商务英语阅读4.pptVIP

* Business English Reading Courseware Book 2 Chapter Two International Trade Terms 国际贸易术语 Step One First, read Material One under teacher’s instructions. Then teacher gives hints or tips for reading. Finally, teacher checks the answers and gives explanations. Summary of International Trade Terms 1. Role of Trade Terms Trade terms, also known as price terms or delivery terms, are standardized terms used in sales contracts that describe the place and manner for the transfer of goods from the seller to the buyer. These trade terms, such as Free On Board (FOB) and Cost, Insurance, and Freight (CIF), may also define a variety of other matters, including the price, the time when the risk of loss shifts from the seller to the buyer, and the costs of freight band insurance. The use of trade terms greatly simplifies the process of negotiation of contract, thus saving time and cost for businessmen. 2 International Rules on Trade Terms Trade terms have been developed in practice for many years. However, as different countries might have different interpretations of the terms, misunderstandings occurred frequently. To clear up the confusion, some commercial organizations drew up sets of rules or standard definitions. 2. 1. Warsaw-Oxford Rules 1932 This rule was drafted by the Association of International Law in 1932. It contains 21 clauses, which only stipulate the nature of CIF contract, and the charges, risks and obligations which should be born by the seller or the buyer. 2. 2. Revised American Foreign Trade Definitions 1941 This rule was made out by nine American commercial organizations in 1941. It is a set of foreign trade which are considered obsolete, but still sometimes used in domestic U.S. trade. It contains 6 trade terms. 2. 3. International Rule for the Interpretation of Trade Terms 2000 The International Chamber of Commerce (ICC) in Paris developed INCOTERMS ( International Commercial Terms). It was first published in 1936 and has been periodically revised to a