lecture 3---

• Export customs clearance
– Usu. buyer’s responsibility, sometimes seller do it for buyer, but bear no risks
EXW
Carriage of goods
Carriage to be arranged by the buyer
;
FCA EXW
Port of Terminal destination
the E-term
• EXW/Ex Works (d place)
– the seller fulfills his obligation to deliver when he has make the goods available at his premises. (i.e. works, factory, warehouse, etc.) to the buyer. – Seller’s obligation min. – For the buyer to get lower price, but too demanding for him, therefore only applied to buyers having offshore branches
– the seller is paying for the necessary handling of goods until they are loaded on board the vessel.
The “C” terms （CFR， CIF， CPT， CIP）
• Mode of Transportation:
Carriage and Insurance Paid to (…named place of destination) 运费保险费付至（ …指定目的地）
Arrival
Delivered at Terminal (…named terminal at the port or place of destination) Delivered at Place (…named place of destination) 目的地交货（…目的港或目的地指定地 点） 所在地交货（ …指定目的地）
DDP
Delivered Duty Paid (…named place of destination)
完税后交货（ …指定目的地）
Incoterms 2010 Wallchart
DDP DAP DAT CIP CPT CIF CFR FOB FAS Risks Obligation & Costs Insurance Empty Loaded Seaway and inland waterway only Alongside On board the vessel the vessel Any mode Seller’s premises 1st carrier Place of destination
– Seller: exporting license and export customs clearance – Buyer: importing license and import customs clearance
FCA Free Carrier (…. Named place)
• Transfer of risks
• Transportation:
– FAS & FOB only for sea or inland waterway transportation mode – FCA for any mode of transportation
the F-terms (FCA, FAS, FOB)
• Seller’s obligation, cost and risk transfers to buyer after delivery of the goods
FOB Free on Board (… named port of
shipment)
• Delivery point: at port of shipment • Transfer of risks:
– goods placed on board the seagoing vessel
• Cost and obligation:
– goods at the disposal of the (1st) carrier
• Delivery point
– If at seller’s site, seller is responsible for loading – If anywhere else, seller responsible for delivering the goods to the point required, but not responsible for unloading or reloading
Main Carriage paid
Cost and Freight (…named port of destination) Cost, Insurance and Freight (…named port of destination) Carriage Paid to (…named place of destination) 成本加运费（ …指定目的港） 成本、保险费加运费（ …指定目的港） 运费付至（ …指定目的地）
• price, risks of loss shift from the seller to the buyer
Group E EXW Group F FCA
Departure
Ex Works (…named place) 工厂交货（ …指定地点）
Main Carriage unpaid
Free Carrier (…named place) 货交承运人（…指定地点）
– CFR&CIF: only for sea or inland waterway
• Under CIF and CIP, seller also takes out insurance and insurance cost.
• Two “critical” points
– Port (place) of shipment – to which the buyer takes over the risks – Port (place) of destination – to which the seller is bound to arrange and bear the costs of a contract of carriage
CFR Cost and Freight (… named port of
destination)
• Shares every feature with FOB except for ocean freight charge • Freight at seller’s cost
– Seller pay the normal transport cost for the carriage of the vessel by a usual route and in a customary manner to the agreed place – Buyer take the risk of loss or damage to the goods and additional costs resulting from events occurring after the delivery of the goods
2.3 Table Filling
2.4 Application Issues
trade terms
• price terms/ delivery terms
• standardized terms used in sales contracts that describe the place and manner for the transfer of goods from the seller to the buyer.
risks
costs
Risk transfer from the seller to the buyer when the goods are at the disposal of the buyer
Cost transfer from the seller to the buyer when the goods are at the disposal of the buyer
Lecture 3
Chapter One General Introduction and Incoterms 2010
Outline
1. Export Procedures 2. Incoterms
2.1 Basics of Incoterms
2.2 Trade Terms in Incoterms 2010
Carriage of goods
risks
costs
FCA
Carriage to be arranged by the buyer or the seller on the buyer's behalf Risk transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place Cost transfer from the seller to the buyer when the goods are at the disposal of the buyer
the E-term