ICC Digital Library Forum

Laurence,

Couldn’t sleep (12.19am)?

I’m keen to agree with you, but unfortunately cannot. I interpret this para as meaning the enquirer recognises that the expression ‘price term’ means ‘trade term’. What our discussions do show to me is that there are a number of ways for bankers, and presumably traders, to describe what Incoterms call ‘trade terms’. I certainly agree that a uniformity of approach would eliminate any scope for argument.

Jeremy

P.S. No doubt you noticed RamiN used the expression ‘delivery terms’ in the query ‘additional charges shown on com/inv.’.

[edited 3/9/03 9:31:19 PM]

Jeremy,

R236 concerns the issue of the (admitted) trade term FOB, but indicates that the DC refers to this as a price term. If a "price term" was synonymous with a trade term, there would be no need to make this point.

I agree that a "delivery term" falls within the realm of trade terms as trade terms deal with rights and responsibilities relating to delivery.

Laurence

Laurence,

Still trouble sleeping?

In what I hope is my closing remark, I agree that the enquirer appears to regard the expression ‘trade term’ as being the correct expression rather than ‘price term’. Nonetheless, I believe the evidence clearly shows that other expressions are widely used to describe the nomenclature that covers ‘matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold’ (I myself have up till now used the expression ‘price basis’) and therefore I do not believe they can be simply dismissed.

Finally, thanks for pointing out the ISBP link on DC-Pro. Coincidentally, we received our copies this morning.

Jeremy

Jeremy,

you will find that ISBP uses "trade term" in the apposite context to the exclusion of "price term". As you previously and eruditely said, "a uniformity of approach would eliminate any scope for argument."

There are various reasons why I might log on at unusual hours - after giving late night lectures it helps to wind down; too busy during the working day to contribute; different time zones etc. I'll leave it to speculation as to which is correct.

Laurence

I agree that delivery terms (also called trade terms) are usually used for quoting price in international trade, as for instance price FOB Hamburg etc. This is so, of course, because the price depends also on expenses to be covered by the exporter when delivering the goods according to the agreed delivery term. However I would not consider the delivery term as being „price term“ as it does not itself give any information about the actual price.

Pavel Andrle