What are the foreign trade terms?

I. Composition of Group I (FOB, CIF and CIF) expenses:

0 1, domestic expenses:

(0 1) Processing and finishing expenses;

(02) packaging cost;

(03) Storage expenses: storage rent, fire insurance, etc.

(04) Domestic transportation cost: from warehouse to wharf;

(05) Certificate fee: commodity inspection fee, notarization fee, consular visa fee, certificate of origin fee, license fee, customs declaration fee, etc.

(06) Freight: freight, lifting fee and barge fee, etc.

(07) Bank charges: discount interest, charges, etc. ;

(08) Estimated loss: loss, shortage, leakage, damage, deterioration, etc.

(09) Postal expenses: telegram, telex, mail and other expenses; 02. Foreign expenses:

(0 1) Foreign freight: the sea freight from the port of shipment to the port of destination;

(02) Marine cargo transportation insurance;

(03) If there is an intermediary, it also includes the commission paid to the intermediary; 03. FOB (applicable to sea transportation or inland river transportation):

FOB = purchase cost price+domestic expenses+net profit; 04. CFR (applicable to sea or inland river transportation)

CFR price = procurement cost+domestic expenses+foreign freight+net profit; 05. CIF (applicable to sea or inland river transportation)

CIF= purchase cost price+domestic cost+foreign freight+foreign insurance premium+net profit; Second, the second group (FCA, CPT, CIP price composition):

0 1, domestic expenses:

(0 1) Processing and finishing expenses;

(02) packaging cost;

(03) Storage expenses: including warehouse rent and fire insurance;

(04) Domestic transportation cost: from warehouse to wharf;

(05) LCL fee: If the goods cannot be made into a complete container;

(06) Certificate fee: commodity inspection fee, notarization fee, consular visa fee, certificate of origin fee, license fee, customs declaration fee, etc.

(07) Bank charges: discount interest, charges, etc. ;

(08) Estimated loss: loss, shortage, leakage, damage, deterioration, etc.

(09) Postal expenses: telegram, telex, mail and other expenses. 02. Foreign expenses:

(0 1) foreign freight (transportation cost from domestic land departure point to foreign destination);

(02) Foreign insurance premium;

(03) If there is an intermediary, it also includes the commission paid to the intermediary. 03. FCA price = purchase cost price+domestic expenses+net profit.

04. CPT price = purchase cost price+domestic cost+foreign freight+net profit;

05. CIP price = purchase cost price+domestic cost+foreign freight+foreign insurance premium+net profit; Three. Main features of each set of trade terms:

0 1, group e trade terms

According to the trade term EXW in Group E, the transaction is similar in nature to domestic trade. Because the seller completes the delivery in the mainland of his country, his risks, responsibilities and expenses are limited to the exporting country. The seller does not have to ask about the exit, entry, transportation and insurance of the goods, and the buyer arranges vehicles or other means of transportation to pick up the goods at the agreed delivery place. Therefore, the contract reached between the buyer and the seller does not involve transportation and insurance. Moreover, unless otherwise stipulated in the contract, the seller is generally not obliged to provide export packaging, nor is he responsible for loading the goods on the means of transport arranged by the buyer. If it is clear that the goods are for export when signing the contract and the packaging requirements are specified, the seller shall provide packaging that meets the export needs as required. If both parties agree that the seller shall bear the obligation to load the goods on the means of transport arranged by the buyer, it shall be clearly stipulated in the contract. However, when the International Chamber of Commerce introduced Incoterms 2000, it was pointed out that it was thought that it was ideal to keep the traditional principle of minimum obligations of sellers under EXW conditions, which was intended to apply to cases where sellers were unwilling to undertake any loading obligations. Because under EXW conditions, the buyer has to bear too many obligations, so when conducting foreign transactions, the buyer should not only consider the low price, 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 for economic benefits. In addition, according to this clause, the buyer is obliged to go through the customs clearance procedures for the import and export of goods, so we should also consider whether there are difficulties in this regard. If the buyer can't go through the import and export formalities directly or indirectly, he should not use this term to conclude a transaction. 02, group f trade terms

The three trade terms FCA, FAS and FOB included in Group F are not exactly the same in terms of delivery place, risk division and applicable transportation mode, but there are also similarities. The similarity is that when trading according to these terms, the seller is responsible for transporting the goods to the delivery place agreed by both parties within the specified time and completing the delivery in the agreed way. The transportation from the place of delivery to the destination shall be arranged by the buyer, and the freight shall be borne by the buyer. The buyer shall designate a carrier, conclude a contract of carriage from the place of delivery to the destination, and notify the seller. It can be seen that when a transaction is concluded according to these terms, the expenses borne by the seller are transferred to the buyer at the delivery place with the transfer of risk. In addition, according to the interpretation of "2000 General Rules", when the three trade terms are used to conclude a transaction, the seller is responsible for the formalities and expenses of goods export declaration; The buyer is responsible for the formalities and expenses of import declaration of goods. Since the seller is responsible for the delivery at the place of delivery, and the buyer arranges the means of transport to pick up the goods at the place of delivery when the transaction is concluded according to the terms of Group F, it is very important to do a good job of connecting the ship and the goods. In order to avoid losses caused to both parties by ships, ships and other goods, buyers and sellers should strengthen contact, inform each other of the situation of stocking and dispatching ships in time, and strengthen consultation to properly solve the problems encountered. 03. Group C trade terms

In group C, CFR and CIF are delivered at the port of shipment, and the risk division is based on the ship's rail, which is suitable for water transportation; CPT and CIP deliver the goods to the carrier at the agreed place, and the risk division is based on the delivery of the goods to the first carrier, which is applicable to all modes of transportation. However, they belong to the same group and have the same characteristics, that is, after delivery at the agreed port of shipment (place), the seller is also responsible for transporting the goods from the port of shipment (place) to the destination port (place) and bearing the relevant expenses. Because the transaction is conducted according to this set of terms and the freight is included in the price component, the International Chamber of Commerce said in the introduction of the 2000 General Principles that "the main freight has been paid". Of course, under CIF and CIP, the seller is also responsible for handling freight insurance and bearing the insurance costs. As the risk borne by the seller is still transferred at the port of shipment (place), it should not be regarded as an arrival contract. In Group C terms, risk allocation and cost allocation are two different concepts, with risk allocation at the port of shipment and cost allocation at the port of destination. That is to say, although the seller undertakes the transportation responsibility from the place of delivery to the destination and bears the relevant expenses, it does not bear the risk of damage, loss and delay of the goods in the transportation from the place of delivery to the destination. 04. Group D trade terms

Among the five trade terms contained in Group D, except DAF delivered at the designated place on the border between the two countries, the other four terms are delivered at the destination port or destination of the importing country, which is obviously different from the previous groups. A contract concluded under Group D is called an arrival contract, as opposed to a shipment contract. A contract concluded under the terms of Group F and Group C is called a shipment contract. Under the shipment contract, the seller must pay the usual transportation expenses for transporting the goods to the agreed place by the usual route and mode, and the risk of loss or damage of the goods and the extra expenses caused by accidents after the goods are delivered and transported in an appropriate way shall be borne by the buyer. When the transaction is completed according to Group D, the seller shall be responsible for the safe and timely delivery of the goods to the designated place, including the border place, the port of destination and the mainland of the importing country, and actually hand them over to the buyer for handling before the delivery is completed. The seller shall bear all risks and expenses before the goods are shipped to the destination. It can be seen that under the terms of Group D, the risks borne by the seller are greater than those of the previous groups, especially when trading according to DDP terms, the seller is responsible for transporting the goods to the agreed place in the importing country, and bearing all risks, responsibilities and expenses before that, including handling the import and export procedures of the goods and related expenses. Therefore, as a seller, we must seriously consider the various risks that this business may encounter and the preventive measures that can be taken. In addition, when the seller intends to conduct foreign transactions on DDP terms, he should also consider whether it is difficult to handle import procedures. If the seller cannot directly or indirectly obtain an import license, he should not trade under DDP conditions. Four. Classification of trade terms:

0 1, the trade term for delivery at the seller's place of export:

Transport contract:

Group e: ex works (EXW);

Group f: FCA, FAS, FOB

Group C: CFR, CIF, additional freight ... (CPT),

Freight and insurance are attached to CIP; 02, the seller's trade term is delivery at the place of import

Arrival Contract/Arrival Contract: Group D):

Frontier delivery;

Free on board at the port of destination;

DEQ)； At the port of destination;

Duty-free delivery (duty)

Delivered duty paid (DDP); Symbolic goods: FOB, CIF, CFR.

The seller ships the goods to the buyer at the port of shipment, and then the seller submits all the qualified documents including the title certificate (ocean bill of lading) to the buyer through certain procedures (such as D/P, letter of credit, etc.), that is, the delivery obligation is completed, and the delivery (or loading) date on the transport document is the "delivery date", which is called symbolic delivery. The contract concluded in this way, the seller is only responsible for the shipment, and does not need to ensure the arrival of the goods, so it is also called the shipment contract to distinguish it from the delivery contract. FOB, CFR and CIF are all symbolic goods. Accordingly, the buyer pays cash against documents, so the shipping documents are of great significance in this kind of transaction. A. Division of risks and costs

"General Principles" takes "reporting to the ship's side" as the boundary, and divides the risks and expenses borne by the buyer and the seller. The risk here refers to the risk of loss or damage to the goods, while the cost refers to the cost other than the normal freight. But in practice, loading is a continuous process. From shore hoisting to loading in the cabin, the responsibilities of both parties are inseparable. Since the general principle is not mandatory in practice, both parties can agree otherwise in the sales contract. In actual business, the seller shall provide the buyer with the "on-board bill of lading", indicating that both parties agree that the seller shall bear all risks and expenses before the goods are shipped. B. The connection between ship and loan under the mode of B.FOB

According to the general principle, the buyer should fully inform the seller of the name of the ship, the loading place and the required delivery time. In practice, in order to ensure the connection between the seller's preparation of goods and the buyer's delivery of goods. This arrival notice is very important. If necessary, it can be stipulated in the contract how long the buyer will notify the seller before the ship arrives in Hong Kong. C. notice of shipment by cost and freight.

In CFR mode, the seller sends the shipping notice to the buyer, which has the function of informing the buyer to insure in time. When the buyer handles the insurance of imported goods, the insurance company will underwrite it according to the relevant shipping notice. If the seller fails to send the shipping notice to the buyer in time. If the buyer fails to insure in time, in case the goods are lost or damaged in transit, the risk will still be borne by the seller. Therefore, under CFR mode, the seller should pay special attention to sending the shipping notice to the buyer in time. D FOB 194 1

There are six kinds of FOB in the revised edition, and only the fifth kind is FOB at the port of shipment. It is similar to FOB in general terms, but the responsibility for export declaration of this term lies with the buyer rather than the seller. Therefore, when China negotiates import trade with the United States, Canada and other countries by using FOB method, in addition to indicating the vessel after FOB. It should also be made clear that the other party (seller) is responsible for the export customs clearance procedures. On the burden of loading and unloading expenses in chartering transportation.

If liner transportation is adopted, the handling fee is included in the liner freight. When bulk cargo is transported by charter, whether the ship bears the responsibility of loading and unloading, that is, whether the freight includes loading and unloading expenses, needs to be agreed separately in the charter party. Therefore, when the buyers and sellers negotiate the sales contract, it is necessary to make clear who will bear the loading and unloading expenses. It is usually explained by the distortion of trade terms, that is, adding columns after trade terms. 0 1, the transaction is based on FOB, and it is clear who will bear the freight. Common variants of FOB terms are:

(0 1) FOB berth terms:

According to the liner convention, the freight should be borne by the buyer who pays the freight; (02) FOB under tack (FOB linked delivery)

The seller is responsible for transporting the goods to the place where the ship hook arrives designated by the buyer, and the lifting expenses shall be borne by the buyer; (03) FOB FOB stowage (including FOB loading and unloading charges), the seller shall bear the costs of loading the goods into the cabin and the transportation costs including loading and unloading charges. Loading and unloading fee refers to the cost of sorting and arranging the goods after entering the cabin; (04) FOB balance (including FOB balance fee), the seller shall bear the cost of loading the goods into the cabin and the transportation cost including balance fee. Leveling fee refers to the cost of leveling the bulk cargo entering the cabin; The transaction was made at CFR and CIF prices. It needs to be clear who will bear the unloading costs. The variants of CFR and CIF terms are similar. Taking CIF as an example, it mainly includes:

(0 1) CIF liner conditions:

The unloading fee shall be borne by the seller who pays the freight;

(02)CIF FOB (CIF bilge):

The buyer shall bear the loading and unloading expenses of the goods from the bilge to the dock;

(03) CIF Landed:

The seller shall bear the expenses of unloading the goods to the shore of the port of destination. Including barge fees and dock fees; Price conversion of trade terms of intransitive verbs;

0 1, FOB, CFR and CIF conversion:

(0 1) CFR price = FOB price+foreign freight;

(02) CIF price =(FOB price+foreign freight) /( 1- insurance premium × insurance premium rate);

(03) FOB price =CFR price-foreign freight;

(04) CIF price = CFR price /( 1- insurance premium × insurance premium rate);

(05) FOB = CIF× ×( 1- 0/-insurance premium× insurance rate)-foreign freight;

(06) CFR price = CIF price ×( 1- insurance premium × insurance rate); Insurance bonus:

According to international practice, the insurance premium is usually 10%, and the insurance premium increases with the increase of insurance premium. When the insurance premium reaches 30%, the insurance company generally refuses to accept it, so as to prevent individual shippers from deliberately destroying the goods and defrauding high insurance compensation; 02, FCA, CPT and CIP conversion:

(0 1)CPT price = FCA price+foreign freight;

(02)CIP price =( FCA price+foreign freight) /( 1- insurance premium × insurance premium rate);

(03)FCA price =CPT price-foreign freight;

(04)CIP price = CPT price /( 1- insurance premium × insurance premium rate);

(05)FCA price =CIP price ×( 1- insurance premium × insurance rate)-foreign freight;

(06)CPT price = CIP price ×( 1- insurance premium × insurance rate); 7. Incoterms 2000:

0 1, group e delivery:

EXW

Factory delivery

Ex-works (… named place); 02, the main freight of Group F is unpaid:

Agricultural credit administration (USA)

Free carrier

Delivered to the carrier (named place); Federation of american scientists American Federation of scientists

free alongside ship

Free on board (…… named port of shipment); free on board

ex ship delivery

Free on board (…… named port of shipment); 03, the main freight of Group C has been paid:

cost and freight

Cost and freight

Cost and freight (…… named port of destination); Cost Insurance and Freight

Cost, insurance and freight

The cost, insurance and freight shall be paid to (………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Freight paid to ... (short for carriage paid to ...)

Freight prepaid

Freight paid to (………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Cataloging in publication

CarriageandlnsurancePaidto

The freight and insurance premium shall be paid to (…… the designated destination); 04, Group D arrives:

Delay fuze

DeliveredatFrontier

Frontier delivery (… named place); des

Delivery delivery

FOB price at the port of destination (…… named port of destination); Depression experience questionnaire

Delivery dock

Delivery at the port of destination (…… named port of destination); digital display

Paid duty unpaid

Duty-unpaid delivery (… named destination); Digital data processor

Delivery tariff payment

Duty-paid delivery (… named destination).