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1、International Trade Terms,Chapter Two,2,2.1 Three sets of rules,Warsaw-Oxford Rules 1932 Revised American Foreign Trade Definitions 1941 International Rules for the Interpretation of Trade Terms 2010,3,Warsaw-Oxford Rules 1932,Initially in 1928-“Warsaw Rules, 1928” 22 provisions governing the rights
2、 and obligations of the parties to a sale of goods on CIF (Cost, Insurance and Freight) contract terms. Revised in 1932-the “Warsaw-Oxford Rules 1932” 21 provisions again mainly about CIF,4,Revised American Foreign Trade Definitions 1941,Defines 6 terms: Ex Point of Origin FOB (free on board) FAS (f
3、ree along side) 6 variants of FOB FOB (named inland carrier at named inland point of departure) FOB (named inland carrier at named inland point of departure) Freight Prepaid to (named point of exportation) FOB (named inland carrier at named inland point of departure) Freight Allowed to (named point
4、of exportation) FOB (named inland carrier at named inland point of exportation) FOB Vessel (named port of shipment) Incoterms FOB FOB (named inland point in country of importation,C Export customs clearance Usu. buyers responsibility, sometimes seller does it for buyer, but bears no risks,13,The “F”
5、 terms (FCA, FAS, FOB,Shipment contract Seller delivers the goods for carriage as instructed by the buyer buyer pays freight and signs carriage contract with carrier and notify seller FAS & FOB only for sea or inland waterway transportation mode Sellers obligation, cost and risk transfers to buyer a
6、fter delivery of the goods Sellerexporting license and export customs clearance Buyerimporting license and import customs clearance,14,FCA Free Carrier (. Named place,Transfer of risks goods at the disposal of the (1st) carrier Delivery point If at sellers site, seller responsible for loading If any
7、where else, seller responsible for delivering the goods to the point required, but not responsible for unloading or reloading,15,FAS Free Alongside Ship (named port of shipment,Delivery point: at port of shipment Transfer of risk: goods put alongside the vessel If vessel unable to enter the port due
8、 to force majeure, the seller is responsible for arranging and paying for the lighters to send the goods alongside the vessel offshore. (seller pays for lighter charges,16,FOB Free on Board ( named port of shipment,Delivery point: at port of shipment Transfer of risks: goods loaded on board the ship
9、 Cost and obligation: the seller is paying for the necessary handling of goods until they are loaded onboard the vessel. Strictly speaking, transfer of risks transfer of obligation and cost,17,The “C” terms （CFR, CIF, CPT, CIP,Shipment contracts Seller contract for carriage on usual terms at his own
10、 expense. CFR & CIF only for sea or inland waterway transportation mode Under CIF and CIP, seller also takes out insurance and insurance cost,18,The “C” terms （CFR, CIF, CPT, CIP,Two “critical” points Port (place) of shipment to which the buyer takes over the risks Port (place) of destination to whi
11、ch the seller is bound to arrange and bear the costs of a contract of carriage,19,CFR Cost and Freight ( named port of destination,Shares every feature with FOB except for ocean freight charge Freight at sellers cost Seller pay the normal transport cost for the carriage of the vessel by a usual rout
12、e and in a customary manner to the agreed place Buyer take the risk of loss or damage to the goods and additional costs resulting from events occurring after the delivery of the goods Obligation: sellers responsibility for booking shipping space and getting goods ready for shipment in due time to no
13、tify to buyer about the delivery of goods (Shipping advice) so as to facilitate buyer to fulfill insurance procedures Note: notification is more important under CFR than under FOB and CIF,20,CIF Cost, Insurance and Freight ( named port of destination,One step forward from CFR Insurance born by selle
14、r Insurance for the buyer The seller pays for the insurance, but he does not take the risk of the cargo. Seller responsible for “min. coverage” If required by buyer and at buyers expense, additional coverage such as war, strike can be added Seller has no responsibility to guarantee the arrival of th
15、e goods at the destination,21,CPT Carriage Paid to ( named place of destination,CPT is similar to CFR Differences: Mode of transport CPT any mode CFR Sea or Inland Waterway Delivery point CPT inland place or port of shipment CFR port of shipment Transfer of risks CPT goods delivered to carrier CFR g
16、oods loaded on board the ship,22,CIP Carriage and Insurance Paid to ( named place of destination,CIP is similar to CIF Differences: Mode of transport CIP any mode CIF sea or inland waterway Delivery point CIP inland place or port of shipment CIF port of shipment Transfer of risks CIP goods at the disposal of carrier CIF goods loaded on board the ship Freight and insurance CIP whole journey freight and insurance CIF ocean freight and insurance,23,The “D” terms （DAT, DAP, DDP,Arrival contracts sel
