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Chapter 3 Trade Terms

Review
1. What is the definition for contract? What
may happen if any party fail to fulfill his
contractual obligations?
2. What are the two parties of business
negotiations? And give examples as you can.
3. Why do the trading parties usually prefer a
written contract?
4. What does the contract proper usually
include?
Meaning of trade terms

Components of Trade Terms


points
Main points

Incoterms 2000
Main

Incoterms 2010

Role of international trade terms

Usages /Case Study


Introduction
• The buying and selling of goods internationally is
conducted around the contract. Both buyers and
sellers not only enjoy the rights conferred by the
contract, but also should assume various
obligations under the contract.
• In international trade, price term lies at the core
of the terms and conditions of a contract and
often results in some of the key problems for
which an exporter and in importer have to strive.
Name of commodity
Quality
Quantity
Package
Price
Body
Payment
Transport and insurance
The time limit and place
of performance
The prevention and
handling of dispute
What
What are Trade Terms
are Trade Terms
• The trade terms, are the short terms or
abbreviations or brief English concept(3
English characters in Incoterms2000) to
indicate/explain the composition/formation of
the unit price and determine the
(1)responsibilities/rights and obligations,
(2)expenses and (3)risks borne by two parties as
well as the time of the passing of the property in
the goods( 货权转移 ).
What
What are
are Trade
Trade Terms
Terms

Under no circumstance can a buyer get a


quotation without trade terms in international
trade. Trade terms are short terms and
abbreviations which are used to explain the price
composition, to define the delivery of the goods,
to indicate which party bear the freight,
insurance and other relevant charges, and
assume the liability in case damage or loss of the
goods occurs.
• Trade terms ensure both exporter and
importer know their own responsibilities. In
foreign trade, there are various prices for the
same commodity. Granting that the cost of
certain commodities is the same ex-factory,
the prices quoted by the seller will vary with
the place of delivery. For example, in the case
of a contract based on CIF terms as “CIF
London” stated above, that means the seller
bears all the cost, freight and insurance up to
the named port of destination, here is
“London”.
THE DEFINITION OF TRADE TERMS
(贸易术语的定义 ) :

The trade terms refer to using a brief English


concept or abbreviation of English letters 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.

FOB LONDON CIF New York


THE MOST INFLUENTIAL TRADE
CONVENTIONS
• 1 、 Warsaw-Oxford Rules(W.O.Rules)1932
《华沙牛津公约》
• 2 、 Revised American Foreign Trade
Definitions 1941 《 1941 美国对外贸易定
义修订本 》
• 3 、 International Rules For the
Interpretation of Trade Terms 《国际贸易
术语解释通则》
It has been amended and modernized
in 1953, 1967,1980,1990 , 2000 and 2010
Brief Introduction of Custom
Practice
Name Issued by Time Trade Terms
《 1941 年美国对外贸易定义修 美国商业团体 In Ex Point of Origin,
正本》 (Revised American American 1919 FOB(6 variations),
Foreign Trade Definitions 1941) Commerce FAS Vessel, C&F,
Association CIF, Ex Dock

《 1932 年华沙— 牛津规则》 国际法协会 In CIF


( Warsaw-Oxford Rules ) International 1928
Law Institute

《 2000 年国际贸易术语解释通 国际商会 In E、F、C、D四


则》 (International Rules for the International 1936 组 13 个贸易术语
Interpretation of Trade Terms) Chamber of
Commerce
《 1941 年美国对外贸易定义修订
本》
简介:
美国九大商业团体首先制定

1941 年进行了修改
对 ExPoint 、 FOB 、 FAS 、
C&F 、 CIF 、 Ex Dock 等 6 种贸
易术语进行统一解释。
1941 年美国对外贸易定义修订本
Trade Terms Abbreviations Chinese
EXW EX Works 工厂交货
FOB Free on Board 指定起运地点交货
Free on Board
Free on Board
Free on Board
Free on Board Vessel
Free on Board

FAS Free Along Side (named port of 指定装运港船边交货


shipment)

CFR Cost and Freight (named point of 成本加运费(指定目的地)


destination)

CIF Cost, Insurance and Freight 成本加保险、运费(指定目的


地)
(named point of destination)

DEQ Delivery Ex Quay (duty paid) 进口港码头交货(关税已付)


• FOB Free on Board
FOB: Free on Board (Named inland carrier at named inland point of
departure)
国内指定起运地点运输工具上交货
FOB: Free on Board (Named inland carrier at named inland point of
departure freight prepaid to…named point of exportation)
国内指定起运地点运输工具上交货,运费付至指定出口地点
FOB: Free on Board (Named inland carrier at named inland point of
departure freight allowed to…named point)
国内指定起运地点运输工具上交货,扣除至指定地点运费
FOB: Free on Board (Named inland carrier at named inland point of
exportation)
国内指定出口地运输工具上交货
FOB: Free on Board Vessel (named port of shipment
指定装运港船上交货
FOB: Free on Board (named inland point in country of importation)
进口国指定国内地点运输工具上交货
《 1932 年华沙 - 牛津规则》
( Warsaw-Oxford Rules 1932 )

1928 年,国际法协会在华沙制《 1928 年华


沙规则》,对 CIF 作了解释,共 22 条。

后在 1930 年的纽约会议、 1931 年的


巴黎会议和 1932 年的牛津会议上作了
修订,沿用至今。
《 2000 年通则》 四组术语 ( 共 13
种)
E 组 EXW EX Works 工厂交货 适用于各种运输方式,
启 运 包括多式联运
FCA Free Carrier 货交承运人 同上
F 组
主运费 FAS Free Alongside Ship 船边交货 适用于海运及内河运输
未付 FOB Free On Board 装运港船上交货 同上
同上
CFR Cost and Freight 成本加运费
CIF Cost,Insurance 成本加保险费 、 同上
C组 and Freight 运费
主运费 适用于各种运输方式,
已付 CPT Carriage Paid To 运费付至 包括多式联运
CIP Carriage and 同上
Insurance Paid To 运费、保险费付至
同上
DAF Delivered At Frontier 边境交货
D组 DES Delivered Ex Ship 目的港船上交货 适用于海运及内河运输
DEQ Delivered Ex Quay 目的港码头交货 同上
到达
适用于各种运输方式,
DDU Delivered Duty Unpaid 未完税交货
包括多式联运
同上
TRADE TERMS IN INCOTERMS 2000
• The following terms can be used
only for sea or inland waterway
transport:
FAS, FOB, CFR, CIF, DES, DEQ
The following terms can be used
for multimodal transport
EXW, CIP, CPT, FCA, DAF, DDU, DDP
Six main international trade terms
FOB, CFR, CIF, FCA, CPT, CIP
Section Two Incoterms
• Under some systems of law, trade terms have,
at least traditionally, been used only to
determine the division of costs between the
parties. However, in present international
custom, the main purpose of trade terms is to
determine at what points the seller has
fulfilled his obligations so that the goods in
legal sense could be said to have been
delivered to the buyer.
Classifications of Trade Terms in
Incoterms 2000
• The terms have been grouped in four basically
different categories :
• (1) Namely starting with the only terms where-
by the seller makes the goods available to the
buyer at the seller’s own premises (the “E” terms
Ex-works).
• (2) Then the second group where-by the seller is
called upon to deliver the goods to a carrier
appointed by the buyer ( the “F” terms FCA,
FAS and FOB).
• (3) Then the “C” terms where-by the seller has to
contract for carriage, but without assuming the
risk of, loss of, or damage to the goods or
additional costs due to events occurring after
shipment and dispatch (CFR, CIF, CPT and CIP),
but the seller need not shoulder the risk or extra
payment caused by goods loss after shipment. If
by CIF and CIP terms the seller have to cover
insurance for the goods shipped and pay the
premium as well. The contract based on the “C”
terms is a shipment contract, in which the delivery
term is shipment time or delivery time, but not the
arrival destination port or destination time.
• (4) And finally, the “D” terms where-by the
seller has to bear all costs and risks needed
to carry the goods to the country of
destination (DAF, DES, DEQ, DDU and DDP).
So we say the contract based on these terms
can be called arrival contract, in which, both
the place and the time of destination should
be stipulated clearly in the contract. The “D”
terms can be divided into two groups:
DAF,DES,DEQ and DDU, the seller is not
responsible for customs clearance; DDP, the
seller is responsible for customs clearance.
FOB (Free on Board,…named port of shipment) 船上交货 (…
指 定装运港 )
Six Main Trade Terms

CFR (Cost and Freight ,… named port of destination) 成本加


运 费 (…… 指定目的港 )

CIF (Cost , Insurance and Freight ,… named port of


destination) 成本加保险费、运费 (…… 指定目的港 )

FCA: Free Carrier at(…named place) (货交承运人(……指定地


点)
CPT: Carriage Paid to (…named place of destination) (运费付
至(……指定目的地)

CIP: Carriage and Insurance Paid to (…named place of


destination) (运费和保险费付至(……指定目的地)
Review
• Introduction of Trade Terms
• The most Influential Trade
Conventions
• The Incoterms 2000
• The Six Main Trade Terms
• FOB
Incoterms 2010
The INCOTERMS® 2010 became effective
January 1, 2011. The new Incoterms accomplish
the followings: (a) significantly revises Group D
listed in INCOTERMS® 2000; (b) reduce
Incoterms from four groups to two groups,
allowing trade experts to choose the most suitable
rule related to the mode of transport; and (c)
reduces the absolute number of Incoterms from 13
to 11.
Incoterms 2010
Moreover, INCOTERMS® 2010 offer
additional guidance which assists users in
selecting the most appropriate Incoterms for
each transaction. The revised terms also spell
out rules regarding the use of electronic
procedures; detail information on security-
related clearances for shipments; and offer
advice with respect to domestic trade.
INCOTERMS® 2010
Group 1. Incoterms that apply to any mode of transport are:
第一组:适用于任何运输方式的术语
EXW Ex Works 工厂交货
FCA Free Carrier 货交承运人
CPT Carriage Paid To 运费付至目的地
CIP Carriage And Insurance Paid To 运费 / 保险费付至目的地
DAT Delivered At Terminal 目的地或目的港的集散站交货
DAP Delivered At Place 目的地交货
DDP Delivered Duty Paid 完税后交货

Group 2. Incoterms that apply to sea and inland waterway transport only:
第二组:适用于水上运输方式的术语
FAS Free Alongside Ship 装运港船边交货
FOB Free On Board 装运港船上交货
CFR Cost And Freight 成本加运费
CIF Cost, Insurance, and Freight 成本、保险费加运费
Notes
• Even though from Jan.1st, 2011, the new
Incoterms entered into force, the Incoterms
2000 can still be used in doing international
trade. So if you want the Incoterms(R) 2010
rules to apply to your contract, you should
make this clear in the contract, through such
words as, “the chosen Incoterms rule including
the named place, followed by Incoterms(R)
2010”.
Review
1 Please show us the conventions you
have got
2 Please tell us the basic difference
between Incoterms 2000 and Incoterms
2010
3 The most Influential Trade
Conventions
Review Exercise
1 “Warsaw-Oxford Rules1932” is made out by
International Law Institute for _______.
a FOB b CRF c CIF d FCA
2 “Incoterms” is made out by _______.
a International Law Association 国际法协会
b International Chamber of Commerce 国际商会
c The United Union World Trade Development Center
联合国贸发会
d The United Nations International Law Commission
联合国国际法委员会
Six Main Trade Terms in
Incoterms (R) 2010
1 . FOB-Free on Board (insert named
port of shipment) 船上交货(插入制定
装运港)

2 . CFR: Cost And Freight (insert


named port of destination) 成本加运费
(插入指定目的港)
1 . FOB-Free on Board (insert named port of
shipment) 船上交货(插入制定装运港)

This rule is to be used only for sea or inland waterway


transport. “Free on Board” means that the seller delivers
the goods on board the vessel nominated by the buyer at
the named port of shipment or procures the goods
already so delivered. The risk of loss of or damage to the
goods passes when the goods are on board the vessel,
and the buyer bears all costs from that moment onwards.
The seller is required either to deliver the goods on
board the vessel or to procure goods already so delivered
for shipment.
1 . FOB-Free on Board (insert named port of
shipment) 船上交货(插入制定装运港)

The reference to “procure” here caters for multiple sales


down a chain (‘string sales’), particularly common in the
commodity trades. FOB may not be appropriate where goods
are handed over to the carrier before they are on board the
vessel, for example goods in containers, which are typically
delivered at a terminal. In such situations, the FCA rule should
be used. FOB requires the seller to clear the goods for export,
where applicable. However, the seller has no obligation to clear
the goods for import, pay any import duty or carry out any
import customs formalities.
1 . FOB-Free on Board (insert named port of
shipment) 船上交货(插入制定装运港)

• FOB = EXW + risks and expenses before the cargoes are


loaded on the named ship + risks and expenses for export
customs clearance + charges for commodity inspection before
loading stipulated by the government.
• When adopting the FOB terms, we shall pay attention to the
following points:
• 1) Delivery of the goods on board the vessel.
• 2) Link-up of vessel and goods.
• 3) Expense for loading the goods on board the vessel.
• 4) The transfer of the risks.
1 . FOB-Free on Board (insert named port of
shipment) 船上交货(插入制定装运港)

• Under the FOB terms, in case the buyer charters a


liner to carry the goods, since liner charges contain
loading and unloading expenses, therefore the loading
expense is actually borne by the buyer. In case the
goods are carried by a chartered vessel, the two
parties shall negotiate who shall bear the loading
expense and stipulate it clearly in the contract.
CASE

• On FOB term basis, Seller A prepared the


goods at the stipulated time, meanwhile ,
Buyer B informed A of the name of vessel and
the date of shipment ,when the goods is lifted
to the ship, it fell down on the deck, now :
Who shall take responsibility? Seller or
Buyer?
ANSWER
ANSWER
• Under FOB terms , the risk separation was the
rail of the ship , during the shipment of goods,
if they didn’t across the ship's rail, and fell to
the sea, the seller should bear the risk . When
the goods across the ship's rail, fall in the deck,
the buyer should bear the corresponding risks.
In this case, falling into the cargo deck, the
buyer can assume the risk is no doubt.
2 . CFR: Cost And Freight (insert named port
of destination) 成本加运费(插入指定目的港)

This rule is to be used only for sea or inland


waterway transport. “Cost and Freight” means that
the seller delivers the goods on board the vessel or
procures the goods already so delivered. The risk of
loss of or damage to the goods passes when the goods
are on board the vessel. The seller must contract for
and pay the costs and freight necessary to bring the
goods to the named port of destination.
2 . CFR: Cost And Freight (insert named port
of destination) 成本加运费(插入指定目的港)

• When CPT, CIP, CFR or CIF are used, the seller fulfils its
obligation to deliver when it hands the goods over to the
carrier in the manner specified in the chosen rule and not when
the goods reach the place of destination.
• This rule has two critical points, because risk passes and costs
are transferred at different places. While the contract will
always specify a destination port, it might not specify the port
of shipment, which is where risk passes to the buyer. If the
shipment port is of particular interest to the buyer, the parties
are well advised to identify it as precisely as possible in the
contract.
2 . CFR: Cost And Freight (insert named port
of destination) 成本加运费(插入指定目的港)
• The parties are well advised to identify as precisely as possible
the point at the agreed port of destination, as the costs to that
point are for the account of the seller. The seller is advised to
procure contracts of carriage that match this choice precisely.
If the seller incurs costs under its contract of carriage related
to unloading at the specified point at the port of destination,
the seller is not entitled to recover such costs from the buyer
unless otherwise agreed between the parties.
• The seller is required either to deliver the goods on board the
vessel or to procure goods already so delivered for shipment to
the destination.
2 . CFR: Cost And Freight (insert named port
of destination) 成本加运费(插入指定目的港)
• In addition, the seller is required either to make a contract of
carriage or to procure such a contract. The reference to
“procure” here caters for multiple sales down a chain (‘string
sales’), particularly common in the commodity trades.
• CFR may not be appropriate where goods are handed over to
the carrier before they are on board the vessel, for example
goods in containers, which are typically delivered at a
terminal. In such circumstances, the CPT rule should be used.
• CFR requires the seller to clear the goods for export, where
applicable. However, the seller has no obligation to clear the
goods for import, pay any import duty or carry out any import
customs formalities.
2 . CFR: Cost And Freight (insert named port
of destination) 成本加运费(插入指定目的港)

• CFR = FOB + responsibilities of shipping space


and charter + main freight.
• When adopting the CFR term, we shall pay
attention to the following points:
• 1) Bearing unloading expenses.
• 2) Responsibilities of chartering.
• 3) Shipping advice.
• CFR = FOB + 租船订舱责任 + 主运费
CASE

我国对新加坡 CFR 合同出口一批化肥


,合同规定 1~3 月份装运,国外来证也如
此,别无其他字样。但我方在租船订舱时发
生困难,因出口量大一时租不到足够的舱位
,需分 3 次装运。问在这种情况下,是否需
要国外修改信用证得装运条款?
3 . Cost Insurance and
Freight ( insert named port of
destination ) 成本、保险费加运费
(插入指定目的港)
4 . FCA-Free Carrier (insert named
place of delivery) 货交承运人(插入指
定交货地点)
ANSWER
ANSWER
1 、 CFR 术语下,出口商(卖方)负责办理租船订舱,
装船作业并支付到目的港的运费,买方无权干涉(但买方可
在买卖合同中事先与卖方协商)
2 、本案例中卖方“因出口量大一时租不到足够的舱位,
需分 3 次装运。”属于分批装运;仔细分析合同及信用证,
并无禁止分批装运的条款约定。
3 、按国际惯例,若合同和信用证无相反约定,分批装运
是允许的。
4 、合同和信用证仅仅要求在 1-3 月份装运,所以,只要
卖方在分批装运的时候保证 3 次装运都在 1-3 月份之内就可
以理解为符合合同约定和信用证条款, 所以——不需要修改
信用证装运条款。
3 . Cost Insurance and Freight ( insert named port
of destination ) 成本、保险费加运费 (插入指定目的
港)
• This rule is to be used only for sea or inland waterway
transport.
• “Cost, Insurance and Freight” means that the seller
delivers the goods on board the vessel or procures the
goods already so delivered. The risk of loss of or
damage to the goods passes when the goods are on
board the vessel.
• The seller must contract for and pay the costs and
freight necessary to bring the goods to the named port
of destination.
3 . Cost Insurance and Freight ( insert named port
of destination ) 成本、保险费加运费 (插入指定目的
港)
• The seller also contracts for insurance cover against the
buyer’s risk of loss of or damage to the goods during the
carriage. The buyer should note that under CIF the seller is
required to obtain insurance only on minimum cover.
• Should the buyer wish to have more insurance protection, it
will need either to agree as much expressly with the seller or
to make its own extra insurance arrangements.
• When CPT, CIP, CFR, or CIF are used, the seller fulfils its
obligation to deliver when it hands the goods over to the
carrier in the manner specified in the chosen rule and not when
the goods reach the place of destination.
3 . Cost Insurance and Freight ( insert named port
of destination ) 成本、保险费加运费 (插入指定目的
港)
• This rule has two critical points, because risk passes and costs
are transferred at different places. While the contract will
always specify a destination port, it might not specify the port
of shipment, which is where risk passes to the buyer. If the
shipment port is of particular interest to the buyer, the parties
are well advised to identify it as precisely as possible in the
contract.
• The parties are well advised to identify as precisely as possible
the point at the agreed port of destination, as the costs to that
point are for the account of the seller. The seller is advised to
procure contracts of carriage that match this choice precisely.
3 . Cost Insurance and Freight ( insert named port
of destination ) 成本、保险费加运费 (插入指定目的
港)
• If the seller incurs costs under its contract of carriage related
to unloading at the specified point at the port of destination,
the seller is not entitled to recover such costs from the buyer
unless otherwise agreed between the parties.
• The seller is required either to deliver the goods on board the
vessel or to procure goods already so delivered for shipment to
the destination. In addition the seller is required either to make
a contract of carriage or to procure such a contract. The
reference to “procure” here caters for multiple sales down a
chain (‘string sales’), particularly common in the commodity
trades.
3 . Cost Insurance and Freight ( insert named port
of destination ) 成本、保险费加运费 (插入指定目的
港)
• CIF may not be appropriate where goods are handed
over to the carrier before they are on board the vessel,
for example goods in containers, which are typically
delivered at a terminal. In such circumstances, the
CIP rule should be used.
• CIF requires the seller to clear the goods for export,
where applicable. However, the seller has no
obligation to clear the goods for import, pay any
import duty or carry out any import customs
formalities.
• However, in Incoterms 2010, there are no any
variations for these three trade terms. Please do
remember they can only be used for water transport.
The chosen Incoterms rule needs to be appropriate to
the goods, to the means of their transport, and above
all to whether the parties intend to put additional
obligations, for example such as the obligation to
organize carriage or insurance, on the seller or on the
buyer. The Guidance Note to each Incoterms rule
contains information that is particularly helpful when
making this choice.
• Whichever Incoterms rule is chosen, the parties
should be aware the interpretation of their contract
may well be influenced by customs particular to the
port or place being used.
• According to Incoterms 2010, the chosen Incoterms
rule can work only if the parties name a place or port,
and will work best if the parties specify the place or
port as precisely as possible. A good example of such
precision would be :
• “FOB Shenzhen Port, Guangdong, China Incoterms
2010”.
CASE
A Chinese export company exported a batch of straw-weaved
products to an importer of Europe on the basis of CIF London. The
Chinese export company covered the goods for All Risks with PICC,
asked for payment by L/C and delivered the goods within the
stipulated period of time and at the stipulated port. The shipping
company signed up the B/L. When all were done well, the Chinese
export company went to China Bank for his negotiation of the
payment. The next day, the Chinese company got the telephone call
from the European importer, saying: "The straw-weaved products
were caught fire and all were burned. The importer asked the
Chinese export company to claim compensation from PICC,
otherwise he would have all the money returned.
•Question: How can the Chinese export company deal with the
problem? How come?
ANSWER
ANSWER

If CIF term is used in the transaction, the


Chinese export company is responsible for
freight and insurance costs, but the risk
separation is still over the ship's rail. The
goods had accidents on the sea, so the
importer should ask for claim and
compensation from the insurance company.
4 . FCA-Free Carrier (insert named place of
delivery) 货交承运人(插入指定交货地点)

• This rule may be used irrespective of the mode of transport


selected and may also be used where more than one mode of
transport is employed.
• "Free Carrier" means that the seller delivers the goods to the
carrier or another person nominated by the buyer at the seller’s
premises or another named place. The parties are well advised
to specify as clearly as possible the point within the named
place of delivery, as the risk passes to the buyer at that point.
• If the parties intend to deliver the goods at the seller’s
premises, they should identify the address of those premises as
the named place of delivery.
4 . FCA-Free Carrier (insert named place of
delivery) 货交承运人(插入指定交货地点)

• If, on the other hand, the parties intend the goods to be


delivered at another place, they must identify a different
specific place of delivery. FCA requires the seller to clear the
goods for export, where applicable. However, the seller has no
obligation to clear the goods for import, pay any import duty
or carry out any import customs formalities.
• Relative to FOB, because it can be used in any kinds of
transportation, there are some differences over delivery by the
seller and notice to the seller by the buyer. As per the rest
obligations of the buyer and the seller, please refer to FOB.
5 . CPT-Carriage Paid To (insert
named place of destination) 运费付
至(插入指定目的地)

6 . CIP: Carriage and Insurance


Paid to (insert named place of
destination) 运费和保险费付至(插入
指定目的地)
5 . CPT-Carriage Paid To (insert named place of
destination) 运费付至(插入指定目的地)

• This rule may be used irrespective of the mode of transport


selected and may also be used where more than one mode of
transport is employed.
• “Carriage Paid To” means that the seller delivers the goods to
the carrier or another person nominated by the seller at an
agreed place (if any such place is agreed between the parties)
and that the seller must contract for and pay the costs of
carriage necessary to bring the goods to the named place of
destination.
• When CPT, CIP, CFR or CIF are used, the seller fulfils its
obligation to deliver when it hands the goods over to the
carrier and not when the goods reach the place of destination.
5 . CPT-Carriage Paid To (insert named place of
destination) 运费付至(插入指定目的地)
• This rule has two critical points, because risk passes and costs
are transferred at different places. The parties are well advised
to identify as precisely as possible in the contract both the
place of delivery, where the risk passes to the buyer, and the
named place of destination to which the seller must contract
for the carriage. If several carriers are used for the carriage to
the agreed destination and the parties do not agree on a
specific point of delivery, the default position is that risk
passes when the goods have been delivered to the first carrier
at a point entirely of the seller’s choosing and over which the
buyer has no control. Should the parties wish the risk to pass
at a later stage (e.g., at an ocean port or airport), they need to
specify this in their contract of sale.
5 . CPT-Carriage Paid To (insert named place of
destination) 运费付至(插入指定目的地)

• The parties are also well advised to identify as precisely as


possible the point within the agreed place of destination, as the
costs to that point are for the account of the seller. The seller is
advised to procure contracts of carriage that match this choice
precisely. If the seller incurs costs under its contract of carriage
related to unloading at the named place of destination, the
seller is not entitled to recover such costs from the buyer unless
otherwise agreed between the parties.
• CPT requires the seller to clear the goods for export, where
applicable. However, the seller has no obligation to clear the
goods for import, pay any import duty or carry out any import
customs formalities.
5 . CPT-Carriage Paid To (insert named place of
destination) 运费付至(插入指定目的地)

• Compared with CFR, because it can be used in


any kinds of transportation, there are some
differences over A3a) contract of carriage,
delivery by the seller. As per the rest obligations
of the buyer and the seller, please refer to CFR.
• In CPT, the seller’s obligation for contract of
carriage is as follows:
• A3 Contracts of carriage and insurance
• a) Contract of carriage
5 . CPT-Carriage Paid To (insert named place of
destination) 运费付至(插入指定目的地)

• The seller must contract or procure a contract for the carriage


of the goods from the agreed point of delivery, if any, at the
place of delivery to the named place of destination or, if
agreed, any point at that place. The contract of carriage must
be made on usual terms at the seller’s expense and provide for
carriage by the usual route and in a customary manner. If a
specific point is not agreed or is not determined by practice,
the seller may select the point of delivery and the point at the
named place of destination that best suit its purpose.
6 . CIP: Carriage and Insurance Paid to (insert
named place of destination) 运费和保险费付至(插
入指定目的地)
• This rule may be used irrespective of the mode of transport
selected and may also be used where more than one mode of
transport is employed.
• “Carriage and Insurance Paid to” means that the seller delivers
the goods to the carrier or another person nominated by the
seller at an agreed place (if any such place is agreed between
the parties) and that the seller must contract for and pay the
costs of carriage necessary to bring the goods to the named
place of destination.
• The seller also contracts for insurance cover against the
buyer’s risk of loss of or damage to the goods during the
carriage. The buyer should note that under CIP the seller is
required to obtain insurance only on minimum cover.
6 . CIP: Carriage and Insurance Paid to (insert
named place of destination) 运费和保险费付至(插
入指定目的地)
• Should the buyer wish to have more insurance protection, it
will need either to agree as much expressly with the seller or
to make its own extra insurance arrangements.
• When CPT, CIP, CFR or CIF are used, the seller fulfils its
obligation to deliver when it hands the goods over to the
carrier and not when the goods reach the place of destination.
• This rule has two critical points, because risk passes and costs
are transferred at different places. The parties are well advised
to identify as precisely as possible in the contract both the
place of delivery, where the risk passes to the buyer, and the
named place of destination to which the seller must contract
for carriage.
6 . CIP: Carriage and Insurance Paid to (insert
named place of destination) 运费和保险费付至(插
入指定目的地)
• f several carriers are used for the carriage to the agreed
destination and the parties do not agree on a specific point of
delivery, the default position is that risk passes when the goods
have been delivered to the first carrier at a point entirely of the
seller’s choosing and over which the buyer has no control.
Should the parties wish the risk to pass at a later stage (e.g., at
an ocean port or an airport), they need to specify this in their
contract of sale.
• The parties are also well advised to identify as precisely as
possible the point within the agreed place of destination, as the
costs to that point are for the account of the seller. The seller is
advised to procure contracts of carriage that match this choice
precisely.
6 . CIP: Carriage and Insurance Paid to (insert
named place of destination) 运费和保险费付至(插
入指定目的地)

• If the seller incurs costs under its contract of carriage


related to unloading at the named place of destination,
the seller is not entitled to recover such costs from the
buyer unless otherwise agreed between the parties.
• CIP requires the seller to clear the goods for export,
where applicable. However, the seller has no obligation
to clear the goods for import, pay any import duty or
carry out any import customs formalities.
• Compared with CIF, because it can be used in any kinds of
transportation, there are some differences over A4) Delivery and A8)
Delivery Document by the seller. As per the rest obligations of the
buyer and the seller, please refer to CIF. Under CIP, A4) is “The seller
must deliver the goods by handing them over to the carrier
contracted in accordance with A3 on the agreed date or within the
agreed period”; A8) is “If customary or at the buyer’s request, the
seller must provide the buyer, at the seller’s expense, with the usual
transport document[s] for the transport contracted in accordance with
A3. This transport document must cover the contract goods and be
dated within the period agreed for shipment. If agreed or customary,
the document must also enable the buyer to claim the goods from the
carrier at the named place of destination and enable the buyer to sell
the goods in transit by the transfer of the document to a subsequent
buyer or by notification to the carrier. When such a transport
document is issued in negotiable form and in several originals, a full
set of originals must be presented to the buyer.”
Other Trade Terms in
Incoterms (R) 2010

1 . EXW-Ex Works (insert named


place of delivery) 工厂交货(插入指
定交货地点)
2 . FAS: Free Alongside Ship (insert
named port of shipment) 船边交货
(插入指定装运港)
1 . EXW-Ex Works (insert named place of
delivery) 工厂交货(插入指定交货地点)
• This rule may be used irrespective of the mode of
transport selected and may also be used where more
than one mode of transport is employed. It is suitable for
domestic trade, while FCA is usually more appropriate
for international trade.
• “Ex works” means that the seller delivers when it places
the goods at the disposal of the buyer at the seller's
premises or at another named place (i.e. works, factory,
warehouse, etc.). The seller does not need to load the
goods on any collecting vehicle, nor does it need to clear
the goods for export, where such clearance is applicable.
1 . EXW-Ex Works (insert named place of
delivery) 工厂交货(插入指定交货地点)
• The parties are well advised to specify as clearly as possible the
point within the named place of delivery, as the costs and risks to
that point are for the account of the seller. The buyer bears all
costs and risks involved in taking the goods from the agreed point,
if any, at the named place of delivery.
• EXW represents the minimum obligation for the seller. The rule
should be used with care as:
• a) The seller has no obligation to the buyer to load the goods,
even though in practice the seller may be in a better position to do
so. If the seller does load the goods, it does so at the buyer’s risk
and expense. In cases where the seller is in a better position to
load the goods, FCA, which obliges the seller to do so at its own
risk and expense, is usually more appropriate.
1 . EXW-Ex Works (insert named place of
delivery) 工厂交货(插入指定交货地点)

• b) A buyer who buys from a seller on an EXW basis for


export needs to be aware that the seller has an obligation to
provide only such assistance as the buyer may require to the
effect that export: the seller is not bound to organize the export
clearance. Buyers are therefore well advised not to use EXW if
they cannot directly or indirectly obtain export clearance.
• c) The buyer has limited obligations to provide to the seller
any information regarding the export of the goods. However,
the seller may need this information for, e.g., taxation or
reporting purposes.
2 . FAS: Free Alongside Ship (insert named port of
shipment) 船边交货(插入指定装运港)

• This term can be only used for sea or inland water


transportation.
• “Free Alongside Ship” means that the seller delivers when the
goods are placed alongside the vessel (e.g., on a quay or a
barge) nominated by the buyer at the named port of shipment.
The risk of loss of or damage to the goods passes when the
goods are alongside the ship, and the buyer bears all costs
from that moment onwards.
• The parties are well advised to specify as clearly as possible
the loading point at the named port of shipment, as the costs
and risks to that point are for the account of the seller and
these costs and associated handling charges may vary
according to the practice of the port.
2 . FAS: Free Alongside Ship (insert named port of
shipment) 船边交货(插入指定装运港)
• The seller is required either to deliver the goods alongside the
ship or to procure goods already so delivered for shipment.
The reference to “procure” here caters for multiple sales down
a chain (‘string sales’), particularly common in the commodity
trades.
• Where the goods are in containers, it is typical for the seller to
hand the goods over to the carrier at a terminal and not
alongside the vessel. In such situations, the FAS rule would be
inappropriate, and the FCA rule should be used.
• FAS requires the seller to clear the goods for export, where
applicable. However, the seller has no obligation to clear the
goods for import, pay any import duty or carry out any import
customs formalities.
3 DAT-Delivered At Terminal (insert named
terminal at port or place of destination) 运
输终端交货(插入指定港口或目的地的运
输终端)
4. DAP-Delivered At Place (insert
named place of destination) 目的地交
货(插入指定目的地)
5. DDP: Delivered Duty Paid (...named
place of destination) 完税后交货(插
入指定目的地)
3 DAT-Delivered At Terminal (insert named terminal at
port or place of destination) 运输终端交货(插入指定港
口或目的地的运输终端)

• In Incoterms 2010, D group has been greatly altered. Two new


Incoterms rules — DAT and DAP— have replaced the
Incoterms 2000 rules DAF, DES, DEQ and DDU. So there are
only three terms in Incoterms 2010: DAT, DAP and DDP,
among which DAT, DAP are new terms. Under both new rules,
delivery occurs at a named destination: in DAT, at the buyer’s
disposal unloaded from the arriving vehicle (as under the
former DEQ rule); in DAP, likewise at the buyer’s disposal,
but ready for unloading (as under the former DAF, DES and
DDU rules).
3 DAT-Delivered At Terminal (insert named terminal at
port or place of destination) 运输终端交货(插入指定港
口或目的地的运输终端)

• The new rules make the Incoterms 2000 rules DES and DEQ
superfluous. The named terminal in DAT may well be in a
port, and DAT can therefore safely be used in cases where the
Incoterms 2000 rule DEQ once was. Likewise, the arriving
“vehicle” under DAP may well be a ship and the named place
of destination may well be a port: consequently, DAP can
safely be used in cases where the Incoterms 2000 rule DES
once was. These new rules, like their predecessors, are
“delivered”, with the seller bearing all the costs (other than
those related to import clearance, where applicable) and risks
involved in bringing the goods to the named place of
destination.
3 DAT-Delivered At Terminal (insert named terminal at
port or place of destination) 运输终端交货(插入指定港
口或目的地的运输终端)

• This rule may be used irrespective of the mode of transport


selected and may also be used where more than one mode of
transport is employed.
• “Delivered at Terminal” means that the seller delivers when the
goods, once unloaded from the arriving means of transport, are
placed at the disposal of the buyer at a named terminal at the
named port or place of destination. “Terminal” includes any
place, whether covered or not, such as a quay, warehouse,
container yard or road, rail or air cargo terminal. The seller
bears all risks involved in bringing the goods to and unloading
them at the terminal at the named port or place of destination.
3 DAT-Delivered At Terminal (insert named terminal at
port or place of destination) 运输终端交货(插入指定港
口或目的地的运输终端)
• The parties are well advised to specify as clearly as possible the
terminal and, if possible, a specific point within the terminal at the
agreed port or place of destination, as the risks to that point are for
the account of the seller. The seller is advised to procure a contract
of carriage that matches this choice precisely.
• Moreover, if the parties intend the seller to bear the risks and costs
involved in transporting and handling the goods from the terminal to
another place, then the DAP or DDP rules should be used.
• DAT requires the seller to clear the goods for export, where
applicable.
• However, the seller has no obligation to clear the goods for import,
pay any import duty or carry out any import customs formalities.
4. DAP-Delivered At Place (insert named place of
destination) 目的地交货(插入指定目的地)
• This rule may be used irrespective of the mode of transport
selected and may also be used where more than one mode of
transport is employed.
• “Delivered at Place” means that the seller delivers when the
goods are placed at the disposal of the buyer on the arriving
means of transport ready for unloading at the named place of
destination. The seller bears all risks involved in bringing the
goods to the named place.
• The parties are well advised to specify as clearly as possible
the point within the agreed place of destination, as the risks to
that point are for the account of the seller.
4. DAP-Delivered At Place (insert named place of
destination) 目的地交货(插入指定目的地)

• The seller is advised to procure contracts of carriage that


match this choice precisely. If the seller incurs costs under its
contract of carriage related to unloading at the place of
destination, the seller is not entitled to recover such costs from
the buyer unless otherwise agreed between the parties.
• DAP requires the seller to clear the goods for export, where
applicable. However, the seller has no obligation to clear the
goods for import, pay any import duty or carry out any import
customs formalities. If the parties wish the seller to clear the
goods for import, pay any import duty and carry out any
import customs formalities, the DDP term should be used.
5. DDP: Delivered Duty Paid (...named place of destination)
完税后交货(插入指定目的地)

• This rule may be used irrespective of the mode of transport


selected and may also be used where more than one mode of
transport is employed.
• “Delivered Duty Paid” means that the seller delivers the goods
when the goods are placed at the disposal of the buyer, cleared
for import on the arriving means of transport ready for
unloading at the named place of destination. The seller bears
all the costs and risks involved in bringing the goods to the
place of destination and has an obligation to clear the goods
not only for export but also for import, to pay any duty for
both export and import and to carry out all customs formalities.
5. DDP: Delivered Duty Paid (...named place of destination)
完税后交货(插入指定目的地)

• DDP represents the maximum obligation for the seller.


• The parties are well advised to specify as clearly as possible
the point within the agreed place of destination, as the costs
and risks to that point are for the account of the seller. The
seller is advised to procure contracts of carriage that match
this choice precisely. If the seller incurs costs under its
contract of carriage related to unloading at the place of
destination, the seller is not entitled to recover such costs from
the buyer unless otherwise agreed between the parties.
5. DDP: Delivered Duty Paid (...named place of destination)
完税后交货(插入指定目的地)

• The parties are well advised not to use DDP if the


seller is unable directly or indirectly to obtain import
clearance. If the parties wish the buyer to bear all
risks and costs of import clearance, the DAP rule
should be used.
• Any VAT or other taxes payable upon import are for
the seller’s account unless expressly agreed otherwise
in the sales contract.
• A Chinese North-Western Import and Export Company sold
30 tons of Licorice Cream on the basis of FOB Xingang.
The shipment is before 25th Dec. 2009. The company has
branch in Tianjin , and transport the goods to Tianjin
during the first half of the month. Unexpectedly, the goods
caught fire three days after they were put into the
warehouse. Because the rescue is not in time, all of the
goods were destroyed by fire. The branch informed the
headquarters immediately of the fire tragedy and asked the
headquarters to deliver another 30 tons of Licorice Cream as
a remedy, otherwise punctual delivery would fail. But the
headquarters could not obtain the 30 tons of Licorice Cream
in a short time. They had to ask the Japanese company for
delay of the goods.
• Question:
• Please illustrate what lessons our Chinese company should
take from the point view of trade terms.
ANSWER
ANSWER
• Our company should insure the goods for
the coverage of warehouse fire. If FOB is
adopted in the transaction, all the risks and
obligations should be borne by the seller
before the goods pass over the rail of the
ship. Since the goods should be stored in the
warehouse for half a month, the company
should insure the goods for warehouse fire
coverage. Only this way the company’s
benefits can be guaranteed.
CASE

• A merchant in South America placed an order with a Chinese


export company for a certain commodity on CFR Asuncion ( 亚
松森 )terms .With a view to develop new markets, the export
company immediately made an offer abroad on the basis of CFR
Asuncion, and the transaction was soon concluded. When
shipping the goods, however, this company came to realize that
Asuncion is an inland city. As was the case, if the company had
the goods transported to Asuncion, it had to , first of all, have the
goods transported by sea to a seaport in Argentina or some other
South American neighboring country. After that, the goods might
be transport to Asuncion through river transportation or inland
transportation. As a result, this company had to pay a
considerable sum of freight charges. What can we learn from this
case?
ANSWER
ANSWER

• In this case the loss was caused simply


because of the ignorance on the part of the
export businessman. What we can learn
from this case is that, when offering abroad,
we must make exact calculations of the total
freight and other relevant charges. Most
importantly, it is very beneficial for every
export businessman to learn geography.
CASE

• A company exported a batch of goods on the basis of CFR.


Because of negligence, it failed to notify the importer of the
loading and shipment. As a result, the importer did not insure
the goods timely. Not long after the vessel left for the destiny, it
run aground and sank, causing total loss of goods. The
importer lodged a claim against the exporter and asked for
compensation for the lost goods. However, the exporter refused
to compensate for the lost goods because the lost happened
after the goods were over the rail of the ship. So the risks
should be borne by the importer. Disputes then arise.
• Question
• Who do you think should hold responsibilities for the lost?
Why?
ANSWER
ANSWER
• The seller should take responsibilities for the lost.
• The transaction is made on CRF, which means the seller should
arrange shipment within the stipulated time and deliver the goods
to the ship transported to the destination. The seller should take
responsibilities and obligation of all costs and risks for the goods
before they pass over the ship’s rail. He should also book the ship
and pay for the necessary freight to the destination. In addition, the
seller has the obligations to notify the seller. According to CFR
terms, the seller is responsible for arranging shipment, and the
buyer for cargo insurance. If the seller fails to send out the shipping
advice on time, the buyer cannot cover the insurance for the goods.
Sometimes there will be cases of no insurance for the shipped goods.
Therefore, the seller must send the buyer the shipping advice in
order for the buyer to effect insurance for the goods on time. If the
seller fails to do so, he should take responsibilities for the lost.
CASE
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
contract 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 damages from the seller. How would
you deal with the case?
ANSWER
ANSWER
• It was not right for the buyer not to take delivery of the goods. In this
case, the contract concluded between the seller and the buyer was on CIF
terms, according to which, the seller’s responsibilities ended when he
loaded the goods on board the ship and paid the freight and insurance
premium; the risk separation was the side of the ship; that is to say, the
risks were transferred to the buyer or the other parties concerned after
the seller put the goods on board the ship. Since the documents presented
by the seller were right and proper, the seller could directly get paid form
the Issuing Bank of the L/C.
• However, part of the goods got lost because of rough sea. Does this mean
that the buyer suffered loss? It is definitely not the case because there are
other two sub-contracts existing on CIF terms-I/P and Bill of Lading. In
this case the buyer could claim damages with the insurance company, but
he had to take delivery of the goods. Obviously, the actual reason for the
buyer’s refusal to accept the goods in this case was that the prices of the
goods were going down. This is, certainly, unjustified.
CASE

• A Chinese import and export company concluded a Sale Contract


with a German firm on October 5, 2006, selling a batch of certain
commodity. The contract was based on CIF Hamburg at USD
2500 per metric ton; The Chinese company delivered the goods in
compliance with the contract and obtained a clean on board B/L.
During transportation, however, 100 metric tons of the goods got
lost because of rough sea. Upon arrival of the goods, the price of
the contracted goods went down quickly. The buyer refused to
take delivery of the goods and effect payment and claimed
damages from the seller.
• Question:
• (1) Is the buyer’s refusal reasonable? Why?
• (2)How should the buyer to deal with the loss?
ANSWER
ANSWER

• (1)It was not right for the buyer not to take delivery of the
goods. In this case, the contract concluded between the
seller and the buyer was on CIF terms, according to which,
the seller’s responsibilities ended when he loaded the goods
on board the ship and paid the freight and insurance
premium; the risk separation was the side of the ship; that
is to say, the risks were transferred to the buyer or the
other parties concerned after the seller put the goods on
board the ship. Since the documents presented by the seller
were right and proper, the seller could directly get paid
form the Issuing Bank of the L/C.
• (2)In this case the buyer could claim damages with the
insurance company, but he had to take delivery of the
goods.
CASE

• 2008 年 1 月份我国某一进口商与东南亚某
国以 CIF 条件签订合同进口香米,由于考虑
到海上运输距离较近,且运输时间段海上一
般风平浪静,于是卖方在没有办理海上货运
保险的情况下将货物运至我国某一目的港口
,适逢国内香米价格下跌,我国进口商便以
出口方没有办理货运保险,卖方提交的单据
不全为由,拒收货物和拒付货款。请问我方
的要求是否合理,此案应如何处理?
ANSWER
ANSWER

• 我方的要求是合理的。尽管我方的动机是
由于市场行情发生了对其不利的变化,但
是由于是 CIF 贸易方式,要求卖方凭借合
格完全的单证完成交货义务。本案中卖方
没有办理货运保险,提交的单据少了保险
单,即使货物安全到达目的港,也不能认
为其完成了交货义务。
Case
• A Chinese import and export company signed a contract with a
Thailand import and export company on FOB terms , selling
the Thailand company 10 000 pieces of candles. Before
shipment, the goods passed an inspection by a notary public and
were in line with the contract requirements. After the goods’
arrival at the port of destination, the buyer found that 30% of
the candles were curved and, therefore, claimed to the seller. But
the seller refused to make compensation on the grounds that the
quality of the goods at shipment was consistent with the
contract requirements and there was a quality certificate given
by the notary public. After careful investigation, the reason for
the candle curving was clear. It was because when the goods
were handled to the carrier, the carrier packed the goods in the
cabin near the engine room, as a result of high temperature
within the cabin, so the candles curved.
• Question:
• In these circumstances, whether the reasons of the seller for
rejecting the claim were set up? Why?
ANSWER
ANSWER
• The seller is not liable for this loss. Because:
• (1) In the course of trade, there might be disputes occur
over the issue that whether the delivery quality and
quantity are in line with the provisions of the contract. As
in the international trade, the delivery process needs to go
through several steps, resulting in inconsistent quality and
quantity for many reasons: for example, what are the
quality and quantity when the seller delivers the goods ;
how are the carrier’s storage, stacking and handling of
goods during the transportation to the agreed port of
destination; during the transition, whether the goods
experience any risk of accidents , all these have
significant impact on the quality and quantity of the goods.
According to the above situation, it’s not necessarily the
seller’s responsibility for the inconsistent quality of goods.
• Only with the first case, it’s the seller’s breach of
contract, the buyer has the right to claim, and this is
known as a trade claim. The second situation is that the
carrier fails to preserve the goods in accordance with the
provisions of the bill of lading, so this loss should be
borne by the carrier according to the provisions of the bill
of lading, and this claim is known as a transportation
claim. The third case belongs to the scope of risk, if the
insurance company has insurance for the insured person
or legal assignees, then the insured person or legal
assignees can claim to the insurance company in
accordance with the scope covered by insurance policies,
and this is known as insurance claims. Therefore, it is not
necessarily for the seller to bear the loss when the buyer
and seller have a dispute on the quality and quantity of
delivery, only for the claim of a trade is the seller liable
for compensation.
• (2) According to the situation in this case, the two sides
signed the contract on FOB terms. The risk of loss of
goods was after shipment, and this risk transferred from
the seller to the buyer. It was proved that on the
shipment of goods, the goods were examined by the
notary public, and their quality was proved in full
compliance with the contract. Therefore, the seller
fulfilled its delivery obligations under the contract FOB.
As for 30% of the candle curved after the goods’ arrival
at the port of destination, this apparently had nothing to
do with the delivery from the seller. It was because the
goods were stored in the cabin and the temperature was
too high, resulting in candles softening and bending, and
this was due to the fact that the carrier did not effect the
custody by the characteristics of goods.
• According to the provisions of the bill of lading, the
carrier should undertake the responsibility of the
preservation of the cargo, so the consignee shall be
entitled to claim to the carrier against the bill of
lading. Thus, in this case, the situation should belong
to the transport claim, and has nothing to do with the
seller.
• (3) The contract in this case was based on FOB terms.
Even if the losses were within the scope of risks, it’s
the buyer’s responsibility to claim to the insurance
company while the seller is irrelevant.
CASE

• A merchant in South America placed an order with a


Chinese export company for a certain commodity on CFR
Asuncion ( 亚松森 )terms .With a view to develop new
markets, the export company immediately made an offer
abroad on the basis of CFR Asuncion, and the transaction
was soon concluded. When shipping the goods, however,
this company came to realize that Asuncion is an inland
city. As was the case, if the company had the goods
transported to Asuncion, it had to , first of all, have the
goods transported by sea to a seaport in Argentina or
some other South American neighboring country. After
that, the goods might be transport to Asuncion through
river transportation or inland transportation. As a result,
this company had to pay a considerable sum of freight
charges. What can we learn from this case?
ANSWER
ANSWER

• In this case the loss was caused simply


because of the ignorance on the part of the
export businessman. What we can learn
from this case is that, when offering
abroad, we must make exact calculations
of the total freight and other relevant
charges. Most importantly, it is very
beneficial for every export businessman to
learn geography.
Section Four Components of Trade
Terms
US$ 100 per dozen FOB New York 纽约
每打 100 美元
FOB
↓ ↓ ↓ ↓
计价数量单位 单位价格金额 计价货币
贸易术语

在国际贸易中,合同中的价格条款包括
商品的单价和总价。总价是指一笔交易的货款
的总金额。商品的价格通常指的是商品的单价。
单价是由计价货币、单位价格金额、计价数量
单位和贸易术语构成的。
1 . Type of Currency (计价货币)

Price for exports may be quoted in the buyer’s


currency, the seller’s currency or in a third
currency. Since the change of the value of the
selected currency may directly affect their
financial interests, the parties concerned
should choose the currency favorable to them
during pricing. In general, hard currency (e.g.
US dollars, sterling or Swiss Francs) should be
chosen for exports and soft currency for
imports.
2 . Price Per Unit (单位价格金额)
• While quoting an export price, first of all, the
exporters should take into account the various costs
and charges involved in getting the goods from the
factory or warehouse in his own country to the
buyer’s premises. Generally speaking, they consist of
the purchasing cost of the goods, inland freight,
packing expenses, warehousing, commodity
inspection fees, export tariffs and entry fees, agent’s
commissions, etc. In some cases, ocean freight and
insurance premiums should be covered in the
quotation. And the profit margin, of course, should
also be considered when a price is quoted.
3 . Measurement Unit (计价数量单位)

• The specified measurement unit should also


be mentioned , because many countries
use different systems of measures and
weights. For example, if “ton” is used as the
measurement unit, it should be clearly
indicated whether it is “metric ton”, “long
ton” (British) or “short ton” (America).
4 . Trade Terms (贸易术语)
• Under no circumstance can a buyer get a
quotation without trade terms in international
trade. Trade terms ensure both exporter and
importer know their own responsibilities. In
foreign trade, there are various prices for the
same commodity. Granting that the cost of
certain commodities is the same ex-factory, the
prices quoted by the seller will vary with the
place of delivery. For example, in the case of a
contract based on CIF terms as “CIF London”
stated above, that means the seller bears all the
cost, freight and insurance up to the named
port of destination, here is “London”.
Section Five Clauses commonly used
about the trade terms in contract (合同
中的通用贸易术语)
• 1. US$100 per dozen CFR New York.
• 2. US$150 per M/T CIF London including 2%
commission.
• 3. RMB ¥ 25 per case CFR Singapore less 1%
discount.
• 4. US$ 4.5 per dozen FOB net Shanghai.
• 5. Unless otherwise specified, prices are FOB
Ex Works with freight allowed to U.S. port of
Westinghouse choice.
Section Six Terminology Relating to
International Trade and International
Practices 有关国际贸易术语的国际惯

• The rules and conventions of international trade are
referred to those customary practices and
explanations to the universal significance in
international trade, which are formed through long-
term practice. Therefore, there is a development
process for the meaning and interpretation of each
term. In trade practice, although there formed several
explanations to various trade terms and the terms
have got popular acceptance by the world. But the
explanation contents are not in strict conformity with
each other.
• So disputes often emerge. The International
Chamber of Commerce, the International Law
Association and some well-known business
groups in the United States make out those rules
and conventions to explain the international trade
terms respectively after long efforts. These rules
and conventions are widely used and accepted in
the world and have become the international trade
practice. Nowadays, the most important rules and
conversions are the following three:
• (1) Revised American Foreign Trade Definition
1990
• (2) Warsaw-Oxford Rules 1932
• (3) INCOTERMS 200