chapter 2 Trade Terms

1、Chapter 2 International Trade TermsIncoterms价格术语价格术语 AcceptanceSigning ContractApplying Import LicenseOpening L/CChartering Space ShipDeliveryChecking L/CArrivalDeclare and DischargeConclusionDischargeTrack GoodsInsuranceSettlementClaims, AdjustmentProcedures of Import Transaction Export Procedures

2、under CIR on the side of SellerResponsibilitiesExpensesrisksTrade terms are an important component of a unit price in international trade, standing for specific obligations of the buyer and the seller.time and place of delivery documents and expenses title to the goodsresponsibilities& associated co

3、stscontractRoles of Trade Terms1Provide the basis for a unified set of operations for both parties2Simply the negotiation process, thus saving time and cost3Avoid disputes &misunderstandings between the two parties.国际贸易磋商中所要解决的几个重要问题：国际贸易磋商中所要解决的几个重要问题： 买卖双方在何地、以何种方式交接货物； 由谁负责办理货物的运输、保险和通关过境等手续； 由谁承

4、担办理上述事项时所需的各种费用； 货物发生损坏或灭失的风险何时何地由卖方转移给买方； 买卖双方需要交接哪些单据等 Attention Incoterms are not part of national or International law They are only rules and regulations However, if sales contract specifies that a particular Incoterms will applyThen that particular Incoterms can be binding on sellersand buyers

5、Because when sales contract is established terms involved in the contract will have legal effect2. Incontermsdont providefor all the duties of a seller or a buyer but only deal with the relationbetween sellersIn some very distinct respects当买卖双方发生争议时，如果：当买卖双方发生争议时，如果： 合同的规定与惯例矛盾，则法院或仲裁机构以合同的规定为准。 合同的

6、规定与惯例不抵触，则法院或仲裁机构以国际惯例的规定为准。 合同中明确规定采用某种惯例，则这种惯例就有其强制性。国际贸易国际贸易惯例就其所涉及的内容来看，通常有以下几种：惯例就其所涉及的内容来看，通常有以下几种： 有关信用证的国际惯例:跟单信用证统一惯例（简称UCP600）。 有关托收的国际惯例：托收统一规则（简称URC522）。 有关国际贸易术语的国际惯例： 1）1932年华沙牛津规则（Warsaw-Oxford Rules 1932） ； 2）1941年美国对外贸易定义修订本(Revised American Foreign Trade Definitions(1941) ； 3）2010年

7、国际贸易术语解释通则（INCOTERMS 2010）。2000年通则年通则四组术语四组术语DAT (delivered at terminal)DAP (delivered at place)TRADE TERMS IN INCOTERMS 2000What is Trade Terms It refers to those short terms which indicate the formation of the unit price and determine the responsibilities/rights, risks and expenses borne by two pa

8、rties as well as the time of passing the title to the goods(货权转移货权转移).FOB LONDON CIF JIUJIANGThe passing of the risks of loss of or damage to the goods One import and export company exported his goods under the FOB term. The seller delivered the goods on board the vessel on time and prepared all nec

9、essary documents. But the vessel stranded and sank in a few hours after departure. The next day, when the seller asked for payment with full set of documents in conformity with the contract, the buyer refused to accept the documents and rejected payment because his goods have been lost. CaseCaseIs i

10、t reasonable for the buyer to do so? FOB, Free on Board (Named port of Shipment) 指定装运港船上交货指定装运港船上交货/离岸价离岸价 It means that the seller fulfills his obligation to deliver the goods when they have passed over the ships rail at the named port of shipment. This means that the buyer has to bear all expenses

11、 and risks of or damage to the goods from that point. It can only be used for sea or inland waterway transport.deliver the goods on board the vesselFOB （NAMED PORT OF SHIPMENT（装运港）船上交货（装运港）船上交货卖方卖方卖方办出口手续卖方办出口手续海运海运买方负责运输、买方负责运输、运费、进口手续运费、进口手续目的目的港港deliver the goods on board the vessel1. Provision o

12、f goods in conformity with the contract2. Carry out export procedures3. Delivery and send notice4. Proof of delivery5. Costs and risks before the goods being delivered on board the vesselobligations1. Payment for goods2. Carry out import procedures3. Contract of carriage 4. Taking delivery5. Accept

13、the proof of delivery6. Risks and costs after the goods being delivered on board the vesselSellerBuyerPoints for Special Attention Place of division of risks: on board the vessel for risks only, not for loading expenses. Connection of cargo and vessel: avoid the dead freight(空舱费）空舱费）and extra wareho

14、use charges. The seller can book the shipping space on behalf of the buyer, at the buyers own account and risks。 Notice from the seller to the buyer about cargo readiness (send vessel) and the final shipment (insurance); instructions from the buyer to the seller (goods ready at the port)Charge payab

15、le on space booked on a ship but not utilized by the charterer or the shipper. FOB liner terms班轮条件班轮条件: The loading as well as trimming or stowing charges will be covered by the buyer/carrier. FOB under tackle吊钩下交付吊钩下交付: The seller fulfils his delivery when it has placed the goods under the tackle o

16、f the collecting vessel. FOB stowed理舱费在内理舱费在内: The seller will bear the cost of stowing as well as loading. FOB trimmed平舱费在内平舱费在内: The seller will bear the cost of trimming as well as loading. FOBST: FOB Stowed and Trimmed (the seller) FOB San Francisco FOB Vessel San Francisco CFR (Cost and Freight

17、)Named Port of Destination 成本加运费成本加运费(指定目的港指定目的港)It means that the seller shall undertake the costs and freight necessary to carry the goods to the named port of destination 返回目录返回目录risk of loss of or damage to the goods, additional costs in transit Seller buyerCFR Named Port of Destination在装运港船上交货在

18、装运港船上交货卖方承担运费卖方承担运费卖方办理租船订舱、卖方办理租船订舱、出口手续出口手续买方负责买方负责进口手进口手续续目的港目的港买方买方风险在船舱转风险在船舱转移移海运海运vOnly for sea or inland waterway transport.1. Provision of goods in conformity with the contract2. Contract for the carriage and pay the freight 3. Delivery& proof, notice4. Carry out the export procedures5. Cos

19、ts and risks before the goods being delivered on board the vesselobligations1. Payment for goods2. Carry out the import procedures3. Taking delivery4. Accept the proof of delivery5. Risks and costs after being delivered on board the vesselSellerBuyerPoints for Special Attention The seller covers the

20、 cost of carriage but does not bear the risks arising from the carriage of the goods. Seller must send shipping notice sufficient in both details and time to enable the buyer to insure the goods on time. Prevent the buyer from appointing shipping companies later. - accept if the buyer will bear extr

21、a charges - raise the price - refuse - “The freight calculated here does not include that of the buyers appointed carriers and/or carrying vessels” The terms under which the seller will bear the unloading charges:CFR liner terms 班轮条件CFR ex tackle (of the vessel)吊钩下交货CFR landed卸至码头（包括驳运费lighterage ）

22、The term under which the unloading charges will be born by the buyer:CFR ex ships hold 舱底交货CFR变形变形 卸货费用的负担问题卸货费用的负担问题CIF (Cost，Insurance and Freight)，named port of destination成本加保险费、运费成本加保险费、运费(指定目的港指定目的港)CFR+ marine insurance 返回目录返回目录vOnly for sea or inland waterway transportCIFnamed port of destin

23、ation在装运港船上交货在装运港船上交货卖方承担保险和运费卖方承担保险和运费卖方办理租船订舱、投卖方办理租船订舱、投保、出口手续保、出口手续买方负责买方负责进口手续进口手续目的港目的港买方买方风险在船舱转移风险在船舱转移海运海运1. Provision of goods in conformity with the contract2. Carrying out export procedures3. Contract of carriage and insurance, notice to the buyer4. Delivery and proof5. Costs and risks b

24、efore the goods passing the ships railobligations1. Payment for goods2. Carrying out import procedures3. Taking delivery4. Accept the proof of delivery5. Risks and additional costs after the goods passing the ships railSellerBuyer卸货费用负担的问题卸货费用负担的问题CIFCIF的变形的变形 CIF Liner Terms（班轮条件）（班轮条件）卖方卖方 CIF Ex

25、Tackle （吊钩交货）（吊钩交货）卖方卖方 CIF Landed（卸到岸上）（卸到岸上）卖方卖方 CIF Ex Ships Hold（舱底交接）（舱底交接） 买方买方Points for Special Attention The seller covers the cost of carriage and premium but does not bear the risks arising from the carriage of the goods. The seller is only obliged to pay for the minimum coverage of insur

26、ance. Any additional coverage can be effected at the buyers own expense. The seller must send shipping notice to enable the buyer to make customs clearance and take delivery of goods Typical symbolic deliverySymbolic Delivery and Physical Delivery Symbolic delivery: the seller fulfills his obligatio

27、n of delivery when he completes the shipment of goods at the appointed place within agreed time and submits relevant documents provided in the contract. The seller does not guarantee the arrival of the goods at the destination. Physical delivery: the seller must deliver the contracted goods to the b

28、uyer or the buyers agent at the agreed time and place. Delivery of documents cannot replace delivery of goods. Symbolic Delivery and Physical Delivery- delivery and taking of delivery happens at the same time. - goods are delivered to the buyer or the buyers agent. - the time of the arrival is provi

29、ded. - transfer of risks takes place when delivery is taken. - delivery and taking delivery do not happen at the same time.- goods are delivered to carrier or his agent rather than the buyer.- documents rather than goods- date of shipment is specified while date of arrival is not.- transfer of risks

30、 before taking of delivery A Chinese import and export company concluded a Sale Contract with a Holland firm on August 5, 2000, selling a batch of certain commodity. The contract was based on CIF Rotterdam at USD 2500 per metric ton. The Chinese company delivered the goods in compliance with the con

31、tract and obtained a clean on board Bill of Lading. During transportation, however, 100 metric tons of goods got lost because of rough sea. Upon arrival of the good, the price of the contracted goods went down quickly. The buyer refused to take delivery of the goods and effect payment and claimed da

32、mages from the seller. Is it reasonable for the buyer to do so, if you were the buyer, How would you deal with the case?Case 1Case 1 Team Work 如果你是一个内陆出口商，请问以上三种价格术语适用吗？如果都不适用，请说出你的理由。FOB, CFR or CIF?Class Activities Presentation (DAP& DAT) Report (later) Comparison between the three trade terms.FCA

33、 (Free Carrier) named place 货交承运人（指定地点）货交承运人（指定地点） It means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, to the carrier or another person named by the buyer at the named place. This term may be used for any mode of transport, including mult

34、i-modal transport.Carrier means any person who, in a contact of carriage, undertakes to perform or to procure the performance of carriage, by rail, road, sea, air, inland waterway, or by a combination of such modes.Obligations Almost similar to FOB Differences are as follows: 1. For FCA, the place o

35、f delivery can be any point (as appointed) within the sellers country. 2. the seller only needs to deliver the goods to the carrier named by the buyer, rather than onto the conveyance(运输工具). 3. risks and expenses are divided when the goods are delivered to the carrier or the named person.Special Att

36、entions the seller has to load the goods on the means of transport nominated by the buyer (delivery at the sellers premises) or place the goods at the disposal of the carrier nominated by the buyer, not unloaded, in the sellers means of transport( delivery at the depot or elsewhere) the buyer has to

37、 take delivery of goods, loaded, on the means of transport (delivery at the sellers premises) or take delivery of the goods on the arriving means of transport, not unloaded, and carry out unloading, storage, and loading of the goods( delivery at the depot or elsewhere)The chosen place of delivery ha

38、s an impact on the obligationsof loading and unloading the goods at that place:CPT (Carriage Paid to ). named place of destination 运费付至指定目的地运费付至指定目的地 It means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well

39、as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. It be used for any mode of transport, including multi-modal transport.Obligatio

40、ns Similar to CFR Differences:1. For CPT, the place of shipment and the place of destination are not necessarily ports.2. Division of risks are made when the goods are delivered to the carrier, or the first carrier if subsequent carriers are used for the carriage to the agreed destination.3. Applica

41、ble to all modes of transport Shipping Notice装运通知 Particulars of Insurance投保信息 Insurance Policy 保单 Division of Risk风险转移Special AttentionsCIP (Carriage and Insurance Paid to) . named place of destination It means that the seller, besides the obligation as under CPT, has to undertake cargo insurance a

42、gainst the buyers risk of loss of or damage to the goods during the carriage. It may be used for any mode of transport including multimodal transport.Comparison “when the ship rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the FCA term is more appropr

43、iate to use.”-FOB( P25)“, the CPT term is more appropriate to use.-CFR(P25)“, the CIP term is more appropriate to use.-CIF(P26)FCA VS FOBCPT VS CFRCIP VS CIF Roll-on/roll-off (RORO or ro-ro) ships are vessels designed to carry wheeled cargo, such as automobiles, trucks, semi-trailer trucks, trailers, and railroad cars, that are driven on and off the ship on their own wheels or using a platform vehicle, such as a self-propelled modular transporter. This is in contrast to Lift-on/Lift-off (LoLo) vess