What kind of trade terms can be provided?

Question

Accepted Answer

EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAT, DAP, DDP.

EXW (EX works): Factory delivery (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 truck or ship arranged by the buyer, and does not go through the export declaration procedures. The buyer bears all costs and risks from the delivery from the seller’s factory to the final destination.

FCA (Free Carrier): Cargo delivery carrier (designated place). This term means that the seller must deliver the goods to the carrier designated by the buyer for supervision 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 handed over to the carrier for supervision. In addition, the seller should also go through all customs procedures required for export.

FAS (Free Alongside Ship): Free Alongside Ship (designated port of shipment) means that the seller delivers the goods to the side of the ship or in the barge of the designated port of shipment, and when customs formalities are required, the export of goods is required For all customs procedures, the buyer bears all costs and risks from the side of the ship (or barge) at the port of shipment.

FOB (Free On Board): Delivery on board (designated port of shipment). This term stipulates that the seller must deliver the goods to the ship designated by the buyer at the designated port of shipment within the period of shipment stipulated in the contract, and bear everything until the goods cross the ship’s rail Cost and risk of loss or damage to the goods.

CFR (Cost and Freight): Cost and freight (designated port of destination) means that the seller must deliver the goods to the ship destined for the designated port of destination at the port of shipment within the shipping period stipulated in the contract, and bear everything until the goods pass the ship’s rail Costs and risks of loss or damage to the goods, and responsible for chartering and booking space, and paying the normal freight to the port of destination.

CIF (Cost, Insurance and Freight): Cost, insurance and freight (designated port of destination) means that the seller must deliver the goods to the ship destined for the designated port of destination within the shipping period stipulated in the contract, before the burden of the goods crosses the ship’s rail All costs and the risk of loss or damage to the goods up to the present shall apply for freight insurance, pay insurance premiums, and be responsible for chartering and booking space and paying the normal freight from the port of shipment to the port of destination.

CPT (Carriage Paid to): Freight paid to (designated destination) means that the seller pays the freight for the goods to the designated destination. When the goods are delivered to the carrier, the risk of loss or damage to the goods, and due to the The additional costs caused by events that occur after the delivery to the carrier is transferred from the seller to the buyer.

CIP (Carriage and Insurance Paid to): Carriage and insurance paid to (designated destination) means that the seller pays the freight for the goods to the destination, and obtains cargo insurance against the buyer’s risk of loss or damage to the goods in transit. The insurance contract, the payment of insurance costs, the risk of loss or damage to the goods when the goods are delivered to the carrier, and the additional costs caused by events after the goods are delivered to the carrier, that is, transferred from the seller to the buyer.

DAT means that the seller delivers the goods to the buyer after unloading the goods at the designated destination or terminal at the destination port for disposal. The term refers to the destination including the arrival of the vehicle and the ship that need to be unloaded to the designated port and other destinations. The seller shall bear all risks and expenses (except import expenses) of transporting the goods to the designated destination or port of destination. This term applies to any mode of transportation or multimodal transportation.

DAP: means that the seller delivers the goods at the specified destination, and only needs to prepare for unloading to complete the delivery without unloading. The term refers to arriving vehicles including ships, and destinations including ports. The seller shall bear all risks and expenses (except import expenses) of transporting the goods to the designated destination. This term applies to any mode of transportation, multimodal transportation and sea transportation.

DDP (Delivered Duty Paid): Delivery after duty paid in the importing country (designated destination) means that the seller transports the goods to the designated place in the importing country, and delivers the goods that have not been unloaded on the delivery means of transport to the buyer, and the seller is responsible for handling Import declaration procedures, delivery of any import "taxes" that should be paid at the destination when customs procedures are required. The seller shall bear all costs and risks before the goods are delivered to the buyer. This term should not be used when the seller cannot obtain an import license directly or indirectly. DDP is the trade term with the greatest responsibility of the seller.