International Trade Terms Chapter Three International Trade Terms

FCA Free Carrier (…. Named place) Delivery point Delivers the goods to the carrier Transfer of risks Cost and obligation the seller is paying for the necessary handling of goods until they deliver the goods to the carrier SEIB of GDUFS

FCA Free Carrier (…. Named place) The buyer must be responsible for the transportation The buyer must be coverd the seller and the buyer will clear the customs respectively SEIB of GDUFS

Carrier and place of delivery Note about FCA Goods and carrier Carrier and place of delivery Mode of transport Usage of FCA SEIB of GDUFS

FCA Free Carrier (…. Named place) FCA is similar to FOB Differences: Mode of transport FCA – any mode FOB – Sea or Inland Waterway Delivery point FCA– inland place or port of shipment FOB – port of shipment Transfer of risks FCA – goods delivered to carrier FOB– goods load on the ship SEIB of GDUFS

CPT Carriage Paid to (… named place of destination) Delivery point Delivers the goods to the carrier Transfer of risks Cost and obligation the seller is paying for the necessary handling of goods until they deliver the goods to the carrier SEIB of GDUFS

CPT Carriage Paid to (… named place of destination) The sell must be responsible for the transportation The buyer must be coverd the seller and the buyer will clear the customs respectively SEIB of GDUFS

Note about CPT SEIB of GDUFS Port of shipment and destination Transport and notice loading and unloading charges expenses Mode of transport SEIB of GDUFS

CPT Carriage Paid to (… named place of destination) CPT is similar to CFR Differences: Mode of transport CPT – any mode CFR – Sea or Inland Waterway Delivery point CPT – inland place or port of shipment CFR – port of shipment Transfer of risks CPT – goods delivered to carrier CFR – goods pass over ship’s rail SEIB of GDUFS

CIP Carriage and Insurance Paid to (… named place of destination) Delivery point Delivers the goods to the carrier Transfer of risks Cost and obligation the seller is paying for the necessary handling of goods until they deliver the goods to the carrier SEIB of GDUFS

CIP Carriage and Insurance Paid to (… named place of destination) The sell must be responsible for the transportation The seller must be coverd the seller and the buyer will clear the customs respectively SEIB of GDUFS

loading and unloading charges expenses Note about CIP Insurance Transport loading and unloading charges expenses Mode of transport SEIB of GDUFS

CIP Carriage and Insurance Paid to (… named place of destination) CIP is similar to CIF Differences: Mode of transport CIP – any mode CIF – sea or inland waterway Delivery point CIP – Inland place or port of shipment CIF – port of shipment Transfer of risks CIP – goods at the disposal of carrier CIF – goods passing ship’s rail Freight and insurance CIP – whole journey freight and insurance CIF – voyage freight and insurance SEIB of GDUFS

两组术语的主要区别 海运和内河运输 海运和内河运输、陆运、空运、多式运输 交至船上 货交第一承运人 指定装运港 指定第一承运人 FOB、CFR、CIF FCA、CPT、CIP 运输方式 海运和内河运输 海运和内河运输、陆运、空运、多式运输 交货和风险转移的地点 交至船上 货交第一承运人 交货的地点不同 指定装运港 指定第一承运人 运输单据 已装船清洁提单（可转让海运提单） 可转让提单、海运单、内河运单、铁路运单、公路运单、航空运单、多式运输单据 SEIB of GDUFS

EXW（Ex Works insert named place of delivery) Delivery point at seller’s premises Transfer of risks goods at the disposal of the buyer Cost and obligation the seller is paying for the necessary handling of goods until goods at the disposal of the buyer SEIB of GDUFS

EXW（Ex Works insert named place of delivery) The buyer must be responsible for the transportation The buyer must be coverd the buyer will clear the customs including export and import SEIB of GDUFS

Note about EXW SEIB of GDUFS Packaging and loading Export customs clearance Seller’s obligation min. Usage of EXW SEIB of GDUFS

FAS Free Alongside Ship (…named port of shipment) Delivery point at port of shipment Transfer of risks goods put alongside the vessel Cost and obligation the seller is paying for the necessary handling of goods until goods put alongside the vessel SEIB of GDUFS

FAS Free Alongside Ship (…named port of shipment) The buyer must be responsible for the transportation The buyer must be coverd The seller and the buyer will clear the customs respectively SEIB of GDUFS

DAT Delivered At Terminal (…named terminal at port or place of destination) Delivery point terminal at port or place of destination Transfer of risks Deliver the goods to the buyer Cost and obligation the seller is paying for the necessary handling of goods until the goods is delivered to the buyer SEIB of GDUFS

DAT Delivered At Terminal (…named terminal at port or place of destination) The seller must be responsible for the transportation The buyer must be coverd The seller and the buyer will clear the customs respectively SEIB of GDUFS

DAT Delivered At Terminal (…named terminal at port or place of destination) The seller will accomplish the delivery when the vehicle reach the named terminal and goods is unloaded from the vehicle by the seller!! SEIB of GDUFS

DAP Delivered At Terminal (…name place of destination) Delivery point name place of destination Transfer of risks Deliver the goods to the buyer Cost and obligation the seller is paying for the necessary handling of goods until the goods is delivered to the buyer SEIB of GDUFS

DAP Delivered At Terminal (…name place of destination) The seller must be responsible for the transportation The buyer must be coverd The seller and the buyer will clear the customs respectively SEIB of GDUFS

DAP Delivered At Terminal (…name place of destination) The seller will accomplish the delivery when the vehicle reach the named place of destination and will not need unloaded from the vehicle!! SEIB of GDUFS

DDP Delivered Duty Paid (…name place of destination) Delivery point name place of destination Transfer of risks Deliver the goods to the buyer Cost and obligation the seller is paying for the necessary handling of goods until the goods is delivered to the buyer SEIB of GDUFS

DDP Delivered Duty Paid (…name place of destination) The seller must be responsible for the transportation The buyer must be coverd The seller will clear the customs including export and import SEIB of GDUFS

DDP Delivered Duty Paid (…name place of destination) The seller will accomplish the delivery when the vehicle reach the named place of destination and will not need unloaded from the vehicle!! SEIB of GDUFS

DDP Delivered Duty Paid (…name place of destination) Seller’s responsibility max under DDP Seller responsible for both export and import customs clearance under DDP SEIB of GDUFS

Intercoms 2010 Group Analysis Trade Terms Place of Delivery Division of Risks Ex. clearance Contract of Im. clearance Mode of transport carriage insurance EXW Seller’s premises Goods at the disposal of buyer B Any mode FCA Inland place or port of shipment Goods at the disposal of carrier S FAS Port of shipment Goods placed alongside the vessel Sea or inland waterway FOB Goods load on the ship CFR CIF CPT CIP DAP Named place Goods at the place DAT Named terminal Goods at the terminals DDP Inland place in the importing country SEIB of GDUFS

Variation FOB Liner Terms (FOB班轮条件） FOB Under Tackle (FOB吊钩下交货） Seller pays: FOB Liner Terms (FOB班轮条件） FOB Under Tackle (FOB吊钩下交货） FOB Stowed & Trimmed (FOB理舱，平舱费在内） CFR/CIF Liner Terms （班轮条件） CFR/CIF Landed （卸至码头） CFR/CIF Ex Tackle （吊钩下交接） CFR/CIF Ex Ship’s Hold （舱底交接） Least Most Most Least SEIB of GDUFS

Important Note The variation of transport cost bearing DOES NOT change the nature of the term: the risk implication remains same all the time. SEIB of GDUFS

Shipment contracts Original contract Arrival contracts Application issues E Original contract F or C Shipment contracts D Arrival contracts SEIB of GDUFS

Application issues Shipment Contract term vs. Arrival Contract term Under which the delivery will happen at the time or before the time of shipment seller not responsible for loss or risk of goods being carried after the time of shipment Arrival Contract term: Which specifies the seller to deliver at the time of arrival seller responsible for all risks before the arrival of the goods carried SEIB of GDUFS

Application issues Symbolic delivery vs. Actual delivery SD: delivery completes when seller submits the shipping documents (eg. B/L) to buyer AD: delivery completes when seller physically delivers the goods to buyer SEIB of GDUFS

3.3 Application issues Quality Inspection SEIB of GDUFS Buyer’s necessity to inspect the goods before taking delivery, hence he must pay pre-shipment inspection except under DDP Seller pay any costs of inspections mandated by the local authorities which is normally part of customs clearance except under EXW SEIB of GDUFS

3.3 Application issues About Package the seller must, its own expense, package the goods in the manner appropriate for transport or specific purposes unless otherwise stated. Package is to be marked appropriately. SEIB of GDUFS

Choice of Trade Terms Determined by the acceptance of cost, obligation and risk Other factors to consider: Exporting & importing possibilities Pricing purpose Transport availability Ability of risk control SEIB of GDUFS