II.Trade Terms解读

Place of destination
Seller’s premises
1st Carrier
Alongside the vessel
Ship’s rail
Port of destination
LEGEND: Risks Obligation & Costs Insurance included Means of transport
SEIB of GDUFS
7
2.2.1 Scope of Governance
Cost
local and overseas transportation and insurance costs goods checking and inspection expenses, customs clearance charges loading and unloading charges of the goods at some particular transport points
SEIB of GDUFS 6
2.2.1 Scope of Governance
Obligation
Obligation -- a legal duty to do something according to a certain agreement. universally accepted obligation, eg:
the seller -- provide goods in conformity with the contract The buyer -- pay the price as stipulated in the contract
other obligations: handle the customs clearance, carriage of goods, insurance
SEIB of GDUFS 4
International Rules for the Interpretation of Trade Terms 2000 (Incoterms 2000)
1936--- first created by International Chamber of Commerce (ICC)
13 terms into four categories
"E"-term—the seller only makes the goods available to the buyer at the seller's own premises. "F"-terms — the seller is called upon to deliver the goods to a carrier appointed by the buyer. "C"-terms — the seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional costs due to events occurring after shipment or dispatch. "D"-terms — the seller has to bear all costs and risks needed to bring the goods to the place of destination.
Ex Point of Origin FOB (free on board) FAS (free along side) C&F (Cost and Freight) CIF (Cost, Insurance and Freight) Ex Dock (Named Port of Importation)
Empty Loaded
SEIB of GDUFS
11
Figure 2.1 Incoterms Wallchart
2.2.3 Brief of Incoterms The “E” term (EXW)
Seller’s obligation min. Placing the goods at the disposal of the buyer at the agreed place – usually his own premises In practice, also including assisting the buyer in loading the goods on the buyer’s collecting vehicle without charging a loading fee For the buyer to get lower price, but too demanding for him, therefore only applied to buyers having offshore branches
Transfer of risk
“Risk” refers to accidental damage to the goods. time: when does the risk pass from the sellers to the buyers?
SEIB of GDUFS 8
2.2.2 Categorization of Terms
Main Carriage paid
Cost and Freight (…named port of destination) Cost, Insurance and Freight (…named port of destination) Carriage Paid to (…named place of destination) 成本加运费（ …指定目的港） 成本、保险费加运费（ …指定目的港） 运费付至（ …指定目的地）
concerning the delivery of tangibles goods sold
Focusing only on the delivery of tangible goods Delivery also indicating the transfer of obligations, cost and risk distribution between the parties
Chapter Two
International Trade Terms
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
DDP
Delivered Duty Paid (…named place of SEIB destination) of GDUFS
完税后交货（ …指定目的地）
10
DDP DDU DEQ DES DAF CIP CPT CIF CFR FOB FAS FCA EXW Border of E country Border of I country
CIP
Group D DAF DES DEQ DDU
Carriage and Insurance Paid to (…named place of destination) 运费保险费付至（ …指定目的地）
Arrival
Delivered at Frontier (…named place) Delivered Ex Ship (…named port of destination) Delivered Ex Quay (…named port of destination) Delivered Duty Unpaid (…named place of destination) 边境交货（…指定地点） 目的港船上交货（ …指定目的港） 目的港码头交货（ …指定目的港） 未完税交货（ …指定目的地）
The purposes of incoterms:
To give the businessmen a set of international rules for the interpretation of the most commonly used trade terms To clarify the obligations of the buyer and the seller To simplify the contract negotiations To save time and cost
Revised in 1932---the “Warsaw-Oxford Rules 1932”
21 provisions again mainly about CIF
SEIB of GDUFS 3
Revised American Foreign Trade Definitions 1941
Defines 6 terms:
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 departure) 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)
Revised in 1953、1967、1976、1980、1990、2000 Incoterms 2000 includes 13 terms under 4 groups
SEIB of GDUFS 5
2.2 Basics of Incoterms 2000
2.2.1 Scope of Governance Parties involved: concerning only 2 parties -selnt applied: only to the contract of sale Specific aspects governed: only settle matters
SEIB of GDUFS 9
Incoterms 2000
Group E EXW Group F FCA FAS FOB Group C CFR CIF CPT Departure
Ex Works (…named place) 工厂交货（ …指定地点）
Main Carriage unpaid
Free Carrier (…named place) Free Alongside Ship (…named port of shipment) Free on Board (…named port of shipment) 货交承运人（…指定地点） 船边交货（ …指定装运港） 船上交货（ …指定装运港）
SEIB of GDUFS 2
Warsaw-Oxford Rules 1932
Initially in 1928---“Warsaw Rules, 1928”
22 provisions governing the rights and obligations of the parties to a sale of goods on CIF (Cost, Insurance and Freight) contract terms.