Eight Trade Terms For Foreign Trade People

Whether internal trade or foreign trade, we need not only to grasp a good way of communication, but also to grasp the most basic terms of trade.

(1)

(EXW)

This term is in English EX Works (...

Named place), that is, factory ex......

Designated location).

It means that the seller has the responsibility to deliver the prepared goods to the buyer at his place, that is, the workshop, the factory, the warehouse, etc., but usually he is not responsible for loading the goods on the vehicle prepared by the buyer or handling the goods clearance.

The buyer assumes the full cost and risk of pporting the goods to the intended destination from the seller's location.

(two) delivery of goods

People (FCA)

This term is in English Free Carrier (...

Named place), that is, the delivery of goods to the carrier (...

Designated location).

It means that the Seller shall be responsible for delivering the goods pferred to him and deliver them to the buyer at the appointed place at the designated place.

According to commercial practice, when the seller is required to cooperate with the carrier through signing a contract, the seller can do so when the buyer assumes the risk and cost.

This term applies to any mode of pport.

(three) ship alongside delivery (FAS)

This term is in English Free Alongside ship (...

Named port of shipment) namely alongside delivery.

Named port of shipment.

It means that the seller delivers the goods to the ship's side at the named port of loading or barge, and from that time the buyer shall bear all the costs and risks of the loss or damage of the goods, and the buyer must go through the export customs formalities.

This term applies to ocean or inland waterway pport.

(four) on board (FOB)

This term is in English Free on Boaro (...

Named port of shipment), namely, on board (...)

Named port of shipment.

It means that the seller delivers the goods on the ship's side at the named port of shipment. After the goods pass the ship's side, the buyer must bear the full cost, risk, loss or damage of the goods, and ask the seller to handle the export customs formalities.

This term applies to ocean or inland waterway pport.

(five)

Freight plus (CFR or c&F)

The term is English Cost and Freight (named port of shipment), that is, cost plus freight (...

Designated port of destination)

It means that the seller must pay the expenses and freight necessary to deliver the goods to the named port of destination, but after the goods are delivered to the deck, the risk, loss or damage of the goods and the additional expenses caused by the accident will be pferred from the seller to the buyer after the goods pass over the port of the designated port.

This term applies to ocean or inland waterway pport.

(six) cost, insurance and freight (CIF)

This term is in English Cost, Insurance and Freight (...

Named port of shipment), that is, cost, insurance and freight......

Designated port of destination).

It means that the Seller shall not only have the same obligation as the cost plus freight terms, but also the seller must handle the marine insurance and pay the insurance premium for the goods lost or damaged during the pit.

This term applies to ocean or inland waterway pport.

(seven) carriage paid to (CPT)

This term is English Carriage Paid to):tid to (...

Named place of destination), that is, carriage paid to...

Designated destination).

This term means that the seller pays the freight for the goods to be delivered to the named place of destination.

Any additional costs arising from the risk of loss or damage to goods and the occurrence of any incidents arising from the delivery of the goods to the carrier shall be pferred from the seller to the Buyer upon the delivery of the goods to the carrier.

In addition, the seller must go through the customs formalities for the export of the goods.

This term applies to various modes of pport, including multimodal pport.

(eight) carriage and insurance paid to (CIP)

This term is in English Carriage and Insurance Paid to (...

Named place of destination), that is, freight and insurance premium paid to...

Designated destination).

It means that the seller will pay the freight to the seller.

For the same terms and obligations of the named place of destination, the Seller shall also pay for the marine insurance and payment of the insurance premium for the loss or damage of the goods to be borne by the buyer in pit.

This term applies to any mode of pport.