Customs tariffs, taxes and duties

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: