How to choose trade terms for the export of products of inland enterprises under the new situation

Keywords trade terms FCA CPT CIP In trade practice, the choice of FOB, CFR and CIF terminology is the most, according to the International Chamber of Commerce at the end of the 1990s on the frequency of the use of trade terms in more than 40 countries of the survey statistics

, FOB terminology in the first place, followed by CIF. this is because of the three terms of trade The history of the most ancient, more mature content, people are most familiar with; secondly, maritime transportation is cheap, large capacity, and these three trade terms are mainly applicable to international trade goods are transported by sea. This is because these three trade terms have the longest history, the content is more mature, and people are most familiar with them; secondly, maritime transportation is cheap, large capacity, international trade goods are mainly transported by sea, and these three trade terms are mainly applicable to maritime and river transportation; in addition, these three trade terms can be more comprehensively expressed the buyer and seller in the cost, insurance and other aspects of the obligation to meet the needs of different situations, so the general enterprises are more inclined to use the three traditional trade terms in the practice. The three traditional terms of trade.

However, with the development of international trade and the improvement of transportation technology, the number of foreign trade contracts using FCA, CPT and CIP is gradually increasing. Especially after China's accession to the WTO, with the implementation of the western development strategy, the central and western inland areas of unlimited business opportunities, so that by the geographic constraints and export restrictions on the inland areas of the export of enterprises to choose FCA, CPT and CIP is imperative. At present, the domestic and foreign container transportation is more and more developed, more and more large amount of freight, COSCO (COSCO) and Sinotrans (SINOTRANS) and so on in some inland provinces of the main lines of transportation to set up a container transfer station, both to accept the whole container consignment, but also to accept the LCL consignment. Many coastal ports such as Guangzhou, Shanghai, Qingdao and Lianyungang are striving for "the port to the mainland", the development of the mainland to the coastal ports of the container through transport, which is also for the inland areas of the export of enterprises to use FCA, CPT and CIP and other trade terms to provide convenience.

A case from a case to see the improper choice of trade terms to the loss of export enterprises Case: a company in the southwest of China and the United States businessmen signed a contract to FOB Shanghai conditions for the export of a number of medicinal herbs. In order to transport the goods as soon as possible to the port of Shanghai for loading, the company commissioned a domestic transportation company to use the car for transportation. However, unfortunately, there was a car accident on the way of transportation and it was impossible to catch up with the original loading date. The company contacted the U.S.

and asked for an extension of the shipment period, the U.S. side agreed, but at the same time asked for a 10% reduction in the price of the goods, we do not agree and argue, but the other side insisted on not giving in, and finally we had to accept the other side of the request, the loss of tens of thousands of dollars.

In this case, in the course of the transaction, my export company has no fault, but bear all the losses. On the surface, the accident caused the loss of my export company. But essentially, my export company bear the loss of the reason is the improper choice of trade terminology, transportation contract and trade contract under the separation of delivery obligations, resulting in the transfer of risk seriously lagging behind the transfer of the actual control of the goods. That is to say, in this case I export company choose FOB price terms, take the initiative to bear the risks and responsibilities beyond its control.

According to the provisions of Incoterms 2000, the seller must deliver the goods to the ship at the port of shipment on the agreed date or within the agreed period of time, and must bear all the risks of loss of or damage to the goods before they cross the ship's rail at the port of shipment. So I export company to the transportation company to deliver the goods, the completion of the contract of carriage under the obligation of delivery, does not mean that he completed the contract of trade under the obligation of delivery, the export company still have to bear all the risks of the goods before crossing the ship's rail. However, after the goods were placed in the hands of the transportation company, company A has actually lost control of the goods. It is clearly unreasonable for the exporter to continue to assume responsibility and risk when it has lost actual control of the goods. Especially from the inland area through the road transportation to the port of shipment, in the middle of a long period of time, no one can predict what kind of risk will occur. This case if the choice of CFR or CIF terms, the result is the same, which shows that FOB, CFR, CIF trade terms in the inland areas of the enterprise products exported appear to be more than enough.

Two, compare FOB, CFR, CIF and FCA, CPT, CIP In order to analyze the convenience of the FOB, CFR, CIF is called A group of trade terms, FCA, CPT, CIP is called B group of trade terms. From the comparison of group A terminology and group B terminology, inland exports (including the use of containerized transport, multimodal transport) using group B terminology, has the following characteristics:

1. Wide scope of application

Selection of group B terminology, the exporter can be used arbitrarily to select the appropriate or combination of modes of transport, but not necessarily using maritime transport. Such as export goods from Lanzhou, can use land and sea transportation of goods to the United States, Southeast Asia, the use of land transportation (New Asia-Europe Continental Bridge) to Europe. While Group A terminology applies only to maritime and inland waterway transportation.

2. Risk transfer time in advance

The use of group B terminology, when the exporter will give the goods to the carrier to take over, the risk of the goods will be transferred to the buyer to bear. This allows the exporter to ship before the possible inland transportation of cargo damage, delayed loading, storage costs, etc. is not responsible for, thus reducing the seller's risk. Such as the use of Group A trade terms, inland enterprises in the export of products to bear the risk of loss of and damage to the goods extends to the port of shipment ship's side.

3. Reduced costs

The use of traditional port of shipment delivery terminology, inland to the port of freight often accounted for a larger proportion of the price of goods, such as Xinjiang, Gansu, Qinghai and other places to export goods in the port of shipment before the occurrence of inland freight generally accounted for 20% of the price of the goods, and even accounted for a high of up to 100%. The use of goods to the carrier of the three terms, the exporter is only responsible for the delivery of goods to the carrier, does not bear the cost of transporting goods to the port of shipment.

4. Collection time in advance

According to the provisions of the 2000 Incoterms, the B group of terms involved in the usual range of transport documents is greater than the A group of terms, the A group of terms to use the negotiable bill of lading, non-negotiable sea waybill or inland waterway transport documents, while the B group of terms according to the specific modes of transport can be the above documents can be used on the land waybill, air waybill and multimodal transportation documents. In group B terminology, the exporting party will give the goods to the carrier, can be issued by the transport documents (land transport waybill, air waybill, inland waterway waybill, multimodal transport documents, etc.) in the local settlement, and do not have to wait until the goods are loaded to obtain the bill of lading for sea transportation. This shortens the settlement time, which is conducive to the liquidity of the exporter. In the above case, if the inland export company using group B terms such as FCA and the buyer to reach a deal, you can give the goods to the transportation company in the local, in the transfer of control of the goods at the same time also transferred the risk of the goods, and with the freight bill issued by the carrier as early as possible in the local bank for the settlement of foreign exchange procedures.

From the above comparison, we can see that the group B terminology is actually an extension of the group A terminology, which has a broader scope of application than the group A terminology. group B terminology can better meet the needs of the inland export trade, so with the development of the western region and the growth of export trade in the inland areas, China's foreign trade enterprises can not be confined to the stereotypes of the FOB or CIF, and should be based on their own actual characteristics to choose the appropriate price terms. The actual characteristics to choose the appropriate price terms to protect the performance of the contract, to protect their own interests.

Three, the inland export enterprises choose group B trade terms advantage analysis 1. Selection of group B trade terms is the inland enterprises of the inevitable requirements of the foreign trade development strategy

China's foreign trade development of the domestic distribution of the region is extremely unbalanced in geographic space presents a clear gradient from east to west of the characteristics of the advancement. However, with the development of the economy, the eastern coastal cities of the rising labor costs, while the vast central and western regions of the vast area, rich in resources, cheap labor, so labor-intensive industries have been transferred to the central and western regions of the trend. In order to seize the opportunity in the new round of industrial transfer, the inland government has introduced a variety of preferential policies and measures. However, inland enterprises due to the actual geographical location, transportation is inconvenient, the use of Group A trade terms in the port delivery of goods greatly increases the transaction costs, which restricts the development of foreign trade economy. In the national implementation of the western development and the rise of central China strategy of the environment, the construction of transportation facilities in the central and western regions and economic development environment is bound to improve greatly, such as the development of China's container transport proposals, put forward the focus on the construction of coastal hub ports as a leader, to the inland areas extending the railroad and inland waterway container transport corridors; to speed up the central and western regions of the construction of container transport infrastructure, in particular, to construct A number of multiple modes of transportation combined yard facilities, strengthen the function of multimodal transport. To a certain extent, these policy measures can weaken the geographical location of the western region engaged in processing trade to bring the adverse impact of transportation costs will be greatly reduced, the central and western regions will undertake more processing trade, and the adoption of Group B trade terms will undoubtedly be more conducive to the processing trade of the westward movement, while also promoting the development of the region's transportation and insurance industry, and thus promote the development of the strategy of the western region and the strategy of central China to rise! The implementation of the strategy for the development of the west and the rise of central China.