国际贸易实务英文版第五版ppt课件(完整版)

1、INTERNATIONAL TRADEPRACTICEByZhou Ruiqi Wang Xiaoou Xu Yuefang ofSchool of English for International Business Guangdong University of Foreign StudiesSEIB OF GDUFSGeneral IntroductionLearning ObjectivesAfter learning this chapter, you should be able to define what is meant by international tradeexpla

2、in the reasons for engaging in international tradeidentify the benefits of international tradeExplain the major categories of international tradetell the differences between domestic and international tradeunderstand the major procedure involved in international tradeSEIB OF GDUFS3Concept of interna

3、tional tradeAlso international trade / world trade / foreign trade / overseas tradeDefinition: The fair and deliberate exchange of goods and services across national boundaries.Concerning trade operations of both import and export Including the purchase and sale of both visible and invisible goods.S

4、EIB OF GDUFS41.1 Reasons for international tradeResource reasonsNatural resourcesHuman resourcesTechnologyEconomic reasonsBenefitsComparative advantage Economies of scaleOther reasonsPolitical reasonsDifferent taste and preferenceSEIB OF GDUFS51.2 Reasons for international tradeBenefits of Internati

5、onal TradeLarger ecnomic growth Cheaper goods or servicesGreater Variety of goods or services SEIB OF GDUFS61.3 Differences from domestic tradeCompared with domestic trade, international trade involves different languages and culturesforeign laws, customs and regulations or international rulesforeig

6、n currencieshigher risks: Political risks, Commercial risks, Financial risks, and Transportation risksmore complex business procedures broader range of management skillsSEIB OF GDUFS7From the direction of cargo flowExport tradedomestic market international market for saleImport tradeforeign countrie

7、s domestic market for saleTransit tradeproducing countries via a third country consuming countrySEIB OF GDUFS81.4 Classification of international trade1.4 Classification of international tradeTypes of transit tradeDirect transit tradeIndirect transit tradeSEIB OF GDUFS9From the number of participant

8、s involvedDirect trade Indirect tradeEntrept trade From the form of the goodsVisible trade / tangible goods tradeInvisible trade / intangible goods tradeFrom settlement instrument involvedBarter trade Free-liquidation tradeSEIB OF GDUFS101.4 Classification of international trade1.4 Classification of

9、 international trade From mode of transportationTrade by RoadwayTrade by SeawayTrade by AirwayTrade by Mail Order SEIB OF GDUFS111.5 Export and import proceduresThe preparation of a transactionThe negotiation of a contractThe performance of the contractThe settlement of disputesSEIB OF GDUFS121.5.1

10、The preparation of a transactionSelecting the right market Finding the potential partner Studying creditability of the partners Applying for Export or Import LicenseChecking whether the goods to be transacted are within certain export or import controlsIf so, apply for it before the negotiation star

11、tsIf unable to apply or get the import and export licenses, do business under EXW or DDP term SEIB OF GDUFS131.5.2 The negotiation of a sales contractTwo forms of business negotiation in words: oralin writing:business correspondence by letters, faxes, e-mails, telexes, etc.Four main steps involved E

12、nquiryOfferCounter-offerAcceptanceSEIB OF GDUFS141.5.2 The negotiation of a sales contract Definition of a trade contractA trade contract is an agreement which is concluded between seller and buyer based on an accepted offer and which sets forth biding obligations of the parties concerned.Governing

13、ruleThe United Nations Convention on Contracts for International Sale of Goods 1980 (CISG 1980) Form of a contract Formal or informal; simple or complicated; written or oralAll legally effectiveWrittten form is preferredSEIB OF GDUFS151.5.2 The negotiation of a sales contract A sales contract normal

14、ly includes: (see Specimen 1.1-1.2)full name, address and other necessary information of the seller and the buyerdescription of the commodity: name, quality, quantity and packaging etc. all terms agreed upon: price, delivery, transportation, insurance, payment, inspection, claims, force majeure, arb

15、itration, etc.date, place and signatureSEIB OF GDUFS161.5.2 The negotiation of a sales contract Importance of a written contract It is the only document between Seller and Buyer that evidences their respective rights and obligations. It serves as the basis for the performance of the contract.It serv

16、es as the basis for the settlement of disputes. SEIB OF GDUFS171.5.3 The performance of the contractExport procedure (business under CIF on L/C)Examining L/CUrging and expediting the opening of L/CExamining L/C with reference to the sales contractGetting goods readyPreparing goods according to the n

17、ame, quality, quantity, packing and making required in the contractApplying for mandatory inspection For goods required inspection by the governments or in the contractDocuments Submitted: commercial invoice, copy of sales contract, L/C, etc.SEIB OF GDUFS18Export procedure (business under CIF on L/C

18、)Receiving importers inspection before shipmentBooking shipping space after receiving L/C and getting goods ready Clearing goods for export After the goods are inspected and before the goods are loadedDocuments submitted for export customs clearance: commercial invoice, export license, copy of sales

19、 contract, inspection certificates, shipping order, etc.SEIB OF GDUFS191.5.3 The performance of the contractExport procedure (business under CIF on L/C)Getting goods loadedDelivering goods to the carrier for loading after the goods are cleared for export Receiving B/L from the carrier after shipment

20、Obtaining insurance Under CIF, insurance is a must for sellerMinimum coverageSEIB OF GDUFS201.5.3 The performance of the contractExport procedure (business under CIF on L/C)Presenting documents for bank negotiationDocuments required for negotiationMain documents: commercial invoice, packing list, bi

21、lling of lading, insurance policy, inspection certificates, etc.Other documents: the Certificate of Origin, the Consular Invoice, etc. If documents are in strict line with L/C, the exporter will receive payments from the bankSEIB OF GDUFS211.5.3 The performance of the contract221.5.3 The performance

22、 of the contract Import procedure (business under FOB on L/C)Opening L/CApplying in timeAmending L/C in the case of discrepancies Booking shipping spaceAfter booking shipping space, the buyer should notify the exporter sufficiently: the name of the vessel, the loading point, the delivery timeInspect

23、ing and supervising at the port of shipmentObtaining insuranceUnder FOB, insurance is not an obligation but a usual practice SEIB OF GDUFS231.5.3 The performance of the contract Import procedure (business under FOB on L/C) Examining documents and making paymentCareful examination before making payme

24、ntReceiving shipping document (B/L) after paymentClearing the goods for importNecessary documents for import customs clearance: commercial invoice, inspection certificate etc. Taking delivery and inspecting The importer can take it from the carrier with B/L after its arrival The importer should insp

25、ect the goods carefully If there are any inconformity, the importer can lodge claims against relevant parties for compensationSEIB OF GDUFS241.5.4 The settlement of disputesIn case of complaints or disputes, the party suffering loss will lodge a claim against the relevant parties: the other party of

26、 the sales contract, the carrier or the insurance companyFour ways to settle disputesNegotiationMediationArbitrationLitigation SEIB OF GDUFS25SEIB of GDUFS International Trade TermsChapter 2Learning objectivesAfter learning this chapter you will be able to:understand the trade terms used in internat

27、ional trade outline the major rules regulating the use of trade termsprovide a simple explanation of the eleven terms under the Incoterms 2020compare and contrast the use of FCA,FOB, CFR and CIFidentify the application issues under the Incotermslist the determining factors when choosing IncotermsSEI

28、B of GDUFS 27SEIB of GDUFS 282.1 Three sets of rulesWarsaw-Oxford Rules 1932Revised American Foreign Trade Definitions 1990International Rules for the Interpretation of Trade Terms 2020SEIB of GDUFS 29Warsaw-Oxford Rules 1932Initially in 1928-“Warsaw Rules, 1928” 22 provisions governing the rights a

29、nd obligations of the parties to a sale of goods on CIF (Cost, Insurance and Freight) contract terms. Revised in 1932-the “Warsaw-Oxford Rules 1932”21 provisions again mainly about CIFSEIB of GDUFS 30Revised American Foreign Trade Definitions 1990Six Quotations:EXW (Ex Works)F.O.B. (Free on Board)F.

30、A.S. (Free Along Side) CFR (Cost and Freight)C.I.F. (Cost, Insurance, Freight)DEQ (Delivered Ex Quay)SEIB of GDUFS 31International Rules for the Interpretation of Trade Terms 2020 (Incoterms 2020)1936- first created by International Chamber of Commerce (ICC)The purposes of Incoterms:To give the busi

31、nessmen a set of international rules for the interpretation of the most commonly used trade termsTo clarify the obligations of the buyer and the sellerTo simplify the contract negotiations To save time and costRevised in 1953, 1967, 1976, 1980, 1990, 2000, 2010 and 2020Incoterms 2020 includes 11 ter

32、ms under 2 classesSEIB of GDUFS 322.2 Basics of Incoterms 20202.2.1 Scope of Governance Parties involved: only 2 parties - seller & buyerDocument applied: only to the contract of saleSpecific aspects governed: only settle matters concerning the delivery of tangibles goods sold Focusing only on the d

33、elivery of tangible goodsIndicating the division of obligations, costs and risk between seller and buyer SEIB of GDUFS 332.2.1 Scope of Governance ObligationObligation - a legal duty to do something according to a certain agreement. Universally accepted obligation, eg: The seller - providing goods i

34、n conformity with the contract The buyer - making payment as stipulated in the contractOther obligations: handling customs clearance, carriage of goods, insurance, etc.SEIB of GDUFS 342.2.1 Scope of Governance Cost local and overseas transportation and insurance costsgoods checking and inspection ex

35、penses, customs clearance charges loading and unloading charges of the goods at some particular transport points Transfer of risk“Risk” refers to accidental damage to the goods. Time: when will the risk be passed from the seller to the buyer? SEIB of GDUFS 352.2.2 Categorization of Terms11 terms int

36、o two classes Terms applicable to any mode of transportation:EXW, FCA, CPT, CIP, DAP,DPU, DDPTerms only applicable to sea or inland waterway transport:FAS, FOB, CFR, CIFSEIB of GDUFS 362.2.2 Categorization of Terms 11 terms into four categories E-termthe seller only makes the goods available to the

37、buyer at the sellers own premises. F-terms the seller is called upon to deliver the goods to a carrier appointed by the buyer. C-terms the seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional costs due to events occurring after shipment or d

38、ispatch. D-terms the seller has to bear all costs and risks needed to bring the goods to the place of destination. Figure 2.1Incoterms 2020 WallchartSEIB of GDUFS 382.2.3 Brief of IncotermsThe “E” term (EXW)Sellers obligation is minimum. Placing the goods at the disposal of the buyer at the agreed p

39、lace usually his own premisesIn practice, also including assisting the buyer in loading the goods on the buyers collecting vehicle free, but bearing no riskFor the buyer to get lower price, but too demanding for him, therefore only applied to buyers having offshore branches SEIB of GDUFS 39EXW Ex Wo

40、rks (named place of delivery)Delivery: at sellers premisesTransfer of risk: goods at the disposal of the buyerPackaging and loading: Usu. seller has no obligation for export packaging and loading; Export customs clearanceUsu. buyers responsibility, but sometimes seller does it for the buyer, but bea

41、rs no riskSEIB of GDUFS 40The “F” terms (FCA, FAS, FOB) Shipment contractSeller delivers the goods for carriage as instructed by the buyerBuyer signs carriage contract with the carrier and pays freight and notifies the sellerFAS & FOB only for sea or inland waterway transportation modeSeller export

42、license and export customs clearanceBuyer import license and import customs clearanceSEIB of GDUFS 41FCA Free Carrier (. Named place)Transfer of risk Goods at the disposal of the (first) carrierDelivery pointIf at sellers site, seller responsible for loading If anywhere else, seller responsible for

43、delivering the goods to the point required, but not for unloading or reloadingSEIB of GDUFS 42FAS Free Alongside Ship (named port of shipment)Delivery point: port of shipmentTransfer of risk: Goods delivered alongside the vesselIf vessel unable to enter the port due to force majeure, the seller is r

44、esponsible for arranging and paying for the lighters to send the goods alongside the vessel offshore. (seller pays for lighter charges)SEIB of GDUFS 43FOB Free on Board ( named port of shipment)Delivery point: port of shipmentTransfer of risk: goods on board the vessel Cost and obligation: the selle

45、r pays for the necessary handling of goods until they are loaded on board the vessel. SEIB of GDUFS 44The “C” terms （CFR, CIF, CPT, CIP）Shipment contractsSeller contracts for carriage on usual terms at his own expense.CFR & CIF only for sea or inland waterway transportation modeUnder CIF and CIP, se

46、ller takes out insurance and pays for insurance cost.SEIB of GDUFS 45The “C” terms （CFR, CIF, CPT, CIP）Two “critical” points Port (place) of shipment where the buyer takes over the riskPort (place) of destination to which the seller is bound to arrange and bear the costs of a contract of carriage SE

47、IB of GDUFS 46CFR Cost and Freight ( named port of destination) Sharing every feature with FOB except for ocean freight chargeFreight at sellers cost The contract of carriage must be made on usual terms at the sellers cost and provide for carriage by the usual route in a vessel of the type normally

48、used for the transport of the type of goods sold.Obligation: sellers responsibilityBooking shipping space and getting goods ready for shipment in due timeNotifying buyer about the delivery of goods (Shipping advice) so as to facilitate buyer to fulfill insurance procedures Note: Shipment notice is m

49、ore important under CFR than under FOB and CIFSEIB of GDUFS 47CIF Cost, Insurance and Freight ( named port of destination)One step forward from CFRInsurance borne by seller Obtaining insurance vs. bearing risksSeller should pay for the insurance, but does not take the risk of the cargo.Minimum cover

50、ageSeller should pay for coverage equal to minimum cover of Clauses (C) of the Institute Cargo Clauses, or FPA of China Insurance Clause or any similar clauses. If required by buyer and at buyers expense, additional coverage can be addedSeller has no responsibility to guarantee the arrival of the go

51、ods at the destination.SEIB of GDUFS 48 CPT Carriage Paid to ( named place of destination)CPT is similar to CFRDifferences:Mode of transportCPT any mode CFR Sea or Inland Waterway Delivery point CPT inland place or port of shipment CFR port of shipment Transfer of risk CPT goods delivered to carrier

52、 CFR goods on board the vesselCIP Carriage & Insurance Paid to ( named place of destination) Mode of transportCIP any mode CIF sea or inland waterway Delivery point CIP Inland place or port of shipment CIF port of shipment Transfer of risk CIP goods at the disposal of carrier CIF goods on board the

53、vesselFreight and insuranceCIP whole journey freight and insurance cover complying with Institute Cargo Clauses (A)CIF ocean freight and insurance cover complying with Institute Cargo Clauses (C) CIP is similar to CIFDifferences:SEIB of GDUFS 50The “D” terms （DAP, DPU, DDP）Arrival contract terms sel

54、ler bears all risks and costs in bringing the goods to the agreed place or point of destination in the country of import.Sellers responsibility and cost are maximum.Seller responsible for both export and import customs clearance under DDPSEIB of GDUFS 51Delivery point: at inland place or port of des

55、tinationTransfer of risk: goods not unloaded at the disposal of the buyer (Seller not responsible for unloading)DAP Delivered at Place ( named place of destination)SEIB of GDUFS 52Delivery point: at inland place or port of destinationTransfer of risk: goods unloaded at the disposal of the buyer (Sel

56、ler is responsible for unloading)DPU Delivered at Place ( named place of destination)SEIB of GDUFS 53Sellers obligation max.: seller bears the entire risk until the goods are placed at the named place of destination on the agreed date or within the agreed period. Delivery point: named place of desti

57、nation in importing countryTransfer of risk: goods on arriving means of transport ready for unloading at the disposal of the buyer (Seller not responsible for unloading)Seller is responsible for import customs clearance, import duties and any other domestic taxes in the importing countryChosen unles

58、s the seller has the resources and capability to handle all the procedures.DDP Delivered Duty Paid ( named place of destination)Table 2.1Incoterms 2020 Comparison TableSEIB of GDUFS 552.3 Application issues2.3.1 Customs ClearanceReferring to both the payment of duty and the performance of any admini

59、strative mattersEXW - buyers for both import and export customs clearanceDDP - sellers for both import and export customs clearanceFor other terms, buyers for import customs clearance while sellers for export customs clearance SEIB of GDUFS 562.3 Application issues2.3.2 Quality ConfirmationSellers e

60、xpense to cover checking operations: quality control during the production, measuring, weighing and counting a the time of deliveryBuyers need to inspect the goods before taking delivery, hence he must pay pre-shipment inspectionSeller pay any costs of inspections mandated by the local authorities w