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1、4.2 CIF 154.3 CFR 165. Three Common Used Trade Terms 185.1 FCA 185.2 CPT 195.3 CIP 19Conclusion 21References 22Abstract In the foreign trade in English，some commonly used the price of the phrase.Foreign trade also occurs because a country often does not have enough of a particular item to meet its n

2、eeds. In todays economic world, neither individuals nor nations are self-sufficient. Nations have utilized different economic resources while people have developed different skills. This is the foundation of world trade and economic activity. Trade terms stand for specific obligations of the buyer a

3、nd the seller. Every commercial transaction is based upon a sales contract, and the trade terms used in the contract have the important function of naming the exact point at which the ownership of the merchandise is transferred from the seller to the buyer.The seller or the buyer shall handle a seri

4、es of complicated formalities, which 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, etc. and pay all kinds of charges and expenses, such as freight, loading and unlo

5、ading expenses, insurance premium, warehouse charges, duties and taxes, and other miscellaneous expenses.The buyer should note that under the CIP term, the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have the protection of greater cover, he would need eithe

6、r to agree as such expressly with the seller or to make his own extra insurance arrangements. Keywords: foreign trade , individuals ,ownership,insurance 1.Introduction In international trade,price term lies at the core of the terms and conditions of a contract and often results in some of the key pr

7、oblems for which an exporter and an importer have to strive .whats more, sending goods from one country to another ,as part of a commercial transaction ,can be a risky business. If they are lost or damaged,or if delivery does not take place for some other reasons,the climate of confidence between th

8、e parties may gegenerate to the point where a lawsuit is brought.Thus,the pricing problem an exporter and an importer deal with is far more complicated than that in domestic trade.Besides the cost covered in the calculation of export price,the price quotation in export trade should also indicate whi

9、ch party is to bear the expenses of freightage,insurance and other relevant charges,and which party is to bearthe risks in case of the goods being damaged.In order to complete their deals successful,the sellers and the buyers in international contracts had better,at the very beginning of the deal,ma

10、ke clear to each other their respective obligations and find the full expression of those in the price terms 2.International Trade Terms 2.1 Three sets of rulesWarsaw-Oxford Rules 1932Revised American Foreign Trade Definitions 1941International Rules for the Interpretation of Trade Terms 2000Initial

11、ly in 1928-“Warsaw Rules, 1928” 22 provisions governing the rights 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”provisions again mainly about CIFEx Point of OriginFOB （free on board）FAS （free alon

12、g side） 6 variants of FOBFOB （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 of exportat

13、ion）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）2.3 International Rules for the Interpretation of Trade Terms 2000 （Incoterms 2000）1936- first created by International Chamber of Co

14、mmerce （ICC） The purposes of incoterms: To give the businessmen a set of international rules for the interpretation of the most commonly used trade terms To clarify the obligations of the buyer and the seller To simplify the contract negotiations To save time and cost Revised in 1953、1967、1976、1980、

15、1990、2000 Basics of Incoterms 20003. terms into four categories E-termthe seller only makes the goods available to the buyer at the sellers own premises. F-terms the seller is called upon to deliver the goods to a carrier appointed by the buyer. C-terms the seller has to contract for carriage, but w

16、ithout assuming the risk of loss or damage to the goods or additional costs due to events occurring after shipment or dispatch. D-terms the seller has to bear all costs and risks needed to bring the goods to the place of destination.3.1 Intercoms 2000 Group Analysis:Trade TermsPlace of DeliveryDivis

17、ion of Risks Ex.clearancecarriageinsuranceIm.clearanceMode of transportEXWSellers premisesGoods at the disposal of buyerBAny modeFCA Inland place or port of shipmentGoods at the disposal of carrierSFASPort of shipmentGoods placed alongside the vesselSea or inland waterwayFOBGoods pass the ships rail

18、CFRCIF CPTCIP DAFDESPort of destinationGoods at the disposal of buyer on board the vesselDEQGoods at the disposal of buyer on the quayDDUInland place in the importing countryDDP3.2 Brief of Incoterms3.2.1 The “E” term （EXW）Sellers obligation min. Placing the goods at the disposal of the buyer at the

19、 agreed place usually his own premisesIn practice, also including assisting the buyer in loading the goods on the buyers collecting vehicle without charging a loading fee For the buyer to get lower price, but too demanding for him, therefore only applied to buyers having offshore branches EXW:Delive

20、ry: at sellers premisesTransfer of risks: goods at the disposal of the buyerPackaging and loading:Usu. seller no obligation for export packaging and loading;Export customs clearance:Usu. buyers responsibility, sometimes buyer do it for buyer, but bear no risks 3.2.2 The “F” terms （FCA, FAS, FOB）Ship

21、ment contract:Seller delivers the goods for carriage as instructed by the buyer;buyer pays freight and signs carriage contract with carrier and notify sellerFAS & FOB only for sea or inland waterway transportation modeSellers obligation, cost and risk transfers to buyer after delivery of the goods;S

22、eller exporting license and export customs clearanceBuyer importing license and import customs clearanceFCA Free Carrier （. Named place）goods at the disposal of the （1st） carrierDelivery point:If at sellers site, seller responsible for loading If anywhere else, seller responsible for delivering the

23、goods to the point required, but not responsible for unloading or reloadingFAS Free Alongside Ship （named port of shipment） at port of shipmentTransfer of risk:goods put alongside the vesselIf vessel unable to enter the port due to force majeure, the seller is responsible for arranging and paying fo

24、r the lighters to send the goods alongside the vessel offshore. （seller pays for lighter charges）FOB Free on Board （ named port of shipment） goods pass over the ships rail Cost and obligation: the seller is paying for the necessary handling of goods until they are loaded onboard the vessel. Strictly

25、 speaking, transfer of risks transfer of obligation and cost3.2.3 The “C” terms （CFR, CIF, CPT, CIP）Shipment contractsSeller contract for carriage on usual terms at his own expense.CFR & CIF only for sea or inland waterway transportation modeUnder CIF and CIP, seller also takes out insurance and ins

26、urance cost.The “C” terms （CFR, CIF, CPT, CIP）Two “critical” points :Port （place） of shipment to which the buyer takes over the risksPort （place） of destination to which the seller is bound to arrange and bear the costs of a contract of carriage.Exception of container transport: the container ship h

27、as no rail, delivery is fulfilled when the goods are handed over to the container carrier.CFR Cost and Freight （ named port of destination）Shares every feature with FOB except for ocean freight chargeFreight at sellers cost:Seller pay the normal transport cost for the carriage of the vessel by a usual route and in a customary manner to the agreed placeBuyer take the risk of lo