Price clauses are generally composed of the unit price and the total price.
Price clauses expressed in unit price generally consist of four parts, namely, the pricing currency, unit amount, unit of measurement, and trade term.
For example:
Unit Price: USD50 per Kilogram ClF Shanghai Port ( INCOTERMS 2000 )
The total price consists of the pricing currency and the total price amount. When signing a contract, please make sure that the total price amount in uppercase and lowercase letters is consistent.
For example:
Total Amount: USD31 053.82 (SAY USD THIRTY-ONE THOUSAND FIFTY-THREE AND EIGHTY-TWO CENTS ONLY).
(I) The version should be indicated when using trade terms
The International Rules for the Interpretation of Trade Terms (2020 Edition) (Incoterms 2020) clearly states that the risks borne by buyers and sellers are different, so it is best to indicate the version of the trade terms used in the import contract.
(II) Issues that should be noted when choosing trade terms
Common methods of stipulating price terms in import contracts:
1. Clearly stipulate the transaction price (fixed price)
For example, USD300.00 per piece FOB London.
2. No specific price is specified or a price that can be adjusted later is temporarily set (non-fixed pricing)
(1) The contract only specifies a fixed price.
For example, Price as per the market price of port of shipment on the date of bill of lading.
(2) The contract stipulates that the transaction parties will negotiate the specific price later.
For example, Price should be decided by the seller and the buyer on 27th November, 2022.
(3) The contract first temporarily sets a price and stipulates that the transaction parties will adjust it according to specific circumstances later.
For example, Initial price: USD80.00 per piece FOB New York. And the parties should adiust it accordina to the following formulas…