Chapter 3 International Trade Terms

【Learning Objectives】

Knowledge Objectives：

1. Understand the trade terms used in the international trade.

2. Understand the differences between the Incoterms 2020 and the Incoterms 2010.

3. Provide a simple explanation of the eleven terms under the Incoterms 2020.

Ability Objectives：

1. Compare and contrast the use of FOB, CFR and CIF.

2. Identify the application issues under the Incoterms.

3. List the determining factors when choosing Incoterms.

3.1 Generalization

Role of International Trade Terms

Trade terms, also called price terms or delivery terms, are an important component of a unit price in the international trade, standing for specific obligations of the buyer and the seller. Every commercial transaction is based upon a sales con tract, and the trade terms used in the contract have the important function of naming the exact point at which the cost and risk of the merchandise is transferred from the seller to the buyer. The trade terms also define the responsibilities and expenses of both the seller and the buyer. The use of the trade terms greatly simplifies the contract negotiations, and thus saves time and cost. The price of commodity usually refers to the unit price, which is made up of a name of currency, a unit price, a measuring unit, a trade term, and a name of destination or shipping place. For example，

US㊣1000 per MT CIF London；

US㊣50 per Carton FOB Shanghai.

The two parties in the international trade are usually far away from each other and are separated by vast ocean. The cargoes carried from the export country to the import country will usually go through a long distance of transportation and sometimes, several trans-shipments during the process of transit of the goods. The seller or the buyer shall handle a series of complicated formalities, which include carrying out customs formalities for the goods, obtaining the import or export license, chartering a ship or booking shipping space, making insurance, asking for inspection, etc., and pay all kinds of charges and expenses, such as freight, loading and unloading expenses, insurance premium, warehouse charges, duties and taxes, and other miscellaneous expenses. Who shall be responsible for the above-mentioned duties and bear the relative expenses? All these problems resulting from the international trade shall be solved. Therefore, after a long-term process of business practice, a set of special trade terms have taken shape in the international trade which are not customary practices in the domestic trade. These terms have developed into the international merchantable customs and have been simplified to a certain extent. They are in universal use in foreign trade transactions. They are, how ever, sometimes interpreted differently in different countries and their meanings may be modified by the agreement of the parties, by the customs of a particular trade or the usage prevailing at a particular port.

When the two parties determine to adopt certain trade terms, all other clauses in the contract shall be in conformity with them. Therefore, in the international trade, we usually make use of certain trade terms to define the nature of the contract, such as FOB contract or CIF contract, to determine expenses and risks as well as their rights and obligations accordingly.

Trade terms refer to using a brief English concept or abbreviation to indicate the formation of the unit price and determine the responsibilities, expenses and risks borne by two parties as well as the time of the passing of the property in the goods.

International Trade Usages

Trade terms have been developed in practice over many years to fit particular circumstances. However, as different countries might have different interpretations of the terms, misunderstandings occurred frequently. To clear up the confusion, some international organizations have made quite a few rules and explanations, of which there are three influential international trade practices.

◆Warsaw-Oxford Rules 1932

In 1928, the International Law Association held a meeting in Warsaw, and worked out the Uniform Rules for CIF Sales Contracts, which is called Warsaw Rules 1928, and renamed Warsaw-Oxford Rules 1932 at the Oxford Convention and includes 21 clauses. It is mainly used to indicate the nature and characteristic of the CIF contract and also to stipulate the responsibilities of the two parties under CIF terms.

◆ Revised American Foreign Trade Definitions 1941

In 1919, nine American commercial groups drew up The US Export Quotations and Abbreviations in 1919, then revised in 1941 and renamed Revised American Foreign Trade Definitions 1941. It was adopted by the American Chamber of Commerce, the National Importers Association and the American Foreign Trade Association in the same year. It defines six trade terms, i.e., Ex-point of Origin, FOB, FAS, C&F, CIF and Ex-dock. Except Ex-point of Origin and Ex-dock, the other four trade terms are explained quite differently from those in INCOTERMS. These trade terms are often adopted in the United States of America, Canada and some other countries in America.

◆ International Commercial Terms（Incoterms）

The Incoterms rules are an internationally recognized standard and are used worldwide in international and domestic contracts for the sale of goods. First published in 1936, Incoterms rules provide internationally accepted definitions and rules of interpretation for most common commercial terms.

The rules have been developed and maintained by experts and practitioners brought together by the International Chamber of Commerce（ICC）and have become the standard in international business rules setting. They help traders avoid costly misunderstandings by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers. Incoterms rules are recognized by the United Nations Commission on International Trade Law（UNCITRAL）as the global standard for the interpretation of the most common terms in foreign trade.

Since the first version in 1936, Incoterms were revised by ICC in 1953, 1982, 1990, 2000, 2010 and again in 2020 in order to bring the rules in line with current international trade practices. Incoterms 2020 came into effect on January 1,2020. Please note that all contracts made under Incoterms 2020 or even any earlier version remain valid even after 2020. Contracts are interpreted by the version of Incoterms referred to in the contract. Therefore, only a contract that refers to Incoterms 2020 will be governed by rules from that version.

The Incoterms do not constitute a complete contract of sale, but rather become a part of it. For its application, the following structure should be used: “［The chosen Incoterm rule］［Named port, place or point］Incoterms 2020”. For example:“CIF Shanghai Incoterms 2020”or“DAP 10 Downing Street, London, Great Britain Incoterms 2020”. If there is no year stated in the Incoterm © then the following applies: “until December 31st2019 the Incoterms 2010 apply”or“from January 1,2020 the Incoterms 2020 apply.”

Incoterms 2020 vs Incoterms 2010

Incoterms 2020 rules incorporate a number of changes from Incoterms 2010. This page highlights such changes. Here are some key items：

The Incoterms © FCA（Free Carrier）now provides the additional option to make an on-board notation on the Bill of Lading prior loading of the goods on a vessel.

The costs now appear centralized in A9/B9 of each Incoterms rule.

CIF now requires at least an insurance with the minimum cover of the Institute Cargo Clause（A）（All risks, subject to itemized exclusions）.

CIP requires at least an insurance with the minimum cover of the Institute Cargo Clause（C）（Number of listed risks, subject to itemized exclusions）.

The Incoterms rules Free Carrier（FCA）, Delivered at Place（DAP）, Delivered at Place Unloaded（DPU）and Delivered Duty Paid（DDP）now take into account that the goods may be carried without any third-party carrier being engaged, namely by using its own means of transportation.

The rule Delivered at Terminal（DAT）has been changed to Delivered at Place Unloaded（DPU）to clarify that the place of destination could be any place and not only a“terminal”.

The Incoterms 2020 now explicitly shifts the responsibility of security-related requirements and ancillary costs to the seller.

Incoterms 2020 Rules and Groups

The Incoterms rules are terms of the contract of sale and tell the parties what to do about carriage of the goods from seller to buyer as well as export and import clearance. They also explain the division of cost and risk between the two parties. The four groups and the 11 Incoterms 2020 rules are similar to the 2010 set but some delivery points, obligations and responsibilities for costs have been amended to make the new set less ambiguous and more relevant to the practice of international trade. E（Departure）, F（Main carriage unpaid by seller）, C（Main carriage paid by seller）and D（Arrival）, the four groupings are illustrated in Table 3.1.

Table 3.1 Incoterms 2020 Rules and Groups

Incoterms 2020 Categories and Responsibility Guide

As mentioned, picking an inappropriate term can present problems. The pages describing individual Incoterms will assist you in making the right choice, but for the moment, you should know that some terms are applicable for all modes of transport, while others are applicable only for sea and inland waterway transport. The Incoterms 2020 are organized into two categories: Rules for any mode or modes of transport, and Rules for sea and inland waterway transport（see Table 3.2）.

Table 3.2 Incoterms 2020 Chart of Responsibilities and Transfer of Risk

（Continued）

3.2 Incoterms 2020 Rules in Detail

For the ease of understanding, the following interpretations of all the eleven terms as in Incoterms 2020 are done based on the four groupings: namely starting with“E”-terms whereby delivery is made at the seller's premises（said to be mainly appropriate for domestic not international transactions）; followed by the“F”-terms whereby delivery is made at a named point of export with the seller responsible for export customs formalities（FCA, FAS and FOB）; continuing with the“C”-terms whereby delivery is made at the place of export but the seller must contract for carriage and pay all costs up to the arrival point in the destination country（CFR, CIF, CPT and CIP）; and finally, the“D”-terms whereby delivery, costs and risk are the seller's up to a named point in the country of destination （DPU, DAP and DDP）.

Group“E”-departure term

◆EXW

Ex Works（insert named place of delivery）

Under the Incoterms 2020 rules, EXW means the seller has fulfilled its obligation when the goods are made available to the buyer, usually at the seller's location. The seller should package the goods appropriately or as specified in the agreement between both parties. Equally, the seller should render the buyer on request every assistance to provide all the relevant documents or to clear the customs. The buyer is responsible for loading the goods on their transport and everything else necessary to get the goods to the final destination.

Under Ex Works, the seller should not organise transport or arrange for the goods to be export customs-cleared（though they must provide a commercial in voices）as they are not protected by law if they do so and there is a dispute. Freight companies can legally claim freight charges from sellers under Ex Works contracts if the seller has booked the shipment and the buyer refuses to pay when the goods are delivered. If the seller does undertake these activities then FCA should be used instead.

The risk or liability for the goods transfers from the seller to the buyer when the goods are made available at the named place. The seller has no responsibility to load the goods onto a truck or other transport vehicle or to clear the goods for export. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. Therefore, though the EXW term can be used for any type of transport, under the Incoterms 2020 rules it is generally not recommended for international trade transactions, but often used when making an initial quotation for the sale of goods. It represents the cost of the goods without any other costs included.

Group“F”-main carriage unpaid by the seller

There are three Incoterms rules in Group F. These terms extend the sellers' responsibilities to the physical point of export from their country. Usually the seller delivers the goods, cleared for export, to a carrier named by the buyer, transport costs being for the buyer's account.

◆ FCA

Free Carrier（insert named place of delivery）

This can be used for any mode of transport. Risk of loss or damage is the buyer's once the goods are in the hands of the first carrier at the agreed point in the seller's country. The seller must load the goods onto the buyer's transport and ensure that the goods are export customs-cleared. The named point can be either the FCA seller's premises or the FCA named place of shipment（airport, etc.）.Ambiguity over who pays the export customs formality costs under“FCA seller's premises”contracts has been removed within the Incoterms 2020 rules: these costs are the seller's responsibility. First carrier is defined as“any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport”by the appropriate method, so this could be a freight forwarder, a courier company, a road haulier or the air/shipping line.

FCA Seller's Premises

This use of FCA means that the seller delivers the goods and transfers risk once they have been loaded onto the buyer's transport at the seller's premises; similar to Ex Works except that loading is not the seller's responsibility. In addition, it is the seller's obligation to clear the goods for export, and if the buyer does not give specific transport instructions, the seller is protected by being allowed to arrange transport on behalf of the buyer but at the buyer's risk and cost.

This use of FCA has been designed to replace the previous misuse of Ex Works.

Division of costs has become clearer in the new set and the costs for arranging the export presentation must be borne by the seller unless it is specifically covered within the contract of carriage arranged by the buyer, for example when using Fast Parcel Operators（FPOs）where the customs costs are rolled into a single delivery price. If there is a delay in export clearance that incurs storage costs these must be borne by the seller, even if the clearance delay was due to an error by the buyer's nominated carrier.

FCA Named Place of Shipment

Under this use of FCA delivery takes place and risk passes to the buyer when the goods are placed at the disposal of the first carrier at the named place-though the seller does not bear the risk of offloading the goods at that place. The seller's costs include delivery to that point and customs clearance. This makes the term a suitable replacement for FOB when the goods are not moving by conventional sea freight but being delivered to an inland container base. To facilitate the use of the FCA rule for sea freight the 2020 set has made it an obligation for the carrier to provide the seller with an on-board bill of lading even if delivery has been made away from the port of departure. Again, if the buyer does not specify a carrier or delivery point, the seller can legally undertake to select the point at the place of delivery that best suits their purposes on behalf of the buyer and at the buyer's risk and cost.

◆FAS

Free Alongside Ship（insert named port of shipment）

This should be used only where the goods are being moved by conventional sea freight. Risk of loss or damage and all further responsibilities are the buyer's once the goods are alongside the ship. Note that under the Incoterms 2020 rules it is still the seller who is responsible for export customs formalities.

The seller must deliver goods next to the vessel with export customs clearance paperwork completed. FAS is commonly used for out of gauge（OOG）cargo, which is cargo that cannot fit into internal container dimensions（i. e. boats, tractors）. FAS can only be used for ocean cargo and loading cost into vessel must be under the seller's account. Because of restricted times available on wharf, time and location are extremely important when negotiating under FAS. This term is also common when buying liquids and ships must deploy hoses for transfer goods（i. e. chemicals）.

It is recommended to use this term with the precise location in the port, especially in large ports with multiple locations. FAS term is frequently used in the term of sale of bulk commodities like grains or oil. In case the cargo is containerized, it is common to deliver the goods at the carrier container yard or terminal（FCA term will fit best in this case）.

◆FOB

Free on Board（insert named port of shipment）

FOB suits better for bulk cargo and not containerized cargo（use FCA instead）. This term is only used for water transportation either sea or inland water. The seller's responsibility ends when the goods are placed on board of the vessel. All cost after loaded on board must be assumed by the buyer.

This trade term goes back to the days of sailing ships, and in the Incoterms 2020 rules, as in previous versions, requires the seller to place the goods on board the vessel nominated by the buyer. From that point on risk of loss or damage to the goods transfers to the buyer. “On board”is no longer defined as placing the goods“across the ship's rail”and in fact is not defined any further as it will be a matter for the contract to specify depending on the nature of the goods. Cost of carriage is payable by the buyer, the bill of lading usually indicating“freight collect”.

The seller must carry out all export formalities and the buyer must carry out import formalities. The buyer contracts for carriage therefore the shipper on the bill of lading should be the buyer, not the seller. The seller will most likely require at least a mate's receipt or some other form of evidence of export such as a copy of the bill of lading for their VAT/GST purposes. Often where there is a letter of credit involved the seller is shown on the bill of lading as the shipper, in which case the seller would be wise to inform themselves of the additional liabilities they might be taking on under the terms and conditions of the bill of lading.

Group“C”-main carriage paid by the seller

There are four Incoterms rules in Group C. Under these, the seller is responsible for arranging and paying for carriage to a destination port or place in the buyer's country, but delivery takes place, and the risk of loss or damage transfers to the buyer, once the goods are on board the vessel or in the hands of the first carrier in the seller's country（as with Group“F”）. Therefore the shipment risk is the buyer's.

◆ CFR

Cost and Freight（insert named port of destination）

In CFR the seller delivers when the goods are on board and cleared for export. The seller pays for freight to transport the goods until the final port of destination. However, the risk transfer occurs when goods are on board. This term is exclusively used in ocean and inland waterway transportation. The contract must specify the exact port of discharge, whereas the port of loading is optional. The risk and delivery happens at the port of loading. The seller covers the cost of freight until port of discharge. The buyer covers discharge and import clearance cost. Delivery happens in the port of loading; the risk for the seller ends at the port of origin. In addition to this, the seller must arrange international freight transportation and provide all documentation to the buyer. The seller must also clear export customs. In summary, the seller arranges transportation under the buyer's risk, therefore it is recommended that the buyer gets additional insurance coverage.

This term is commonly used for agricultural or chemical products where the seller has expertise and buying power on loading and transportation until port of discharge. If shipment is containerized, it is preferred to use CPT. This term is usually applied when goods are in bulk cargo like grains and oil, oversized cargo or cargo that exceeds the normal dimensions to fit inside a container. The usual transport document is a bill of lading showing the onboard date. The bill of lading allows the buyer to transfer the property of goods while in transit. It is common practice to have the bill of lading as proof for shipment to letters of credit or payments from buyer to seller.

Unloading costs（i.e. destination terminal handling charges）are under buyers' responsibility unless agreed in the contract of sale. When carriers have multiple legs and transshipment points, it is common practice that delivery happens at the first port of loading. For instance, transporting the first leg from Jakarta to Singapore and second leg from Singapore to Long Beach, California.

◆ CIF

Cost, Insurance and Freight（insert named port of destination）

Under the Incoterms 2020 rules, CIF means the seller is responsible for loading properly packaged goods on board the vessel they've nominated, cost of carriage to the named port of destination on the buyer's side, and insurance to that point. CIF is one of the only two Incoterms 2020 rules that identify which of the parties must purchase insurance. Unlike the Incoterms 2020 change to the term Carriage and Insurance Paid to（CIP）, which increases the amount of insurance coverage required on the goods, CIF maintains that the minimum level of coverage identified by Clause C of the Institute Cargo Clauses is enough. That's why CIF is generally used in shipments of lower-value goods than CIP.

The risk or liability for the goods transfers from the seller to the buyer as soon as the goods are loaded upon the vessel before the international carriage takes place. Like all four of the Incoterms 2020 rules designed for sea and inland waterway transport, CIF is best used in situations where sellers have direct access to the vessel for loading, i.e., bulk cargos or non-containerized goods.

◆ CPT

Carriage Paid To（insert named place of destination）

In CPT the seller clears the goods for export and delivers to the carrier nominated by the seller at the agreed place of shipment at the origin. The seller is responsible for contracting and paying the main carriage until the agreed named place of destination. The contract of carriage must specify origin and destination. The moment that the risk of loss or damage is transferred from seller to buyer is when the goods are loaded onto the first carrier vessel, despite the seller paying the carriage charges. It is advised to mention the destination place as clearly as possible in the contract of sale.

Similar to CIP, but without insurance paid by the seller, the buyer obtains insurance for his own risk. Delivery happens at the origin with the first carrier, which means that delivery happens at origin and the seller pays for freight until the final destination. The seller arranges export clearance. In the case of claims, the buyer can claim directly with the insurance company. Freight doesn't have the same cost when transported to the port of destination or inland destination warehouse, additional inland and terminal handling charges will apply. The buyer is responsible for customs clearance. In practice, delays caused at origin which incurs in additional expenses are usually a point of discussion between buyer and seller. This term is popular in Ro-Ro and air freight shipments. If there is more than one mode of transportation, the risk is transferred when goods have been delivered to the first carrier.

◆ CIP

Carriage and Insurance Paid To（insert named place of destination）

Under CIP terms, the seller clears the goods for export and is responsible for delivering the goods to the carrier nominated by the seller. Here delivery, risk and costs are the same as under CPT but the seller must also arrange transit insurance of the goods on behalf of the buyer. The obligations for transit insurance are the same as outlined under CIF. The differences between CIP and CIF is that CIP can be used for any mode of transport, whereas CIF is specific to sea freight and the level of insurance risk to be covered is higher than the obligation under CIF. In Incoterms 2020 Rules the seller must take out insurance cover on behalf of the buyer under the maximum“all risks”cover of the Institute Cargo Clauses（Clause A）for 110% of the value of the shipment in the currency of the contract. The risk is passed when the goods are received by the first carrier.

The seller pays transportation and insurance to the destination. The seller pays for extensive insurance which is often acceptable for bulk cargo, but not for manu factured goods or high-value merchandise. Extensive insurance is understood as“all risk”. The seller arranges export clearance. In the case of claims, the buyer can claim directly with the insurance company. For CIP and CPT, place at the destination can be different locations like warehouses or truck terminals. Freight doesn't have the same cost when delivered at the port or at a destination warehouse, additional inland and terminal handling charges will apply. The buyer is responsible for customs clearance. In practice, delays caused at origin which incurs in additional expenses are usually a topic of discussion between buyer and seller.

Group“D”-arrival term

There are three Incoterms rules in Group D. The seller's risk under this group does not transfer to the buyer until the goods have reached the named place in the destination country. This increase in the seller's risk is the main difference between Group C and Group D. The place where delivery is legally made and where risk of loss or damage becomes the buyer's responsibility is different for each term; reference to the ICC book on the Incoterms rules is recommended.

◆ DPU

Delivered at Place Unloaded（insert named place of destination）

This is a new rule for 2020. While it is often stated as simply being a change of name from the previous DAT（Delivered at Terminal）, it is in fact just that little bit more. DAT itself was introduced 2010 as an expansion of DEQ（Delivered Ex Quay）to cover any mode of transport. The implication in DAT was that the seller delivered the goods, unloaded, into a terminal whether that be an open area of land such as a container yard or a covered warehouse such as at an airport. It's regrettable that explanation was not clear in the wording of DAT though its location before DAP in the order of the 2010 rules tends to reinforce that. The difference now between DPU and DAP is that it means any place including the buyer's premises and therefore is shown now after DAP.

The seller is responsible for all costs and risk until the goods have arrived at the named place and have been offloaded. The buyer is responsible for customs clearance costs, the payment of duties, taxes and any further movement after this point.

◆ DAP

Delivered at Place（insert named place of destination）

DAP requires the seller to deliver to a place named by a buyer, typically the buyer's premises. The buyer is responsible for unloading the means of transport. The seller has to carry out any export formalities and the buyer has to carry out any import formalities. Like with CPT and CIP the seller contracts for carriage and risk transfers only upon delivery which now is at the buyer's premises.

This term makes the seller responsible for all costs and risk to the place named. Although it gives the option to name the buyer's premises, it must be noted that the costs of customs clearance and the payment of duties and taxes remain the buyer's and should not be undertaken by the seller. It is vitally important that a place be named after DAP as this can be anywhere in the buyer's country, from the arrival port or airport to the buyer's premises. Not specifying the correct delivery place can leave the seller open to additional costs and increase risks.

◆ DDP

Delivered Duty Paid（insert named place of destination）

DDP stands for Delivery Duty Paid, an international commerce term（Incoterms）used to describe the delivery of goods where the seller takes most responsibility. Under DDP, the supplier is responsible for paying for all of the costs associated with the delivery of goods right up until they get to the named place of destination. The buyer is then responsible for unloading the goods at the named place of destination. This term can be used for any mode of transportation including multimodal. It's also expected that the seller clears the goods at export and import customs.

DDP functions much like DAP with one most important exception. It is the seller's obligation to clear the goods for import in the buyer's country and pay any duties and VAT/GST. This rule should be used with great care. If the seller finds himself unable to be the importer or to be able to recover any VAT/GST, then the parties should instead contract on DAP terms.

NOTES

1. shipment clause装运条款

国际货物买卖合同的装运条款，又称交货条款，主要指国际货物运输的装运条件和相互责任。装运条款的内容可因采用的贸易术语、运输方式以及船舶的经营方式的不同而不同。一般来说，装运条款应包括装运时间、装运地和目的地、分批装运和转运，在程租船运输的情况下，还应包括装运通知、滞期速遣以及装运单据等内容。从法律上讲，卖方必须按照合同规定的装运时间、装运地、目的地装运和交接货物；提前或推迟、改港、改装运地或到货地，均构成违约（除非双方另有约定）。买方有权拒收货物或提出索赔，因此，合同中的装运条款也是合同的主要条款之一。

2. symbolic delivery（constructive delivery）象征性交货

象征性交货是指在买卖双方不直接接触的情况下，卖方按合同规定的时间和地点将货物装上运输工具或交付承运人后，向买方提供包括物权证书在内的有关单证，凭承运人签发的运输单据及其他商业单据履行交货义务，而无须保证到货。CIF是一个典型的象征性交货术语。卖方凭单交货，买方凭单付款。卖方履行交单义务，只要卖方如期向买方提交了合同规定的全套合格单据，即使货物在运输途中损失或灭失，买方也必须履行付款义务。如果卖方提供的单据不符合要求，即使货物完好无损地运达目的地，买方仍可拒绝付款。卖方履行交货义务，如果货物运达目的地时，不符合要求，即使买方已经付款，仍可据合同规定向卖方提出索赔。

3. actual delivery（physical delivery）实际交货

实际交货是指卖方按合同规定的时间和地点将货物实际置于买方控制之下，作为履行交货义务。此时买卖双方或其代理人必须直接接触，办理货物的交接，即买方上门提货或卖方送货上门。比如“工厂交货”（EXW）、“完税后交货”（DDP）等均属于实际交货类的贸易术语。

4. arrival contract到货合同

在国际贸易惯例中，D组术语项下合同卖方必须负责将货物运送到目的港（地），并承担货物交至该处为止的一切风险和费用。因此，D组术语合同又叫到货合同。

5. ICC（International Chamber of Commerce）国际商会

国际商会由1919年10月在美国新泽西州大西洋城举行的国际贸易会议发起，1920年6月在巴黎成立，总部设在巴黎。目前在83个国家设有国家委员会，拥有来自140个国家的8 000多家会员公司和会员协会，是世界上重要的民间经贸组织。其宗旨是推动世界经济的发展，促进市场经济的繁荣，增进会员之间的经济贸易往来，帮助解决国际贸易中出现的争端，并制定有关国际贸易及货运方面的规则和条款。国际商会通过其下设的十几个专业委员会和数十个工作组，制定了许多国际商业领域的规则和惯例，如国际贸易术语、国际贸易结算规则等，为全世界广泛采用，并为广大商界提供实际服务如仲裁、临时进口单证系统、贸易信息网等，极大地便利了商界的国际经贸实务操作。

6. customs clearance 出口清关

清关即结关，习惯上又称通关，是指进口货物、出口货物和转运货物进入一国海关关境或国境必须向海关申报，办理海关规定的各项手续，履行各项法规规定的义务。只有在履行各项义务，办理海关申报、查验、征税、放行等手续后，货物才能放行，货主或申报人才能提货。

7. International Trade Usages 国际贸易惯例

在国际贸易长期实践中逐渐形成的一些通用的做法和通例被称为国际贸易惯例。国际贸易惯例本身不是法律，不具备强制性，不能直接约束有关国家和公民。但是，在当事人于合同中明确约定适用某项惯例或规则时，当事人就会受该项惯例或规则的约束，在此情况下，国际贸易惯例对买卖双方就具备法律约束力。

EXERCISES

I. Translate the following Chinese terms into English.

装运条款

象征性交货

到货合同

实际交货

装船通知

风险转移

惯例

报关行

运输方式

海关放行

II. Translate the following English terms into Chinese.

delivery

commodity inspection

distribution of risk

obligation

insurance premium

freight

document

ICC

Incoterms

customs formalities

III. Questions.

1. Who pays for loading for shipment under FOB？

2. Who pays for unloading under CIF？

3. What are the differences and similarities among FOB, CFR and CIF？

4. What are the types of trade terms concerning the transfer of risks？

5. What are the differences and similarities between CIP and CIF？