guide in the international trade legislation's and procedure-side

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 goods30/60/90/180

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 highalmost 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


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


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 NationsTrade 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 LadingFIATA Multimodal Transport Bill of LadingBIMCO Combined Transport Bill of LadingBIMCO Liner Bill of Lading 2000. UNCTAD/ICC Rules for Multimodal Transport

.


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


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 supplierTo 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 TransportationA

Export Transportationnd Shipment

Page 12

Export Transportation

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..."

OOcceeaann SShhiippppiinngg

♣ 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.

11.. CCoonnffeerreennccee LLiinneess

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.

22.. NNoonn--ccoonnffeerreennccee lliinneess

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.

33.. TTrraammpp LLiinneess

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.

44.. NNaattiioonnaall oorr FFllaagg LLiinneess

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

55.. SStteeaammsshhiipp AAggeenntt

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.

66.. SShhiipp BBrrookkeerr

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.

OOcceeaann FFrreeiigghhtt RRaatteess

♣ 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.

AAnnootthheerr ttyyppee ooff ffrreeiigghhtt

� 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

FFaaccttoorrss tthhaatt iinnfflluueennccee tthhee rraattee cchhaarrggeedd ffoorr aannyy

ppaarrttiiccuullaarr ttyyppee ooff ccaarrggoo..

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

FFrreeiigghhtt ccoosstt iiss ccoommppuutteedd bbyy tthhee sshhiippppiinngg ccoommppaannyy

bbaasseedd oonn bbootthh::

♣ 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.

FFrreeiigghhtt SSuurrcchhaarrggeess "...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.

SShhiippppiinngg SSttoowwaaggee

"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 lowor 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 from1 January 2009 and mandatory from

The Sub-Committee on Dangerouand ContainersSeptember 2007to inform industry on how the International Maritime Dangerous Goods (IMDG) Code will be amended to address marine pollutant provi2009, 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 aare invited to bring the aboveattention of all concerned.

Definition

Marine pollutants mean substances which are subject to the provisions of Annex III of MARPOL

These are substanceto 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


(IMO)

CARRIAGE OF DANGEROUS GOODS



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


ROUS GOODS



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 PRODUCTFIRST 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 contriinventory investment, equipment and software, nonresidential structures, and residentialthat 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 ChinaMain ports

Monthly Container Throughput at the

Ports

Container throughput at ChinaMain 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 decrecompared with the corresponding period last year to

US$43,397,000

Container Leasing, Management and Sale As at 31st March 2009was 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 WeeklyCapacity-Far East/Europe 2009

Page 39

operations of

Global Shipping Average Weekly2009

International trade statistics


Page 40


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

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