Chapter 4 - Incoterms

Transcription

1 Chapter 4 - Incoterms Feedback for the Pre-session Task - pronunciation, presentation skills Search the Internet for information about the Incoterms and prepare a presentation which explains all the points from the following slide: INCOTERMS what? who for? aim 1936 how often are they modified Incoterms 2010: categories and rules advantages compared to Incoterms 2000 Record your presentation using either a mobile phone or one of online voice recording tools, e.g. The length of the presentation: 2-3 minutes. Upload your audio file into the Odevzdávárny Pre-session tasks 4-5. Follow-up for the Pre-session Task Pair work - do you recall the details, e.g.: The Incoterms rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. First published in 1936, the Incoterms rules have been periodically updated, with the eighth version Incoterms 2010 having been published on January 1, "Incoterms" is a registered trademark of the ICC. from: 27/10/2011

2 Chart of Responsibility - class work: describe, explain the principles 27/10/2011 What do the abbreviations (EXW, FCA, FAS, ) stand for? Match them to their full titles: Carriage Paid To (named place of destination) Delivered at Place (named place of destination) Free on Board (named port of shipment) Free Alongside Ship (named port of shipment) Cost and Freight (named port of destination) Delivered at Terminal (named terminal at port or place of destination) Carriage and Insurance Paid to (named place of destination) Ex Works (named place of delivery) Free Carrier (named place of delivery) Delivered Duty Paid (named place of destination) Cost, Insurance and Freight (named port of destination)

3 Match the Czech terms to their English counterparts: Ze závodu (uveďte místo dodání) Vyplaceně dopravci (uveďte místo dodání) Přeprava placena do (uveďte místo určení) Přeprava a pojištění placeny do (uveďte místo určení) S dodáním do terminálu (uveďte přístavní terminál nebo místo určení) S dodáním do určitého místa (uveďte místo určení) S dodáním clo placeno (uveďte místo určení) Vyplaceně k boku lodi (uveďte přístav nalodění) Vyplaceně loď (uveďte přístav nalodění) Náklady a přepravné (uveďte přístav určení) Náklady, pojištění a přepravné (uveďte přístav určení) EXW FCA CCP CIP DAT DAP DDP FAS FOB CFR CIF Translate into English (the number of letters and the first letters are given): převzít riziko: to a _ the r _ to assume the risk prostory: p _ premises odbavit/proclít zboží: to c the g to clear the goods vývozní celní odbavení: e _ c export clearance přepravce: c carrier náklad (lodi, letadla, ): c cargo plavidlo, loď: v _ vessel vyložit zboží: to u _ the g to unload the goods ustanovení: p provision zajistit pojištění: to p i to procure insurance What can Incoterms help with and what cannot they help with? Incoterms do not deal with: transfer of property rights in the goods; relief from obligations and exemptions from liability in case of unexpected or unforseeable events or consequences of various breaches of contract, except those relating to the passing of risk and costs when the buyer is in breach of his obligation to accept the goods or to nominate the carrier. Merchants often believe that Incoterms can solve most of the questions which may arise in practice. Indeed, most of the questions put forward to the ICC panel of Experts on Incoterms concerned matters other than the interpretation of Incoterms themselves.

4 Frequently, the questions referred to contractual relations other than the contract of sale, such as the obligations of the parties under documentary credits, contracts of carriage and storage. Many questions concerned obligations of the parties other than those connected with the delivery of the goods. Therefore, it is necessary to emphasize that Incoterms are only rules for the interpretation of terms of delivery and not of other terms of the contract of sale. This explains why - apart from the seller s fundamental obligation to make the goods available for the buyer or to hand them over for carriage or deliver them at destination, and apart from the buyer s obligation to take delivery - Incoterms deal only with obligations in connection therewith, such as the obligation to give notice, provide documents, procure insurance, and pack the goods properly and clear them for the export and import. based on: ICC Guide to Incoterms 2000, Understanding and Practical Use, Professor Jan Ramberg, ICC Publication No. 620E, 2000 Edition Decide what the Incoterms deal or don t deal with. Write a tick or a cross to the following: X... transfer of property rights in the goods Yes the obligation to procure insurance Yes the obligation to pack the goods properly X the relief from obligation in case of unexpected events Yes the obligation to clear the goods for the export X any breaches of contract X obligations of the parties under documentary credits Yes terms of delivery Yes the obligation to provide documents Expert-Client Interviews: Advising on Incoterms. 1. Interviewing and advising - interview structure The list below covers some major language functions a lawyer might perform when interviewing a client. For each function, language suggestions are given. Complete the gaps 1-15 with suitable functions A-O. 1. OPENING Greeting the client, introducing yourself, offering refreshments, preliminary small talk 1. O getting an overview of the case, explaining preliminary matters, circumstances of the interview, and the nature and proposed structure of the interview 2. E 3. J 2. LISTENING AND QUESTIONING (to establish facts and chronology of events)

5 listening actively to the client s account, checking for understanding, using appropriate questioning techniques (open, closed and leading questions) to prompt, clarify, prevent deviation and probe 4. G / F 5. I identifying aims of the client 6. H 7. L 3. SUMMARIZING summarizing the client s account, concerns and goals 8. K 9. M seeking further information from the client 10. F 4. ADVISING (identifying issues, developing and supporting a theory) giving a brief outline of the relevant law and applying the law to the client s problem 11. N outlining available options, assessing the case, helping the client reach a decision if appropriate 12. A 13. D 5. CONCLUDING describing the follow-up action to be taken by lawyer and by client 14. C concluding the interview appropriately 15. B A. You have two or three options here. The first... the second... and the third is to... B. Thanks for coming in to see us today. Don t hesitate to phone or send me an if you have any questions. C. Let me go through the file and read through the contract. Then I ll prepare the complaint. D. I have to warn you that proving that will be extremely difficult. E. Let me assure you that everything you tell me today will be held in strict confidence. F. I need to know more about G. If I understand you correctly, you re saying that H. What would be an ideal outcome for you? I. Mmm I see. J. I understand that you would like some advice on your employment situation. K. OK, we ve identified three issues which we need to focus on. These are Is that how you see it? L. Perhaps you could let me know what your priorities are in this matter. M. Allow me to summarize what you ve said. N. The legal position is as follows O. I hope you had no trouble finding our office.

6 Interviewing and advising - interview structure suggested answers (there is not one correct version): KEY The structure shouldn t be too rigid, the lawyer must ensure a natural flow of conversation, it should feel comfortable and positive, clients don t enjoy being interrogated. 1. OPENING Greeting the client, introducing yourself, offering refreshments, preliminary small talk I hope you had no trouble finding our office. getting an overview of the case, explaining preliminary matters, circumstances of the interview, and the nature and proposed structure of the interview I understand that you would like some advice on your employment situation. Let me assure you that everything you tell me today will be held in strict confidence. 2. LISTENING AND QUESTIONING (to establish facts and chronology of events) listening actively to the client s account, checking for understanding, using appropriate questioning techniques (open, closed and leading questions) to prompt, clarify, prevent deviation and probe Mmm I see. OK, we ve identified three issues which we need to focus on. These are Is that how you see it? identifying aims of the client What would be an ideal outcome for you? Perhaps you could let me know what your priorities are in this matter. 3. SUMMARIZING summarizing the client s account, concerns and goals If I understand you correctly, you re saying that Allow me to summarize what you ve said. seeking further information from the client I need to know more about 4. ADVISING (identifying issues, developing and supporting a theory) giving a brief outline of the relevant law and applying the law to the client s problem The legal position is as follows outlining available options, assessing the case, helping the client reach a decision if appropriate You have two or three options here. The first... the second... and the third is to... I have to warn you that proving that will be extremely difficult. 5. CONCLUDING describing the follow-up action to be taken by lawyer and by client Let me go through the file and read through the contract. Then I ll prepare the complaint. concluding the interview appropriately Thanks for coming in to see us today. Don t hesitate to phone or send me an if you have any questions Tips throughout the interview The structure shouldn t be too rigid, the lawyer must ensure a natural flow of conversation, it

7 should feel comfortable and positive, clients don t enjoy being interrogated. establish and maintain rapport with client use appropriate language deal appropriately with any issues of professional conduct or ethics move smoothly between interview stages pay attention to your body language (e.g. facing the client with an open posture, eye contact, being relaxed and natural) based on: Rupert Haigh, Legal English, London and New York 2012, Amy Krois-Lindner, International Legal English,CUP 2006, Amy Krois-Lindner, Matt Firth, Introduction to International Legal English, CUP In pairs conduct the following role-pays. Practicing expaining Incoterms and giving expert advice (swap the roles after each interview, 2 interviews are enough some groups are faster, some consider the situation with more details) ROLE-PLAY 1: Student A: You d like to export spices, you want to use airplanes for transporting and you want to take care of the transport. You also want to arrange the insurance as you are able to obtain rather good conditions for it. You ve come to see your lawyer to advise you on which Incoterm is suitable for you. You don t have any experience with Incoterms. ROLE-PLAY 1: Student B: You re a lawyer specialized in drafting international contracts of sale. You have a new client who needs advice on using Incoterms. Suggest the most appropriate Incoterm for the situation and explain the details resulting from this. ROLE-PLAY 2: Student B: You d like to export toys, you want to use trucks for transporting your goods and you want to take care of the transport. You can arrange delivering the goods to the destination, but you don t want to pay taxes and duties at the destination. You ve come to see your lawyer to advise you on which Incoterm is suitable for you. You don t have any experience with Incoterms. ROLE-PLAY 2: Student A: You re a lawyer specialized in drafting international contracts of sale. You have a new client who needs advice on using Incoterms. Suggest the most appropriate Incoterm for the situation and explain the details resulting from this. ROLE-PLAY 3: Student A: You d like to start importing. The seller will take care of the transport by ship. You ll pay import taxes and duties and you want to arrange the delivery from the port to your factory. You ve come to see your lawyer to advise you on which Incoterm is suitable for you. You don t have any experience with Incoterms.

8 ROLE-PLAY 3: Student B: You re a lawyer specialized in drafting international contracts of sale. You have a new client who needs advice on using Incoterms. Suggest the most appropriate term for the situation and explain the details resulting from this. ROLE-PLAY 4: Student B: You d like to start importing. The seller will arrange transporting the goods to the port in their country and will pay export duty and taxes. You will take care of the transport by ship and to your factory. You ve come to see your lawyer to advise you on which Incoterm is suitable for you. You don t have any experience with Incoterms. ROLE-PLAY 4: Student A: You re a lawyer specialized in drafting international contracts of sale. You have a new client who needs advice on using Incoterms. Suggest the most appropriate Incoterm for the situation and explain the details resulting from this.