Summary of international trade terms: analysis of 13 key terms
Do you, the young partners in international trade, often lose sight of trade terms? Don't worry, i'm here today to make a scene. These 13 commonly used international trade price terms are grouped into four groups to facilitate memory and understanding。
Group c terminology: freight and insurance packages
C&f (cost and freight): cost plus freight. The seller was responsible for transporting the goods to a designated port of destination and bearing all the costs and risks of crossing the shipside。
Cpt (cost paid to): cost plus freight paid to. The seller paid the freight for the goods to their destination and the risk of loss or damage passed from the seller to the buyer。
Cif (cost insurance and freight): cost plus insurance plus freight. The seller was responsible for transporting the goods to a designated port of destination and for cargo insurance, payment of insurance premiums and normal freight charges。
Cip (cost insurance and paid to): cost plus insurance plus freight. The seller paid the freight for the goods to their destination and insured the goods, the risk being transferred from the seller to the buyer。
Group d terminology: delivery at destination
Daf (deliveed at frontier): delivery at border. The seller transported the goods to the buyer's designated border site and processed the export clearance, which the buyer was responsible for。
Ddp (delivered duty paid): post-tax delivery. The seller shipped the goods to a designated place in the importing country and delivered them to the buyer on the means of transport for delivery, and the seller was responsible for the import declaration and payment of taxes。
Ddu (delivered duty unpaid): pre-tax delivery. The seller shipped the goods to a designated destination in the importing country, without import formalities, and the buyer was responsible for subsequent costs and risks。
Des (delivered ex ship): delivery on the destination ship. The seller delivered the goods to the ship at the buyer's designated destination port and handed them over to the buyer, who was responsible for subsequent costs and risks。
Deq (delivered ex quay): delivery at the port of destination. The seller handed the goods over to the buyer at the port of designated destination and the buyer was responsible for subsequent costs and risks。
Group e terminology: plant delivery
Exw(exwork): plant delivery. At the plant, the seller handed over the goods to the buyer, who was responsible for all subsequent costs and risks。
Terminology in group f: deliveries in free ports or free trade zones
Fas (free alo)Ngside ship: delivery by freeport ship. The seller was responsible for transporting the goods to the buyer's designated free port and handing them over to the buyer, who was responsible for subsequent costs and risks。
Fca (free carrier): free trade zone delivery. The seller was responsible for transporting the goods to the free trade zone designated by the buyer and giving it to the buyer, who was responsible for subsequent costs and risks。
Fob(free on board): ship delivery. The seller was responsible for transporting the goods to the buyer's designated port of shipment and handing them over to the buyer, who was responsible for subsequent costs and risks。
It is hoped that this set of terms will be interpreted in such a way that international trade, though complex, can easily cope with the various trade scenarios if it is mastered
