2　Trade Terms

OBJECTIVES

Trade terms refer to the phrases or abbreviations that specify such issues as the place of delivery of the seller and the risks, liabilities and costs born the buyer and the seller. Nowadays almost all international trade contracts stipulate trade terms applicable to them, making trade terms an important basis of the trade. This chapter will introduce the professional knowledge of trade terms. The relevant content is divided into 6 sections:

(1) Generation of trade terms.

(2) International trade customs about trade terms.

(3) FOB, CIF and CFR.

(4) FCA, CPT and CIP.

(5) Other trade terms.

(6) Selection of trade terms.

Upon completion of this chapter, you will

(1) Understand the causes of trade terms.

(2) Understand the status and characteristics of INCOTERMS 2020.

(3) Master the basic rules of the 6 commonly used trade terms. Have the ability to use them reasonably in practical work to explain trade phenomenon and solve relevant problems.

(4) Understand the framework and application fields of other trade terms.