Invoice No. 5 is supposed to be an invoice rendered to a London house in reference to the order quoted on page 39. The packing and forwarding charges and the commission are included in the price.

Invoice No. 6 shows how "Loco" Invoice No. 4 (on the preceding page) would appear if made out on f.o.b. terms. The following calculation shows how the price is arrived at:

Invoice of 4 Cases Worsted Tweeds forwarded to Liverpool by the undersigned for shipment per steamer "Devonshire" for Bombay, by order and for account of Messrs. Wm. Thurston & Co., London.

Invoice No. 6.-F.O.B.

Invoice of 5 Bales Grey Dhooties forwarded by the undersigned per rail to Liverpool for shipment per steamer "Barrister" for Calcutta, on account of Messrs. Tom Brown & Co., London.

This is simply an f.o.b. invoice with the addition of the freight on the goods from the port of shipment to the port of destination (included in the price, of course). Invoices on these terms are very common in the import trade, but they are rarely met with in the export trade.

If the goods mentioned in the f.o.b. invoice on the preceding page were sold on c. & f. terms, the invoice would be made out as follows::

Invoice No. 7.-C. & F.

Invoice of 5 Bales Grey Dhooties shipped by Percival, Keene & Co. per steamer "Barrister," Liverpool, for Calcutta, by order and for account and risk of Messrs. Thomas Smedley & Co., Calcutta.

Export invoices on c.f. & i. (or, as more frequently written, c.i.f.) terms are used chiefly in the Indian trade. In this case all the charges-packing, forwarding, shipping, freight, insurance, &c.-are included in the price, and the price is given in the currency of the country to which the goods are going.

On the next page is an example of this kind of invoice for the goods detailed in "Loco" Invoice No. 4 (page 85). Here our customer in Calcutta has offered us in rupees what he is able to pay, and we have accepted his offer, and have fixed exchange at, say, 1/4.

Rs. 1. 1. 1. (To put this indent through we sacrifice Rs. 7.13 (10/5) out of our commission.)

Invoice of 5 Bales Grey Dhooties shipped at Liverpool per steamer “Barrister” for Calcutta, by order of Messrs. Bunder, Abbas & Co., on account and risk of those concerned, by Henry Stephenson & Co.

1001/4

(200 pairs 42 in. 2/10 yds.

17 × 15 60/70 500 T No 200 pairs 44

4 Bls. 1600 same

5 Bls. 2000 pairs @ Rs. 1. 1. 0. c.f. & i. Rs. 2125

Stamp: Two-headed Swan.

Weight: 21 cwt.

THE EXPORTATION OF GOODS-Continued

5. "FRANCO" INVOICES.

"Franco" (or "franco domicile," or "rendu franco"), as already explained, means c.f. & i., plus foreign import duty (if any), and carriage and other charges up to and including delivery of the goods at the door of the purchaser.

Twenty or thirty years ago all goods sold in the United Kingdom for export were on "loco" terms, but to-day it is quite common (for the continent especially) for goods to be sold "franco Paris," "franco Milan," &c., and as foreign competition increases this mode of selling will doubtless become more and more common.

"Franco" invoices for the continent are usually expressed in metres and kilogrammes, and also in the currency of the country to which the goods are going, instead of in English weights, measures, and money. They should also, when practicable, be made out in the French, Italian, Spanish, &c., language as may be required.

We will suppose we are a Bradford firm, and that a customer (say in Paris) asks us to quote "franco Paris" for certain goods, of which we have previously sent him patterns. To enable us to do this we must first reduce our price per yard into fcs. per metre, and then ascertain what the import duty and charges come to.

For the duty we refer to the French Customs Tariff, where we find that the duty on the goods in question is, say, fcs. 220 per 100 kilogrammes. (The Customs tariffs for nearly all foreign countries may be inspected at the principal Chambers of Commerce in the United Kingdom.)

As regards the forwarding charges from Bradford to Paris, we know from previous experience that they come to, say, fcs. 11 per 100 kilogrammes, and to this we have to add our charges for packing the goods, and the cost of insurance.

If we are in doubt as to either the duty or the forwarding charges, or both, we write to a forwarding agent at one of the