unit4Tradeterms(国贸双语).ppt

Unit 4 a Trade Terms Or Price Terms What is Trade Terms The trade terms, are the short terms or abbreviations or brief English concept(3 English characters in Incoterms2000) to indicate/explain the composition/formation of the unit price and determine the (1)responsibilities/rights and obligations, (2)expenses and (3)risks borne by two parties as well as the time of the passing of the title of goods(货权转移). 1、Brief Introduction of Custom Practice 2、《INCOTERMS 2000》 Six Main Trade Terms in Incoterms FOB CFR CIF FCA CPT CIP Other trade terms: EXW FAS DAF DES DEQ DDU DDP EXW----ex works (…named place) It means that the seller’s only responsibility is to make the goods available at his premises during the contracted time and bear the charges and risks before the goods are delivered to the buyer. He is not responsible for loading the goods onto the vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risks involved in carrying the goods from there to the desired destination. EXW thus represents the minimum obligation undertaken by the seller among the 13 trade terms. Why does the buyer choose EXW? a) get the cargoes at a lowest price; b) Freight and insurance charges can be paid with native currency, so the foreign exchange can be saved; c) Gain better service from the shipping or insurance agent in the export country. FAS----Free Alongside Ship (…named port of shipment) Under FAS terms the seller’s obligations are fulfilled when the goods have been placed alongside the vessel on the quay or in lighters. This means that the buyer has to bear all cost and risks of, losses of, or damage to the goods from that moment. FAS = All the risks and expenses before the goods to be placed alongside the vessel on the quay + responsibility and expenses for clearing the goods for export . FOB（…named port of shipment） “Free on Board” means that the seller fulfils his obligation to deliver