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Establish Business Relations (exporter and importer)


1 Establish Business Relations (exporter and importer) Enquiries (1) We owe your name and address to the Commercial Counselor’s Office of the Chinese Embassy in America. We wish to inform you

that we specialize in both Industrial and Pharmaceutical Chemicals, and shall be pleased to enter into business relations with you. Having obtained your name and address from the newspaper, we are writing to you with a view to establishing trading relations with you. We thank you for your letter dated the 24th inst. and shall be pleased to enter into trading relations with you. Through the courtesy of our Commercial Counsellor’s Office in China, we come to know that you are interested in building up trading relations with us. We wish to make business contract by the commencement of some practical transactions. We are one of the leading companies dealing in the line of wine in States’s market. We note from the advertisement you put in China Daily and are very much interested in your wine---Riesling. We are glad to note from your letter of February 6 that you are producing handmade carpets and handmade bags for export. Your desirousness of entering into direct business relations with us happens to coincide with our desire. At present, we are interested in buying large quantities of handmade carpets and handmade bags. (2) We wish to inform you that we specialize in both Industrial and Pharmaceutical Chemicals, To give you a general idea of our products, we enclose a complete set of leaflets showing various products being handled by this corporation with detailed specifications and means of packing. Quotations and samples will be sent upon receipt of your specific inquiries. We have been in the line of log cabins for many years. At present, we are interested in various sorts of log cabins made in America and should appreciate your catalogues and quotations. In compliance with your request, we are sending you by another post our latest catalogues and pricelist covering our exports. Payment should be made by an irrevocable and confirmed letter of credit. Our lines are predominantly Software. We wish to make business contract by the commencement of some practical transactions. To give you a general idea of the various kinds of Software now available for export, we are enclosing herewith a catalogue and a price list for your examination.

We are one of the leading companies dealing in the line of wine in States’s market. Will you please send us by airmail catalogues, sample books and all necessary information regarding your products? In this circumstances, we will very much appreciate it if you can give us a special quotation to make our price competitive here in the market. We are glad to note from your letter of February 6 that you are producing handmade carpets and handmade bags for export. At present, we are interested in buying large quantities of handmade carpets and handmade bags. It would be appreciated if you can send us a copy of your catalogue and sample books. Meanwhile, please quote us your lowest price C.I.F. Singapore, inclusive of 5% commission, stating the earliest date of shipment. (3) If you are interested in our products, pleased contact us through the above address. We hope business will be materialized owing to our mutual efforts. Should your prices be in line, we trust important business will be finalized. If you become aware of that business is possible, please cable us for offers. Should you find interest in our items, kindly let us know. We shall be pleased to give you our lowest quotations upon receipt of your detailed requirements. If we find Riesling and other kinds of wine at your end satisfactory and to consumers’ taste at our end, we will place regular orders with you. In this circumstances, we will very much appreciate it if you can give us a special quotation to make our price competitive here in the market. (4) We should be obliged if you should give us an early reply. Your prompt reply would be greatly appreciated. If you become aware of that business is possible, please cable us for offers. We look forward to your specific enquiries with keen interest. We are looking forward to your reply. We should appreciate a prompt reply. (5) In our trade with merchants of various countries, we always adhere to the principle of equality and

mutual benefit. It is our hope to promote, by joint efforts, both trade and friendship to our mutual advantage. 2 Replies (exporter) Offers (1) Thank you for your enquiry of January 1 about our products. We thank you for your inquiry of 8th February for our handmade carpets and handmade bags. We are informed in your letter of February 4 that our products are enjoying fast sales. In view of this case, we wish to extend the sales of our products to your market and now we are sending you our offer for our new products: We have received you fax dated March 6, 1997, requesting us to make you an offer with engagement for the captioned goods of Swallow Brand Pullover CFR Europe Main Ports, say, Copenhagen. (2) As requested, we enclose our illustrated catalogue and price list with details of discount. We also post the sample book under separate cover. We regret that we have no stock of bags at present, and we will get new resource of raw material next month. Please be sure that we will notice you as soon as we get it. As for the carpets, we offer as follows: In view of this case, we wish to extend the sales of our products to your market and now we are sending you our offer for our new products: In our fax today, we offered you 6,000 pieces of Swallow Brand Pullover at USD $200 net per piece CFR European Main Port for shipment to be made in three equal monthly installments, starting from April 28, 1997. (3) It is understood that unless otherwise stated, all prices quoted are on the basis of CIF terms without commission. As for the carpets, we offer as follows: Commodity: handmade carpets Specification: 1.5m * 1.5m Packing: 20 pieces in one wooden case Quantity: 20 cases Price: USD150 per price CIF Vancouver Shipment: March/April, 1997

Commodity: Men’s shirt Specification: S/3, M/6, L/3 Colors: white, blue, green and yellow Quantity: 6,000 dozen Packing: each in a plastic bag and 10 dozen in a kraft-paper box Shipping Mark: at the buyer’s option Unit Price: US$300 per dozen CIF 2% Melbourne Shipment: February / March, 1997 Terms of Payment: By 100% confirmed, Irrevocable Letter of Credit payable by draft at sight to be opened 30 days before the time of shipment. In our fax today, we offered you 6,000 pieces of Swallow Brand Pullover at USD $200 net per piece CFR European Main Port for shipment to be made in three equal monthly installments, starting from April 28, 1997. (4) This offer is firm, subject to our final confirmation before 16th February. We have to make you clear that we have quote the most competitive price and we unable to entertain any counter-offer. The market of our handmade products is brisk and we think you can avail yourself of this chance to make profit. This offer is firm, subject to your reply here by 7th February. We can ensure you that we have quoted the most favorable price and we are unable to entertain any counter-offer. We hope you may avail yourself of the approaching season and send us an immediate reply. (5) If you require any further information, please don’t hesitate to contact us. Looking forward to receiving your orders without delay. Look forward to your reply soon. We hope you may avail yourself of the approaching season and send us an immediate reply. (6) As you already noted that in the past few years many dealers have placed substantial orders with us and some have even pressed us for repeat orders. We have confidence that our products are salable in your market and will bring profit to your firm. We hope you may avail yourself of the approaching season and send us an immediate reply. 3 Counter-offers (importer) Thank you for your letter of February 5, 1997, offering us 6,000 dozen Men’s Shirts.

In reply, we regret to advise you that our end users here find your price too high and out of line with the prevailing market level, as other sellers in your neighboring countries are offering them products of the same kind at a very low price. Although we are informed that the price of the raw material in the mainland is going with an upward tendency, yet we must remind you that here at our end most of the products labeled “Made in China” can not be sold fast at a higher price in big department stores, especially at their fist stage entering the market. In view of our long-standing business relatonship and our confidence in your product’s quality, we would suggest that you consider this prospective business in its entirety and long-term interests. It would be welcome if you could reduce your price by say, 15%. We hope that suggestion is acceptable to you. Look forward to your early reply. 4 Counter-offers (exporter) We have read your letter of February 6th on the above subject that our price for the captioned article is found to be on the high side. After carefully studying your suggestion we find to our regret that we can not see our way clear to entertain your counter-offer, as the price we quoted leave us little margin of profit; they are, in fact, lower than those of our competitors for goods of similar quality, We hope you can understand our inability to reduce our price by 15% as requested by you, if we do as you required, we will put our sales in great financial problems as our manufacturing cost is very high. Considering our long-term business relationship, we take the advantage of this chance to make you our counter-suggestion, i. e., instead of 15% reduction on the goods, we suggest a reduction of 7%. You prompt reply is welcome. 5 Conclusion of business (1) We have acknowledged your Order No. 268 and thank you for placing orders with us. As a result of recent exchange of faxes between us as per confirmation copies attached, we have confirmed accepting your Offer No. 168 for 60 metric tons Green Peas FAQ 1997 Crop at USD…per m/t CIF Rotterdam, other terms as per Purchase Confirmation No. 169 in duplicate, one copy of which please sign and return us for file.

We confirm having purchased the captioned goods on the following terms and conditions: (2) We have made arrangements with our manufacturers to assure you that delivery will be punctual. In regard to the terms of payment, we wish to reiterate that our customary practice is by 100% Confirmed, Irrevocable, Transferable and Divisible Letter of Credit in our favor to be available by sight draft and to remain valid for negotiation in China until the 10th day after the aforesaid time of shipment. As a result of recent exchange of faxes between us as per confirmation copies attached, we have confirmed accepting your Offer No. 168 for 60 metric tons Green Peas FAQ 1997 Crop at USD…per m/t CIF Rotterdam, other terms as per Purchase Confirmation No. 169 in duplicate, one copy of which please sign and return us for file. We trust you will follow carefully our instructions, together with our purchase confirmation and effect shipment as contracted. Meanwhile, we are taking all necessary steps to open the relative L/C and hope it will reach you duly. Price: Quantity: Packing: Payment: Shipment: CIF Qingdao per set…in US dollars 2,000 sets in wooden case lined with water-proof papers and plastic foam by Telegraphic Transfer within 30 days from the date of invoice in one lot to be shipped from San Diego to Qingdao during April, 1997, preferably by direct steamer Shipping Marks: the initial letter of our company should be on each case like the drawing attached Remarks: submit the following documents to us: Bill of Lading Commercial Invoice Certificate of Quality Certificate of Quantity Insurance Policy Weight Memo Certificate of Origin (3) As requested in your previous letter, we have sent you our Sales Confirmation No.368 in duplicate and look forward to one copy duly counter-signed sent back by you. we have confirmed accepting your Offer No. 168 for 60 metric tons Green Peas FAQ 1997 Crop at USD…per m/t CIF Rotterdam, other terms as per Purchase Confirmation No. 169 in duplicate, one copy of which please sign and return us for file. (4) We appreciate your faithful cooperation and hope that our handling of this first order of yours will

lead to further business between us. We anticipate hearing from you soon The goods are urgently required, so prompt delivery is appreciated. 6 Purchase Order We shall be glad if you would make confirmation on and execute this order with all the particular stipulated as follows: Item Description Quantity Unit Price Amount

For Delivery Packing:

Totaling: Payment: Remarks:

Authorized Signature

Export/Import Manager David Peter

Please acknowledge receipt and acceptance of this order by signing underneath.


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