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International Trade Terms;Learning Objectives;what is trade terms;IMPORTANCE AND EFFECTS;Three sets of rules;International Rules for the Interpretation of Trade Terms 2000 (Incoterms 2000);13 terms into 4 categories
E-term — the seller only makes the goods available to the buyer at the sellers 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. ; INCOTERMS 2000;Generally, under F terms the buyer pays the cost of the main international carriage.
The seller places the goods in the hands of a carriage named by the buyer and at a time and place named in the contract. The risk of loss passes from the seller to the buyer at that time.
The buyer arranges the transportation and pays all freight costs, however, if it is convenient and the parties agree, the seller may pay the freight and add that amount to the invoice price already quoted.;F terms are often used when the buyer has contracted for a complete shipload of materials or commodities and thus has reason to assume the responsibility for arranging carriage.
F terms may also be used because the buyer feels that it can obtain better freight rates than the seller. Some F terms are for ocean shipment only. Other can be used for all modes of transport.;GROUP F (FCA, FAS, FOB);FOB FREE ON BOARD (… NAMED PORT OF SHIPMENT);FOB;FOB obligations of the seller;1. At his own expense, charter a vessel or reserve the necessary space on board a vessel and give the seller due notice of the name, loading berth of and delivery dates to the vessel.
Bear all costs and risks of the goods from the time when they shall have effectively passed the ship’s rail at the named port of shipme
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