Analysis Of The Characteristics Of Foreign Trade Terms
I. trade terms of group E
The transaction concluded according to the trade term EXW of group E is similar to domestic trade in nature.
Because the seller completes the delivery in the mainland of the country, the risks, responsibilities and expenses incurred by the seller are also confined to the domestic market. The seller does not have to ask about matters such as exit, entry and transportation, insurance, etc. the buyer arranges the vehicle or other means of transport to the goods at the agreed place of delivery. Therefore, the contract between the seller and the buyer does not involve transportation and insurance. Moreover, unless there is an opposite provision in the contract, the seller is generally not obliged to provide export packing, nor is it responsible for loading the goods on the transport arrangement arranged by the buyer. If the contract is made clear that the goods are for export and the requirements for packaging are specified, the Seller shall provide the packaging that meets the export requirements according to the regulations. If the two parties agree that the Seller shall be responsible for loading the goods on the transport vehicle arranged by the buyer, this shall be clearly stipulated in the contract. But in the introduction of the 2000 General principles, the International Chamber of Commerce pointed out that the ideal is still retained. EXW The traditional principle of minimum obligation under Seller's condition is to apply to those sellers who are unwilling to bear any obligations of loading.
Because under the EXW condition, the buyer has to bear the heavy duty, therefore, the buyer can not only consider the low price when making the foreign transaction, but also seriously consider all kinds of risks and transportation links that may be encountered. Weigh the pros and cons and pay attention to accounting economic benefits. In addition, in accordance with this term, the buyer has to undertake the obligation of customs clearance for the export and import of goods, so we should also consider whether there is any difficulty in this regard. If the buyer can not handle export and import procedures directly or indirectly, this term should not be used.
Two. Trade terms in group F
Group F includes three trade terms FCA, FAS and FOB They are not exactly the same in terms of place of delivery, risk demarcation line, and applicable mode of transport. However, they also have something in common. Their common ground is that they are responsible for transporting the goods to the agreed place of delivery at the stipulated time and making delivery according to the agreed terms. The transport matters from the place of delivery to the destination are arranged by the buyer, and the freight is borne by the buyer. The buyer shall specify the carrier, make a transport contract from the place of delivery to the destination, and notify the seller. It can be seen that, in accordance with these terms, the seller's cost will be transferred to the buyer with the transfer of risk at the place of delivery. In addition, in accordance with the interpretation of the 2000 General principles, the three trade terms shall be handled by the seller in charge of the procedures and charges for the declaration of the export of the goods, and the buyer shall be responsible for the procedures and charges for the declaration of the import of goods.
Since the seller is responsible for submitting goods at the place of delivery when the transaction is terminate according to the terms of group F, the arrangement of the means of transport to the place of delivery is arranged by the buyer. In order to avoid losses caused by goods such as goods, ships or ships, the seller and the buyer should strengthen the contact, inform the other party of the stock and the delivery of the ship in time, and strengthen the consultation and properly solve the problems.
Three. Trade terms in group C
In group C, CFR and CIF in trade terms are shipped at the port of shipment. The risks are divided into the shipboard area and the water transport mode. CPT and CIP deliver the goods to the carrier at the agreed place, and the risk is divided into the first carrier and the carrier. But they have something in common with one group, that is, when the seller delivers the goods at the agreed port of shipment, he will also be responsible for the transportation of the goods from the port of shipment to the port of destination (land) and bear the relevant expenses. Because the terms of the trade are included in the terms of the term, freight charges are included in the freight price components. Therefore, in the introduction of the 2000 General principles, the International Chamber of Commerce says that the term "main freight prepaid" is used in this term. Of course, of course. CIF And CIP, the seller is also responsible for handling cargo insurance, and bear the cost of insurance. As the risk borne by the seller is still being transferred at the time of delivery, it should not be regarded as an arrival contract. Bgyedu.CoM{page_break}
Under the terms of group C, risk division and cost division are two different concepts. The risk is divided into the loading port (land) and the cost division is in the destination port. That is to say, although the seller assumes the transportation responsibility from the place of delivery to the destination and bears the relevant costs, he does not undertake the risk of damage, loss and delay in the carriage from the place of delivery to the destination.
Four. Trade terms in group D
D group includes five trade terms, in addition to DAF is delivered at the designated locations on the two countries' borders, the other four terms are delivered at the destination port or destination of the importing country, which is obviously different from the previous terms. According to the terms of the D group contract, the contract of arrival is called Arrival Contract, and the arrival contract is relative to the Shipment Contract. According to the terms of the F group and the C group, the contract concluded is called the shipping contract. Under the contract of shipment, the seller has to pay the usual transport costs for transporting the goods to the agreed place in accordance with the usual route and customary mode, and the risk of loss or damage to the goods and the additional costs caused by the accident after the goods are delivered in proper way are borne by the buyer. In accordance with the terms of group D, the Seller shall be responsible for the safe and timely delivery of the goods to the designated place, including the border location, the destination port and the mainland of the importing country. The Seller shall bear all the risks and charges before the goods are delivered to the place.
In terms of terms of group D, the risk borne by the seller is greater than that in the preceding group. In particular, in accordance with the terms of DDP, the seller is responsible for forwarding the goods to the agreed place at the import country and undertaking all the risks, responsibilities and expenses before that, including the procedures for handling the export and import of goods and the related expenses. Therefore, as a seller, when dealing with foreign transactions, we must seriously consider all kinds of risks that may be encountered in the business and the precautionary measures that can be taken. In addition, the seller should also consider whether there is any difficulty in importing the procedure when he intends to adopt DDP conditions. If the seller can not obtain the import license directly or indirectly, the DDP condition should not be concluded.
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