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The international convention of trade terms, there are three main.
A. (1932 Warsaw Oxford rules) (W.O.Rule)
Formulated by the International Association of the goods, a total of 21, mainly to explain the nature of the CIF contract. The specific provisions of the sale of the two sides have costs, risks and responsibilities.
B. "1941 American foreign trade definitions revised" formulated by the America nine business groups, the following six terms were explained:
(1) SX (point of origin) -- origin delivery price.
(2) FOB -- transport fob. FOB is divided into six kinds, of which fifth species are FOB -- FOB vessel (named port of shipment).
(3) FAS -- fas.
(4) C&F -- cost and freight (destination) price.
(5) CIF -- cost insurance, freight (destination) price.
(6) EX DOCK -- DEQ price.
The practice has great influence in the American states. With the practice in international trade, with particular attention to other customary differences, both sides should be specified on the basis of the practice of trade terms in the contract.
C. "Incoterms" formulated by the International Chamber of Commerce, the general is a revised version of the 1990, known as the "INCOTERMS 1990" (INCOTERMS 1990), entered into force in July 1st to 199O.
The law contains four groups of 13 trade terms. See table
Group E: shipment
EXW ex factory
Applicable to a variety of modes of transport
F group: main carriage unpaid
FCA delivery carrier
Applicable to a variety of modes of transport
FAS FAS
Suitable for sea and inland waterway transport
Delivery of FOB ship in the port of shipment
Suitable for sea and inland waterway transport
Group C: the main freight prepaid
CFR cost and freight
Suitable for sea and inland waterway transport
CIF cost insurance, freight
Suitable for sea and inland waterway transport
CPT carriage paid to
Applicable to a variety of modes of transport
CIP carriage, insurance paid to
Applicable to a variety of modes of transport
Group D: reach
DAF delivered at frontier
Applicable to a variety of modes of transport
Delivery of DES vessel at the port of destination.
Suitable for sea and inland waterway transport
Delivery of DEQ vessel at the port of destination.
Suitable for sea and inland waterway transport
DDU Delivered Duty Unpaid
Applicable to a variety of modes of transport
DDP delivered duty paid
Applicable to a variety of modes of transport
At present, (INCOTERM 1990) has been widely adopted around the world. Even American chambers of Commerce and other groups to USA businessmen recommend this practice, to replace the "American foreign trade definitions revised".