Presentation is loading. Please wait.

Presentation is loading. Please wait.

Unit 8 You Reap What You Peddle. Introduction Export price may include: dock charges, clearing and forwarding charges, freight, insurance, profit margin.

Similar presentations


Presentation on theme: "Unit 8 You Reap What You Peddle. Introduction Export price may include: dock charges, clearing and forwarding charges, freight, insurance, profit margin."— Presentation transcript:

1 Unit 8 You Reap What You Peddle

2 Introduction Export price may include: dock charges, clearing and forwarding charges, freight, insurance, profit margin Contracts needed to perform an international sales transaction: contract of sale, contract of carriage, contract of insurance, contract of financing The basic terms and conditions of the contract in international business? _____Terms and conditions of quality, quantity, packing, price, delivery, insurance, terms of payment, inspection, claim and arbitration.

3 Incoterms The International Chamber of Commerce (ICC) 1936, 1953, 1967, 1976, 1990, 2000 Goods: sold and tangible Contract of sale

4 1) EX WORKS (… named place) It means that the seller delivers when he places the goods at the disposal of the buyer at the sellers premises or another named place (i.e., works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.

5 1) FCA(Free Carrier … named place) It means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point.

6 1) FAS (Free Alongside Ship … named port of shipment) It means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. The buyer has to bear all costs and risks of loss of or damage to the goods from that moment.

7 4. FOB (Free On Board … named port of shipment) It means that the seller fulfils his obligation to deliver when the goods have passed over the ships rail at the named port of shipment. The buyer has to bear all costs and risks of loss of or damage to the goods from that moment. 4.

8 FOB Liner Terms FOB FOB Under Tackle FOB FOB Stowed (FOBS) FOB FOB Trimmed (FOBT) FOB FOB Stowed and Trimmed (FOBST)

9 CFR (Cost and Freight … named port of determination) It means that the seller must pay the cost and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ships rail in the port of shipment.

10 CFR Liner Terms CFR CFR Landed CFR CFR Ex Ships Hold :CFR

11 CIF (Cost Insurance and Freight … named port of destination) It means that the seller has the same obligation as under CFR but with the addition that he has to procure marine insurance against the buyers risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.

12 CPT(Carriage Paid to … named place of destination) It means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.

13 CIP (Carriage and Insurance Paid to … named place of destination) It means that the seller has the same obligation as under CPT but with the addition that he has to procure cargo insurance against the buyers risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.

14 DAF (Delivered at Frontier … named place) It means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unload, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country.

15 DES (Delivered Ex ship … named port of destination) It means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging.

16 DEQ (Delivered Ex Quay … named port of destination) It means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import.

17 DDU (Delivered Duty Unpaid … named place of destination) It means the seller delivers the goods to the buyer, not cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto, other than, where applicable, any duty(this term includes the responsibility for and the risk of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.

18 DDP (Delivered Duty Paid … named place of destination) It means the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of transport at the named place of destination. The seller has to bear the costs and risks involved in bringing the goods thereto including, where applicable, any duty(this term includes the responsibility for and the risk of the carrying out of customs formalities, and the payment of formalities, customs duties, taxes and other charges) for import in the country of destination.

19 TBD: The Non-price Commercial Technical Terms L/C Back-to-back Credit B/E (Bill of Exchange) B/D(Bank Draft) CAD(Cash Against Document) D/A (Documents against Acceptance) D/P (Documents against Payment) S/D (Sight Draft) IP Insurance Policy B/L(Bill of Lading) CL B/L (Clean Bill of Lading) Inland B/L(Inland Bill of Lading) O B/L (Ocean Bill of Lading) On Board Bill of Lading Delivery Note D/O(Delivery Order)


Download ppt "Unit 8 You Reap What You Peddle. Introduction Export price may include: dock charges, clearing and forwarding charges, freight, insurance, profit margin."

Similar presentations


Ads by Google