1. International Trade Terms
Chapter Three
International Trade Terms

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. 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

16. 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

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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

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

34. 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

35. 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

36. 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

37. 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

38. 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