In each situation below, decide the most appropriate method of payment.
(A) Confirmed L/C (B) No security open account
(C) Bank guarantee open account (D) Export insurance open account
1. Sale of a bale (roll) of cloth costing $200 to a nearby tailor’s shop with whom you have done business for 20 years.
2. A new small customer in a Pacific island republic much given to political disturbances. The order is for $10,000 worth of assorted textiles.
3. A contract for supply of cloth worth $5,000 per month to the government of Oceanea- a prosperous country. Duration of the contract: two years, but renewable. Contract represents 25.5% of turnover.
4. The same deal as (3) except that the contract represents only 0.5% of your turnover.
1. Open account, no security 2. Confirmed L/C
3. If possible a bank guarantee. Otherwise export credit insurance.
4. Export credit insurance is advisable. Selling on open account with no security at all is also possible.
EXHIBIT 8.1. The export flow: decision chart (pp. 168-9)
The new INCOTERMS 2010 became effective January 1, 2011. Incoterms--which is an abbreviation for International Commercial terms--are a series of sales terms. They are published by the International Chamber of Commerce (ICC) and are widely used in commercial transactions.
In addition to providing a set of rules for the interpretation of commonly used trade terms, INCOTERMS 2010 accomplish the following: (a) significantly revises Group D listed in INCOTERMS 2000; (b) reduce Incoterms from four groups to two groups, allowing trade experts to choose the most suitable rule related to the mode of transport; and (c) reduce the absolute number of Incoterms from 13 to 11.
Moreover, INCOTERMS 2010 offer additional guidance which assists users in selecting the most appropriate Incoterm for each transaction. The revised terms also spell out rules regarding the use of electronic procedures; detail information on security-related clearances for shipments; and offer advice with respect to domestic trade.
What are Incoterms?
Incoterms or International Commercial terms are a series of sales terms. They are published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions. The purpose of Incoterms is to provide a set of international rules for the interpretation of commonly used trade terms in international transactions. They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods. The first Incoterms were issued in 1936. The most recent Incoterms were updated in 2010 and became effective January 1, 2011.
Who needs to understand Incoterms?
Government trade officials as well as many private sector parties should understand Incoterms. Such private sector parties include: exporters, importers, trade finance professionals, export compliance specialists, customs brokers, freight forwarders, insurers, international credit professionals, and sales and purchasing managers.
What are Incoterms used for?
Incoterms assist trade practitioners in interpreting the most commonly used international trade terms. Using correct Incoterms in an international transaction reduces considerably uncertainties arising from the different interpretation of such terms in different countries.
They apportion international trade transaction costs and responsibilities between buyers (importers) and sellers (exporters) and reflect modern-day transportation practices.
Incoterms assist in significantly reducing misunderstandings among traders and thereby minimizing trade disputes and litigation. However, their scope is limited to matters related to the international rights and obligations of the parties involved in the contract of sale with respect to the delivery of the goods sold. Thus, they apply to the contract of carriage, not the contract of sale.
Why were the INCOTERMS 2000 revised?
INCOTERMS 2010 are the updated version of INCOTERMS 2000. INCOTERMS 2010 have been developed as a result of an extensive review of current shipping practices and trends in an effort to keep up with the rapid expansion of world trade.
The key drivers for this update include: a need for improved cargo security, changes to the Uniform Commercial Code in 2004 that resulted in a deletion of U.S. shipment and delivery terms, and new trends in global transportation.
How do INCOTERMS 2010 differ from INCOTERMS 2000?
In addition to providing a set of rules for the interpretation of commonly used trade terms, INCOTERMS 2010 significantly revise Group D listed in INCOTERMS 2000.
The five INCOTERMS 2000 listed in Group D included the following:
DAF Delivered At Frontier
DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid
DDP Delivered Duty Paid
INCOTERMS® 2010 contain the following categories:
DAT Delivered At Terminal
DAP Delivered At Place
DDP Delivered Duty Paid
Moreover, INCOTERMS® 2010 reduce the number of Incoterm groupings from four to two, allowing trade experts to choose the most suitable rule related to the mode of transport.
The 13 INCOTERMS® 2000 contained four essential categories of Incoterms. They were:
Group E – Departure
Group F – Main carriage unpaid
Group C – Main carriage paid
Group D – Arrival.
The two main categories of INCOTERMS® 2010 are now organized by modes of transport. Used in international as well as in domestic contracts for the first time, the new groups aim to simplify the drafting of contracts and help avoid misunderstandings by clearly stipulating certain obligations of buyers and sellers.
Group 1. Incoterms that apply to any mode of transport are:
EXW Ex Works
FCA Free Carrier
CPT Carriage Paid To
CIP Carriage And Insurance Paid To
DAT Delivered At Terminal
DAP Delivered At Place
DDP Delivered Duty Paid
Group 2. Incoterms that apply to sea and inland waterway transport only:
FAS Free Alongside Ship
FOB Free On Board
CFR Cost And Freight
CIF Cost, Insurance, and Freight
Further, the two new groupings listed above note a reduction of the number of Incoterms from 13 to 11.
Finally, INCOTERMS® 2010 provide additional helpful guidance and clarify obligations. For instance, the revised terms also spell out rules regarding the use of electronic procedures; detail information on security-related clearances for shipments; and offer advice with respect to domestic trade.
Can I still use the INCOTERMS® 2000?
According to the International Chamber of Commerce, all contracts made under INCOTERMS® 2000 remain valid even after 2011. In addition, although the ICC recommends using INCOTERMS® 2010 after 2011, parties to a contract for the sale with respect of the delivery of goods can agree to use any version of Incoterms after 2011. It is important, however, to clearly specify the chosen version INCOTERMS® 2010, INCOTERMS® 2000, or any earlier version.
Where can I obtain a copy of the new INCOTERMS® 2010?
You can purchase a copy of the new INCOTERMS® 2010 from the ICC website.
Where can I learn more about the new Incoterms?
There are a number of private sector and government organizations that offer workshops, webinars, and seminars related to the new Incoterms. For webinars and other events related to Incoterms and many other topics of tradecraft education that are being offered by the U.S. Commercial Service and its partners in support of the President’s National Export Initiative, you may visit our Trade Events Search Database.
INCOTERMS AND THE EXPORTER
International Commercial Terms, known as “Incoterms”, are internationally accepted terms defining the responsibilities of exporters and importers in the arrangement of shipments and the transfer of liability involved at various stages of the transaction. Incoterms do not cover ownership or the transfer of title of goods. It is crucial to agree on an Incoterm at the start of a negotiation/quotation of a sale, as it will affect the costs and responsibilities involved in shipping, insurance and tariffs. The new Incoterms 2010 rules were revised by the International Chamber of Commerce and will become effective January 1, 2011. Four terms were eliminated (DAF, DEQ, DES, DDU) and two were added: Delivered at Place (DAP) and Delivered at Terminal (DAT).
The modifications affect obligations, risk transfer, and cost sharing for the seller and buyer, resulting in better clarification and application of the eleven (11) Incoterms, and consistent with the way global trade is actually conducted since the last update in 2000.
In any sales transaction, it is important for the seller and buyer to agree on the terms of sale and know precisely what is included in the sale price. Exporters should choose the Incoterm that works best for their company, but also be prepared to quote on other terms.
See VEDP FastFacts- Responding to Inquiries
Inexperienced exporters may want to use the Incoterm “Ex Works” (EXW), because this term carries the least burden for them. Under EXW, an exporter’s responsibility ends at their facility’s loading dock, which includes making the goods available for pick up and providing any product information needed for filing the Electronic Export Information (EEI). The importer’s agent (i.e. their designated U.S. freight forwarder) will arrange and pay for the pre-carriage, shipping, insurance and any additional costs from the exporter’s door. A sale based on the Incoterm “CIF”, on the other hand, requires the exporter to arrange and pay for the pre-carriage, shipping, and insurance to a named port. In this case, the sale price (invoice) includes not only the (C)ost of goods, but also (I)nsurance and (F)reight costs that the importing buyer pays the exporting seller.
When designating the Incoterm on a commercial invoice or a quotation to the buyer, the term should be followed by the city or port of load/discharge, such as “EXW Factory, Richmond, VA” or “CIF Rotterdam”. Using the actual address is better to avoid any confusion or misinterpretation. Communication throughout the entire process is crucial. For example, under Ex Works, the shipper should notify the importer when the goods are ready and after they have been picked up by the importer’s selected carrier. The exporter’s freight forwarder often provides the vessel and sail date, or air cargo service used, and any ocean bill of lading or airway bill number to keep the parties informed of the arrangements and status of the shipment (even though technically under Ex Works the exporter’s responsibility ends at their loading dock).
The most burdensome Incoterm for the exporter is Delivered Duty Paid (DDP), because all arrangements and costs are borne by the exporter, usually with the assistance of agents (freight forwarders and customs house brokers). With DDP, the exporter bears all risks and costs of transportation, including duties and tariffs, until the goods are received by the importer, usually at the importer’s factory or warehouse. Since DDP represents the maximum obligation to the seller, it is not recommended for companies that are new-to-export.
DDP Example: Four palletized drums of chemicals at US$ 40,000, DDP 123 Main St., Santiago, Chile.
In the DDP example, for $40,000 total, the exporter arranges and pays for all transit costs, including delivery to a designated facility at 123 Main Street, Santiago, including any insurance coverage and duties/tariff charges. While these costs are added to the product’s price and are sometimes itemized on the commercial invoice, the exporter takes full responsibility for the added logistics costs and potential headaches, such as delays at customs, demurrage or detention, or changes in inland or ocean transportation costs. Shipping DDP should only be used by the most experienced exporters. Many details must be considered, such as trade barriers, duties, currency exchange, reputability of service providers, and delivery to the final destination. For example, if your product is a large, custom-made piece of machinery for a factory:
Are there local out-of-gauge, heavy lift service providers?
Does the road to the factory allow access by an oversized truck?
What are the dimensions and capability of the buyer’s receiving dock?
How will you repair any damage that may occur during transit?
The 11 Incoterms consist of two groups and are listed below in order of increasing risk/liability to the exporter. Under the revised terms, buyers and sellers are being urged to contract precisely where delivery is made and what charges are covered. This should avoid double-billing of terminal handling charges at the port of discharge. References to “ship’s rail” were taken out to clarify that delivery means “on-board” the vessel. Insurance, electronic documentation, and supply chain security are addressed in more detail, and gender-neutral language is now used.
Rules for Sea and Inland Waterway Transport:
FAS - Free Alongside Ship: Risk passes to buyer, including payment of all transportation and insurance costs, once delivered alongside the ship (realistically at named port terminal) by the seller. The export clearance obligation rests with the seller.
FOB - Free On Board: Risk passes to buyer, including payment of all transportation and insurance costs, once delivered on board the ship by the seller. A step further than FAS.
CFR - Cost and Freight: Seller delivers goods and risk passes to buyer when on board the vessel. Seller arranges and pays cost and freight to the named destination port. A step further than FOB.
CIF - Cost, Insurance and Freight: Risk passes to buyer when delivered on board the ship. Seller arranges and pays cost, freight and insurance to destination port. Adds insurance costs to CFR.
Rules for Any Mode or Modes of Transportation:
EXW - Ex Works: Seller delivers (without loading) the goods at disposal of buyer at seller’s premises. Long held as the most preferable term for those new-to-export because it represents the minimum liability to the seller. On these routed transactions, the buyer has limited obligation to provide export information to the seller.
FCA - Free Carrier: Seller delivers the goods to the carrier and may be responsible for clearing the goods for export (filing the EEI). More realistic than EXW because it includes loading at pick-up, which is commonly expected, and sellers are more concerned about export violations.
CPT - Carriage Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller must pay cost of carriage to the named place of destination.
CIP - Carriage and Insurance Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller pays carriage and insurance to the named place of destination.
DAT - Delivered at Terminal: Seller bears cost, risk and responsibility until goods are unloaded (delivered) at named quay, warehouse, yard, or terminal at destination. Demurrage or detention charges may apply to seller. Seller clears goods for export, not import. DAT replaces DEQ, DES.
DAP - Delivered at Place: Seller bears cost, risk and responsibility for goods until made available to buyer at named place of destination. Seller clears goods for export, not import. DAP replaces DAF, DDU.
DDP - Delivered Duty Paid: Seller bears cost, risk and responsibility for cleared goods at named place of destination at buyers disposal. Buyer is responsible for unloading. Seller is responsible for import clearance, duties and taxes so buyer is not “importer of record”.
INCOTERMS DO NOT…
Determine ownership or transfer title to the goods, nor evoke payment terms.
Apply to service contracts, nor define contractual rights or obligations (except for delivery) or breach of contract remedies.
Protect parties from their own risk or loss, nor cover the goods before or after delivery.
Specify details of the transfer, transport, and delivery of the goods. Container loading is NOT considered packaging, and must be addressed in the sales contract.
Remember, Incoterms are not law and there is NO default Incoterm!
VEDP International Trade · www.exportvirginia.org · email@example.com · (804) 545-5764
Translate into Vietnamese
SALES AGENCY AND SERVICES AGREEMENT
BY AND BETWEEN
SIEMENS MEDICAL SOLUTIONS USA, INC.,
CTI MOLECULAR IMAGING, INC.,
CTI PET SYSTEMS, INC.
May 1, 2004
SALES AGENCY AND SERVICES AGREEMENT
THIS AGREEMENT (this "AGREEMENT") is entered into and effective as of the 1st day of May, 2004 (the "EFFECTIVE DATE") by and between SIEMENS MEDICAL SOLUTIONS USA, INC., a corporation duly organized and existing under the laws of the State of Delaware (hereinafter "SIEMENS"), CTI MOLECULAR IMAGING, INC., a corporation duly organized and existing under the laws of the State of Delaware (hereinafter "CTI"), and CTI PET SYSTEMS, INC., a corporation organized and existing under the laws of the State of Tennessee (hereinafter "CPS").
Hợp đồng này (gọi là “Hợp đồng”) được ký kết và có hiệu lực kể từ ngày 1/5/2004 (gọi là "Ngày có hiệu lực") giữa một bên là SIEMENS MEDICAL SOLUTIONS USA, INC., Tổng công ty có đăng ký hợp pháp và hoạt động theo luật pháp của Tiểu bang Delaware (gọi là "SIEMENS"), tập đoàn CTI MOLECULAR IMAGING, INC., có đăng ký hợp pháp và hoạt động theo luật pháp của Tiểu bang Delaware (gọi là "CTI"), và bên kia là CTI PET SYSTEMS, INC., có đăng ký hợp pháp và hoạt động theo luật pháp của Tiểu bang Tennessee (gọi là "CPS").
PREAMBLE Phần mở đầu
WHEREAS, CTI Group, Inc., CPS, Dr. Terry D. Douglass, Dr. Ronald Nutt, Michael C. Crabtree and J. Kelly Milam and Siemens entered into a stock purchase, reorganization and joint venture agreement (the "JOINT VENTURE AGREEMENT") dated as of December 9, 1987;
Xét vì CTI Group, Inc., CPS, Ts. Terry D. Douglass, Ts. Ronald Nutt, Michael C. Crabtree và J. Kelly Milam cùng Siemens ký kết các hợp đồng mua cổ phần, tái tổ chức các công ty và liên doanh (gọi là "HĐ Liên doanh") kể từ ngày 9 / 12 / 1987;
WHEREAS, Siemens entered into an Amended Distribution Agreement with CPS effective March 1, 2002 pursuant to which Siemens has the right to distribute certain of the products manufactured by CPS (the "DISTRIBUTION AGREEMENT");
WHEREAS, CTI entered into a Distribution Agreement with CPS effective March 1, 2002 pursuant to which CTI has the right to distribute certain of the products manufactured by CPS (the "CTI DISTRIBUTION AGREEMENT" and together with the Distribution Agreement, the "DISTRIBUTION AGREEMENTS");
WHEREAS, CPS is engaged in the development, manufacture, assembly, selling and licensing of hardware, software, systems and equipment, and parts and components thereof, used in the position emission tomography ("PET") business for human imaging;
WHEREAS, CTI possesses the necessary expertise and marketing organization to promote sales of, and to solicit and obtain purchase orders for, such products and to provide other related services to Siemens in connection therewith;
WHEREAS, Siemens is willing to appoint CTI, and CTI is willing to accept its appointment, as the non-exclusive sales representative of Siemens for the sale of those products manufactured by CPS in the United States upon the terms and conditions set out in this Agreement; and
WHEREAS, the service and maintenance contracts with customers for CPS Products sold under this Agreement shall be assigned between CTI and Siemens in accordance with the principles set out in this Agreement;
Xét vì các hợp đồng dịch vụ và bảo trì cho khách hàng đối với các sản phẩm của CPS được bán theo hợp đồng này phải được giao cho CTI và Siemens thực hiện tuân theo những nguyên tắc nêu trong hợp đồng này;
Nay căn cứ vào những thỏa ước đã có kèm theo đây, các bên đồng ý ký kết hợp đồng này theo những điều kiện và điều khoản sau đây:
1.1 Appointment. During the term of this Agreement and upon the terms and conditions set forth herein, Siemens appoints CTI as its non-exclusive sales representative to solicit purchase orders ("PURCHASE ORDERS") to be entered into by Siemens with customers for the sale of CPS Products (as defined in Section 1.3) throughout the United States (the "TERRITORY"), and CTI accepts such appointment and agrees to conduct such activities in accordance with the terms and provisions of this Agreement.
Have you ever written diaries in English?
How many contracts have you collected?
How many terms have you got in your list of glossaries?
Do you have any evidence for them?
1.2 Authority. Hereunder: this/ these under; under this contract given that …….
(a) CTI's authority hereunder shall be to solicit Purchase Orders within the Territory, provided that all such Purchase Orders shall be subject to acceptance by Siemens as provided in Section 3.3 hereof.
(b) Except as set forth in Section 3.1 and Section 7.1 hereof, CTI and its employees, agents or contractors shall have no authority, and each shall not represent that it has the authority to make, execute or enter into any agreement or to incur any indebtedness on behalf of Siemens.
(c) Except as set forth herein, CTI and its employees, agents or contractors shall make no payment, rebate, offer of rebate, or other remuneration, directly or indirectly, to any customer or third party, including, without limitation, any buyers, brokers, or employees or agents thereof from any compensation or other consideration paid to or provided to CTI by or on behalf of Siemens.
1.3 CPS Products. Subject to the terms of this Agreement, CTI shall have the right to sell throughout the Territory the products manufactured by or offered for sale by CPS from time to time (the "CPS PRODUCTS"), including but not limited to any software embedded therein or otherwise described therewith, and spare and replacement parts and accessories for those CPS Products. The parties agree that at all times CTI shall have the right to sell, on behalf of Siemens, all products that Siemens is permitted to distribute on behalf of CPS pursuant to the terms of the Distribution Agreement. Subject to Section 5.1 of this Agreement, all CPS Products shall be marketed under the Siemens brand.
1.4 Sales Force. As soon as reasonably practicable after the Effective Date, Siemens and CTI jointly shall appoint a Sales Management Committee (the "SALES MANAGEMENT COMMITTEE") which shall be composed of six members, with three representatives each from Siemens and CTI. The presence of two Siemens representatives and two CTI representatives shall constitute a quorum for meetings of the Sales Management Committee. Through the Sales Management Committee, the parties shall determine the appropriate composition, reporting structure and the assignment of regions into which their respective sales forces shall be combined.