Chapter 1 International trade practice Lesson objectives Define incoterms uNderstand how incoterms assist traders Identify the main issues governing choice of a suitable incoterm state the main provisions of these Incoterms FOB CFR CIF FCA CPT CIP 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © Chapter 1 International trade & practice Lesson objectives •Define Incoterms •Understand how Incoterms assist traders •Identify the main issues governing choice of a suitable Incoterm •State the main provisions of these Incoterms: FOB, CFR, CIF, FCA, CPT, CIP
8 1 Introduction to International trade 1.1 conception Exchange of goods and services from one country to another two issues----goods and services
1.1 conception Exchange of goods and services from one country to another. two issues----goods and services. §1 Introduction to International trade
1.2 Participants The buyer The seller Banks And other participants 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © 1.2 Participants The buyer The seller Banks And other participants…
1.3 Cautions in international trade The credit standing Payment methods Trade terms The exchange risks
经贸学院国际贸易系 王学惠 © 1.3 Cautions in international trade The credit standing Payment methods Trade terms The exchange risks
$2 Trade Terms Trade terms are using a shorthand expression or three-letter abbreviation to indicate the formation of the unit price and determine the responsibilities expenses and risks borne by two parties as well as the time of the passing of the property in the goods 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © §2 Trade Terms Trade terms are using a shorthand expression or three-letter abbreviation to indicate the formation of the unit price and determine the responsibilities, expenses and risks borne by two parties as well as the time of the passing of the property in the goods
EXamples Chinese north-eastern rice UsD 200.00 per metric ton FOB Dalian 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © Examples Chinese North-eastern Rice USD 200.00 per metric ton FOB Dalian
2.2 Why do we need trade terms? In import-export transactions, there are usually many other extra costs in addition to the cost of goods themselves One obvious cost is that of transporting the goods from the seller to the buyer 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © 2.2 Why do we need trade terms? •In import-export transactions, there are usually many other extra costs in addition to the cost of goods themselves. •One obvious cost is that of transporting the goods from the seller to the buyer
question Think about what other costs there might be? 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © question •Think about what other costs there might be? ??
answer insurance of the goods -import duty or taxes -loading, unloading and handling charges packaging for export documentation charges 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © answer –insurance of the goods –import duty or taxes --loading, unloading and handling charges –packaging for export –documentation charges
83 International trade practice Warsaw-Oxford Rules, 1932(CIF ONLY)) Revised American Foreign Trade Definitions (6 kinds) INCOTERMS 2000(13 kinds 经贸学院国际贸易系 王学惠◎
经贸学院国际贸易系 王学惠 © §3 International trade practice Warsaw-Oxford Rules, 1932 (CIF ONLY)) Revised American Foreign Trade Definitions (6 kinds) INCOTERMS 2000 (13 kinds)
