Quality Definition of Commodity in
Import Export Contract Terms


Quality Definition - In international transactions, there are different ways of showing quality of commodity: Sale by Actual Quality, Sale by Sample, Sale by Specification...



Quality Definition In Japan, quality means that "the product is so good that the customers wouldn't think of buying from anyone else."


Japanese approach to quality is Total Quality Management(TQM).TQM is the process that a company follows in order to achieve quality.


Competitive strategies are based on four priorities: Efficiency/Cost, Dependability, Quality and Flexibility.


Methods Expressing the Quality of Commodity
In international trade, the exporters and importers are usually far apart in different countries. Importers are usually unable to see the goods until they reach the port of destination. Then how could importers get to know the quality of the goods? The following methods have been developed for such a purpose.


Quality Definition - Sales by Inspection


This is concluded with the spot inspection by the buyers or their agents and the quality is determined thereof. This method is of special necessity for particular goods such as ornaments, jewels, paintings, artworks,etc.

In many cases, the buyer may be advised to arrange for inspection of the goods before or at the time they are handed over by the seller for carriage. Unless the contract stipulates otherwise, the buyer would himself have to pay the cost for such inspection that is arranged in his own interest.


Sales by Sample
A sample is a product, often taken out from a whole lot of consignment or specially designed and processed. It is given for prospective customers to see and buy the product or set aside as the quality standard of the whole consignment. Garments, light industry products, and agricultural native products are generally sold by samples.


Quality Definition - Sales by Specifications, Grade, and Standard
If a trade is made this way, the goods delivered should be of the same specifications, grade, or standard as stipulated in the contract. Should there be any discrepancy, the buyer is in a position to make claims for compensation or refuse to accept the goods.

Specifications are detailed descriptions of the goods to be sold. They include the composition, content, purity, strength, size,etc of the goods.


Sales by Brand or Trade Mark
Brand is the name, term, symbol, or design or a combination of these to identify a product. It has a narrower meaning in which an enterprise means to distinguish its products from the products of other enterprises.

Trade Mark is a legal term. It includes all those words, symbols, or marks that are legally registered for use by a single company. It is a symbol or ornamental printed on a commodity or its packing.The word Buick can be used to explain these differences. The Buick car is branded under the brand name "Buick". When "Buick" is printed in a certain kind of script, however, it becomes a trademark.


Quality Definition - Sales by Place of Origin
Some products are well-known by brands or trade marks,while some others, especially native products, are often well known by the place of origin, they would be more welcomed whenever their places of origin are mentioned. Thus, the place of origin may signify the quality of a product. In concluding a sales contract, traders like to mention the places of origin of these products to indicate their qualities.



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