Chapter 4-part one.ppt

Offer additional guidance for selecting the most appropriate Incoterms for each transaction. Add rules to: the use of electronic procedures; detail information on security-related clearances for shipments; offer advice with respect to domestic trade. Incoterms 2010 Notes Even though from Jan.1st, 2011, the new Incoterms entered into force, the Incoterms 2000 can still be used in doing international trade. If to use, make it clear in the contract, such as: “the chosen Incoterms rule including the named place, followed by Incoterms(R) 2010”. 6. Six Main Trade Terms FOB (Free on Board,…named port of shipment) 船上交货(…指 定装运港) 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) CIP: Carriage and Insurance Paid to (…named place of destination)（运费和保险费付至（……指定目的地） 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） * * Chapter 4 Trade Terms Peggy Lan October 2013 Contents 1. Review 2. Meaning of Trade Terms 3. Components of Trade Terms 4. Trade Conventions 5. Incoterms Review What is the definition for contract? 2. What does the contract proper usually include? A contract is an agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. It is an agreement which sets forth binding obligations of the relevant parties. Contents 1. Review 2. Meaning of Trade Terms 3. Components of Trade Terms 4. Trade Conventions 5. Incoterms 2. What are Trade Terms The trade terms, are the short terms or abbreviations or brief English concept (3 English characters). to indicate/explain the composition/formation of the unit price; determine the: (1)responsibilities/rights and obligations, (2)expenses and (3)r