To provide a set of uniform rules for the interpretation of the most commonly used trade terms in foreign，ICC（International Chamber of Commerce） first published a set of international rules for the interpretation of trade terms known as "Incoterm 1936" in 1936.
Later, amendments and additions were institued to bring the rules in line with current international trade practices.
The latest edtion is "Incoterm 2000",which includes 13 differents international trade terms：EXW, CFR, CIF, CPT, CIP, FOB, FAS, FCA,
DAF, DES, DEQ, DDU, and DDP.
最近的版本是《国际贸易术语解释通则2000》，包含了以下13种术语：工厂交货--EXW, 成本加运费--CFR, 成本、保险费加运费--CIF, 运费付至--CPT, 运费、保险费付至--CIP, 船上交货--FOB, 装运港船上交货--FAS, 货交承运人--FCA, 边境交货--DAF, 目的港交货--DES, 目的港码头交货--DEQ, 未完税交货--DDU, and 完税后交货--DDP.
Each term specifies whether the buyer or the seller is responsible for arranging such necessities as export license,customs clearance,
inspections,and other obligations.
They specify at which point the risk of loss and/or damage passes from seller to buyer as well as which party pays for specify activities.
A buyer and a seller who conduct their purchase and sale under one of the Incoterms,therefore,will have an understanding of their
rights, costs, and obligations.
Here six major terms are discussed.
The traditional three trade terms are FOB, CFR, and CIF. While FCA ,CPT, and CIP are new terms developed on the baisc of the traditional ones.
They are suitable for any mode of transport.
1. FOB--FREE OF BOARD(...named port of shipment)
“Free on Board”means that the seller delivers when the goods pass the the ship's rail at the named port of shipment.
That means the buyer has to bear all the costs and risks of loss or damage to the goods from that point.
The FOB term requires the seller to clear the goods for export.
This term can be used only for sea or inland waterway transport.
2.CFR--COST AND FREIGHT(...named port of destination)
"Cost and Freight" means that the seller delivers when the goods pass the ship's rail in the port of shipment.
The seller must pay all costs and freight necessary to bring goods to the named port of destination.
But the risk of loss or damage to the goods, as well as any addtional costs due envents occurring after the time of delivery, are transferr-ed from the seller to the buyer.
The CFR term requries the seller to clear the goods for exports.
This term can be used only for sea an inland waterway transport.
3.CIF--COST, INSURANCE, AND FREIGHT(...named port of destination)
"Cost, Insurance,and Freight" means that the seller delivers when the goods pass the ship's rail in the port of shipment.
The seller must pay the costs and freight necessary to bring the goods to the named port of destination.
Howeve, the risk of loss or damage to the goods, as well as any addtional costs due envents occurring after the time of delivery, are transferr-ed from the seller to the buyer.
However, the seller also has to procure insurance against the buyer's risk of loss or damage to the goods during the carriage.
Consequently， the seller contracts for insurance and pays the inurance premium.
The CIF term requries the seller to clear the goods for export.
4.FCA--FREE CARRIER(...named palce)
"Free Carrier" means that the seller deliver the goods, cleared for export, to the carrier nominated by the buyer at the named place.
It should be noted that chosen place of delivery has an impact on the obligations of loading and unloading te goods at that place.
If delivery occurs at the seller's premises, the seller is responsible for loading. If delivery occurs at any other palce, the seller is not
responsible for unloading.
This term may be used irrespective of mode of transport, including multimodal transport.
If the buyer nominated a person other than a carrier to receive the goods, the seller is deemed to have fulfilled his obligation to deliver the goods when they are delivered to that person.
5.CPT--CARRIAGE PAID TO(...named place of destination)
"Carriage Paid To" means that the seller delivers the goods to the carrier nominated by him, but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination.
This means that the buyer bears all risks and any other costs occuring after the goods have been so delivered.
The CPT term requires the seller to clear the goods for export.
This term may be used irrespective of the mode of trandport including multi-modal transport.
Point To Note
CPT has much in common with the term CFR.
The major difference is that CFR can only be used for sea and inland waterway transport, while CPT can be used for any mode of transport including multi-modal transport.
If the parties do not intend to deliver the goods across the ship' rail, the CPT term is preferred.
6.CIP--CARRIAGE AND INSURANCE PAID TO(...named place of destination)
"Carriage and Insurance Paid to" means that the seller delivers the goods to the carrier nominated by him, but the seller must also pay the cost of carriage necessary to bring the goods to the named destination.
This means that the buyer bears all risks and any addtional costs occurring after the goods have been so delivered.
However, the seller also has to procure insurance against the buyer's contracts for insurance and pay the insurance premium.
This term may be used in irresoective of te mode of transport including multi-modal transport.