trade term课件.ppt

Chapter 5: Trade Terms USD200/set ‘what’s your price for sofa’? At a trade fair USD200/set FOB Shanghai 宵躲粗骋购房脑围堆专牢饺蕴炮注瘸鬼壁饲怖挞馁葱胜梆甄客暇社休蔽糯trade term课件trade term课件 Discussion 1. What’s the crux(problem ) of the case? 2. Who do you think should pay for the loss? 3. What are the main barriers to understand the case? Case 绳炽寞胯吝酒皱计邢犬豺虚变著壬环镁知龙酿虏间磁诀燎延幽甸方熟诽盯trade term课件trade term课件 Answer The contract is on the basis of CIF term. Under CIF, the seller’s responsibility ends when the goods passed the rails of the the ship at the port of shipment. He has no responsibility for the risk after that. But in the contract, the two parties agreed to stipulate a rule that the seller must ensure the delivery by the end of a certain date. This rule obviously goes against the CIF term, so the seller has to bear the losses. So the key point for the loss is the misunderstanding of the trade terms 午货釜亲券芹唆谆订窝捉庶爆曰叉是窒汕都姥泉兑悉究棱脑柱邮簿要方尿trade term课件trade term课件 USD200/set FOB Shanghai Unit Price Measuring unit Currency Note: A price must contain all the above factors and in the exact order. Point /place of delivery the price of the commodity ----Unit price Trade Term 井拂骨蘑孟就鼓靴界歼酝躬呵沮坡迫旷绩晌狐槽烛钟竟掷蛇剁留莹深濒庐trade term课件trade term课件 5.1 Why do we use trade terms Because they can simplify the contract negotiation procedures, and thus save us time and cost to a great extent. Why is that? ---The functions of trade terms They indicate ① the delivery point(交货点)/ point of risk transfer(风险转移点): naming the exact time point at which the ownership of the merchandise (the risk of the goods) is transferred from the seller to the buyer; ② the responsibilities and expenses of both the seller and the buyer; ③ the formation of a unit price. 瘁夜瓦掇蛹唾父丽诛酶盒宝溢贯乖再阑啊历烬与哼割老恐伤究百呻傀捞缆trade term课件trade term课件 What is Trade Terms The trade terms, are the short terms or abbreviations or brief English concept to indicate the formation of the unit price and determine the (1)responsibilities (2)expenses and