国际商务英语Chapter4PriceTerms.ppt

Chapter 4,Price Terms,International Trade Terms,Meaning of trade terms Role of international trade terms International trade usages,Meaning of international trade terms,Definition: trade terms (price terms/delivery terms) are an important component of a unit price in international trade, standing for specific obligations of the buyer and the seller. They are abbreviations used to indicate the formation of the unit price and determine the responsibilities, expenses and risks borne by two parties as well as the time of the passing of the property in the goods. examples: US$750 per dozen CIF New York FFR1000 per M/T CFR Marseille,Role of international trade terms,Naming the exact point at which the ownership of the merchandise is transferred from the seller to the buyer. Defining the responsibilities and expenses of both the seller and the buyer. Simplifying negotiations Saving time and cost,Responsibilities and expenses,Responsibilities include: 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,Expenses comprise: Freight Loading and unloading expenses Insurance premium Warehouse charges Duties and taxes Miscellaneous expenses,International trade usages,Warsaw-Oxford Rules 1932 Revised American Foreign Trade Definitions 1941 International Rules for the Interpretation of Trade Terms,Warsaw Oxford Rules 1932,Warsaw Rules 1928 Contains 22 clauses concerning CIF contracts Warsaw Rules 1932 Based on Warsaw Rules 1928, contains 21 clauses concerning the nature, risks and expenses borne by both the seller and the buyer. Still in use.,Revised American Foreign Trade Definitions 1941,Originally The US Export Quotations and Abbreviations 1919 Revised and renamed in 1941 Six trade terms: Ex Port of Origin, Ex Dock, Free on Board, Free Along Side, Cost & Freight, Cost, Insurance and Freight. Applicable in the USA, Canada and other countries in America.,Six Common Used Trade Terms,FOB CIF CFR FCA CPT CIP,FOB: Free on Board (named port of shipment),The sellers obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Delivery Proof of delivery Costs and risks before the goods passing the ships rail Notice to the buyer,The buyers obligations Payment for goods Import licenses, official documents and customs formalities Contract of carriage and insurance Taking delivery Transport document or equivalent electronic message Risks and costs after the goods passing the ships rail,Derived Forms of FOB,FOB Liner Terms FOB Under Tackle FOB Stowed FOB Trimmed FOB Stowed and Trimmed,CIF: Cost, Insurance and Freight (named port of destination),The sellers obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage and insurance Delivery Risks before the goods passing the ships rail Notice to the buyer Proof of delivery, transport document or equivalent electronic message,The buyers obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks after the goods passing the ships rail,Several Issues about CIF,Cover of insurance According to Incoterms 2000, CIF term only requires the seller to obtain minimum coverage of insurance. If the buyer wish to get greater coverage, he should either agree as such expressly with the seller or to make his own extra insurance arrangements. Booking shipping space Unless otherwise provided in the contract, the seller is only responsible for chartering appropriate vessel to ship the goods to the port of destination along customary shipping line. The seller has the right to refuse the buyers requirements about the nationality, type, age, and classification of the ship. Charges of unloading Incoterms 2000 requires the buyer to pay for unloading the goods. However, there are three other derived forms of CIF: CIF Liner Terms; CIF landed; CIF Ex Ships Hold,CFR: Cost and Freight (named port of destination),The sellers obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks before the goods passing the rail of the vessel Notice to the buyer Proof of delivery, transport document or equivalent electronic message,The buyers obligations Payment for goods Contract of insurance Import licenses, official documents and customs formalities Taking delivery Risks and additional costs after the goods passing the rail of the vessel,Derived Forms of CFR,FCA: Free Carrier (named place),The sellers obligations Provision of goods in conformity with the contract Licenses, official documents and customs formalities Clearing for export Delivery to the carrier Proof of delivery, transport document or equivalent electronic message Risks and costs before delivering goods to the carrier,The buyers obligations Payment for goods Contract of carriage and insurance Taking delivery Notice to the seller Risks and costs after the sellers delivering goods to the carrier,CPT: Carriage Paid to (named place of destination),The sellers obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage Delivery Risks before delivering the goods to the carrier/first carrier Notice to the buyer Proof of delivery, transport document or equivalent electronic message,The buyers obligations Payment for goods Import licenses, official documents and customs formalities Taking delivery Risks after the goods delivery to the carrier/first carrier Notice to the seller,CIP: Carriage and Insurance Paid to (named place of destination),The sellers obligations Provision of goods in conformity with the contract Export licenses, official documents and customs formalities Contract of carriage and insurance Delivery Risks before delivering the goods to the carrier/fir