bill can also sell it to the bank, who will pay face value, less interest: this is called to discount a bill. The other way to use a bill is to leave it as security for a loan.

It is due to its free negotiability that the B/E is known to be a useful means of payment in foreign trade. Undoubtedly, its successful operating depends on confidence and trust. Before handling bills each individual company’s status and reputation are thoroughly checked and taken into account.

8. Give English equivalents to the following Russian terms:

номинальная стоимость; денежное обеспечение; индоссировать документ (сделать передаточную надпись); пущенный в обращение вексель; дисконтировать вексель (снижать учетный процент при досрочной оплате)

9. What do we call?

1) to sign the document (cheque, bill) passing rights on it to another person;

2) able to be negotiated;

3) documents or valuables given as cover for loan;

4) the value on a bank-note or stamped on a coin;

5) to sell a bill to a bank for a price that is lower than the value of the bill when it becomes due for payment.

10. Translate into English:

1) Одним из наиболее часто употребляемых способов оплаты во внешнеторговых операциях является аккредитив.

2) Владелец векселя может продать его банку по номинальной стоимости.

3) Оплата товара отечественным поставщикам производится обычно или посредством предоплаты или в течение некоторого разумного периода времени после поставки товара.

4) Вы можете оплатить данный товар по текущему курсу обмена валюты.

5) Условия оплаты по открытому счету предоставляются покупателю с безупречной репутацией.

EPISODE 2

Discussing Terms of Payment Over a Phone

Customer: Good morning, Mr Galiano. My reason for calling you up is to tell you that we have decided to place an order with your company and would be glad if you could give it your early attention.

185

Supplier: That’s a good piece of news. In what way have you chosen to pay?

Customer: We have instructed The General Bank of Russia to open credit for £ 775 in your favour, valid1 until 12 September. The credit will be confirmed by the General Bank of Russia, Broad Street, Manchester, who will accept your draft on them at 30 days for the amount of2 your invoice.

Supplier: What shipping documents should we attach to our draft?

Customer: Two bills of lading, two commercial invoices and an Isurance policy.

Supplier: For what sum?

Customer: £ 800.

Supplier: What about despatch and marking instructions?

Customer: They will be given to you by our forwarding agents in Manchester, who will advise you of their charges.Your invoice should include CIF-St.Petersburg, and the amount of our credit is sufficient to cover your bank commision on the draft3.

Supplier: Well, I must say that your choice of method of payment is quite acceptable to us, and I just note that this will be by irrevocable letter of credit4 for a sum not exceeding £ 775, valid till September 12. As soon as we receive confirmation of this credit from the General Bank of Russia, Manchester, we will make up your order and await despatch instructions from your agent.

Customer: Please advise us when the goods will have been dispatched.

Supplier: Sure, thank you for your call and your order.

Vocabulary Notes on the Text

1 valid - имеющий силу, действительный.

2 draft... at 30 days for the amount of - чек (тратта) сроком на 30 дней на сумму.

3 to cover the bank commission on the draft - заплатить банку комиссионные по чеку.

4 irrevocable letter of credit - безотзывной аккредитив.

Exercises on the Dialogue

1. Read and translate the dialogue.

2. Explain the meaning of the following terms:

valid; confirmed; attached; acceptable; to accept a draft for the amount of...; bank commission on the draft; irrevocable letter; to open a credit

3. Give English equivalents of the following words and phrases:

действительный; прилагаемый; подтвержденный; приемлемый; не превышающий (о сумме); сделать заказ у кого-л.; принять к сведению что-л. как можно раньше; открыть кредит на сумму в ... на чье-л. имя; заплатить комиссионные банку; оплата услуг; безотзывной аккредитив; чек (тратта)

4. Use the following collocations in sentences of your own:

to place an order with smb; to give smth early attention; to open a credit for the sum of…; in smb’s favour; to cover bank commission on...; despatch and marking instructions

5. Report the dialogue in indirect speech.

Vocabulary and Speech Exercises

6. Fill in the necessary prepositions:

When the debtor has to settle his account__delay, he can buy a cable transfer__ a bank, paying the equivalent amount__the current rate__exchange plus the cost__the telegram to be sent__the bank. The bank will then send their correspondent__the creditor’s town a telegram__a secret code instructing the correspondent to pay the creditor the amount__the debt. This method is called Т.Т. (telegraphic transfer).

7. Read and translate the following dialogue. Act it out in pairs.

A. Have you considered our request to grant us credit for the construction of two supermarkets in our city?

B. Yes, we have. We know that you are carrying out a wide program of national development and are ready to extend credit for the construction of the projects.

A. Glad to hear that. And on what terms?

B. The credit will be granted for five years at 10% per annum.

A. Don’t you think that the interest rate is somewhat overestimated? Could you reduce it?

B. I am afraid there is no possibility to make such a concession. We believe that the 10% interest rate is quite reasonable.

A. I see... We’ll think over your proposal. And could you consider the possibility of our repaying the credit in our traditional export goods?

B. No, I am afraid not. We would prefer you to provide for the repayment of the credit in hard currency.

8. Give English equivalents of the following:

рассмотреть просьбу; предоставить кредит; осуществлять программу национального развития; из расчета 10% годовых; завышенная процентная ставка; погасить кредит поставками экспортных товаров; в твердой валюте

9. Translate into English:

1) Мы до сих пор не получили Ваш аккредитив и хотели бы знать причины неоплаты.

2) Вы должны открыть безотзывной аккредитив на сумму в 5 000 долларов в пользу нашей компании в Центральном банке Вашей страны.

3) Каков срок действия Вашего аккредитива? - Аккредитив будет действителен в течение 60 дней.

4) Эта сумма покрывает расходы, связанные с открытием и подтверждением Вашего аккредитива.

5) Мы не получили от Вас полный комплект документов. - Все требуемые по аккредитиву документы были своевременно направлены в банк. - Какие документы будут приложены к счетам? - Обычно мы передаем заказчику вместе со счетами полный комплект отгрузочных документов.

6) На каких условиях Международный инвестиционный банк (International Investment Bank) предоставляет кредиты? - Кредиты предоставляются на приемлемых условиях. - Мы хотели бы получить долгосрочный кредит.

WRITING PRACTICE

Settlement of Accounts

When the buyer’s order is received by the manufacturer it is acknowledged by letter or postcard. The order is then passed for execution - by the Sales Manager and his department - and the work of packing the order begins. As many of the manufacturer’s departments, such as Sales, Accounts1, Despatch, etc., must have details of the order, there is much paper-work to be done. The modern practice of using one kind of printed form with copies in different colours sent to the different departments saves a great deal of time. One of these copies is used by the accounts department as the invoice, which is considered to be an important document in the export trade.

The commercial invoice will contain the details of the customer’s name, goods ordered, order number, terms and prices of the various items ordered. It may be required by banks, export/import agents, shipping companies, customs authorities, and consulates.

The invoice is sent to the customer by post, or through an agent or a bank. In the case of a single transaction, payment is executed either before delivery or on delivery of the goods. Such kind of payment is called payment on invoice2.

But if the customer has an open account with the seller, the latter will keep a record of all invoices sent out to the buyer and once a month (or once a quarter) he will send an account of all the goods shipped and payments received during the period. This document is called the statement, and the method of paying - payment on statement3.

Below see the formulas used in letters while sending the invoice or statement (1, 2, 3) and notifying payment of account (4, 5):

  1.  We have pleasure in inclosing our invoice to the amount of $250,000 covering the first consignment per S.S. Santa Monica.
  2.  With this letter we are sending you a statement for January, February and March totalling $...
  3.  A copy of the invoice is enclosed. The shipping documents will be handed to you by the Russian Bank against settlement of the amount shown.
  4.  We have pleasure in sending you enclosed our cheque for $...
  5.  Thank you for the pro-forma invoice. We accept your price and are making immediate payment to our bank, who will notify you of the credit in due course4.

Sometimes it happens in the export trade that an account is not paid when due. A customer may run into a period of bad trade or delays may be caused by customs regulations in his country. A wise buyer will advise his supplier of any such situation and try to get concession from him. If he does not, an account becomes overdue5, and the seller will have to ask for payment.

If a firm decides to send a letter requesting payment, the style of it will depend upon the type of customer to whom it is meant; how long overdue; whether there were such cases before; how valuable the business is, etc. A first request should be friendly in tone and show neither annoyance nor any doubt about the buyer’s intention to pay like in the following letter:

Dear Sirs,

As we have always received your payments punctually, we are puzzled to inform you that we have had neither remittance6 nor report from you in connection with our current statement of 17 June.

No doubt it is through an oversight on your part that settlement is now four weeks overdue and we look forward to receiving your remittance in the course of a few days.

Yours faithfully,...

If the supplier does not receive a reply to his first request within a reasonable period, he will repeat it once more or even twice before taking legal action to obtain money due to him. The number of letters and the tone to adopt in them will depend upon individual circumstances. Below see the suggestions for a second reminder (1) and for a final demand (2):

(1) We regret very much that you have not replied to our letter of ... asking you to clear the amount of7 $ ... due to invoice No ... Kindly advise us if there are any sound reasons8 for your non-payment, or inform us what arrangements you are making for settlement.

(2) As we have received no replies to our letters of ..., we have no choice but to take immediate legal action to get back the amount due to us unless your payment is received within 10 days.

Vocabulary Notes on the Text

1 Accounts - бухгалтерия (отдел).

2 payment on invoice - платеж по счету-фактуре.

3 payment on statement - платеж по выписке из счета.

4 in due course - своевременно.

5 overdue - просроченный.

6 remittance - денежный перевод.

7 to clear the amount of - произвести расчет на сумму...

8 sound reasons - убедительные причины.

Exercises

1. Read and translate the Text.

2. Translate the following words and learn their pronunciation:

accounts; cheque; concession; non-payment; remittance; settlement; due; overdue; valuable; notifying; totalling; acknowledged; punctually; annoyance; oversight

3. Give English equivalents for the following:

a) бухгалтерский отдел; отдел по отправке (доставке) товаров; канцелярская работа; выписка из счета; коммерческий ин-войс; регистрация (учет) инвойсов; денежный перевод; платеж по счету-фактуре; неуплата; расчеты с клиентами; просроченный расчет

b) производить платеж; извещать об оплате по счету; произвести расчет на сумму...; после оплаты указанной суммы; известить о кредите своевременно; добиться уступок; по недосмотру; получить причитающиеся деньги

4. Answer the following questions:

1) What practice saves a great deal of time while doing paperwork connected with the order?

2) What kind of payment is called "payment on invoice"?

3) What is a statement?

4) In what way is payment executed if the customer has an open account with the seller?

5) What will the style of the letter depend upon if a firm decides to send a request for payment for the first time?

6) What will the supplier do if he does not receive an answer for his first reply?

5. Fill in the necessary prepositions:

Dear Sirs,

We have received your letter__14 February reminding us that your account was due__payment__31 January. We meant to clear this account__the end__last week, but business has been bad__the fruit trade, and our customers have been very slow__clearing their accounts. This has, __course, resulted__a temporary liquidity problem__us.

Yesterday we sent you a cheque__$5000, which we ask to accept__account. A further sum will be sent__a fortnight’s time.

We are very sorry to keep you waiting, but we are doing everything we can__the circustances.

Yours faithfully,...

6. Translate the letter into English:

Уважаемые господа!

15 мая мы послали вам выписку из счета, согласно которой вы должны были произвести расчет на сумму в 15,000 долларов. Платеж должен был быть осуществлен до 30 мая, но до сих пор мы не получили от вас ни денежного перевода, ни объяснения с какими-либо убедительными доводами.

К сожалению, мы не можем долго держать этот счет открытым, и сообщаем вам, что если вы не оплатите ваш долг в течение пяти дней, мы будем вынуждены прибегнуть к судебному разбирательству, чтобы получить причитающиеся нам деньги.

С уважением...

7. Send a short letter to a foreign customer, enclosing quarterly statement. 

8. Write a tactful letter to your foreign customer the business with whom you value highly. The customer usually settles his account by banker’s transfer, but has failed to pay the latest account and has not given you any explanation; payment is now a week overdue.

9. Write a letter to which the letter of Exercise 5 is the answer.

SPEECH PRACTICE

1. Disagree with the following statements. Use all possible formulas of disagreement. Enlarge upon the matter:

1) The banker’s transfer is a written order from a creditor to a debtor to pay on demand or at a specified date a stated sum of money to a person named on the document.

2) The bill of exchange is a mere transference of money from the bank account of a buyer in his own country to the bank account of the seller in the seller’s country.

3) Payments in advance are used when a buyer is of unquestionable reputation.

4) One of the important features of the letter of credit is that it is negotiable.

5) If payment is executed either before or on delivery it is called payment on statement.

2. Say a few words about:

  •  a) methods of payment in foreign trade;
  •  b) types of settlement of accounts while paying for goods.

3. Make up dialogues and act them out in pairs:

1) between a customer and a seller discussing the terms of payment as one of the articles of the proposed agreement;

2) between a seller and a customer whose settlement is overdue. Note that previously the customer was a regular payer;

3) between a seller and a customer who wants to place an urgent order and is giving payment instructions over the telephone.

Unit XII
INSURANCE

EPISODE 1

The Reason For Insuring Goods

The general idea of insurance is to gain indemnity1 in the case of any happening that may cause loss of money.

Insurance has become more and more significant as commerce has developed. Neglecting to insure goods either warehoused or in transit is all very well until something goes wrong. While goods are being stored, there are the risks of fire and burglary. With the goods in transit the number of hazards even arise. While transporting, the goods may be damaged through a lot of reasons; for example vibration, an accident, poor handling, change of temperature, etc. And, of course, there is always the threat of pilferage when either a small part of consignment or the total contents of trailers or containers disappear without trace. Consequently, the reason for insuring goods is evident - both the buyer and the seller are protected against financial loss which may arise through no fault of them.

Goods are normally insured for the full amount of their value, which is calculated as: price of goods + cost of freight + insurance premium2 + percentage of the total sum to represent a reasonable profit for the seller. There may be different types of insurance coverage3 - insurance against fire4, theft/burglary insurance5, accidence insurance6 and a lot of others. But the usual procedure is to insure goods

against all risks7. This type of insurance involves a W.A. clause (= "with average"8, where the word "average" derived from French avarie means damage), which denotes that insurers pay claim for partial losses. The F.P.A. ("free of particular average9") type of insurance means that partial losses are not covered.

Particular average denotes partial loss or damage accidentally caused to a particular lot of goods. The responsibility for particular average is set either upon the owner of the lost property or those who caused damage.

In the case of general average10, which means any extraordinary loss, damage or expenditure borne for the purpose of preserving the ship and the cargo, all the parties interested in the adventure are responsible. The following events may serve as examples of general average: when goods are thrown into the sea to lighten the ship, when cargo is damaged by water used to put out a fire, the cost of towing a ship into the port for repair, etc.

The principal document used in insurance is insurance policy which acts as a contract. The policy may be known as a floating policy11, when it covers a large quantity of goods for a fairly long period, usually a year, or it covers goods up to a large sum of money. For each shipment of goods another document is issued, which is called the insurance certificate.

A cover note12 is a small document issued by the insurance agents to their customers, to tell them that their goods are insured, and to give proof of this until the policy is ready.

Vocabulary Notes on the Text

1 to gain indemnity - обеспечить возмещение убытков.

2 insurance premium - страховое вознаграждение, премия.

3 insurance coverage - страховое покрытие.

4 insurance against fire - страхование от пожара.

5 theft/burglary insurance - страхование на случай кражи.

6 accidence insurance - страхование от несчастных случаев.

7 against all risks - страхование от всех рисков.

8 "with average" - включая аварию.

9 "free of particular average" - свободно от частной аварии.

10 general average - общая авария.

11 a floating policy - генеральный страховой полис.

12 a cover note - "ковернот", свидетельство о страховании.

Exercises on the Text

1. Read and translate the text.

2. Translate the following words and learn their pronunciation:

indemnity; burglary; threat; premium; coverage; average; pilferage; vibration; hazards; adventure; financial; particular; towing; warehoused; accidentally; extraordinary; repair; lighten; neglect

3. Answer the following questions:

  •  1) What is the general idea of insurance?
  •  2) What kind of hazards can arise while goods are being stored or are in transit?
  •  3) How are goods normally insured?
  •  4) How is insurance value calculated?
  •  5) What types of insurance coverage can you mention?
  •  6) What do W.A. and P.P.A. clauses mean?
  •  7) What’s the difference between a particular average and a general average?
  •  8) What kind of documents are issued by insurers?

4. Explain the meanings of the following terms in English:

insurance premium; insurance policy; insurance certificate; a floating policy; a cover note; particular average; general average; W.A. clause insurance; P.P.A. clause insuarance; burglary; pilferage

5. Use the terms of Exercise 4 in sentences of your own.

6. Reproduce the situations from the text where these collocations were used:

to gain indemnity; to go wrong; to disappear without trace; to cause damage; to put out a fire; to act as a contract; to cover goods up to a large sum of money; to give proof of smth

7. Give English equivalents of the following:

страховка (страховая сумма); страховое дело; страховая премия; страховое покрытие; страхование от пожара/на случай кражи/от всех рисков; генеральный страховой полис; воровство; мелкая кража; плохое обращение (с товаром); риск

8. Sum up the contents of the text according to your own plan.

Vocabulary and Speech Exercises

9. Insert the appropriate prepositions:

1) Nowadays carrying__goods can be effected__sea,__air,__rail and__road. One transaction may involve both land and sea transportation, that is first goods may be carried__railway or road means__conveyance and then__ships. Henceforth the export trade is subject__many risks, because consignments may be damaged__transit.

2) Usually exporters insure their goods__all kinds__risk__professional insurance companies, __example Lloyd’s__Great Britain or "Ingosstrakh"__Russia, which__return__a fee known as a premium will compensate__them if any loss or damage__the goods occurs. Insurance is therefore a contract__indemnity which is called an Insurance Policy.

10. Read and translate the text using the dictionary if necessary:

Calculating of an Insurance Premium

An insurance premium is the name given to the sum of money paid by the firm insuring its goods, and is quoted as a percentage.

Normally goods are insured for the CIF value of the consignment plus 10 per cent of that figure. Using the CIF value means that, in addition to the price of the goods, the freight charges and insurance premium are also covered. The 10% means that, in the case of a total loss, the insured party receives some compensation for the expense of processing the claim and for any commercial loss.

As an example of calculating of an insurance premium let’s take a consignment with the value of $1000, a freight charge of $100 and an insurance rate of 0.75%. First we should calculate the CAF (C&F) value of the goods, which in this case is $1100 [= $1000 (value of goods) + $100 (freight)]. Then we calculate 10 per cent to this value, and the sum will be $110 [= $1100 × 10 : 100]. This amount ($110) is added to the original $1100, so the goods will be insured for $1210. To define the insurance premium now means to calculate 0.75% of $1210, which is $9,08 [= $1210 × 0.75 : 100].

Thus, the premium payable is $9,08 to which may be added a small administration charge which will not amount to more than a few pounds.

There are other ways of calculating insurance premium, but they involve more complicated formulas and so this method is widely used.

It is worth noting that the insurance premium of 0.75 per cent is widely quoted to many countries round the world, so this example is quite realistic.

11. Ask eight questions about the previous text.

12. Give a free translation of the text:

Страхование - неотъемлемая часть повседневной жизни американцев. В семейном бюджете различного вида страховкам обычно отводится значительное место. В Америке количество страховых компаний и предоставляемых ими услуг огромно, и новичку в американской жизни не так просто разобраться в них.

Есть страховки обязательные: например, страхование автомобиля. Есть страховки, которые необходимо иметь, хотя они и не относятся к обязательным - например медицинская страховка, поскольку цена медицинских услуг столь высока, что в случае серьезного заболевания человек со средним достатком не в состоянии оплатить больничные счета. К основным видам страхования относятся страхование автомобиля (automobile insurance), домов и квартир (homeowners and tenants insurance), жизни (life insurance) и здоровья (accident and health insurance).

Если вы приобретаете автомобиль, то закон обязывает вас купить и автомобильную страховку, в противном случае ваша машина не будет зарегистрирована. Такие законы действуют в подавляющем большинстве штатов. В отличие от страхования автомобилей, согласно закону вы не обязаны покупать страховку жилища. Однако ваш дом или квартира со всем их содержимым представляют немалую ценность, и вы вряд ли сможете возместить все это в случае потери.

Страхование жизни необходимо для того, чтобы обеспечить финансовую поддержку семье в случае вашей смерти. Есть два основных типа страхования жизни - временное (term insurance) и постоянное (permanent insurance). Различие между ними сводится к следующему: при временной страховке договор с вами заключается на определенное время (год, 5, 10 лет и т.д.) или до достижения определенного возраста (например, 70 лет), и пособие вашей семье выплачивается только тогда, когда смерть наступила в этот период; при постоянной страховке охватывается весь период вашей жизни, и сумма страховки выплачивается полностью вне зависимости от того, когда наступила смерть.

К типам страхования здоровья относятся следующие: основная госпитальная страховка (basic hospital insurance), которая покрывает ваши больничные расходы, причем обычно страховая компания устанавливает пределы на продолжительность пребывания в больнице и общую сумму счетов; основная медицинская страховка (basic medical insurance), которая служит для возмещения расходов, связанных с визитами к врачам и амбулаторным лечением; и дополнительная медицинская страховка (major medical insurance), которая служит для покрытия расходов, которые возникают в случае серьезного заболевания и выходят за пределы двух предыдущих страховок. Размер компенсации может сильно варьироваться в зависимости от типа договора и от политики страховой компании.

13. Speak about insurance in Russia, using the vocabulary of Episode 1 and Exercise 12.

EPISODE 2

Making an Insurance Claim

- Look, it’s all very well if the goods collected from the port, airport or whatever station is agreed upon are in good condition. But what if as a consignee I got my goods damaged? What am I supposed to do under these circumstances?

- The most reasonable action of yours in this situation is to make an insurance claim1.

- What do you mean by making an insurance claim?

- This procedure includes two essential steps. The first one is to call in a properly qualified and disinterested person who will inspect your cargo.

- What kind of person is he?

- We call him an insurance surveyor2. He must be employed by a company which has insured your goods.

- Why is it necessary to call in a surveyor to inspect the goods?

- No insurance company will ever pay compensation unless they receive a report on the damage3 from a surveyor. If they didn’t require such a report they would soon be out of business, because it would be very easy for buyers to say that the goods had arrived damaged and then put in a claim for compensation4.

- Oh, I see. And what precisely should the surveyor inspect?

- He should inspect the packing - cases, boxes, crates, bottles, etc. - and the contents and report on the nature and extent of the damage5.

- That’s clear. Well, what is my second step?

- You must also report the damage to the sellers. If you are not able to sell the damaged goods you may ask for replacement for which you will pay separately, setting the amount of the indemnity6 against this additional payment to be made.

- What about the spoilt goods? Am I to send them back?

- Not necessarily. If the articles have been scratched or chipped, that is partly damaged, you can try to sell them at a considerably reduced price. And there is one more very important thing to be done. If you consider to make a claim, do it without delay, otherwise your claim on the insurers may be jeopardised7.

Vocabulary Notes on the Text

1 to make a claim - предъявить претензии, возбудить иск.

2 an insurance surveyor - страховой инспектор.

3 a report on the damage - отчет о понесенном ущербе.

4 to put in a claim for compensation - выдвинуть требование о компенсации.

5 the nature and extent of the damage - характер и размеры понесенного ущерба.

6 indemnity - возмещение, компенсация.

7 to jeopardise a claim - оспорить в суде предъявленный иск.

Exercises on the Dialogue

1. Read and translate the dialogue.

2. Pronounce the following words correctly:

circumstances; procedure; nature; replacement; compensation; indemnity; surveyor; qualified; disinterested; scratched; jeopardised; reasonable; separately

3. Find in the list below the verbs close in meaning:

to damage; to agree; to inspect; to report; to spoil; to claim; to change; to demand; to survey; to state; to compensate; to replace; to indemnify; to settle

4. What do we call?

1) a person with special knowledge employed by an insurance company to examine and report on a proposed risk;

2) a demand made by an insured party on the insurer for payment under an insurance policy;

3) the description of loss of goods value caused by being broken or spoilt;

4) a payment to make good a loss;

5) to demand for compensation;

6) to lose a job.

5. Answer the following questions:

  •  1) What is necessary to do if a consignee gets his goods damaged?
  •  2) What are the essential steps of making an insurance claim?
  •  3) Who is an insurance surveyor?
  •  4) Why is it necessary to employ a surveyor?
  •  5) What does the surveyor report on?
  •  6) What can you demand of the sellers?
  •  7) What can you do with damaged goods?
  •  8) Why is it important to make a claim without delay?

6. Give English equivalents of:

a) договориться о чём-л.; предъявить иск страховой компании; вызвать страхового агента; выплачивать компенсацию; возмещать ущерб; выдвинуть требование о компенсации; делать что-л. незамедлительно; оспаривать иск в суде

b) по сниженной цене; при данных обстоятельствах; в хорошем состоянии; незаинтересованное лицо

7. Report the dialogue:

  •  a) on the part of an insurance agent;
  •  b) on the part of the consignee;
  •  c) on the part of the seller.

Vocabulary and Speech Exercises

8. Fill in the missing prepositions:

1) Goods are normally insured__certain risks. They are usually insured__the full amount__their value. If they are found__arrival__the port__destination to be damaged, a report__the damage should be made.

2) Details__the agreement__the client and the insurance agency are to be found__the insurance policy.

3) When a Lloyd’s agent examine a damaged consignment, he will also look__the bill__lading signed__the captain__the ship. If the bill__lading is clean, the captain has accepted the consignment as being__good condition, and so the shipowners may be claimed__the cost__the damaged goods.

9. Read and translate the following dialogue:

Customer: We would like you to discuss the insurance problem with us.

Seller: I am at your service.

Customer: How is the personnel on site supposed to be insured?

Seller: We shall insure the experts against industrial risks and accidents.

Customer: And what about the construction projects? Will you insure them too?

Seller: Undoubtedly. We shall insure not only the projects but the property as well against fire and natural hazards.

Customer: And who will pay expenses if there will be such a situation?

Seller: The expenses will be included in the cost of the projects.

Customer: And one more thing. We know that you suppose to insure the equipment but we would like to ask you to insure it against air risks too.

Seller: Well, let me remind you the context of the article of the Transport Regulations Insurance. It says that the Supplier shall insure the equipment against marine risks but not against air risks.

Customer: Well, we see that the "Regulations" really do not provide for insurance against air risks. We don’t have any more questions.

10. Give English equivalents of the following:

вопрос о страховании; персонал; строительная площадка; страхование от производственных рисков и несчастных случаев; объекты строительства; материально-имущественные ценности; стихийное бедствие; застраховать от морских/авиационных рисков

11. Report the dialogue in detail:

  •  1) on behalf of the Seller;
  •  2) on behalf of the Customer.

12. Translate into English:

1. Когда мы сможем получить компенсацию от страховой компании ? - Как только будут выполнены все формальности.

2. Куда мы должны обратиться по поводу страхования? - В страховое агентство.

3. В каком случае предоставляется страховая гарантия? - Если это предусмотрено контрактом.

4. Что вы хотите застраховать? - Мы хотим застраховать очередную поставку "от всех рисков". - Кто будет нести расходы по страхованию? - Поставщик.

5. У вас есть акт осмотра и экспертизы? Когда он был выписан?

6. Вам необходимо уплатить налоги по страхованию.

7. Мы освобождаем себя от обязательств по договору страхования.

WRITING PRACTICE

Complaints and Replies to Compalaints

Complaints may be of several kinds, and may arise from delivery of damaged goods, wrong goods, or too few or too many goods. Even if the right articles are supplied in the right quantities, they may arrive later than expected, which will cause problems to the buyer and, correspondingly, to his customers. Then the quality of goods may be unsatisfactory: they may be not according to the sample or description on the basis of which they were ordered, or they may simply be second-rate products.

If a customer is unsatisfied with the execution of his order, he will complain. While doing so he should refer to the articles in question, by pointing out his own order number or that of his suppliers invoice, or both. He should also specify the nature of his complaints, and declare what action he wants his supplier to take.

Below are the examples of the sentences which may be used in complaints of poor quality goods, wrong goods and goods missing from the delivery:

  1.  Unfortunately, we discover you have sent us the wrong goods.
  2.  On comparing the goods received with the sample, we were surprised to discover that the colour is not the same.
  3.  We cannot possibly supply our customers with the articles you have sent to us because of the poor quality.
  4.  We cannot accept these goods as they are not the size and shape we ordered.
  5.  Unfortunately we have not received from you all the goods we ordered. The following are missing.
  6.  You have short-shipped1 this consignment by 150 kg.

The replies to complaints must always be courteous; even if the sellers think that the complaint is bottomless they should not say so until they have reliable grounds2 on which to repudiate the claim3. If the complaint is justified, the sellers should at once apologize to the buyers and suggest a solution.

When the sellers are the first to discover that a mistake has been made they should not wait for a complaint, but should write, cable or telephone at once to let the buyers know, and either put the matter right4or offer some compensation.

If on making a claim the buyers have offered to keep the goods, the sellers will probably agree to this and to a price reduction. Yet, if the value of goods in question is high, it might be advantageous to have them returned, though in this case, the added risk of damage in reverse transport5 should be taken into account.

There is no need for the suppliers to go into a long story6 of how the mistake was made; a short explanation will be enough.

Further you will find the possible replies to the complaints of poor quality, bad packing and goods short-delivered:

  1.  We were very sorry to receive your complaint that the textile you received was not of the quality expected.
  2.  We think the best procedure will be to have the pieces inspected by a specialist and we are arranging for this to be done.
  3.  We greatly regret that you received only 3 dozen instead of 4 dozen ordered. On investigation we found that the packers misread the number, and we have arranged with them for the immediate dispatch of the missing 1 dozen.
  4.  There was a slight delay due to the breakdown of machinery, which held up production for 2 days.
  5.  We are extremely sorry about this delay, which you will understand was due to circumstances beyond our control7.
  6.  The packers do not agree that there is any defect in the material used, and there have been no previous complaints: they insist that the boxes must have been subjected to very bad treatment.

Vocabulary Notes on the Text

1 to short-ship - недопоставить.

2 to have reliable grounds - иметь серьезные основания.

3 to repudiate a claim - оспорить претензию, отказаться признать претензию обоснованной.

4 to put the matter right - исправить положение вещей.

5 in reverse transport - при обратной транспортировке.

6 to go into a long story - долго объяснять.

7 to be beyond one’s control - выйти из-под контроля кого-л.

Exercises

1. Read and translate the text.

2. Answer the following questions:

1) What may complaints arise from?

2) In what case do we complain of the quality of goods?

3) What should you mention in your complaint if you are unsatisfied with the execution of your order?

4) What formulas would you mention in your complaints? (Name some of the formulas given in the text.)

5) What should the sellers do if they find your complaint bottomless?

6) What should be done if the complaint is justified?

7) How should the sellers act if they were the first to discover a mistake?

8) What might the buyers do on making a claim?

9) What formulas should be used in replies to complaints? (Name some of them.)

3. Give nouns corresponding to the following verbs:

to accept; to agree; to apologize; to arrange; to arrive; to cause; to compare; to compensate; to complain; to damage; to declare; to delay; to deliver; to describe; to discover; to examine; to execute; to expect; to explain; to justify; to order; to refer; to reply; to return; to satisfy; to specify; to suggest; to supply; to think; to threat.

4. Find in the text English equivalents for the following:

иметь прочные основания; предложить компенсацию; отклонить претензию; предложить решение; согласиться на денежную скидку; задерживать производство; быть вне чьего-л. контроля; принимать во внимание; быть необоснованным; товары, о которых идет речь; точно определить суть жалобы, быть подвергнутым плохому обращению

5. Give sentences of your own to illustrate the meaning of the expressions from the previous exercise.

6. Translate into English:

товары второго сорта; недопоставленные товары (2 варианта); при обратной транспортировке; небольшая задержка; поломка оборудования; проведя расследование; неправильно истолковать; скидка в цене

7. Fill in the necessary prepositions or adverbs:

Dear Sirs,

The goods ordered__this number arrived today__good condition, and your invoice is checked and found correct. However, we have to point__that these articles were ordered subject__their arriving to us__the end of June. Since they did not reach us__10 July, we have been forced to have problems__our customers.

As you understand, a recurrence__this situation could result__our customers placing orders somewhere else. We are obliged, therefore, to insist that you observe delivery deadlines__future orders.

Yours faithfully,...

8. Translate into English:

Уважаемые господа!

К нашему сожалению, мы вынуждены сообщить вам, что ваша последняя поставка не соответствует обычным стандартам. Покрытие не очень хорошего качества и эмаль в некоторых местах потрескалась. С экспресс-почтой мы послали вам образцы последней и предыдущей поставок, для того, чтобы вы смогли видеть разницу в качестве товара сами.

Хотим сообщить вам, что всегда были уверены в высоком качестве вашего товара, и тем более (all the more) разочарованы, что этот товар был предназначен для нашего нового заказчика.

Поскольку нам пришлось забрать этот товар обратно, просим вас сообщить нам незамедлительно, какие меры вы собираетесь принять в сложившейся ситуации.

С уважением...

9. Write a leter of reply to the previous letter on behalf of the suppliers.

10. Reply to the letter of Exercise 7 on behalf of the producers.

11. Write a letter to your suppliers to inform them that some articles in three cases have been broken due to bad packing; you have the report of the insurance surveyor confirming this.

SPEECH PRACTICE

1. Role-play. Disagree with the following statements. Give your reasons. Use the formulas of disagreement:

Far from it.
You are mistaken.
I don’t think so.

1) The basic document used in insurance is a cover note.

2) General average means partial loss or damage accidentally caused to a particular lot of goods.

3) An insurance policy is issued for each shipment of goods.

4) Normally goods are insured for the CIF value of the consignment.

5) An insurance premium is the name given to the sum of money paid to the insured by an insurance company if something goes wrong to the goods.

6) If a customer is unsatisfied with the execution of his order he may sue the seller.

7) If the quality of goods is unsatisfactory, the customer sends the goods back to the seller.

8) If the supplier sends the wrong articles he asks the customer to sell them at a reduced price.

2. What do you think could happen if:

  •  a) imported goods were not insured?
  •  b) insurance companies didn’t demand the report on the damage?

3. Role simulation. Discuss in the form of the dialogue:

  •  1) advantages of buying goods on the CIF terms for the seller;
  •  2) the way of calculating the insurance premium;
  •  3) the order of making a claim.

4. Speak on the following topics:

  •  1) Main insurance documents.
  •  2) Main types of goods insurance.
  •  3) Main types of social insurance in the USA and Russia.

PAGE  72




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