On The Application Issues Of FCA/CPT/CIP

In the practice of international trade, the choice of trade terms is very crucial when seller and buyer are signing a sales contract. Different trade terms determine the different natures of contract, such as the FOB contract and CIF contract, which we can see easily in the practice. FOB/CFR/CIF, as the traditional trade terms, have been greatly favored by all the foreign trade enterprises, and frequently used in the trade practice. However, because of the development of the container transport and the confused carriers’responsibility, shortcomings of the three traditional terms are becoming more and more obvious, which cannot meet the development of the international trade. Therefore, in order to replace the three traditional terms, International Chamber of Commerce put forward new terms and renamed them as FCA/CPT/CIP in Incoterms1990. However, although this group terms have emerged more than20years, they were rarely used in the international trade. On the contrary, the three traditional terms become more and more frequently used.In a sense, the development of FCA/CPT/CIP is on the basis of the three traditional terms. On the comparison of these two group terms, we can find the former is superior to FOB/CFR/CIF, whether on the terms themselves or their fitness with the outside conditions. Thus, it is really important to promote FCA/CPT/CIP in today’s international trade.On the study of this subject, most of domestic and foreign literatures focus on the superiority of FCA/CPT/CIP, and they haven’t systematically and deeply discussed the shortages and the advantages of FCA/CPT/CIP compared with the three traditional terms. What’s more, they haven’t raised any measures and suggestions to promote this group of terms. So, I think it is necessary to make a system study of FCA/CPT/CIP on the basis of comparing with the three traditional terms, and analyzing the bottleneck of this group of terms, and in the end to give out some measures and suggestions to solve this problem.This dissertation analyzes this problem by the means of comparative analysis and normative analysis. And my core point is that the nature of the delivery document and the shortage of the related laws etc are the main reasons of hindering the promotion of FCA/CPT/CIP. Based on this core point, it analyzes the bottleneck of promoting these terms, and puts forward some relevant measures and suggestions. This dissertation develops the study from the following six parts. The first part is introduction, it introduces the background and significance of this subject, summarizes the relevant literature, the content and framework, research methods, innovation and inadequate; The second part firstly introduces the origin and development of FOB/CFR/CIF, and then elaborates the explanation of this group terms according to the relevant practices; The third part states the application status of FOB/CFR/CIF and analyzes the issues faced by insisting to use this group terms; The fourth part analyzes the significance of adding FCA/CPT/CIP to Incoterms, expounds the explanation of this group terms, and compares with FOB/CFR/CIF based on the explanation of FOB/CFR/CIF, and then analyzes the advantages of FCA/CPT/CIF; The fifth part analyzes the bottleneck of promoting FCA/CPT/CIP mainly based on the nature and the legal application of the delivery document; The final part is to give out the relevant solutions to promote FCA/CPT/CIP based on the analysis of the fifth part.In a word, through the study on this subject, it has discovered and analyzed the problem of promoting FCA/CPT/CIP, and finally gives out some solutions to this problem, which I hope it can do some helps for the international trade.