Prices and terms of delivery

When sellers quote prices in their offers they usually state on what terms, at this price, they will deliver the goods. The price will certainly depend on the terms of delivery. Terms of delivery are included in internationally recognized standard that is used worldwide in international and domestic contracts for the sale of goods, e.g. Incoterms 2010. “Incoterms” mean International Commerce Terms. The most popular terms of delivery in foreign business transactions are:

– FOB (free on board) - If the goods are offered on FOB terms, the price will include the cost of the goods and transportation expenses to the port of shipment.

– CIF (cost, insurance and freight) - the price will cover the cost of the goods, insurance expenses and freight expenses or transportation expenses, to the port of destination;

– С & F (cost and freight) - the price will cover the cost of the goods and freight to the port of destination;

– FOR (free on rail)- the price will include the cost of the goods and transportation expenses to the railway station only

Here are a few examples of how terms of delivery can be mentioned in offers:

– The price is USD 2,000.00 per ton FOB New York.

– The quoted price is GBP 1,200.00 each CIF Murmansk.

– We can offer the goods at the price of GBP 78.00 per metre С & F Liverpool.

– The goods are offered on a FOR basis.

The date of the bill of lading issued in the name of the Buyers is to be considered the date of delivery.

Payment is usually made by a letter of credit on presentation of the following documents:

1) Sellers’ Commercial Invoice

2) Full set of clean on board Bills of Lading

3) Quality Certificate issued by the laboratory

4) Weight Certificate issued by the recognized company

5) Certificate of Origin issued by the Chamber of Commerce and Industry

6) Insurance Policy issued by the State Insurance company.

1. Ответьте на вопросы по тексту:

1. Is delivery of goods considered by sellers when they quote prices?

2. What is Incoterms?

3. What does the price include if the goods are offered on FOB terms?

4. What does the price include if the goods are offered on CIF terms?

5. What does the price include if the goods are offered on С & F terms?

6. What does the price include if the goods are offered on FOR terms?

2. Найдите в тексте эквиваленты слов и выражений профессионально-ориентированной лексики:

Выставить цену, предложения, доставить товар, условия поставки, продажа товаров, стоимость товаров и транспортировки, порт отгрузки, страховые расходы, грузовые расходы, порт назначения, способ транспортировки, перевозятся на борту корабля, перевозятся по железной дороге, за тонну, за метр.

3. Расскажите, используя профессионально-орентированную лексику, что говорится в тексте о:

Price, terms of delivery, Incoterms, the most popular terms of delivery.