Seven common methods of delivery in foreign trading
This term is used in English as "EX Works ". (Specify a location) ". It means that the seller is responsible for delivering the prepared goods to the buyer at its location, i.e. the workshop, factory, warehouse, etc., but is not normally responsible for loading the goods onto the vehicles prepared by the buyer or for clearing the goods. The buyer bears all costs and risks of transporting the goods from the seller's place to the intended destination. This term is the least responsible trade term for the seller. If the buyer is unable to handle the exit formalities, this method should not be used.
This term is "Free Carrier ". The carrier for the carriage of goods named place (Specify a location) ". It means that the seller shall be responsible for the delivery of the goods to the buyer and deliver them to the carrier appointed by the buyer at the designated place after going through the customs. According to commercial practice, when the seller is required to cooperate with the carrier through a contract, the seller may do so at the buyer's risk and expense. This term applies to any mode of transport. It should be noted that the choice of the place of delivery has an impact on the obligations of loading and discharging at that point. If the seller delivers the goods at its place, the seller shall be responsible for loading the goods, and if the seller delivers the goods at any other place, the seller shall not discharge the goods.
This term is "Free on Board". The goods were named port of shipment on board (Designate the loading port). It means that the seller delivers the goods after they pass the ship's rail at the designated port of shipment, and the buyer shall bear all the costs, risks, loss or damage of the goods after the goods pass the ship's rail. In addition, the seller is required to handle the export clearance procedures of the goods. That is to say, the buyer is responsible for dispatching the goods, and the seller shall, within the port of shipment and time limit specified in the contract, ship the goods to the vessel designated by the buyer and notify the buyer in time. The risk passes from the seller to the buyer when the goods are loaded on board the named vessel at the port of shipment. This term applies to maritime or inland waterway transport.
The English term is "Cost and Freight" or "Cost and Freight" Designate the port of destination ". It refers to the seller must pay the expenses needed for the goods shipped to the designated port of destination and freight, but, after the goods delivered to the ship deck, the risk of loss or damage to the goods and additional expenses that can result after an accident, after the goods over the ship's rail in the port of specified, will be borne by the seller to the buyer. In addition request the seller to clearance of the goods for export formalities. That is to say, the seller shall pay the cost of transporting the goods to the named port of destination. But the risk of the goods is to be transferred on board at the port of shipment. This term applies to maritime or inland waterway transport.
"Cost,Insurance and Freight" We have named the port of shipment Designate the port of destination ". It means that in addition to the obligation of the seller in the same terms as "cost and freight", the seller shall also cover and pay the premium for the Marine insurance of the goods which shall be borne by the buyer in the course of transportation for the loss or damage of the goods. Therefore, in addition to having the same obligation as the CFR term, the seller shall also cover freight insurance for the buyer and pay the insurance premium. According to general international trade practices, the insurance amount insured by the seller shall be 10% of the CIF price. If the buyer and the seller fail to agree on the specific risks, the seller only needs to obtain the minimum insurance coverage. If the buyer requires additional war insurance, the seller shall provide additional insurance under the premise that the premium is borne by the buyer. This term applies to maritime or inland waterway transport.
This term in English as "Delivered Duty Unpaid (... The goods were named place of destination Specify a destination ". It means that the seller shall deliver the goods prepared at the place designated by the importing country, and shall bear all costs and risks (excluding customs duties, taxes and other official fees payable at the time of importation) of the goods to the place designated by the importing country, and shall bear the costs and risks of customs formalities. The buyer shall bear the additional costs and risks arising from the failure to clear the import of the goods in time. It is generally suggested that the seller should not use DDU when dealing with countries with difficulties and time consuming for import clearance, in order to avoid the transaction being affected by the buyer's failure to handle import clearance in time. This term applies to all modes of transport.
In English, the term 'Delivered Duty Paid' (... The goods were named place of destination after duty paid Specify a destination ". It means that the seller shall deliver the prepared goods at the designated place of the importing country, bear all costs and risks of transporting the goods to the designated place, and handle the import clearance. That is to say, the seller shall complete the import customs clearance procedures at the designated destination and deliver the undischarged goods to the buyer on the delivery vehicle for delivery. The seller shall bear all risks and costs of transporting the goods to the designated destination, including any "taxes and duties" payable at the destination when customs formalities are required (including the responsibility and risks of customs formalities and the payment of handling charges, duties, duties and other expenses). The seller shall bear the minimum responsibility under the EXW term and the seller shall bear the maximum responsibility under the DDP term.
I hope that the above information will be useful to you and us in foreign trade transactions, common wish our Rentai Steel to develop prosperously , build the world, and serve the globe.