Chapter Five　Counteroffers and Reply

5.1　Introduction to Counteroffers

An exporter’s offer is usually made for an importer’s decision.When the importer finds that the quality of the goods is fine，and that the price is reasonable and that the terms and conditions in the offer are acceptable，that is，he agrees to the offer，he may probably place an order promptly.However，if the importer considers the price is on the high side，or some terms and conditions are not in agreement with what he expected，he may decline the offer，or most probably，make a counteroffer.That is，he may put forward his own proposal or conditions.A counteroffer is a partial or full rejection of the original offer of the exporter.In counteroffer letters，the importer may show his disagreement to certain terms of the offer.To convince the exporter of his position，the importer should give proper reasons to support him and then state his own proposals.After receiving the counteroffer，the exporter may weigh the advantages and disadvantages and decide to accept or decline it according to the concrete situation.Of course，the exporter has the full right to accept or reject the counteroffer.In the latter case，the exporter may make an“anti-counteroffer”.This is somewhat like bargaining in a free market.This process can go on for many a round till business is concluded or called off.

According to the international practice，if the importer raises an objection against the trading terms and conditions and puts forward his own，it means，in fact，that he refuses the terms of the original offer.Therefore，the offer expires once a counteroffer is made.If the importer wants to accept the original offer later because of some favorable changes in the international market prices or in the exchange rate of foreign currencies，the exporter has every right to decide whether he will accept or not，even if it is within the time of validity of the original offer.