They are common language in international trade and help buyers and sellers identify responsibilities, costs and risks in the course of transactions。
I. Overview of international trade terminology
International trade terms were developed by the international chamber of commerce (icc) and the latest version is the incoterms 2020。
Trade terms are divided into four groups according to transaction responsibilities, costs and risks:
Group d (arrival terminology)
• dpu: delivery by seller after unloading at designated locations。
• dap: delivery by the seller at the designated location。
• ddp: seller delivers at specified destinations with all costs and risks。
Group e (designation terminology)
Exw: the seller delivers the goods at its place and the buyer bears all costs and risks。
Group f (unpaid main freight term)
Fob: the seller loads the goods on board the ship at the designated port of shipment。
Group c (terms of principal freight paid)
• cif: the seller pays freight and insurance to the port of destination, and the risk shifts when loading the ship。
Examples of practical applications
Fob shanghai
1. Place of delivery: shanghai shipping port。
Freight payments: the buyer pays the sea freight。
Custody: the seller is responsible for the custody of the ship prior to loading。
4. Customs declaration: the seller is responsible for the export declaration and the buyer for the import declaration。
Insurance: the buyer is responsible for the purchase of insurance。
6. Liability for risk: once the goods are loaded on board, the risk passes to the buyer。
Definitions of trade terms
Fob shanghai and cif shanghai? What does both mean
Did you learn how to trade? #class clearance # #class clearance # # logistics # # cross-border electricity # foreign trade # export # commodity code # # international logistics # # freight # # freight # #cif# #ddp#
