国际贸易专业英语第二版课件檀文茹主编 ISBN9787811343076Lesson 8.pptVIP

Unit Eight  Incoterms Pre-reading Questions What is Incoterm? Why is it important for international trader to know Incoterms? Why is the international trade more complicated than domestic trade? What are the differences between FOB, CFR and CIF? Background Why: a compelling need for universal terminology in international trade contracts Who: the International Chamber of Commerce What: has developed a standard set of terms and abbreviations called INCO terms. How: These terms have been carefully defined in all major languages. As a result, the rights and obligations of each party to a contract should be more clearly understood if the contract is expressed in INCO terms. international trade contracts ~ Describe the goods to be sold and the manner of shipment. ~ Set forth who is responsible if the goods are damaged or destroyed at each phase of delivery. ~ Express who is responsible to pay the expenses of clearing customs. ~ Express who is responsible for providing insurance while the goods are in transit. ~ Express who is responsible for freight charges. ~ Express who is responsible for loading and unloading costs. ~ Express who is to pay for any inspections. ~ Name the place where any litigation or arbitration will take place if a dispute arises under the contract. ~ Name what law will apply to disputes that arise under the contract. EKW -ex works It saves the seller a lot of time, expense, and trouble. FCA-free carrier Once delivery is made to the carrier, the buyer is in essentially the same position as the buyer who took delivery ex works. FAS-free along side The seller must deliver the goods to the dock, and that is the point where responsibility passes. FOB-free on board FOB contracts make sense for many transactions because they frequently place the burden of making arrangements upon the party in the best position to do so, reducing the total costs of making the transaction. CFR-cost and freight The seller has the usual FOB oblig