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1、（高职）Chapter 3：外贸英语ppt课件外贸英语外贸英语目录CONTENT010302040709081011050612 Trade terms Incoterms 2010 Free on board Cost and freight Cost，insurance and freight Liner terms Document transaction Obligations Import license Export license 1. explain what trade term is. 2. describe some international trade usages.
2、 3. grasp some important trade terms. 4. understand the variations of trade terms.NegativePositiveKey termsKey termsObjectivesObjectivesTrade terms and international trade usages3 3.1.13.1.1The definition and functions of trade termsThe cargoes carried from the export country to the import country w
3、ill usually go through a long distance of transportation and sometimes need transshipment during the process of transit of the goods. The seller or the buyer shall handle a series of complicated formalities，which include carrying out customs formalities for the goods，obtaining the export license，cha
4、rtering a ship or booking shipping space，taking out insurance，asking for inspection and so on，and pay all kinds of charges and expenses，such as freight，loading and unloading expenses，insurance premium，warehouses charges，duties and taxes，and other miscellaneous expenses.Trade terms and international
5、trade usages3 3.1.13.1.2International trade usagesn Trade terms have been developed in practice over many years to fit different situations. However，as different countries might have different interpretations of the terms，misunderstandings occurred frequently. To clear up the confusion，some internat
6、ional organizations have made quite a few rules to explain trade terms. Trade terms and international trade usages3 3.1.13.1.2International trade usages In 1928，the International Law Association held a meeting in Warsaw，and worked out the Uniform Rules for CIF Sales Contracts，which was called Warsaw
7、 1928，and renamed Warsaw Oxford Rules 1932 at the Oxford Convention. It includes 21 clauses and is mainly used to indicate the nature and characteristics of the CIF contract and also to stipulate the responsibilities of the two parties under CIF term.Trade terms and international trade usages3 3.1.1
8、3.1.2International trade usages In 1919，nine American commercial groups drew up the U.S. Export Quotation and Abbreviation，which was revised in 1941 and was renamed Revised American Foreign Trade Definitions 1941. It was adopted by the American Chamber of Commerce，the National Importers Association
9、and the American Foreign Trade Association in the same year. In 1990，it was again revised and named Revised American Foreign Trade Definitions 1990. It includes six trade terms，i.e. EXW，FOB，FAS，CFR，CIF and DEQ. Except EXW and DEQ，the other four trade terms are explained quite differently from those
10、in INCOTERMS. These trade terms are often adopted in the United States of America，Canada and some other countries in America.Trade terms and international trade usages3 3.1.13.1.2International trade usages，there are 13 trade terms and these trade terms are grouped in four categories：E，F，C and D.Trad
11、e terms and international trade usages3 3.1.13.1.2International trade usagesn The structure of Incoterms 2000 is illustrated as Table 3-1.Trade terms and international trade usages3 3.1.13.1.2International trade usagesIncoterms 2010 was published on September 27，2010 by International Chamber of Comm
12、erce and implemented on January 1，2011. Incoterms 2010 includes 11 trade terms and these trade terms are arranged into the following two distinct groups：CIP-Carriage and Insurance CIP-Carriage and Insurance Paid toPaid toCPT-Carriage Paid toCPT-Carriage Paid toDAP-Delivered at PlaceDAP-Delivered at
13、PlaceDAT-Delivered at TerminalDAT-Delivered at TerminalDDP-Delivered Duty PaidDDP-Delivered Duty PaidEXW-Ex WorksEXW-Ex WorksFCA-Free CarrierFCA-Free CarrierPART 2CFR-Cost and FreightCFR-Cost and FreightCIF-Cost Insurance and CIF-Cost Insurance and FreightFreightFAS-Free alongside FAS-Free alongside
14、 ShipShipFOB-Free on BoardFOB-Free on BoardPART 3Trade terms and international trade usages3 3.1.13.1.2International trade usagesn International trade practices related to trade terms are not laws and have no force of law，but under the following circumstances，they legally bind the buyer and seller：（
15、1 1）When two parties agree to use trade practices in their transactionWhen two parties agree to use trade practices in their transaction，and clearly stipulate it in their contract.and clearly stipulate it in their contract.（2 2）When the country law has stipulationsWhen the country law has stipulatio
16、ns，trade practices trade practices has force of law.has force of law.（3 3）According to the United Nations Conventions on Contracts for the According to the United Nations Conventions on Contracts for the International Sales of GoodsInternational Sales of Goods，the practices are not ruled out by the
17、the practices are not ruled out by the contractcontract，already known and often used by two parties apply to the already known and often used by two parties apply to the contract.contract.The commonly used trade terms in Incoterms 20103 3. .2 23.2.1FOB，Free on Board（Insert Named Port of Shipment）mea
18、ns that the seller fulfills his obligations to deliver the goods when the goods have been delivered on board the vessel at the named port of shipment. That means the buyer has to bear all expenses and risks of，or damages to the goods from that time.( (1 1) )Mode of Mode of transportationtransportati
19、on( (4 4) )ResponsibilitieResponsibilities s，expenses and expenses and risks borne by risks borne by two partiestwo parties( (3 3) )The The formation of formation of the unit pricethe unit price( (2 2) )The place of The place of delivery and delivery and risk transferrisk transfer( (5 5) )The variat
20、ion The variation of FOB trade of FOB trade termtermThe commonly used trade terms in Incoterms 20103 3. .2 2CFR，Cost and Freight（Insert Named Port of Destination） means that the seller shall pay the cost and freight necessary to carry the goods to the named port of destination，but the risks of，losse
21、s of，or damages to the goods，as well as any additional cost due to events occurring after the time the goods have been delivered on board the vessel，are transferred from the seller to the buyer at the named port of shipment.The commonly used trade terms in Incoterms 20103 3. .2 2CIF，Cost Insurance a
22、nd Freight（Insert Named Port of Destination） means that the seller has the same obligation as under CFR but with the addition that he has to procure marine insurance against the buyers risks of，losses of，or damages to the goods during the carriage.0102030405Mode of transportationThe formation of the
23、 unit priceThe variation of CIF trade termThe place of delivery and risk transferResponsibilities，expenses and risks borne by two partiesThe commonly used trade terms in Incoterms 20103 3. .2 23.2.4FCA，Free Carrier（Insert Named Place）means that the seller fulfills his obligations to deliver when he
24、has handed over the goods，cleared for export，to the carrier named by the buyer at the named place or point. “Carrier”refers to any person who，in a contract of carriage，undertakes to deliver the goods by rail，road，air，sea，inland waterway or by a combination of such modes. The chosen place of delivery
25、 has an impact on the obligations of loading and unloading the goods at that place. If delivery occurs at the sellers premises，the seller is responsible for loading. If delivery occurs at any other place，the seller is not responsible for unloading.The commonly used trade terms in Incoterms 20103 3.
26、.2 23.2.5CPT，Carriage Paid to（Insert Named Place of Destination） means that the seller pays the freight for the carriage of the goods to the named place of destination，the risks of，losses of，or damages to the goods，as well as any additional cost due to events occurring after the time the goods have
27、been delivered to the carrier，are transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. CPT is almost the same as CFR except that CFR is only applied to sea and inland waterway transport，while CPT may be used for any mode of transport including
28、multimodal transport.The commonly used trade terms in Incoterms 20103 3. .2 2CIP，Carriage and Insurance Paid to（Insert Named Place of Destination） means that the seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyers risks
29、 of，losses of，or damages to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. Compared with CIF，CIP is applied to all modes of transport.Other trade terms3 3. .3 33.3.1EXW，Ex Works（Insert Named Place） means that the sellers only responsibility is to de
30、liver the goods to the buyer at the sellers premises or another named place，such as works，factory and warehouse. The sellers obligations cease when the buyer accepts the goods at the factory or warehouse. The buyer bears the full costs and risks involved in carrying the goods from there to the desir
31、ed destination，including obtaining the export license. Thus EXW represents the minimum obligations undertaken by the seller.Other trade terms3 3. .3 33.3.2FAS，Free alongside Ship（Insert Named Port of Shipment）means that the sellers obligations are fulfilled when the goods have been placed alongside
32、the vessel at the named port of shipment. That means the buyer has to bear all costs and risks of，losses of，or damages to the goods from that moment. It should be noted that the FAS term requires the seller to clear the goods for export.Other trade terms3 3. .3 3DAT，Delivered at Terminal（Insert Name
33、d Terminal at Port or Place of Destination） replaced the trade term DEQ. It means that the seller shall fulfill his obligations of delivering the goods after discharging the goods and delivering the goods to the buyer at a named terminal at the named place or port of destination. Terminal includes a
34、ny place，whether covered or not，such as quay，warehouse，container yard or road，rail or air cargo terminal. The seller bears all risks and expenses involved in bringing the goods at the terminal at the named place or port of destination（except import expenses）. DAT requires the seller to clear the goo
35、ds for export. The DAT term is suitable for any mode of transportation or multimodal transportation.Other trade terms3 3. .3 33.3.4DAP，Delivered at Place（Insert Named Place of Destination） replaced the trade terms DAF，DES and DDU. It means that the seller delivers when the goods are placed at the di
36、sposal of the buyer on the arriving means of carriage ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place（except import expenses）. DAP requires the seller to clear the goods for export. The DAP term is suitable for any m
37、ode of transportation or multimodal transportation.Other trade terms3 3. .3 3DDP，Delivered Duty Paid（Insert Named Place of Destination）means that the seller fulfills his obligations to deliver when the goods have been made available at the named place in the country of importation. The seller has to
38、 bear all the risks and costs including duties，taxes and other charges for delivering the goods，clearing for importation. It represents the maximum obligation borne by the seller. This term should not be used if the seller is unable to obtain directly or indirectly the import license. If parties wis
39、h the importer to bear all risks and costs of import，the DDU term should be used.Other trade terms3 3. .3 33.3.6Shipment contracts and arrival contractsThe “C”termsThe “C”terms（CFR and CPTCFR and CPT）require the require the seller to contract for the carriage of the seller to contract for the carria
40、ge of the goods on usual terms at his own expenses. goods on usual terms at his own expenses. Under the CIF and CIP termsUnder the CIF and CIP terms，the seller the seller also has to take out insurance and bear the also has to take out insurance and bear the insurance cost. Since the point for the i
41、nsurance cost. Since the point for the division of costs is at a point in import division of costs is at a point in import countrycountry，these terms are frequently these terms are frequently mistakenly believed to be arrival contracts. mistakenly believed to be arrival contracts. HoweverHowever，it
42、must be stressed that these it must be stressed that these terms are of the same nature as the terms terms are of the same nature as the terms of FOBof FOB，FCAFCA，FAS. Under these termsFAS. Under these terms，the the seller fulfills the contract in the place seller fulfills the contract in the place
43、of shipment or dispatchof shipment or dispatch，and the seller and the seller does not required to guarantee the arrival does not required to guarantee the arrival of the goods. Thusof the goods. Thus，the contracts of sale the contracts of sale under these termsunder these terms，fall within the categ
44、ory fall within the category of shipment contracts.of shipment contracts.The“D”termsThe“D”terms（DATDAT，DAP and DDPDAP and DDP）are different in nature from the are different in nature from the aboveabove mentioned terms. Under these mentioned terms. Under these termsterms，the seller is responsible th
45、e seller is responsible for the arrival of the goods at the for the arrival of the goods at the agreed place or point of agreed place or point of destination at the border or within destination at the border or within the country of import. The seller the country of import. The seller must bear all
46、risks and costs in must bear all risks and costs in bringing the goods there. Hencebringing the goods there. Hence，they are arrival contracts.they are arrival contracts.The choice of trade terms in practice3 3. .4 4n Under different trade terms，the responsibilities，risks and expenses borne by two pa
47、rties are different. At present，symbolic delivery trade terms are widely used. Chinese foreign trade corporations are traditionally inclined to arrange shipment and effect insurance by themselves. The purpose is to develop both Chinese ocean transport industry and insurance industry. In their import
48、 business，they usually adopt FOB or FCA；in their export business，they usually adopt CIF or CIP. Sometimes they also adopt CFR or CPT when the other party requires them to cover insurance with their own insurance companies. The choice of trade terms in practice3 3. .4 4n When choosing trade terms，the
49、 following two points should be paid attention to：AB Since FOBSince FOB，CFRCFR，CIF are suitable CIF are suitable for sea or inland waterway for sea or inland waterway transporttransport，it is necessary to use it is necessary to use FCAFCA，CPTCPT，CIP when the goods CIP when the goods are carried by r
50、ail or air. Even by are carried by rail or air. Even by ocean transportocean transport，when containers when containers are usedare used，it is better to use FCAit is better to use FCA，CPTCPT，CIPCIP，because risks will because risks will transfer from the seller to the buyer transfer from the seller to