行业英语资源库经贸英语Incoterms.docVIP

高职公共英语资源库 Higher Vocational Public English Resource Bank Incoterms Incoterms or international commercial terms are a series of international sales terms widely used throughout the world. They are used to specify obligations of buyer and seller. The use of trade terms greatly simplifies the contract negotiations, and thus saves time and cost. Some of the most commonly used terms are listed as follows: FOB– Free on Board (named loading port) FOB stands for “Free on Board”, and is always used in conjunction with a port of loading. Indicating “FOB port” means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays cost of marine freight transport, insurance, unloading, and transportation from the arrival port to the final destination. The risk of loss or damage to the goods is transferred to the buyer when the goods pass the ship’s rail. For example, “FOB Vancouver” indicates that the seller will pay for transportation of the goods to the port of Vancouver, and the cost of loading the goods onto the cargo ship. The buyer pays for all costs beyond that point (including unloading). Responsibility for the goods is with the seller until the goods pass the ship’s rail. Once the goods are loaded onto the ship, the buyer assumes risk. CFR– Cost and Freight (named destination port) Under this condition, the seller must pay the costs and freight to bring the goods to the port of destination except for insurance which becomes the buyer’s responsibility. However, risk is transferred to the buyer once the goods have crossed the ship’s rail. CIF– Cost, Insurance and Freight (named destination port) CIF is exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. That is to say, the seller is responsible for all costs of delivering goods to the buyer’s named port of destination, inc