《chapter 7 int#39;l trade terms》.ppt

Learning Objectives To understand trade terms and their functions; To understand the place of delivery, the formation of the unit price, responsibilities, expenses and risks borne by two parties, and the mode of transportation of the six major trade terms; To understand the differences and similarities of the six major trade terms; To learn other seven trade terms. Int’l Trade Terms (国际贸易术语） Trade Terms: Trade terms (price terms/delivery terms) are an important component of a unit price in int’l trade. They are short term or abbreviations used to explain the price composition and the rights and obligations of the parties concerned. The functions of Int’l trade terms Stipulate the place of delivery. Stipulate responsibility, expenses and risks borne by two parties. Stipulate the formation of the unit price. Stipulate the mode of transportation. Responsibilities and expenses Responsibilities include: Carrying out customs formalities for the goods; Obtaining the import or export license; Chartering a ship or booking shipping space; Making insurance; Asking for inspection. Responsibilities and expenses Expenses comprise: Freight; Loading and unloading expenses; Insurance premium; Warehouse charges; Duties and taxes; Miscellaneous expenses. The relations between law and trade terms The usage and interpretation of trade terms are to some extent the result of customary practice. So, trade terms are not common legislations and without any legal binding force upon both parties to a sales contract. If the stipulations in a contract are in conformity with that of the law but not with trade terms, parties should follow the relevant legislation rather than trade terms. Three sets of trade terms 《Warsaw-Oxford Rules》 1932年华沙－牛津规则 《Revised American Foreign Trade Definitions 1941》1941年美国对外贸易定义修订本 《International Rules for the Interpretation of Trade Terms in 2000》, also called《INCOTERMS2000》 by Int’l Chamber of Commerce (ICC) 2000年国际贸易术语解释通则 With largest content, widest ra