international trade terms

role of international trade terms

trade terms(price terms or delivery terms)

an important component of a unit price in international trade, standing for specific obligations of the buyer and the seller.

the important function

1.name the exact point at which the cost and risk of the marchandise is transferred from the seller to the buyer.

2.define the responsibilities and expenses of the seller and the buyer.

3.simplifies the contract negotiations

4. saves time and cost.

the formation of price

made up of a name of currency, a unit price, a measuring unit, a trade term, and a name of destination or shipping place.

U.S.＄800 per M/T(公吨) CIF London

Responsibilities

carrying out customs formalities for the goods,

obtaining the import or export license,

chartering a ship or booking shipping space

making insurance

asking for inspection

expense

freight

loading and unloading expenses

insurance premium

warehouse charges

duties and taxes

other miscellaneous expenses

the trade terms refer to using a brief English concept or abbreviation to indicate the formation of the unit price and determine the responsiblities, expenses amd risks borne by two parties as well as the time of the passing of the property in the goods.

Incoterms Categories

EXW 工厂交货

places the goods at the disposal of the buyer at the seller's premises(营业场所) or another named place(works, factory, warehouse)

卖方义务最小

the seller has no repsonsibility to load the goods onto a truck or other transport vehicle or to clear the goods for export.

the seller must supply the goods in accordance with the contract of sale, provide at his expense basic packing,give the buyer prompt notice

标准答题格式:

According to INCOTERMS 2010, under EXW, …(whether clear in the contract :seller responsibility+buyer responsibility)

FCA 货交承运人

seller delivers the goods, cleared for export, to the carrier specified by the buyer at the named place of delivery.

Free Carrier 管装不管运，管运不管卸

CPT 运费付至

CIP 运费+保险付至

DAT 运输终端交货

DAP 目的地交货

DDP 完税后交货

FAS 装运港船边

alongside ship

FOB 装运港船上

on board

CFR 成本+运费，装运港船上

freight+cost

CIF 成本+保险费+运费， 目的港

freight+cost+insurance