国贸期中作业.docVIP

My understanding of trade terms Introduction With the development of the international trade, we inevitably use some trade terms. 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. Now with my limited cognition, first I’ll introduce the six main trade terms, which are called FOB, CIF, CFR, FCA, CPT and CIP, then analysis them. Definition FOB, FREE ON BOARD (… named of shipment).FOB means that the seller has fulfilled his obligation to deliver when the goods have physically passed over the ships rail at the named port of shipment.. CFR, COST AND FREIGHT (…named port of destination). CIF means that the seller must pay the costs and freight necessary to transport the goods to the named destination port. CIF, COST, INSURANCE AND FREIGHT (… named of destination). CFR means that the seller has the same obligations as under the CFR term but with the additional responsibility that he must procure marine insurance against the buyers risk of loss of or damage the goods during the period of carriage. FCA, FREE CARRIER (… named place of delivery). FCA 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. CPT, CARRIAGE PAID TO (… named place of destination). CPT means that the seller delivers the goods to the carrier nominated by the seller at an agreed place and the seller must contract for pay the cost of carriage necessary to bring the goods to the named destination. CIP, CARRIAGE AND INSURANCE PAID TO (…named place of destination). CIP means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. The Analysis of the trade terms Similar and the difference between FOB,CIF and CFR The similar betwe