The Egyptian Center for Studies

of Export & Import






Our Guide in
THE INTERNATIONAL TRADE
LEGISLATIONS AND PROCEDURES
(Summary)
MAY 2009
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INTERNATIONAL TRADE
PROCEDURES.
EXPORT PROCEDURES AND
PRACTICE.

General Manager
Legal Consultation
Mr.Medhat Saad Eldin
--------------------------
TERMS & DOCUMENTATION

Incoterms 2000
Methods of Payment
Methods of Transport
Documents
Revenue & Customs


Incoterms 2000

Every international sales Contract should include an
Incoterms.

There are 13 Incoterms.

Define:-

who arranges pays for what
where risk passes

The Thirteen Incoterms

EXW (Ex works)
FCA (Free Carrier)
FAS (Free Alongside Ship)
FOB (Free on Board)
CFR (Cost and Freight)
CIF (Cost, Ins and Freight)
CPT (Carriage Paid To)
CIP (Carriage & Ins Paid To)
DAF (Delivered at Frontier)
DES (Delivered Ex Ship)
DEQ (Delivered Ex Quay)
DDU (Delivered Duty Unpaid)
DDP (Delivered Duty Paid


Page 1



















Methods of Payment

Cash in Advance
Open Account
Bills of Exchange
Letter of Credit

Cash in Advance

You receive the money in advance.
You then forward Customer goods.

Open Account
You forward goods to Customer
He pays in on receipt of goods
30/60/90/180
Methods of Payment
Cash in Advance
Open Account
xchange
Letter of Credit
Cash in Advance
You receive the money in advance.
You then forward Customer goods.
Open Account
You forward goods to Customer
He pays in on receipt of goods
30/60/90/180 days
Page 2

Bills of Exchange

A “you owe me note”
Sent to Customers Bank with Export
documentation through Banking system.
Customer pays or accepts the Bill of
exchange then gets Goods.
Can be at sight or 30/60/90/180 days.

Letter of Credit


Customer opens L/C through His Bank.
L/C lists:
• description of goods
• documents required
• how they should be made out
• amount of money to be paid
• latest shipment date
• latest date documents can be Presented.

Original L/C passed to Seller
Through banking system.

Letter of Credit

Provided Seller presents Documents in
Conformity with Letter of Credit he will
be paid.
Letters of Credit often request Certificates of Origin.







Page 3
Letter of Credit (L/C) transactional flow diagram
The Telegraphic Transfer (T/T)

It is a very high
almost no risk for the exporter.

An importer can pay the exporter using cash,
telegraphic transfer (T/T), Western Union or Money
Gram or other payments that is agreed by both parties.

Telegraphic transfer (T/T) the most common payment
method that requires the use of cable or telegraph (less
in use these days) to remit funds. Money does not move
physically.

The order to pay is wired to an institutions’ casher to
make payment to a company or individual. The same
principle applies with Western U

Letter of Credit (L/C) transactional flow diagram


The Telegraphic Transfer (T/T)
It is a very high-risk method for the importer
almost no risk for the exporter.
An importer can pay the exporter using cash,
telegraphic transfer (T/T), Western Union or Money
Gram or other payments that is agreed by both parties.
Telegraphic transfer (T/T) the most common payment
hat requires the use of cable or telegraph (less
in use these days) to remit funds. Money does not move
The order to pay is wired to an institutions’ casher to
make payment to a company or individual. The same
principle applies with Western Union and Money Gram.
Page 4
Letter of Credit (L/C) transactional flow diagram

risk method for the importer and with
An importer can pay the exporter using cash,
telegraphic transfer (T/T), Western Union or Money
Gram or other payments that is agreed by both parties.
Telegraphic transfer (T/T) the most common payment
hat requires the use of cable or telegraph (less
in use these days) to remit funds. Money does not move
The order to pay is wired to an institutions’ casher to
make payment to a company or individual. The same
nion and Money Gram.
Methods of Transport

Road
Rail
Air
Sea
A Combination (Multi Modal)

Each form of transportation has its own Special transport
document.

Documentation

Commercial Documents
Transport Documents
Official Documents

Commercial Documents

Pro-Forma Invoice
Invoice
Packing List
Weight Note

Transport Documents:

• CMR Note
• Bill of Lading
• Airway Bill
• CIM Note
• Certificate of Shipment
• Standard Shipping Note
• Dangerous Goods Note
• Export Cargo Shipping Instruction
• Insurance Certificate


Page 5

Official Documents

Certificate of Origin
SAD Customs document
Consular Invoice
Legalized Invoice
(e.g.) EUR1 or ATR Movement
Certificate

Revenue & Customs


Rules governing export
Custom Tariff


Overseas Customs Authorities

Rules governing import at Overseas destination.

Import at Overseas Destination

Different requirement for:-
• different countries
• different products

Documentation will be required To show any mandatory
Statement.

Check Tates/Croners.


Page 6
Our International

Contractual
United Nations
Trade Law (Uncitral)
International Chamber of
FIATA Combined Transport Bill of Lading
FIATA Multimodal Transport Bill of Lading
BIMCO Combined
BIMCO Liner
UNCTAD/ICC Rules for Multimodal Transport
Documents.

International Trade Contracts
We advise on drafting of sale/
Purchase contracts and associated
documentation Including:
Documentary
Prepayment
Structured trade finance and
Collections
Our International
Contracts


Contractual Rules
United Nations Commission on International
Trade Law (Uncitral).
International Chamber of Commerce (ICC)
FIATA Combined Transport Bill of Lading
FIATA Multimodal Transport Bill of Lading
BIMCO Combined Transport Bill of Lading
BIMCO Liner Bill of Lading 2000.
UNCTAD/ICC Rules for Multimodal Transport
.
International Trade Contracts
We advise on drafting of sale/
contracts and associated
Including:
Documentary credits,
Prepayment facilities,
trade finance and
account mechanisms
Page 7
Our International
Commission on International
ICC) .
FIATA Combined Transport Bill of Lading.
FIATA Multimodal Transport Bill of Lading.
Transport Bill of Lading 1995.
UNCTAD/ICC Rules for Multimodal Transport
International Trade Contracts
Agent Contract

• DIFFERENT BROKERAGE
• RELATIONSHIPS ARE
AVAILABLE WHICH INCLUDE
• BUYER AGENCY,
• SELLER AGENCY OR
TRANSACTION

STANDARD TERMS AND
CONDITIONIS
AGENT CONTRACTS



DISTRIBUTION

There are many ways for a supplier
To bring its products or services
to market.

It may sell directly through
Employees
It may sell through commission sales
agents who do not take
It may sell to independent wholesalers
or distributors.


Agent Contract
DIFFERENT BROKERAGE
RELATIONSHIPS ARE
AVAILABLE WHICH INCLUDE
BUYER AGENCY,
SELLER AGENCY OR
TRANSACTION - BROKERAGE.
TANDARD TERMS AND
CONDITIONIS OF TRAVEL
CONTRACTS
DISTRIBUTION CONTRACTS
There are many ways for a supplier
To bring its products or services
It may sell directly through
to the ultimate user.
It may sell through commission sales
agents who do not take title.
It may sell to independent wholesalers
or distributors.

Page 8


It may sell to independent wholesalers
International commodity contracts
including:

oil,
gas,
coal,
steel,
grain and
feed, rice,
edible oil,
sugar,
coffee and cocoa

Arbitrations Studies

Before (among other bodies):

• Uncitral Rules,
• GAFTA,
• FOSFA,
• RSA,
• SAL,
• FCC,
• LCIA and
• ICC Rules.





Page 9
Sales Contract for Export


Adopting General Standard Conditions is legally binding,
whether or not both parties are aware of or understand
every provision.


Export sales contract can be informal or formal, depending
on the foreign buyer.
An offer to sell made over the telephone by the exporter,
covering:

The type of good,
Quantity to be sold,
Per unit price and delivery and
Payment terms accepted by the foreign
Buyer or an offer to buy from the
Importer.

Such a contract may be preceded by the series of offers
and counter-offers before the final offer and
acceptance.

Such a contract may or may not be confirmed in writing
It usually occurs between branches of the same
company or between long-standing trade partners or
between reputable companies dealing in commodities
subject to rapid price changes.

An offer to sell made by:

Airmail,
Courier,
Telex,
Cable,
Facsimile or E-mail by the exporter and
Accepted by the foreign buyer.



Page 10
Contract for international
commercial agent

Articles:

1. Products and Territory
2. Functions of the Agent
3. Acceptance of Orders
4. Obligation to meet a minimum sales objective
5. Exclusivity
6. Commitment not to compete
7. Obligation to inform the Principal
8. Obligation to inform the Agent
9. Confidentiality
10. Subagents
11. Prohibition of other Territories
12. Trade Marks, Brand names, logos and other industrial
Property rights
13. Technical support
14. After-sales service and maintenance
15. Advertising and publicity
16. Financial responsibility of the Agent
17. The Agent’s Commission
18. Reduced Commission
19. Margin of negotiation and discounts
20. Calculating commission
21. Currency of commission payment
22. Exchange rates applicable to commission
23. Date of payment of commission
24. Transactions with entitlement to commission
25. Commission for transactions after completion of contract
26. Sales expenses and travel costs
27. Taxation
28. Termination of contract
29. Compensation for termination
30. Term of contract
31. Arbitration
32. Amendments
33. Granting of rights to third parties
34. Language
- Annex I.- Products and Territory
- Annex II.- Commissions

and more………………………..
Page 11
Export Transportation
A

Export Transportation
nd Shipment



























Page 12
Shipping & Freight
Abbreviation



Trucking
Courier
Companies
Container
Calculator
Container
Shipping & Freight
Abbreviation






Forwards &
Agents
Trucking
Courier
Companies
Air Cargo
Air Cargo
Line
Marine
Cargo
Marine
Cargo Line
Shipping
Tools
Container
specs
World
port code
Sea & Air
Page 13
Shipping & Freight
Marine
Cargo
Marine
Cargo Line
Sea & Air
Types of marine cargo carriers

Narrow by Cargo Carrier:

• Developer
• Manufacturer
• Operator
• Provider

Expand By:

• Break-bulk Cargo
• Cargo Transportation
• Charters
• Container Load
• Containers
• Express Delivery
• Freight Forwarding
• International Freight
• Ocean Freight
• Vessel
• Wrap

LEGAL MARTIME CONTRACTS and
Agreements


VESSEL CHARTER AGREEMENT
A Space Charter Agreement
VESSEL SHARING AGREEMENT
Abandoned Vessel Project Agreement
Yacht Charter Agreement
BERTHAGE AND VESSEL STORAGE AGREEMENT
BROKERAGE AGREEMENT
Customs Power of Attorney
Charter Agreement and Booking Deposit
Crewed Charter Agreement
Time Charter Agreement
Release of Liability and Assumption of Risk
Agreement
AGREEMENT FOR THE SALE AND PURCHASE OF A
SECONDHAND VESSEL
Vessel Mooring Agreement
Admiralty Digital List of Lights
Page 14
Commercial significance of
multimodal transport

Multimodal Transport Contracts is:

No single authoritative definition and:

Carriage by two or more modes of transport.
Door-to-door transport.
One contract with one party assuming responsibility
throughout.
One document.
Terms also used:

• Intermodal transport,
• combined transport

Multimodal Transport Operator’s Cargo Liability.

Shipping Claims

Arrest of vessels
Bill of lading claims
Cargo damage, loss and contamination
Collisions and salvage
Formal investigations and public inquiries
Freight and demurrage claims
General average
Insurance claims (P&I, Hull & Machinery,
Cargo)
Management contract disputes
Maritime labour law and ITF issues
Passenger and crew claims
Time and voyage charter claims

Shipbuilding, Ship Finance, Sale and Purchase

Cooperation and pooling agreements
Management structures
Offshore units
Reflagging
Sale and purchase
Shipbuilding contracts
Ship finance and securities
Page 15
Export Transportation and Shipment



"...freight costs are computed by shipping company based on
both weight and cubic size and charges the higher cost..."

♣ Quick!

Because foreign buyers, in making decision to purchase, will
be taking into account the exporter's delivery time.

♣ Fast delivery

It is obviously an important competitive edge for an
exporter. Of course, the actual delivery date will depend on
stocks, production as well as shipping time.

♣ Carefully

Because the foreign buyer wants to receive the goods intact.
In this way, the exporter gains customer satisfaction and
avoids trouble and expenses of filling insurance claims and
reshipping all or part of the order.

♣ Economically

Because the freight cost can be a substantial part of the final
export price. The lower the freight cost, the more
competitive the export price quotation.


Flag Preference

♣ In some cases, the foreign buyer arranges the
transportation of the goods himself.
♣ Many countries now insist that their importers use the
country's own merchant fleet or flag line for importing
goods so as to conserve foreign exchange.
♣ Usually, as an incentive, a lower rate of import duty as
well as lower consulate fee are offered.
♣ When the foreign buyer arranges their own
transportation, the exporter's only responsibility is to
get the goods to the port of shipment.



Page 16
Freight Forwarder

♣ Many exporters, make their own transportation
arrangements.
♣ Others, delegate this task, on a fee basis, to specialized
firms known as Freight Forwarders.
♣ These can be either ocean freight forwarders or air
forwarders.


Freight Forwarders usually offers a variety of services:


♣ Advising on the best routes and relative shipping costs.
♣ Booking the necessary space with the shipping or
airline.
♣ Consolidating shipments from different exporters.
♣ Handling Customs clearance abroad.
♣ Arranging marine insurance for the shipment.
♣ Preparing the export documentation.
♣ Translating foreign language correspondence.
♣ Scrutinizing and advising on ability to comply with
letters of credit.
♣ Arranging with the exporter for packing and marking of
the goods According to:
• The size of their firm,
• Number of branches overseas,
• Most freight forwarders will offer all or some of
the above services.


♣ However, all freight forwarders will advise on the
booking of shipping space.
♣ Many freight forwarders handle both exports and
imports and may also act as Customs brokers.

Alternative Shipping Methods

♣ In shipping goods abroad, the exporter has various
alternative methods.
These include:
• Ship,
• Truck,
• Rail,
• Air and
• Parcel post.

Page 17
♣ The choice will depend on the nature of the product:

• Light
• Heavy,
• Fragile
• Sturdy,
• Perishable
• Durable,
• High or low in value per cubic meter,
• The distance to be shipped;
• Available means of transportation;
• Relative freight costs.
• Goods having high weight or
• Cubic capacity
• Value ratio
• The usual method of shipping overseas is by ocean
cargo vessel.

♣ However, when speed is essential, air cargo may be
preferred, although more expensive. For example, ski
jackets are shipped from Germany to Japan by sea but
towards the end of the ski season, air cargo is used.



Ocean Shipping Methods

"...freight cost is computed by shipping company based on
both weight and cubic size and charges the higher cost..."

O Oc ce ea an n S Sh hi ip pp pi in ng g

It is normally best to use ocean-going cargo vessels to
transport heavy or bulky goods and liquids. Here,
reasonable speed and safety is combined with a
relatively economical cost.

♣ In shipping your goods by sea, you can choose from
different types of ocean shipping:
• Conference Lines,
• Non-Conference Lines,
• Tramp Shipping Lines,
• The National Flag Lines

♣ Conference lines charge two different shipping rates for
the goods carried.

Page 18
• The lower rate is available to exporters who sign an
exclusive patronage contract whereby they agree to
use only the conference line ships for their goods on
the routes served by the conference lines.

• Exporters who have not signed such a contract can still
ship by conference line ships but at a higher freight
rate.

1 1. . C Co on nf fe er re en nc ce e L Li in ne es s

A conference" is a group of shipping companies that have
agreed amongst themselves to levy the same freight rates
and to observe the same shipping conditions (e.g. liability for
damage to the exporter's goods).
Such conference lines operate on all the observed regular
shipping schedules, an important consideration for the
exporter who needs to be able to quote reliable shipping and
delivery dates.

2 2. . N No on n- -c co on nf fe er re en nc ce e l li in ne es s

These are individual lines that operate on the traditional
shipping routes with regular sailing schedules and in
competition with the conference lines.
They have their own individual freight rates - as much as 10
percent lower than the conference ones.
Bookings are accepted from any shipper so long as space is
available. No exclusive patronage contracts are required.


3 3. . T Tr ra am mp p L Li in ne es s

These are companies that do not have a fixed route or
schedule of sailing. Instead, they operate on a per voyage
basis.
Usually, their freight rates are extremely competitive.


4 4. . N Na at ti io on na al l o or r F Fl la ag g L Li in ne es s

The exporter may receive a lower rate of import duty and
other benefits if he uses the national shipping line of the
importing country.



Page 19
5 5. . S St te ea am ms sh hi ip p A Ag ge en nt t

This person is employed by a shipping company to arrange
for the berthing and clearance of vessels, including Customs
formalities, loading and unloading of cargo, preparation of
bills of lading, the booking of shipping space, etc.


6 6. . S Sh hi ip p B Br ro ok ke er r

Such a person acts as an intermediary between the shipping
companies on the one hand and the exporters on the other.
He helps arrange "charters" or booking for tramp vessels
and advises ship owner on competitive rates.

O Oc ce ea an n F Fr re ei ig gh ht t R Ra at te es s

♣ The freight rates Most commonly charged by the
steamship lines are both Conference and Non-
Conference is known as Line Terms.
♣ Which includes the cost of carrying the goods from one
port to another but also the cost of loading the goods
on to the ship in the port of shipment and unloading
them at the foreign port?
♣ As well as any harbor charges that the ship may incur.
♣ However, the freight rate does not include certain
terminal charges that may be levied by the harbor
authorities against the cargo.

A An no ot th he er r t ty yp pe e o of f f fr re ei ig gh ht t

Rate that may be charged is free in and out (FIO) Here
the exporter pays for the transporting of the goods as
well as pay for the stevedoring i.e., the loading and
unloading of the goods which must be completed within
a certain time, otherwise, penalties, called demurrage,
will be levied.

With both types of freight rates, the shore-based costs
of loading and unloading the cargo represent a
substantial part of the ocean transportation costs.
In recent times, the growing use of Containers has
helped reduce this cost, as well as the pilferage that
sometimes takes place with traditional forms of cargo
loading and unloading.

Page 20
F Fa ac ct to or rs s t th ha at t i in nf fl lu ue en nc ce e t th he e r ra at te e c ch ha ar rg ge ed d f fo or r a an ny y
p pa ar rt ti ic cu ul la ar r t ty yp pe e o of f c ca ar rg go o. .

1. The weight of the goods being shipped
2. The dimensions of the goods being shipped
3. The shape of the goods
4. Ease of damage
5. Ease of pilferage
6. Need for refrigeration or other special conditions
7. Direction of traffic

F Fr re ei ig gh ht t c co os st t i is s c co om mp pu ut te ed d b by y t th he e s sh hi ip pp pi in ng g c co om mp pa an ny y
b ba as se ed d o on n b bo ot th h: :

♣ Weight and cubic size and
♣ Charges the higher cost.

The freight charge is usually quoted at so many "$" per
tone, by weight or measure, whichever is greater.
A short ton is 2,000 pounds;
a long ton, 2,240 pounds;
a metric ton, 2,204.68 pounds.
Space measurement is usually 40 cubic feet or one
cubic meter.


F Fr re ei ig gh ht t S Su ur rc ch ha ar rg ge es s

"...depending on the circumstances, shipping companies may
levy one or more charges..."

Levy of additional charges include:

♣ Currency Exchange surcharge to allow for charges in
foreign exchange rates after publication of freight
rates.

♣ Bunkers Surcharge to allow for higher world oil prices,
as determined by
OPEC.

♣ Basic Rate Services Additional for Containers.
This is a "stuffing" charge for containers to cover
stuffing and "un-stuffing"
The container, even though you may have stuffed it
yourself.
Page 21

♣ Equipment Handling Charge for Containers.
this is heavy lift charge for goods shipped in
Containers.
♣ Port Surcharge this is an extra charge to cover extra
port fees e.g. for
Shallow draft vessels.
♣ Congestion Surcharge this is to help offset the extra
cost of shipping Delays caused by port congestion.

S Sh hi ip pp pi in ng g S St to ow wa ag ge e

"Which part of the ship?"

The exporter's goods may be placed or "stowed" in different
parts of the ship according to arrangements made.
Regular Stowage
If no special request is made, the exporter's goods are
placed:
anywhere in the regular holds,
below deck,
With other goods probably stacked on top.
To avoid damage from crushing, etc., the exporter's goods
need to be well packed in a strong box.
Special Stowage
The exporter may request, at extra cost, that his goods be
placed in the freezer hold or for certain perishable goods, he
may request that they be stowed away from the heat, but
not refrigerated or refrigerated, but not frozen.
On Deck Stowage
The cheapest way of shipping goods by sea is to have
them carried on deck. However, such goods are then
exposed to the weather with no liability of the shipping
company for such damage.
Also, of course, such goods would be the first to be
thrown overboard or jettisoned should the ship run into
trouble and need to be lightened. Because of the above
factors, marine insurance rates for such goods are
higher than for goods stowed below deck.
Page 22
Liquid Cargo
Most ocean cargo vessels have liquid cargo tanks on board
with capacities ranging from 20,000 to 40,000 gallons.
Many of these are located in the lowest part of the vessel
and are often filled with seawater, if no liquid cargo is
available. Other such tanks are between the decks. For very
large liquid cargo, specialized tanker ships are used.
Containers
These are metal rectangular boxes of various sizes that can
be leased for one voyage or on a round-trip basis. Goods
shipped in containers are levied a special charge additional
to the regular freight rate.
Implementation of ISPM No. 15















Page 23
Marine Insurance Policy.















An insurance certificate is a representation of the
insurance policy taken out by the buyer or the seller
(depending on the Incoterms) for a shipment.


Blank insurance certificates are supplied by the insurer
pre-signed and bearing the open policy number of the
exporter. For an air shipment, an air waybill serves as
an insurance certificate.


For a sea shipment, an insurance certificate is issued as
evidence of the existence of the marine insurance
policy.


The marine insurance policy is a contract between the
insured and the insurer which defines the terms of the
agreement between the insured and the insurer.



Institute Clauses

The Institute Clauses of the Institute of London Underwriters
often referred to as the London Clauses or English Clauses
form the basis of the cargo insurance contract in many
countries.

Page 24
Institute Cargo Clauses A, B & C

Institute Cargo Clauses "C"

Cover loss of or damage to the subject matter insured,
"reasonably attributable to:"

Fire or explosion.
Vessel of craft being stranded, grounded, sunk or
capsized.
Overturning or derailment of land conveyance.
Collision or contact of vessel, craft or conveyance with
any external object other than water.
Discharge of cargo at a port of distress.

Institute Cargo Clauses "B"

Provide all the cover that is available under the "C" clauses,
but in addition cover is given for loss or of damage to the
subject matter insured "reasonably attributable to":

• Earthquake,
• volcanic eruption or
• Lightening.
The insurance also covers loss of or damage to the subject
matter caused by:
Washing overboard.
Entry of sea, lake or river water into the vessel, craft,
hold, conveyance, container, lift van or place of
storage.
Total loss of any package lost overboard or dripped
while loading on to or unloading from vessel or craft.









Page 25

Institute Cargo Clauses "A"

Provide coverage for all risks of loss or damage to the
subject matter insured. The words "all risks" should be
understood in the context of the "A" clause to cover
"fortuitous loss", but not "loss that occurs inevitably."

General exclusions:


Willful misconduct of the assured.
Ordinary leakage, ordinary losses in weight or volume
or ordinary wear and tear.
Insufficient or unsuitability of packing or preparation of
the subject matter insured.
Inherent vice or nature of the subject matter insured.
Delay.
Insolvency or financial default of carrier.
Deliberate damage to or deliberate destruction of the
subject matter insured.
Loss arising from nuclear weapons.



























Page 26
Construction Contract
BUILD-OPERATE-TRANSFER (B.O.T)

The Manual covers the entire spectrum of financial and legal
issues faced by government authorities and project
managers in the development of BOT projects, while offering
developing countries the basic orientation needed to design
effective BOT strategies.
also provide essential practical information on the structure
and procedures of BOT arrangements and are intended to
help reduce the time and costs involved in developing and
contracting BOT projects.

Basics for ECSEI Studies

♣ Introduction to the BOT concept;
♣ Phases of a BOT project;
♣ Economic framework for BOT schemes;
♣ The Government's role in providing for successful BOT
projects;
♣ Transfer of technology and capability building through
BOT projects;
♣ Procurement issues and selection of sponsors;
♣ Financial and economic appraisal of BOT projects;
♣ Risk identification and management; financial
structuring of BOT projects;
♣ The contract package;
♣ The project agreement;
♣ The construction agreement;
♣ Operation and maintenance contracts;
♣ Transfer of ownership; and
♣ Factors that determine success.
♣ BOT and Dispute Settlement Case

Basic principle of “users pay”:

Cost of financing the capital investment to the private
sector;
Beneficiaries pay for the benefit.
Government’s role:

Regulatory and in some cases, provides subsidy, equity or
guarantee performance.
Page 27
Analytical framework

Long-term contracts:

Long-term obligations are committed ex ante; benefits
are realizable expos
Incomplete contracts theory
Bounded rationality


FIDIC Conditions
of Contract

FIDIC is the international federation of national
associations of independent consulting engineers.
Founded in 1913 by the national associations of three
European countries, now with membership from over
60 countries.
The International Federation of Consulting Engineers
(FIDIC) has been publishing standard forms of
construction contracts which have been widely used in
the international construction industry since 1957.
Contractors participating in international infrastructure
projects have frequently used FIDIC's Conditions of
Contract of Works of Civil Engineering Construction,
The famous Red Book, or the Conditions of Contract for
Electrical and Mechanical Plant, the Yellow Book, as the
basis for the contracts they offer to the client.
Likewise, owners or Employers, often public authorities
in a wide variety of countries have issued invitations to
tender incorporating contracts based on the same
books (although often with a deliberate reallocation of
risk back to the Contractor).

With an increasing number of projects being financed
privately through Build Operate Transfer or concession
type structures, lenders financing on a limited or non-
recourse basis have also come to know the FIDIC
books.

Page 28

The Orange Book

on Thursday September 23, 1999, FIDIC published a
harmonized suite of four contracts including the first edition
of "Conditions of Contract for EPC Turnkey Projects" -
distinguishable, like the other books, by the color of its cover
- the "Silver Book".

The Silver Book is,

For the first time, expressly aimed at providing:

• A fixed price,
• Date certain,
• Engineering,
• Procurement and construction

("EPC") contract with a risk allocation which is suitable for
projects being financed by private lenders on a limited or
non-recourse basis.
If it works, this is a very important contribution to the
industry.


The fact that the construction contract for such a
project is based on a FIDIC model has often been a
source of comfort.


The Traditional FIDIC Forms of Contract

Conditions of Contract for Works of Civil Engineering
Construction (Red Book)
Conditions of Contract for Electrical and Mechanical
Works including Erection on Site (Yellow Book)
The Practical Use of the 1999 FIDIC Conditions of
Contract” & Multilateral Development Banks’
Harmonized Conditions of Contract 2006



Page 29
The Food and
Administration
FDA is an agency within the Department of Health and
Human Services and

• Center for Biologics Evaluation and Research (CBER)
• Center for Devices and Radiological He
• Center for Drug Evaluation and Research (CDER)
• Center for Food Safety and Applied Nutrition (CFSAN)
• Center for Veterinary Medicine (CVM)
• National Center for Toxicological Research (NCTR)
• Office of Chief Counsel
• Office of the Commissioner (OC)
• Office of Regulatory Affairs (ORA)

All imported products are required to meet the same
standards as domestic goods. Imported foods must
be:

Pure
Wholesome
Safe to eat and produced under sanitary conditions.
Drugs and devices must be safe and effective
Cosmetics must be safe and made from approved
ingredients; radiation
Devices must meet established standards and,
All products must contain informative and truthful
labeling in English.

ADDITIONAL FORMS

In addition to required entry forms
Certain products require specific information to be
presented to FDA at time of importation:

Foreign firms must register and file processing
information before shipping any low
or acidified low

The Food and Drug
Administration
(FDA)
FDA is an agency within the Department of Health and
Services and consists of nine centers/offices
Center for Biologics Evaluation and Research (CBER)
Center for Devices and Radiological Health (CDRH)
Center for Drug Evaluation and Research (CDER)
Center for Food Safety and Applied Nutrition (CFSAN)
Center for Veterinary Medicine (CVM)
National Center for Toxicological Research (NCTR)
Office of Chief Counsel
Office of the Commissioner (OC)
ffice of Regulatory Affairs (ORA)
All imported products are required to meet the same
standards as domestic goods. Imported foods must

Safe to eat and produced under sanitary conditions.
Drugs and devices must be safe and effective
Cosmetics must be safe and made from approved
ingredients; radiation-emitting.
Devices must meet established standards and,
All products must contain informative and truthful
labeling in English.
ADDITIONAL FORMS
In addition to required entry forms:
ertain products require specific information to be
presented to FDA at time of importation:
Foreign firms must register and file processing
information before shipping any low-acid canned food
or acidified low-acid canned food to the United States.
Page 30
FDA is an agency within the Department of Health and
consists of nine centers/offices:
Center for Biologics Evaluation and Research (CBER)
alth (CDRH)
Center for Drug Evaluation and Research (CDER)
Center for Food Safety and Applied Nutrition (CFSAN)
National Center for Toxicological Research (NCTR)
All imported products are required to meet the same
standards as domestic goods. Imported foods must
Safe to eat and produced under sanitary conditions.
Drugs and devices must be safe and effective
Cosmetics must be safe and made from approved
Devices must meet established standards and,
All products must contain informative and truthful
ertain products require specific information to be
Foreign firms must register and file processing
acid canned food
acid canned food to the United States.
This information must be provided to FDA for each
applicable product at the time of importation in order to
assure compliance with registration and process filing
acceptance.

FDA's IMPORT ALERTS

• The Food and Drug Administration (FDA) mission
is to enforce the Federal Food, Drug, and Cosmetic
(FD&C)

• Act and other laws which are designed to protect
consumers' health, safety, and pocketbook.

• These laws apply equally to domestic and imported
products.

This is a list of Alert categories.

• Food
• Color Additives
• Conveyances
• Cosmetics
• Vitamins
• Human Drug
• Biologics
• Animal Drug & Feeds
• Medical Devices & Diagnostic Products
• Rad Health
• Miscellaneous














Page 31
The International
Maritime Organization
DSC.1/Circ.54
18 October 2007
CARRIAGE OF DANGE

Information on the amendments to the marine pollutants
provisions, which will enter into force through amendment
34-08 to the IMDG Code on a voluntary basis from
1 January 2009 and mandatory from
The Sub-Committee on Dangerou
and Containers
September 2007
to inform industry on how the International Maritime
Dangerous Goods (IMDG) Code will be amended to
address marine pollutant provi
2009, on a voluntary basis and from
when it becomes mandatory, agreed to the information,
as detailed in the annex, for circulation pending the
entry into force of amendment

Member Governments a
are invited to bring the above
attention of all concerned.

Definition

Marine pollutants mean substances which are subject to the
provisions of Annex III of MARPOL
These are substance
to the aquatic organisms and the aquatic ecosystem of which
they are a part and can be either in the form of liquids or
solids.


General provisions

• Marine pollutants will have to be transported under the
provisions of the revised Annex III of MARPOL
The International
Maritime Organization
(IMO)

CARRIAGE OF DANGEROUS GOODS
Information on the amendments to the marine pollutants
provisions, which will enter into force through amendment
to the IMDG Code on a voluntary basis from
and mandatory from 1 January 2010
Committee on Dangerous Goods, Solid Cargoes
and Containers, at its twelfth session (17 to 21
2007), noting that it would be appropriate
to inform industry on how the International Maritime
Dangerous Goods (IMDG) Code will be amended to
address marine pollutant provisions from 1 January
on a voluntary basis and from 1 January
when it becomes mandatory, agreed to the information,
as detailed in the annex, for circulation pending the
entry into force of amendment 34-08 of the IMDG Code
Member Governments and international organizations
are invited to bring the above information to the
attention of all concerned.
Marine pollutants mean substances which are subject to the
provisions of Annex III of MARPOL 73/78, as amended
These are substances, solutions or mixtures that are harmful
to the aquatic organisms and the aquatic ecosystem of which
they are a part and can be either in the form of liquids or
General provisions
Marine pollutants will have to be transported under the
ions of the revised Annex III of MARPOL
Page 32
Maritime Organization
ROUS GOODS
Information on the amendments to the marine pollutants
provisions, which will enter into force through amendment

2010.

s Goods, Solid Cargoes
21
noting that it would be appropriate
to inform industry on how the International Maritime
Dangerous Goods (IMDG) Code will be amended to
January
January 2010,
when it becomes mandatory, agreed to the information,
as detailed in the annex, for circulation pending the
of the IMDG Code.
nd international organizations
information to the
Marine pollutants mean substances which are subject to the
as amended.
s, solutions or mixtures that are harmful
to the aquatic organisms and the aquatic ecosystem of which
they are a part and can be either in the form of liquids or
Marine pollutants will have to be transported under the
ions of the revised Annex III of MARPOL 73/78,
which will enter into force from 1 January 2010. These
provisions will be included in amendment 34-08 to the
IMDG Code.

• Marine pollutants will have to be transported under the
appropriate entry according to their properties if they
fall within the criteria of any of the classes 1 to 8.

• If they do not fall within the criteria of any of these
classes, they will have to be transported under the
entry:

ENVIRONMENTALLY HAZARDOUS SUBSTANCE, SOLID,
N.O.S., UN 3077 or ENVIRONMENTALLY HAZARDOUS
SUBSTANCE, LIQUID, N.O.S., UN 3082, as appropriate,
unless there is a specific entry in class 9.

• When a substance, material or article possesses
properties that meet the criteria of a marine pollutant
but will not identified as such in amendment 34-08 to
the IMDG Code, such substance, material or article will
have to be transported as a marine pollutant in
accordance with the Code.













Page 33
Miscellaneous


2009 EEA SIGNALS KEY
ENVIRONMENTAL ISSUES
FACING EUROPE.


EUROPEAN UNION –
SPECIAL REQUIREMENTS
Revised – May 1, 2008
Requirements for Processed
Food in the EU.

SUBMISSION OF THE USA RICE
FEDERATION FOR THE 2009
ANNUAL NATIONAL TRADE
ESTIMATE REPORT ON FOREIGN
TRADE BARRIERS

New U.S. Import Cargo
Security Requirements2009

To help prevent terrorist weapons
From being transported to
the United States, U.S. Customs
and Boarder Protection is requiring
that importers transmit certain
information to Customs and Border Protection (CBP) about
the cargo they are transporting prior to loading cargo at
foreign ports of entry. Known as the “10+2” rule, these
requirements in force since January 26, 2009.


Page 34
U.S. Economic Analysis in First
Quarter
GROSS DOMESTIC PRODUCT
FIRST QUARTER
Economy Declines
















Real gross domestic product the output of goods and
services produced by labor and property located in the
United States decreased at an annual rate of
the first quarter of
the first quarter), According to advance estimates released
by the Bureau of

In the fourth quarter

The decrease in real GDP in the first quarter primarily
reflected negative contri
inventory investment, equipment and software,
nonresidential structures, and residential
that were partly offset by a positive contribution from
personal consumption expenditures (PCE). Imports, which
are a subtraction in the calculation of GDP, decreased.
U.S. Economic Analysis in First
Quarter 2009

GROSS DOMESTIC PRODUCT
FIRST QUARTER 2009 (ADVANCE)
my Declines 6.1 Percent


Real gross domestic product the output of goods and
services produced by labor and property located in the
United States decreased at an annual rate of 6.1 percent in
the first quarter of 2009,(That is, from the fourth quarter to
the first quarter), According to advance estimates released
by the Bureau of Economic Analysis.
In the fourth quarter, real GDP decreased 6.3 percent
The decrease in real GDP in the first quarter primarily
reflected negative contributions from exports, private
inventory investment, equipment and software,
nonresidential structures, and residential Fixed investment
that were partly offset by a positive contribution from
personal consumption expenditures (PCE). Imports, which
ubtraction in the calculation of GDP, decreased.

Page 35
U.S. Economic Analysis in First


Real gross domestic product the output of goods and
services produced by labor and property located in the
percent in
e fourth quarter to
the first quarter), According to advance estimates released
percent.
The decrease in real GDP in the first quarter primarily
butions from exports, private
investment
that were partly offset by a positive contribution from
personal consumption expenditures (PCE). Imports, which
ubtraction in the calculation of GDP, decreased.
Shipping News Worldwide
2009

• China Container Ports Volume Continue to Slump in
February.
• throughput at China’s container ports continued to
slump in February.

• Total container volumes in February were down 15.9%
to 7.06M teu from 8.40M teu for the same period last
year.

• As the Lunar New Year fell on January 26 this year
compared to February 7 in 2008, it would be difficult to
make a direct month-to-month comparison of
the volume decline.

• However, cumulative volumes for the January-February
period showed a slump of -14.8% to 15.98M teu
leading to the projection that China's container ports
will suffer its first annual decline for the full year.
Coastal ports suffered a cumulative drop of 14.9% to
14.88M teu while river ports dropped by 13.9% to
1.11M teu. Hong Kong had earlier reported a drop of
22.0% to 2.93M teu for the same period.

• The cargo volume reduction was again most severe in
Guangzhou where volumes dropped by 29% from a
year ago. Taken together, the three main Pearl River
Delta Ports of Hong Kong, Shenzhen and Guangzhou
saw their volumes drop by 23.3%, a reduction of 2.05M
teu in absolute terms
• for the first two months of this year.

• Shanghai remained the busiest container port in China
but failed to gain ground against Singapore with the
latter retaining its position as the busiest container
port in the world. Both ports showed a cumulative
slump of 19.7% in the January-February period.



Page 36
Container throughput at China
Main ports















Monthly Container Throughput at the
Ports
Container throughput at China
Main ports – February 2009



Monthly Container Throughput at the 4 Largest
Ports 2008-2009 Feb











Page 37
Container throughput at China
2009
Largest
COSCO Pacific News
Financial and Operational Highlights for
the Three Months
quarter - First
The global recession triggered a decline in container
traffic for the first three months of
inevitably resulted in a significant impact on the
Group’s core businesses.

During the period, the profit attributable to equity
holders of the Company decre
compared with the corresponding period last year to
US$43,397,000

Container Leasing, Management and
Sale

As at 31st March 2009
was as follows:-

COSCO Pacific News
Financial and Operational Highlights for
the Three Months Ended 31 St March
2009
Net Income Down quarter

obal recession triggered a decline in container
traffic for the first three months of 2009 which
inevitably resulted in a significant impact on the
Group’s core businesses.
During the period, the profit attributable to equity
holders of the Company decreased by 34.1% when
compared with the corresponding period last year to
$43,397,000.
Container Leasing, Management and
2009, the breakdown of the fleet capacity











Page 38
COSCO Pacific News
Financial and Operational Highlights for
St March
Net Income Down 34%
obal recession triggered a decline in container
which
inevitably resulted in a significant impact on the
During the period, the profit attributable to equity
when
compared with the corresponding period last year to
Container Leasing, Management and
the breakdown of the fleet capacity
Logistics
For the three months ended
each business segment of COSCO
Logistics Co., Ltd. were set out below:

Global Shipping Average Weekly
Capacity

For the three months ended 31st March 2009, operations of
each business segment of COSCO
Logistics Co., Ltd. were set out below:-










Global Shipping Average Weekly
Capacity-Far East/Europe 2009









Page 39
operations of
Global Shipping Average Weekly
2009
International trade statistics

International trade statistics














Page 40
International trade statistics




























Page 41



























Page 42
OECD & IMF World Economic
Outlook GDP Forecast
Figure 1 & 2: Annual change of gross domestic product at
market prices, in percent
OECD & IMF World Economic
Outlook GDP Forecast 2009
Annual change of gross domestic product at
market prices, in percent
























Page 43
OECD & IMF World Economic
2009
Annual change of gross domestic product at
Figure 3: Spread between
percentage points (OECD forecast, see above)












Spread between 2007 and forecasted 200
percentage points (OECD forecast, see above)



Page 44
2009 rate, in

To BE THE BEST, WORKING TO BE BETER

The Egyptian Center for Studies of
Export & Import
ECSEI
Attorney at Law








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