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| In international contracts for the sale of goods, trade terms are generally expressed in price terms. Different trade terms have different responsibilities, costs, and risks for buyers and sellers. In actual business, what trade terms are used by the parties to a sales contract not only determines the level of the contract price, but also affects the nature of the contract and even affects the handling and settlement of trade disputes. Therefore, the selection and application of trade terms is an important issue directly related to the economic benefits of buyers and sellers. 1. Trade terms and the nature of the contract: In international goods sales contracts, the trade terms used must be clearly defined in order to clarify the methods and conditions for the seller and the buyer to hand over the goods, that is, the seller and the buyer are handing over the goods The respective responsibilities, costs and risks that should be borne in the process, thereby dividing the rights and obligations of the two parties and explaining the basic characteristics of the contract. Therefore, trade terms are an important factor in determining the nature of a contract of sale. Dongguan Hardware marks hair now actual business, usually under the name of trade terms to the contract for the sale to name, as referred FOB FOB contract in accordance with the terms of contracts traded, according to CIF. . . . . . . . In general, the nature of trade terms is consistent with the nature of the sales contract. The relevant terms in the contract should be consistent with the nature of the contract, consistent with the content of the used trade terms, and there should be no contradiction. Otherwise, it will cause unnecessary disputes between buyers and sellers, and even cause economic losses. 2. Factors to consider when choosing trade terms There are many trade terms to choose from in international trade. According to statistics, countries often use trade terms such as FOB, CIF and CFR. In recent years, with the development of international trade and changes in transportation methods, the use of FCA, CPT and CIP terms has also increased. As a party to a foreign trade enterprise, the following factors should be considered when choosing a trade term: 1) The mode of transport used The 2000 General Regulations provide for the mode of transport applicable to each trade term, such as : The terms FOB, CFR and CIF apply only to marine and inland waterway transport, not air, rail and road transport. If the buyer and the seller intend to use air, rail and road transportation, the terms FCA, CPT and CIP should be used. 2） Factors of freight and insurance The price composition of various trade terms is different. Freight and insurance are a part of the price. Therefore, when choosing trade terms, freight and insurance should be considered the elements of. Generally speaking, in the export trade, we should strive to choose the CIF and CFR terms; in the import trade, we should strive to choose the FOB term, and we should master the selection of FCA, CPT and CIP terms according to the above principles. Dongguan hardware gimmick found that this helped to save freight and insurance costs in foreign exchange expenditure. It is also conducive to the development of China's transportation industry and insurance industry. In addition, when choosing trade terms, we should also pay attention to the trend of changes in freight rates. When freight rates are rising, in order to avoid the risk of rising freight rates, we should use FOB terms when exporting and CIF or CFR when importing. 3） Characteristics of the goods In international trade, there are many varieties of imported and exported goods, different types of goods have different characteristics, the requirements for transportation are different, and the size of freight expenses is also different. Some goods have low special value, but the freight accounted for a large proportion of the price. For this kind of goods, FOB term should be used for export; CIF or CFR term should be used for import. 4) Loading and unloading conditions and port habits in foreign ports The loading and unloading conditions and charging standards of ports in different countries are different. You can choose different trading terms according to the actual situation. 5) Flexible mastery according to actual needs. When choosing trade terms, you must also master flexible according to actual needs. For example, in order to support the development of the country ’s insurance industry, some countries require that insurance be imported from their own country when importing. In order to express their intention to cooperate with them, FOB or CFR terms can also be used for exports. For another example, when I export bulk commodities, in order to win the concession of freight and insurance, foreign buyers require the chartering and insurance of the charter ship to be lost by themselves. In order to develop the trade between the two parties, FOB terminology can also be used. |
