[00:01.99]Consignment and compensation are two of various ways of carrying out import and export transactions
[00:09.33]Goods on consignment are delivered by an exporter(consignor)on his own expense to a distributor abroad or the overseas agent
[00:21.76]for sale on commission aggreement made between the parties concerned .
[00:27.85]And that payment is not made immediately by the importer.
[00:33.57]The importer will hold the goods until the goods have been sold party or completely in the consignee's country.
[00:43.02]The agent or the distributor who imports a large consignment of goods is the consignee who takes care of the consigned goods.
[00:53.66]He may make payment for whatever stock has been sold ,and will send an account sale to the exporter,together with the net amount due to the exporter after deducting commission by a certain percentage and other agreed expenses.
[01:12.54]This kind of trade is advantageous as it may save cost,time and trouble that comes from dealing in large consignments.
[01:22.70]specially when the exporter's goods or inventory is availavle in large volume but has no access into the foreign market.
[01:32.50]It possibly makkes better profit because the agent pays the exporter a higher price for delaying payment untill they are resold.
[01:43.13]Under the compenastiontrade
[01:46.66]installment payments of imports are to be made by products or other commodities of the particular factory during certain years of its production according to the agreement.
[02:01.91]Compensation trade enables the buyers especially in developing countrues to obtain the technology and equipment in need.
[02:12.91]Strengthens their exporting ability and speeds their economy forward.
[02:20.83]We regret that cannot deal with your goods on our own account,but would be willing to take them on a consignment basis.
[02:30.47]Enclosed is your form for an irrevocable credit of $10,000 to be opened with the Bank of Chicago ,in favor of Smith Food Company,
[02:41.83]for a consignment of Butter Cookies ,the credit to be valis until 30 May this year.
[02:48.15]Your consignment of Chinese tea sets reached us on 3 June.
[02:54.32]We are informed that you are purchasing our machines and wish to pay for them with the blouses turned out with the said machines under compendation trade arrangements
[03:07.98]We take a pleasure to learn from your letter of 7 March that you will give consideration to compensation trade arrangements for the offer of our copy machines.
[03:22.29]Your suggestion to render accounts and make payments quarterly is quite satisfactory.
[03:28.51]We would ,at regular intervals ,send you accounts of sales and the payment due after deducting commission agreeed on between us.
[03:36.95]With regard to payment ,our suggestion is that we will remit you the total amount at this price for the quantity actually sold.
[03:46.51]The purchases of the equipment you supplied may be paid by the resultant products,and the whole transaction is considered as one package deal on the basis of compensation trade.
[03:58.94]Your products maybe have good prospects for sale here,but at present they are unknow by our many customers.
[04:07.56]What we do compensation trade for is to import advanced equipment and technology in order to raise the quality of our products,
[04:17.88]and to balance foreign currency required forimport equipment and technology with foreign currency earned from export products.
[04:27.39]The total cost of the entire equipment will be rembursed in installment within 5 years,
[04:33.89]while on the other hand ,you should undertake to counter purchase all the products manufactured with the equipment supplied by you.
[04:44.16]The equipment and technology to be produced by you should be kept up with advanced world standard ,reasonable in price and fit for our condition of production.
[04:55.34]Please give us quotation in detail on cash basis and on duty-back basis respectively as to prices of the machinery and the charges of know-how and teachnical service .
[05:08.90]It is helpful for us to have an accurate estimate for them in order to make a strategy decision.
[05:15.53]We will advance the cost of machined ,which you shall compensate it by installments ,plus freight and interest at 5% per annum.
[05:28.39]We enclose our account sales and shall be glad if you will draw on us at one month for the amount due.
[05:38.36]We feel sure that our products on consignment will prove popular in your local market,and look forward to your regular order.
[05:48.11]I believe our propisal for selling your goods on consignment offers good prospects.
[05:54.27]We will send you our account sales,together with the banker's draft,in a few days.
[05:59.55]For your reference ,we enclose a copy of our compensation t rade agreement with a UK company ,and hope that the same Arbitration Clause be included in the draft agreement you are to prepare.
[06:13.29]We look forward to hearing that you have been able to obtain satisfactory prices for the consignment.
[06:20.55]We are a leading hypermarket in Tokyo.
[06:24.24]and have recently received a number of inquiries for your silk pyjamas.
[06:29.64]We think there are good prospects for the sale of these goods here,but at present it is little known and as we cannot make sure of regular sales
[06:42.55]we do not feel able to handle your products on our own account.
[06:47.12]We are therefore ,writing to make a suggestion that you send us a trial delivery for sale on a consignment basis.
[06:56.21]We make the proposal hiping to place firm orders when the market is estavlished.
[07:01.90]If you aree,the selling price is to be fixed by us according to the market demand.
[07:07.23]We would render monthly accounts of dalles and send you the payment due after deducting expenses,and commission at a rate to be agreed on.
[07:17.63]Our bankers are the Bank of Tokyo,with whom you may check our standing.
[07:21.73]We believe our proposal brings the goods opportunities and hope you will be willing to give them a trial.
[07:34.14]Understanding that your company is one of the leading importers of bristles in your country,and thinking that some mutually profitable agrrangements might be worked out between our two firms on vristle business,
[07:50.10]we take pleasure to inform you that we have a ready stock of 5000 pounds of Black Bristles here in Taiwan.
[07:59.79]As experienced shippers of bristles ,formerly on the Chinese mainland and recrntly in Taiwan,we now hope to sell these bristles in the American market in either of the following three ways:
[08:13.45]1.We ship the commodity to you on consignment and commission basis,without your financing.
[08:21.55]2.Under consignment and commisson arrangement.
[08:25.23]we hope that you would finance us 80% of the invoiced cost when you are in receipt of ocean documents.
[08:33.52]Besides,you are requested to effect marine insurance for us ,because we wish to ship out the goods on C&F basis.
[08:42.27]3.We sell outright the stock to your firm,
[08:45.43]While each of the foregoing three sugguestion differ in meaning and operation,we ,as shippers,prefer the second or the third method which,
[08:55.22]with your financial assistance ,will enable us to make more shipments.
[08:59.87]For your inspection on quality and dressing.
[09:03.03]a bundle of sample bristles will be forwarded to you by air at the same time when we mail the letter.
[09:09.85]We believe that the goods will meet the requirement of American users.
[09:14.32]Your corporation will undoubtedly net a good profit through the handing of Taiwan bristles.
[09:21.55]If you could see your way to import our bristles for your own account,your profit will be greater wtill,because we will quote you very competitive price.
[09:33.86]Please let us have your comments.
[09:36.50]Very truly yours.