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May 25,2022

Trade Terms of International trade

First group
Group "E" means that the seller has the goods ready (shipped) for the buyer only at its own location.

EXW "EX Works(... named place)", that is, ex-works (designated place). It means that the seller delivers the goods from the factory (or warehouse) to the buyer. Unless otherwise specified, the seller is not responsible for loading the goods on the vehicle or ship arranged by the buyer, nor going through export declaration procedures. Buyer shall bear all costs and risks from delivery from Seller's factory to the final destination. EXW is a trade term with minimal seller responsibility.

 

Second Group
"F" group (FCA, FAS, and FOB), means that the seller needs to deliver the goods to the carrier designated by the buyer (main freight has not been paid). The following only lists the commonly used terms in international trade.

FCA "Free Carrier(... named place)", that is, "cargo delivered to the carrier (... named place)". Delivery to the carrier (designated location). This term means that the seller must deliver the goods to the carrier designated by the buyer at the designated place within the delivery period stipulated in the contract, and bear all costs and risks of loss or damage to the goods before the goods are put into the custody of the carrier. In addition, the seller shall go through all customs formalities required for export.

FOB "Free on Board(... named port of shipment)", i.e. "Free on Board (... named port of shipment)", the term stipulates that the seller must deliver the goods to the named port of shipment within the shipment period specified in the contract oonboarddesignated by the buyer and bear all costs and risks of loss or damage until the goods pass the ship's rail.

 

Trade Terms of International trade

 

The third group
Group "C" (CFR, CIF, CPT, and CIP), means that the seller is required to enter into a contract of carriage, but the seller is not responsible for the risk of loss of or damage to the goods and for any additional costs incurred after loading and shipping. paid). The following only lists the commonly used terms in international trade.

CFR "Cost and Freight(... named port of shipment)", namely "Cost and Freight (... named port of destination)", means that the seller must deliver the goods at the port of shipment to the destination within the shipping period specified in the contract The ship at the designated port of destination shall bear all costs and risks of loss or damage to the goods until the goods pass the ship's rail, and shall be responsible for chartering and booking space and paying the normal freight to the port of destination.

CIF "Cost, Insurance and Freight(... named port of shipment)", namely "Cost, Insurance and Freight (... named port of destination)", means that the seller must deliver the goods at the port of shipment within the shipping period specified in the contract Delivered to the ship destined for the designated port of destination, bear all the costs and the risk of loss or damage to the goods before the goods cross the ship's rail, and apply for cargo insurance, pay the insurance premium, and be responsible for chartering and booking, and pay for the normal shipping from the port of shipment to the port of destination. freight.

 

Fourth group
Group "D" (DAF, DES, DEQ, DDU, and DDP) means that the seller shall bear all costs and risks required to deliver the goods to the country of destination (on arrival). The following only lists the commonly used terms in international trade.

DDU "Delivered Duty Unpaid(... named place of destination)", that is, "delivery without duty paid (... designated destination)", means that the seller delivers the goods to the destination designated by the importing country to the buyer without handling Import formalities, nor unloading the goods from the delivery means of transport, that is, the delivery is completed. The seller shall bear all costs and risks until the goods are transported to the designated destination, excluding any "taxes" payable at the destination when customs formalities are required (including the responsibility and risk of customs formalities and payment of handling charges), duties, taxes and other charges). The buyer must bear this "tax" and the costs and risks arising from its failure to clear the goods for import in a timely manner.

DDP Delivered Duty Paid(... named place of destination)", that is, "delivery after duty payment (... designated destination)", means that the seller will deliver the goods to the designated place in the importing country, which will not be delivered on the delivery vehicle yet. The unloaded goods are delivered to the buyer, and the seller is responsible for the import declaration and delivery of any import "taxes" payable at the destination when customs formalities are required. The seller bears all costs and risks until the goods are delivered to the buyer. Such as It is not appropriate to use this term when the seller cannot directly or indirectly obtain an import license. DDP is  trade term for which the seller is most responsible.

 

Air supply International Logistics Group Limited was established in Shenzhen in 2014. In these 8 years we have grown up quickly through the consistent efforts of the staff strong support of all domestic customers and overseas partners as well as flexible management ideas of leadership. 

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