5.3.2 Select the Appropriate Incoterms Rule选择适宜的贸易...
You need to select an Incoterms rule that is appropriate to the goods,to the means of their transport,and to the methods of payment and generally avoid extreme Incoterms rules.And the convention or practices at the specific port or place should also be considered.
♦Select an Incoterms rule that suits your goods选择适合你的货物的贸易术语
Bulk goods,such as coal,wheat,and iron ore,can be moved straight to the ship at specific wharf,while containerized goods cannot,which are normally landed on container yards before loading.Therefore,FAS,FOB,CFR,CIF can be used for bulk goods,but not quite satisfying for containerized goods.
♦Select an Incoterms rule that suits the mode of transport选择适合运输方式的贸易术语
Selecting an Incoterms rule that suits the mode of transport helps you clarify both your and the importer’s respective obligations and reduce misunderstandings or disputes.For example,if the final destination is a named place on land,Incoterms rules that are applicable for sea transport,such as FAS,FOB,CFR,and CIF should be avoided.For container transport,Incoterms rules compatible with door-to-door transport is mostly preferred,such as DAP or DPU.
♦Select an Incoterms rule that suits the method of payment选择适合付款方式的贸易术语
As risk exposure is uneven between exporter and importer under certain methods of payment,selecting an Incoterms rule that suits the method of payment helps you reduce risk.For example,a potential risk of losing both money and goods exists under the payment method of cash on delivery by T/T(Chapters 9,10 and 11).Taking control of the goods aslong as possible by asking to arrange for transport helps to prevent this,in which case,CFR,CIF,CPT,DAP,DPU,etc.are more appropriate.
♦Avoid the extreme Incoterms rules避免极端的贸易术语
EXW and DDP are the most imbalanced Incoterms rules in terms of risk exposure,allocation of cost and obligations between importer and exporter.Therefore,they are not recommended except under special circumstances.For example,while EXW may mean the least risk,cost,and obligations for you,it imposes difficulties on you in filing for tax refund from the tax bureau.As the importer is to clear the goods even for export,it is not convenient for you to get the needed document for tax refund—the copy of the customs clearance form for tax refund.Similarly,DDP is not convenient for you to clear the goods for import.