7. Methods of placing orders.—In placing an order with an importing house or with foreign firms it is necessary to use great pains to avoid misunderstand ings. Difficulties frequently arise thru a failure to make clear what is included in the price and what discounts will be allowed.
No general rules can be given; in importing, even more than in exporting, the rule of the foreign market must be followed. Discounts vary considerably, ac cording to the customs of the market and to the kind of products. The largest discounts are found in the silk and velvet trade in Switzerland and France, amounting sometimes to 25 per cent. Staples are not usually sold with trade discounts.
Much of the European business is carried on open account, but staples are usually sold against docu mentary drafts. In South America and the Far East commercial letters of credit are used to a large extent.
In an earlier chapter of this Text attention was called to the necessity of being specific in the use of such abbreviations as f. o. b., c. i. f. or c. i.f. e. This same statement applies to the import trade. When prices are quoted f. o. b. it may be taken for granted that such quotations include the least that the term allows. F. o. b. means, therefore, at the factory. If quotations are desired on board the ocean vessel the importer should insist on a clear understanding that the goods are to be delivered, for example, "f. o. b. ocean vessel Rotterdam," or "f. a. s. Red Star Line Antwerp," "f. a. s." meaning "free alongside, i. e., within reach of the ship's tackles.
The foreign seller, to whom is entrusted the task of filling out the consular documents, should be in structed in the method to be followed, and pains should be taken where unusual articles are imported to assure that they shall receive the most favorable treatment at the custom house.
Importers must reckon with the United States tariff. Their business is affected, not only by every tariff change, but also by rulings of the courts and the Treasury Department concerning the way in which existing laws should be interpreted. Import ers frequently sell before they buy. In such a case, a change in tariff regulations may upset their calcula tions completely. For this reason they often take
orders "subject to changes in the tariff, in classifi cations, or in interpretations of existing regula tions." 8. Documents importing goods into the United States, the processes followed in clear ing at foreign ports and the documents required to secure clearance in American ports, are substantially the same as those required for exportation from this side.
The following regulations are of general applica tion: the consular invoices must be made out in the currency of the exporting country and must contain a full and detailed description of the goods. Usually three copies are required. These must be presented to a United States consul for his vise, and the im porter, or the seller, who in that case acts as the agent of the importer, must declare that the facts stated in the invoice are correct and that no other invoice giving a different description or quoting different prices has been furnished to any one.
The American consular invoices are of three kinds : one is used for goods purchased by the importer, an other form is used for goods not purchased by the importer, and the third form serves for "returned American goods." For the certification of the first two documents a fee of $2.50 is charged; for the reimportation certificate the fee is $1.00.
The consul makes out a list of all invoices certified at his office, giving the number of the invoices, the date of certification, the name of the shipper, and the amount of the invoice, which list is forwarded in dup licate to the Collector of Customs in the United States to enable him to verify invoices presented at his office.
In addition to these invoices, special documents are required for the importation of certain articles. Upon importing food and drug products an additional "Special Invoice of Food and Drug Products" has to be certified by the consul. This document is for the Bureau of Chemistry of the Department of Agricul ture and is intended to prevent the importation of adulterated foods or drugs which might prove injuri ous to public health. No fee is charged for this cer tification.