A snapshot of foreign trade price terms
Foreign trade international trade modalities can be simply called [price terms]
Generally composed of three abbreviations, which are used to indicate the place of delivery of the product, the trading liability, the allocation of risks, etc
The initials can be divided into four groups of 11:
2-f: seller needs to deliver the goods to shipment people
Fob (fob): the seller is to transport the goods to the cargo ship at the port and the relevant formalities are in place。
Fas (shipside delivery): similar to fob, one less mover step. The seller simply had to carry the goods to the port side of the cargo ship and process them。
Fca (carrying of goods): the seller delivers the goods to the shipping company requested by the buyer or to the air, sea and sea freighter。
Group 3 c: contract of carriage and allocation of risk
Cfr (chemical benzene + freight): the seller is responsible for the shipment to the required port and the freight, and the risk of the goods being on board is borne by the buyer。
Cif (e. G. Benzene + freight + insurance): and similar to cfr, the seller pays an additional premium to the buyer in case of transport problems。
Cpt (freight paid) & cip (freight + insurance paid): an upgraded version of cfr and cif, respectively, is not a port to which goods are shipped, but a specific location for the buyer。
Group 4d: sellers bear full costs and risks
Dap (destination delivery): the seller is responsible for transporting the goods to the place requested by the buyer, where they are then discharged by the buyer itself。
Dpu (delivery at place of discharge): similar to dap, the seller took an additional discharge step。
Ddp (delivery after tax): the package is delivered to the buyer! Not only does the shipment reach the buyer, but also all import formalities and all costs are paid。
The figures for exw and fob are more popular with operators, with lower risks and more transparent prices. Foreign traders can be able to focus on the product itself, thereby gaining the continued trust and long-term cooperation of clients in terms of quality。
