国际经济与贸易英语：chapter 3 Int l Trade Terms.pptVIP

Answer to the question 3. From the case we know: The seller has fulfilled all his obligations under the contract. In this case, the reason for the delay of the goods to the port of the destination is that the shipping company has changed the transportation arrangement without seller’s authorization. In the case, the seller misunderstood the CIF term into “到岸价格”, he confused the distinction between risk and expense under CIF term, as CIF is a term of “shipment contract” rather than the term of “arrival contract”. Under the circumstances, the seller does not need to compensate the buyer, but to assist him to claim compensation from the ship. Answer to the question 1. Similarities: a. The seller’s risk will be transferred to the buyer when the goods are loaded on board the vessel. b. The seller is responsible for export customs formalities while the buyer is responsible for import customs formalities. c. The buyer is responsible for unloading the goods at the port of destination. d. All three terms can only be used for waterway transportation. Differences: FOB requires the buyer to arrange and pay for the ocean transportation; CFR requires the seller to arrange and pay for ocean transportation; CIF requires the seller to arrange and pay for the ocean transportation and insurance against the buyer’s risk . Answer to the question 2. Major similarities: a. The seller should contract and pay for the major carriage. b. The seller is not taking the risk of loss of or damage to the goods during the transportation. Difference: a. CPT is applicable to any kind of transportation mode while CFR is only used for waterway transport. b. Under CPT the seller’s risk will be transferred to the buyer when the goods are handed over to the first carrier nominated by the seller. Under CFR the sell’s risk will be transferred when the goods are loaded on board the vessel. Answer to the question 3. Major similarities: a. The seller should contract and pay for the major car