INCOTERMS And CISG

(Contracts For The International Sale Of Goods)

(Global Business Management)

International Business Law-NUDRAT MUFTI

INTRODUCTION 1. A Study Of International Business Involves An Legal Environment In Which Such Business Is Conducted.

2. The Law Impacts Not Only On Transactions Which Have A Transnational Aspect But Also On The Methods And Structures Through Which An Organization.

3.Modules relevant to international trade law, business law, competition law, corporate governance, intellectual property and market regulation.

3. For Example, One Based In Germany , May Conduct Business Overseas.

- Failure To Appreciate The Legal Consequences Of Particular Practices - Transactions Can Have An Adverse Effect On The Operations Of An Enterprise Engaging In International Business. - Breach Of Contract

Latest Scenario • No Economic Boundaries • Remaining Will Continue To Diminish. • Business Professionals • International Influences. • Progress In A Career In Business, • Understanding The Managerial, Legal And

Cultural Intricacies Of Doing Business With Partners From Other Countries In Or Outside. • Need To Understand And Search Potential

International Business Partners • The Culture, Tradition And Business Practices

Of Current Partners

1.

INCOTERMS And CISG - governed Contracts For The International Sale Of Goods(In 1980 the United Nations Convention on Contracts for the International Sale of Goods ('the CISG') was introduced to create international certainty and uniformity in the law and to govern issues that arise in an international sale of goods transaction. )

2. International Transport Of Goods By Sea.

3. International Payments (Documentary Credits)

4. Regional Groupings - The European Union

5. International Dispute Resolution

AREAS Impact Of The Law On The Enterprises

Conducting International Business

Kind of Transactions Entered Into By Such Enterprises. The Law Concerning The Formation And Some Other Aspects Of International Sales ContractsExamine The Law Relating To The International Transport Of Goods By Sea And International Payments (Documentary Credits).

Explore The Legal Aspects Of One Particular Regional Grouping (The European Union).

Law Concerning Some Of The Methods By Which Private International Legal Disputes Are Resolved With The Focus Being On International Commercial Arbitration.

FOCUS Applied Knowledge Of The Law Relating To The Common Forms Of Contracts Used In International Sales Transactions

Applied Knowledge Of The Law And Legal Ramifications Associated With The International Transportation Of Goods By Sea

Demonstrate Applied Knowledge Of How International Payments Are Effected By Documentary Credits And Some Of The Relevant Legal Issues Associated Therewith

Demonstrate An Understanding Of The Changes Brought About By The European Union (EU) - And Its Legal Order

Identify Complex Problems Regarding The Main Methods By Which Private International Legal Disputes Are Resolved Especially Transnational Litigation And International Commercial Arbitration Creatively And Practically

Problem-solving Skills Appropriate To International Business Law

Satisfactory Skills In CommunicationCultural Literacy Skills By Understanding The International Legal Context For Conducting Business.

Trade Terms -When Negotiating Sales Contract• Internationally Used • Both Parties • Seller/Buyer • ICC• No Official Status Or Automatic Legal Status • Only Binding If Adapted By Reference(example:

FOB Brisbane, Australia ,Intercom2010• Several Sets • 1963-first• 2010-lates

Example: FOB• Free on Board» means that the seller delivers when

the goods pass the ship's rail at the named port of shipment.

• This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point.

• The FOB term requires the seller to clear the goods for export. T

• his term can be used only for sea or inland waterway transport.

• If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used.

Incoterms 2010

APPLY TO CONTRACT OF SALE

NOT TO CONTRACT OF CARRIAGE

Incoterms 2010 establish-EXAMPLE

A1 Provision of goods in conformity with the contract

B1 Payment of the price

A2 Licenses, authorizations and formalities

B2 Licenses, authorizations and formalities

A3 Contracts of carriage and insurance

B3 Contracts of carriage and insurance

A4 Delivery B4 Taking delivery

A5 Transfer of risks B5 Transfer of risksA6 Division of costs B6 Division of costsA7 Notice to the buyer B7 Notice to the sellerA8 Proof of delivery, transport document or equivalent electronic message

B8 Proof of delivery, transport document or equivalent electronic message

A9 Checking - packaging - marking

B9 Inspection of goods

Division By Rules • S makes goods available at own

premises E• S deliver goods to a carrier

appointed by buyer F• S contracts for carriage without

assuming risk of loss during shipmentC

• S bears all costs and risks needed to bring goods to place of destinationD

Common Intercoms

CIF Cost, Insurance , Freight

FOB Free on Board

Incoterms 2010

Enforce January 1,2011

Rules-Two classes

Any mode of Transport

Sea/ Inland Water Way Transport

Incoterms 2010Rules-Two classes

Any mode of TransportF2C3D3

• EXM• FCA• CPT• CIP• DAT• DAP• DDP

Sea/ Inland Water Way Transport

F2C2

• FAS• FOB• CFR• CIF

ANY Mode of Transport • Ex works EXW• Free Carrier FCA• Carriage Paid ToCPT• Carriage And Insurance

Paid ToCIP• Delivered at TerminalDAT• Delivered at Place DAP• Delivered Duty PaidDDP

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

• Free Alongside Ship FAS• Free On BoardFOB• Cost and FreightCFR• Cost Insurance and

Freight CIF

but also• Contract may not be governed by/solely by IC-2010• IC-2010 don't take the place of a sales agreement or

the term and condition of same• Don't supply all the terms for an international sale

• Trade terms generally for some general background and context!

(CHUAH)(REED SMITH COMMENTARY)(USQ- LIBRARY)

Common Terms • CFR — Cost and

Freight• CIF — Cost,

Insurance and Freight• CIP — Carriage and

Insurance Paid Тo• CPT — Carriage

Paid To• FCA — Free Carrier• FOB — Free On

Board

• DDU — Delivered Duty Unpaid• DES — Delivered Ex Ship• DEQ — Delivered Ex Quay• DAF — Delivered At Frontier• DAP — Delivered at Place• DDP — Delivered Duty Paid• DAT — Delivered at Terminal• EXW — EX Works• FAS — Free Alongside Ship

Incoterms 2010• http://www.reedsmith.com/INCOTERMS-2010--What-you-nee

d-to-know-Part-1-10-06-2010/• http://www.reedsmith.com/INCOTERMS-2010--What-you-nee

d-to-know-Part-2--11-03-2010/• http://www.reedsmith.com/INCOTERMS-2010--What-you-nee

d-to-know-Part-3-12-08-2010/