Task 2. Read the text “Incoterms for beginners Global Trade Explained” and match English word combinations with their Russian equivalents below:
Incoterms for beginners Global Trade ExplainedIf you work in international trade, or if you want to start a business importing or exporting goods, you need to have a deep understanding of Incoterms. They are basically delivery terms used in international trade, so both the buyer and the seller are on the same page when it comes to what obligations they each have in regards to shipping the goods to their final destination.There are several Incoterms, but we’ll be focusing on the ones that matter and are most commonly used. FOB, CIF, and CFR are some of the most commonly used terms for sea shipping, although many times they are incorrectly used for other modes of transport.But let’s start with the simplest term, which is EX-Works, abbreviated as EXW. This means that the supplier provides no delivery whatsoever, so the buyer is responsible for picking up the goods from the supplier’s location and organizing transportation to the final destination.Next there’s FOB, one of the terms most commonly used for shipping by sea. FOB stands for Free on Board, and it basically means that the risk is transferred to the buyer when the goods are loaded on board the vessel at the agreed port of loading.CFR and CIF are similar terms. CFR means Cost and Freight, and CIF means Cost, Insurance and Freight. In both cases, the seller pays the carriage of the goods to the named port of destination, the only difference is under CIF the seller has to obtain insurance for the goods while in transit. In both cases the risk is transferred to the buyer after the goods have been delivered on board the ship.Now let’s see two of the most commonly used terms for any type of transport method.DDU is an older term from Incoterms 2000, but it is so popular that is still being used today. It means Delivery Duty Unpaid and similar to DDP (Delivered Duty Paid), it means the seller is responsible for all risks and costs to the place of arrival, except import formalities and duties.The closest term to DDU is DAP, which stands for Delivered at Place. The same as DDU, the seller is responsible for all the risks till the goods have reached the destination, ready to be unloaded, except any import formalities and duties.One way or another, delivery terms will affect either product costs or shipping costs; so when negotiating either with customers or suppliers, it is important to know what delivery terms to choose.