2Trade Terms 国贸第二章 贸易术语.ppt

1、International Trade Terms,Chapter Two,SEIB of GDUFS,2,2.1 Three sets of rules,Warsaw-Oxford Rules 1932 Revised American Foreign Trade Definitions 1941 International Rules for the Interpretation of Trade Terms 2000,SEIB of GDUFS,3,Warsaw-Oxford Rules 1932,Initially in 1928-“Warsaw Rules, 1928” 22 pro

2、visions governing the rights and obligations of the parties to a sale of goods on CIF (Cost, Insurance and Freight) contract terms. Revised in 1932-the “Warsaw-Oxford Rules 1932” 21 provisions again mainly about CIF,SEIB of GDUFS,4,Revised American Foreign Trade Definitions 1941,Defines 6 terms: Ex

3、Point of Origin FOB (free on board) FAS (free along side) 6 variants of FOB FOB (named inland carrier at named inland point of departure) FOB (named inland carrier at named inland point of departure) Freight Prepaid to (named point of exportation) FOB (named inland carrier at named inland point of d

4、eparture) Freight Allowed to (named point of exportation) FOB (named inland carrier at named inland point of exportation) FOB Vessel (named port of shipment) Incoterms FOB FOB (named inland point in country of importation),C Export customs clearance Usu. buyers responsibility, sometimes buyer do it

5、for buyer, but bear no risks,SEIB of GDUFS,14,The “F” terms (FCA, FAS, FOB),Shipment contract Seller delivers the goods for carriage as instructed by the buyer buyer pays freight and signs carriage contract with carrier and notify seller FAS & FOB only for sea or inland waterway transportation mode

6、Sellers obligation, cost and risk transfers to buyer after delivery of the goods Seller exporting license and export customs clearance Buyer importing license and import customs clearance,SEIB of GDUFS,15,FCA Free Carrier (. Named place),Transfer of risks goods at the disposal of the (1st) carrier D

7、elivery point If at sellers site, seller responsible for loading If anywhere else, seller responsible for delivering the goods to the point required, but not responsible for unloading or reloading,SEIB of GDUFS,16,FAS Free Alongside Ship (named port of shipment),Delivery point: at port of shipment T

8、ransfer of risk: goods put alongside the vessel If vessel unable to enter the port due to force majeure, the seller is responsible for arranging and paying for the lighters to send the goods alongside the vessel offshore. (seller pays for lighter charges),SEIB of GDUFS,17,FOB Free on Board ( named p

9、ort of shipment),Delivery point: at port of shipment Transfer of risks: goods pass over the ships rail Cost and obligation: the seller is paying for the necessary handling of goods until they are loaded onboard the vessel. Strictly speaking, transfer of risks transfer of obligation and cost,SEIB of

10、GDUFS,18,The “C” terms （CFR, CIF, CPT, CIP）,Shipment contracts Seller contract for carriage on usual terms at his own expense. CFR & CIF only for sea or inland waterway transportation mode Under CIF and CIP, seller also takes out insurance and insurance cost.,SEIB of GDUFS,19,The “C” terms （CFR, CIF

11、, CPT, CIP）,Two “critical” points Port (place) of shipment to which the buyer takes over the risks Port (place) of destination to which the seller is bound to arrange and bear the costs of a contract of carriage Note: Exception of container transport: the container ship has no rail, delivery is fulf

12、illed when the goods are handed over to the container carrier.,SEIB of GDUFS,20,CFR Cost and Freight ( named port of destination),Shares every feature with FOB except for ocean freight charge Freight at sellers cost Seller pay the normal transport cost for the carriage of the vessel by a usual route

13、 and in a customary manner to the agreed place Buyer take the risk of loss or damage to the goods and additional costs resulting from events occurring after the delivery of the goods Obligation: sellers responsibility for booking shipping space and getter goods ready for shipment in due time to noti

14、fy to buyer about the delivery of goods (Shipping advice) so as to facilitate buyer to fulfill insurance procedures Note: notification is more important under CFR than under FOB and CIF,SEIB of GDUFS,21,CIF Cost, Insurance and Freight ( named port of destination),One step forward from CFR Insurance

15、born by seller Insurance for the buyer The seller pays for the insurance, but he does not take the risk of the cargo. Seller responsible for “min. coverage” If required by buyer and at buyers expense, additional coverage such as war, strike can be added Seller has no responsibility to guarantee the

16、arrival of the goods at the destination.,SEIB of GDUFS,22,CPT Carriage Paid to ( named place of destination),CPT is similar to CFR Differences: Mode of transport CPT any mode CFR Sea or Inland Waterway Delivery point CPT inland place or port of shipment CFR port of shipment Transfer of risks CPT goo

17、ds delivered to carrier CFR goods pass over ships rail,SEIB of GDUFS,23,CIP Carriage and Insurance Paid to ( named place of destination),CIP is similar to CIF Differences: Mode of transport CIP any mode CIF sea or inland waterway Delivery point CIP Inland place or port of shipment CIF port of shipme

18、nt Transfer of risks CIP goods at the disposal of carrier CIF goods passing ships rail Freight and insurance CIP whole journey freight and insurance CIF voyage freight and insurance,SEIB of GDUFS,24,The “D” terms （DAF, DES, DEQ, DDU, DDP）,Arrival contracts seller bear all risks and costs in bringing

19、 the goods to the agreed place or point of destination at the border or within the country of import. Sellers responsibility max. DES & DEQ only for sea or inland waterway transportation mode Seller responsible for both export and import customs clearance under DDP,SEIB of GDUFS,25,DAF Delivered at

20、Frontier ( named place),Only suitable for trade between neighboring countries who have inland borders. Delivery point: inland place at frontier cleared stipulated in the contract Transfer of risks: goods at the disposal of the buyer at frontier,SEIB of GDUFS,26,DES Delivered ex Ship ( named port of

21、destination),DES similar to CIF Differences: Place of delivery DES port of destination, CIF port of shipment Transfer of risks DES goods at the disposal of buyer on board the vessel at the port of destination CIF goods pass over ships rail at the port of shipment Obligation and cost DES seller respo

22、nsible for freight, insurance and any other costs until the goods arrive at the named port of destination CIF seller only responsible for normal freight and min. insurance,SEIB of GDUFS,27,DEQ Delivered ex Quay ( named port of destination),One step forward from DES Difference: Under DEQ, sellers mus

23、t also unload the goods and place on the wharf (quay), so Transfer of risks: DEQ goods at the disposal of buyer on the quay at the port destination DES goods at the disposal of buyer on board the vessel at the port destination Obligation and cost DEQ seller responsible for unloading charges from the

24、 vessel to the quay DES no unloading is involved,SEIB of GDUFS,28,Similar to CIP Differences: Place of delivery DDU inland place in the importing country CIP inland place in the exporting country Transfer of risks DDU goods at the disposal of buyer CIP goods at the disposal of the carrier Obligation

25、 and cost DDU seller responsible for all costs and risks before the completion of delivery CIP seller only responsible for normal freight and min. insurance,DDU Delivered duty Unpaid ( named place of destination),SEIB of GDUFS,29,DDP sellers obligation max.: seller provides a “door-to-door” delivery

26、 and bears the entire risk of loss until the goods are placed in the buyers premises. Unlike DDU, sellers must also responsible for import customs clearance and other payments of domestic duties in the importing country Applied unless the seller has the resources and capability to handle all the pro

27、cedures.,DDP Delivered Duty Paid ( named place of destination),SEIB of GDUFS,30,Intercoms 2000 Group Analysis,SEIB of GDUFS,31,Variation,FOB Liner Terms (FOB班轮条件） FOB Under Tackle (FOB吊钩下交货） FOB Stowed & Trimmed (FOB理舱，平舱费在内） CFR/CIF Liner Terms （班轮条件） CFR/CIF Landed （卸至码头） CFR/CIF Ex Tackle （吊钩下交接）

28、 CFR/CIF Ex Ships Hold （舱底交接）,Seller pays:,Least,Most,Most,Least,SEIB of GDUFS,32,Important Note,The variation of transport cost bearing DOES NOT change the nature of the term: the risk implication remains same all the time.,SEIB of GDUFS,33,2.3 Application issues,2.3.1 Customs Clearance Referring t

29、o both the payment of duty and the performance of any administrative matters EXW - buyers for both import and export customs clearance DDP - sellers for both import and export customs clearance For other terms, buyers for import customs clearance while sellers for export customs clearance,SEIB of GD

30、UFS,34,2.3 Application issues,2.3.2 Quality Confirmation Sellers expense to cover checking operations: quality control during the production, measuring, weighing and counting a the time of delivery Buyers necessity to inspect the goods before taking delivery, hence he must pay pre-shipment inspectio

31、n Seller pay any costs of inspections mandated by the local authorities which is normally part of customs clearance,SEIB of GDUFS,35,2.3 Application issues,2.3.3 Appropriation Referring to the act of setting apart something for particular usage, to the exclusion of all other uses. One of the conditi

32、ons for realizing the transfer of risks from the seller to the buyer. Ways of appropriation varies, the common one is to identify the goods by using the unique shipping marks provided by the buyer.,SEIB of GDUFS,36,2.3 Application issues,2.3.4 Shipment Notice The party arranges shipment shall provide his counterpart with sufficient notice related to the transportation. Necessary information include: the name of the carrier, the mode of transport, the date or period for delivery, etc. Inability to provide