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【经济课件】CHAPTER3 PRICE TERMS
Chapter 3 Price terms What is trade terms? In order to avoid, or at least reduce to a considerable degree, the uncertainties of different interpretations of such terms in different countries, the International Chamber of Commerce (ICC) first published a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. These rules were known as “ Incoterms 1936”. Amendments and additions were later made in 1953,1967,1976,1980,1990 and presently 2000 in order to bring the rules in line with current international trade practices. Components of trade terms The price terms of a sale contract include unit price and total price. The price of a commodity usually refers to the unit price. The unit price consists of type of currency, price per unit, measurement unit and trade terms. For example: US$100 per dozen FOB New York Classifications of trade terms the “E” terms Ex-works the “F” terms FCA, FAS and FOB the “C” terms CFR, CIF, CPT and CIP the “D” terms DAF, DES, DEQ, DDU and DDP Six main trade terms in Incoterms FOB CFR CIF FCA CPT CIP FOB: Free on Board装运港船上交货 FOB means that the seller fulfils his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. The seller’s obligation Provide the goods and commercial invoice. Obtain the export license or other official authorization and carry out all customs formalities. Deliver the goods on board the vessel named by the buyer at the named port of shipment within the stipulated time. Bear all risks of loss of or damage to the goods until such time as they have passed the ship’s rail at the named port of shipment. Provide the buyer with the usual document. Give the buyer the shipping advice. Provide necessary information about insurance at the buyer’s request. The obligation the buyer Pay the price as provided in the contract of sale. Obtain the import license or other official authorization. Carry out all customs formalities
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