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Import-Export Practices and Operations Chapter 2 Incoterms 2000 Learning Objectives ● To understand the structure of Incoterms 2000, and its common issues ● To grasp the essential meaning of the 13 Incoterms and use them correctly in practice ● Try to differentiate issues of risk and title Section One International Trade Practices relating to Trade Terms There are three influential international trade practices regarding trade terms: Warsaw-Oxford Rules 1932, The Revised American Foreign Trade Definitions 1941 International Rules for the Interpretation of Trade Terms---International Commercial Terms for Short (Incoterms). Section One International Trade Practices relating to Trade Terms Warsaw-Oxford Rules 1932 In 1928, the International Law Association (ILA) held a meeting in Warsaw, and worked out the Uniform Rules for CIF sales contracts called Warsaw Rules 1928. It was revised several times. At the Oxford Convention in 1932, it was revised again and thus renamed as Warrsaw-Oxford Rules 1932. It indicates the nature of a CIF contract and stipulates the responsibilities, expenses and risks of the two parties under CIF terms. However, it is seldom used in foreign trade. Section One International Trade Practices relating to Trade Terms The Revised American Foreign Trade Definitions 1941 In 1919, some American commercial groups drew up The US Export Quotations and Abbreviations and revised it in 1941 with a new name The Revised American Foreign Trade Definitions 1941, which was adopted by the American Chamber of Commerce, the National Importers Association and the American Foreign Trade Association on July 31, 1941. It includes six trade terms as follows: Ex Point of Origin Free on Board, FOB for short Free Along Side, FAS for short Cost Freight, CF for short Cost, Insurance and Freight, CIF for short Ex Dock Section One International Trade Practices relating to Trade Terms The interpretation
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