Download - International trade (incoterms)
International Trading
International Black Sea University
Legal Environment of BusinessBusiness Management Faculty ,
By: Nino Bazhunaishvili
Contents
International trade International trade law Overview Lex mercatoria & Lex maritima WTO - Scope of WTO Principles of WTO
Largest countries by total international trade Importance of international trade INCOTERMS in international trade Rules for any modes of transport Rules for sea and inland waterway transport Allocations of costs buyer/seller according to
Incoterms 2010
International trading
International trade - Is the exchange of capital, goods and services across
international borders.
International trade (Cont.)
Industrialization
Advanced transportatio
n
Multinational
corporation
International trade law
• International trade law includes the appropriate
rules and customs for handling trade between countries.
• This branch of law is now an independent field of study as most governments has become part of the world trade, as members of the (WTO).
Overview
• International trade law should be distinguished from the broader field of International economic law.
The body of rules for transnational trade derives from medieval commercial laws
Lex marcatoria
Lex maritima
Overview (Cont.)
• International Trade Law is an aggregate of legal rules of “international legislation” and new lex mercatoria, regulating relations in international trade.
• .“International legislation” – international treaties and acts of international intergovernmental organizations regulating relations in international trade.
lex maritima
lex mercatoria
W T OIn 1995, the WorldTrade Organization,
a formal international organization to regulate trade, was established. It is the most important development in the history of international trade law.
Scope of WTO :
a)provide framework for administration and implementation of agreements;
b)forum for further negotiations; c) trade policy review mechanism
andd)promote greater coherence among
members economics policies
Principles of the WTO:
• (a) principle of non-discrimination (most-favoured-nation treatment obligation and the national treatment obligation)
• (b) market access (reduction of tariff and non-tariff barriers to trade)
• (c) balancing trade liberalisation and other societal interests
• (d) harmonisation of national regulation (TRIPS agreement, TBT agreement, SPS agreement)
Largest countries by total international trade
Rank Country
International
Trade of Goods
(Billions of USD)
Date of
information
- World 36,534.0 2012 est.
- European Union 4,468.6 2012 est.
1 United States 3,882.4 2012 est.
2 China 3,866.9 2012 est.
3 Germany 2,575.7 2012 est.
4 Japan 1,684.4 2012 est.
5 Netherlands 1,247.4 2012 est.
6 France 1,243.9 2012 est.
7 United Kingdom
1,149.4 2012 est.
8 South Korea 1,067.5 2012 est.
9 Italy 986.9 2012 est.
10 Hong Kong 947.9 2012 est.
11 Canada 917.3 2012 est.
12 Belgium 882.0 2012 est.
13 Russia 864.7 2012 est.
14 Singapore 788.1 2012 est.
15 India 779.4 2012 est.
16 Mexico 751.4 2012 est.
17 Spain 624.9 2012 est.
18 Taiwan 571.8 2012 est.
19 Saudi Arabia 529.8 2012 est.
20 Australia 518.2 2012 est.
International Trade of Services
Rank Country International Trade of Services(Billions of USD)Date ofinformation
- World 8,452.6 2012 est.- European Union 1,465.8 2012 est.1 United States 1,019.7 2012 est.2 Germany 539.7 2012 est.3 China 471.0 2012 est.4 United Kingdom 453.9 2012 est.5 France 379.2 2012 est.6 Japan 313.4 2012 est.7 India 272.8 2012 est.8 Singapore 250.1 2012 est.9 Spain 229.3 2012 est.
10 South Korea 214.2 2012 est.11 Italy 209.1 2012 est.
Importance of International trade• Primary means of realizing the benefits
of globalization• Continuing reallocation of
manufacturing activities.• Intertwined with another elements of
globalization• Trade supported by WTO that creating
a commercial environment more conductive to the multilateral exchange of goods and services.
INCOTERMS in international trade• INCOTERMS are designed to
create a bridge between different members of the industry by acting as a uniform language they can use. 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.
RULES FOR ANY MODE OR MODES OF TRANSPORT
RULES FOR SEA AND INLAND WATERWAY
TRANSPORT• FAS Free Alongside Ship• FOB Free On Board• CFR Cost and Freight• CIF Cost, Insurance and
Freight
Allocations of costs buyer/seller according to
Incoterms 2010
Incoterm
2010
Export-
Customs
declaration
Carriage to
port of export
Unloading of truck
in port of
export
Loading
charges in
port of export
Carriage
(Sea Freight/Air
Freight) to
port of import
Unloading
charges in
port of import
Loading on truck
in port of
import
Carriage to place
of destination
Insurance
Import customs
clearance
Import taxes
EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FCA Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
Incoterm 2010
Export-Custom
s declara
tion
Carriage to
port of export
Unloading of
truck in port of export
Loading
charges in
port of export
Carriage (Sea Freight/
Air Freight) to port
of import
Unloading
charges in
port of import
Loading on
truck in port of import
Carriage to
place of
destination
Insurance
Import custom
s clearan
ce
Import taxes
CFR Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Seller Seller Buyer Seller Buyer Buyer
CPT Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
CIP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DAT Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DAP Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer
DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Bibliography• http://www.wto.org/english/res_e/statis_e/short_term_stats_e.htm• https://en.wikipedia.org/wiki/International_trade#Largest_countries_
by_total_international_trade• http://www.fita.org/webindex/browse.cgi/International_Trade_Lawyer
s_and_Resources/International_Trade_Law• http://www.worldtradelaw.net/• http://www.uncitral.org/• http://www.uncitral.org/pdf/english/texts/procurem/ml-procurement/
ml-procure.pdf• http://www.lawyers-greece.co.uk/incoterms.html• http://www.foreign-trade.com/reference/incoterms.cfm• http://en.wikipedia.org/wiki/Incoterms• http://www.iccwbo.org/products-and-services/trade-facilitation/incote
rms-2010/• http://www.iccwbo.org/products-and-services/trade-facilitation/incote
rms-2010/the-incoterms-rules/• http://www.acegroup.com/us-en/businesses/incoterms.aspx
Any Question????