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1、Pricing the Goods for Export,Module Four,Import & Export Business of Commodities,Objectives,After learning this module, you should: 1. be able to explain the functions of trade terms; 2. know the main international customs and rules on trade terms; 3. be familiar with the framework of the trade term
2、s under INCOTERMS 2000; 4. know the names and be able to explain the implications of the 13 trade terms under INCOTERMS 2000; 5. be able to explain the obligations of the seller under the 6 mainly used trade terms;,Objectives,Objectives,6. be able to explain the obligations of the buyer under the 6
3、mainly used trade terms; 7. know and be able to explain the key points that need special attention under the mainly used trade terms; 8. be able to explain and apply the variations of FOB, CFR, and CIF; 9. be able to explain the differences between FOB, CFR, and CIF; 10. be able to explain the diffe
4、rences between FCA, CPT, and CIP;,Objectives,Objectives,11. be able to explain the relations between the traditional main trade terms and the new main trade terms; 12. know the material alterations of INCOTERMS2000 to INCOTERMS1990; 13. know the decisive factors of the price of goods for export; 14.
5、 be able to explain the influence of each decisive factor on the price of goods; 15. know the composition of the total cost and the common inland charges; 16. be able to calculate purchasing cost, suppliers selling price, and Value Added Tax;,Objectives,Objectives,17. be able to calculate profit rat
6、e and cost of foreign proceeds; 18. be able to calculate refund of VAT and actual total cost; 19. be able to calculate and quote FOB price; 20. be able to convert FOB price into CFR and CIF; 21. be able to calculate and state commission correctly in the price clause; 22. be able to state discount co
7、rrectly in the price clause; 23. be able to state the price clause correctly in the contract.,Objectives,Focus and Difficult Points,1. obligations of the seller and the buyer under the commonly used 6 trade terms 2. the comparison of traditional trade terms with new trade terms 3. the calculation of
8、 profit rate and cost of foreign proceeds 4. the calculation of purchasing cost, VAT, and refund of VAT 5. the calculation of FOB price and the conversion of FOB into CFR and CIF 6. the calculation of commission and the conversion of net price into price including commission 7. the contents of the p
9、rice clause in the I&E contract,Focus and Difficult Points,Contents,Part One Basic Knowledge,Section B Trade Terms under INCOTERMS 2000,CON,Section A Trade Terms,A.1 Trade Terms,SEC,CON,There are two main functions of trade terms: 1) stating the main expenses included in the prices; 2) stipulating l
10、iabilities, costs and risks taken by the sellers and the buyers in the delivery of the goods from the place of production to the place of destination. The main advantages of using trade terms are: 1) simplifying the procedures of import 3) simplifying the contents of the price clauses of import & ex
11、port contracts.,A.2 International Customs and Rules on Trade Terms,At present, there are mainly three kinds of well-known customs and rules on international trade terms: 1) WarsawOxford Rules（华沙-牛津规则） 2) Revised American Foreign Trade Definition 1941 （美国对外贸易定义修订本1941年版） 3) International Rules for th
12、e Interpretation of Trade Terms, shortened as INCOTERMS（国际贸易术语解释 通则）,CON,SEC,Part One Basic Knowledge,CON,Section A International Cargo Transportation,Section B Trade Terms under INCOTERMS 2000,Section A Trade Terms,The main possible liability items are: 1) production or manufacture or purchase of t
13、he contracted goods; 2) packing, marking and examining the goods; 3) export customs clearance, export commodity inspection, export license and other export formalities; 4) storage, inland carriage of the goods in the country of export; 5) arrangement of marine transportation or main carriage; 6) ins
14、urance arrangement;,SEC,CON,B.1 Liability Items in the Execution of I&E Contracts,7) loading the goods at the port of loading or place of delivery; 8) information about the shipment arrangement and the actual shipment of the goods; 9) making, presenting documents covering the shipment of the goods;
15、10) unloading the goods at the port or place of destination; 11) payment for the contracted goods; 12) taking delivery of the documents and the goods;,SEC,CON,B.1 Liability Items in the Execution of I&E Contracts,13) import licence, import customs clearance, import commodity inspection, and other im
16、port formalities; 14) storage, inland transportation in the country of import; The various links and liability items might add to the cost of the seller and the buyer and hence to the price of the goods. These liability items may be shared by the seller and the buyer in various ways and the price of the goods varies accordingly.,SEC,CON,B.1 Liability Items in the Execution of I&E Contracts,B.2 Framework of the Trade Terms under INCOTERMS 2000,CON,SEC,B.2 Framework of the Trade Te
