Chapter3 International Trade Terms and Customs（课件）《国际贸易实务双语教程》同步教学（清华大学出版社）

Chapter Three International Trade Terms and Customs Learning objectives Know the major rules regulating the use of trade terms. Identify the application issues under the INCOTERMS2010. Master the 11 terms and their liabilities, cost and risk in the delivery of goods between the seller and buyer. Understand the determining factors when choosing trade terms. Contents Case study 1 Section 1 Definitions and Functions of International Trade Terms 2 Section 2 FOB, CFR and CIF 3 Section 3 FCA, CPT and CIP 4 Section 4 EXW and FAS 5 Section 5 DAT, DAP AND DDP 5 DAT, DAP and DDP Key terms 6 Case Study A trading company exports a batch of clothes to a European client under CIF. The contract specifies that insurance is to be covered by the exporter against all risks with PICC and payment is to be made by letter of credit. The exporter ships the goods in the nominated port of shipment within the specified time and gets the bill of lading. Then, the exporter negotiated with Bank of China. The second day, the exporter is informed that the shipping vessel catches fire on the sea and all the clothes are burnt down. The buyer requires the exporter to lodge a claim with PICC, or else to refund. The exporter absolutely refuses this requirement and insists on getting payment against documents. Analysis According to INCOTERMS 2010, risks transfer to the buyer after the goods are on board the vessel. The buyer bears all expenses and risks after the goods delivered on board at port of shipment. In addition, CIF is used for symbolic delivery in which document are presented against goods. Thus the buyer shall not refuse to pay once the seller presents right documents, even if the goods get lost or damaged during shipment. Hints from the case: (1) Under CIF contracts, the seller fulfills obligation as long as he ships the goods within specified time and presents right documents to the negotiation bank. There is no need for the seller to ensure arrival of the g