Pricing terms of commodities (foreign trade knowledge 3)

1 Overview
In international trade, in addition to the measurement unit, Unit amount and measurement currency of commodities, the price of commodities should also be concerned with the obligations of both parties in the delivery of goods, clarify the division of relevant expenses and risk responsibilities of both parties, referred to as price terms.
In international trade, buyers and sellers must pay attention to the following issues:
1> where and how the two parties hand over the goods;
2> who is responsible for leasing transportation tools, transportation insurance and import and export of goods;
3> when will the risk be transferred from the seller to the buyer;
4> What documents should be exchanged between the two parties?
5> which party shall bear the expenses required to handle the above matters?

2. Shipping at the loading port-designate the loading port (price term 1)
Abbreviation: FOB (free on borad), FOB

Seller's responsibilities:
1> deliver the goods to the ship designated by the Buyer within the agreed time range at the port specified in the contract, and promptly send a notice of shipment to the buyer upon shipment;
2> bear all risks and costs before shipment;
3> go through customs clearance, commodity inspection and other export procedures, and provide an export license;
4> submit the freight list

Buyer's Responsibilities
1> responsible for chartering, paying for freight, and notifying the seller of the time and name of the ship;
2> bear all risks and expenses after shipment;
3> responsible for import procedures
4> Accept the freight list and pay for the goods according to the contract;

3. Cost plus freight and insurance-specifying the destination port (price term 2)
For short: Cost insurance and freight, the CIF price, also known as the internal price of freight and insurance

Seller's responsibilities:
1> responsible for chartering, booking, shipment of goods, and payment for the destination port. After shipment, inform the buyer of shipment;
2> be responsible for the risks and costs before shipment;
3> responsible for import procedures;
4> apply for insurance and pay the insurance fee to the destination port
5> submit the freight list

Buyer's Responsibilities
1> bear all risks and expenses after shipment;
2> responsible for the import procedures;
3> Accept the freight list and pay for the goods according to the contract;

4. Cost plus freight-specify the destination port
Abbreviation: CFR (cost and freight), also known as the internal price of freight

Seller's responsibilities:
1> responsible for chartering, booking, shipment of goods, and payment for the destination port. After shipment, inform the buyer of shipment;
2> be responsible for the risks and costs before shipment;
3> responsible for import procedures;
4> submit the freight list

Buyer's Responsibilities
1> bear all risks and expenses after shipment;
2> responsible for the import procedures;
3> Accept the freight list and pay for the goods according to the contract;

5 EXW
Ex works... Named place (factory delivery-designated place) means that the seller delivers the goods to the buyer at the factory, place of origin or location of the goods at the place of export.

6 FCA
Free Carrier... Named place (goods delivery carrier-designated place) means that the seller delivers the goods to the carrier designated by the buyer at the agreed time and place, and bears the cost and risks before the carrier's receipt; the buyer is responsible for arranging transportation matters starting from the start of the transportation point, notifying the seller of the carrier's name and delivery time, and undertaking the risks and fees after the carrier's receipt, and paying for the goods.

7 Fas
Free Alongside ship... Named port of shipment (ship delivery... Designated port of shipment) means that the seller delivers the goods to the port within the agreed time, puts the goods next to the vessel designated by the buyer, and bears the risks and costs before delivery; the buyer is responsible for arranging the vessel, inform the seller of the ship name, space, and delivery date in a timely manner, bear the risks and responsibilities after delivery, and pay the cost.

8 CPT
Carriage paid... Named place of destination... Destination)

9cip
Carriage and insurance paid... Named place of destination... Destination)

10 des
Delivered ex ship... Named port of destination... Specify the destination)

11 DEQ
Delivered ex quay... Named port of (destination port goods... Designated destination port)

12 DAF
Delivered at frontier... Named place (border delivery)

13 Ddu
Delivered Duty Unpaid... Named place of (tax-free delivery... Specify the destination)

14 DDP

Delivered Duty Paid named place of (post-tax delivery... Specify the destination)