Detailed terms of international trade

 (A) ex works (EXW)
The term English as the workshops, factories, warehouses, and other goods delivered the goods available to the buyer's responsibility, but usually not responsible for the goods loaded on the vehicle buyer or the goods clearance. the location of the buyer from the seller the goods to the intended purpose to all the costs and risks.
(b) Free Carrier (FCA)
The term English as ). in the risk and expense of the buyer, the seller can do the same. The term applied to any mode of transport.
(c) Free Alongside Ship (FAS)
The term English as (h named port of shipment) loss of or damage of goods assume all costs and risks, while the buyer must apply for customs clearance procedures. The term for sea or inland waterway transport.
(d) FOB (FOB)
The term English as on Board (h named port of shipment) the full cost of the goods, the risk of loss or damage, the other requires the seller of goods customs clearance procedures. The term for sea or inland waterway transport.
(e) Cost and Freight (CFR or c & F)
the English term for the , but the goods to the ship deck, the cargo the risk of loss or damage and the accident occurred due to additional expenses specified in the goods pass the ship in Hong Kong after the shift to buyer by the seller. In addition requires the seller of goods customs clearance procedures. The term for sea or inland waterway transport.
(f) cost, insurance and freight (CIF)
The term English as loss of or damage to marine cargo insurance and pay premiums. The term for sea or inland waterway transport.
(g) Carriage Paid to (CPT)
The term English as destination) the event any additional costs arising from the care of the goods have been delivered to the carrier from the time of transfer from the seller by the buyer. In addition, the seller must apply for clearance of export goods. The term applies to the mode of transport, including multimodal transport.
(h) freight and insurance paid to (CIP)
The term English as (hh named place of destination). or risk of damage to marine insurance and pay premiums. The term applied to any mode of transport.
(ix) delivery at the frontier (DAF)
English as the term that the The term is mainly applied by rail or road transport of goods, can also be used for other modes of transport.
(X) port of destination, FOB (DES)
the term English as named port of destination) import customs clearance case, the buyer, the seller has to bear it, including goods to the named port of destination, all costs and risks. The term is only for sea or inland waterway transport.
(k) delivered Quay (DEQ)
the term English as: ;. This term means that the seller perform the following duties, to prepare a good cargo terminal at the named port of destination, customs clearance for import after the delivery to the buyer, and seller has to bear all the risks and costs, including customs sharp, taxes and other transactions appear in the cost of goods. The term for sea or inland waterway transport.
(l) Delivered Duty Unpaid (DDU)
English as the term ;, that is, including tariffs, taxes and other official import charges should be paid), and shall bear the costs of customs formalities and risks. the buyer must take responsibility for the failure to the goods for import customs clearance and the additional costs and risks. The term applies to all transport modes.
(m) Delivered Duty Paid (DDP)
English as the term destination). .
1. for the obligations of both parties take each other by the corresponding provisions of the standardization of B
A buyer seller obligations obligations A1, to provide conformity with the contract goods B1, payment A2, license, approval documents and customs procedures
B2, license, approval documents and customs formalities A3, transportation contracts and insurance contracts B3, the contract of carriage A4, delivery B4, take delivery of the goods
A5, risk transfer B5, risk transfer A6, Division of costs B6, Division of costs A7, notify the buyer B7, notice to the seller
A8, delivery, transport document or equivalent electronic information. B8, delivery, transport document or equivalent electronic information.
A9, verification package and labeled B9, cargo inspection, A10, other obligations B10, other obligations
2. on the interpretation of the major trade terms
(a).
on the interpretation of FOB, the term only for sea and inland shipping. But in the maritime and inland navigation, such as the seller of the ship is about to deliver the goods before the arrival of the port cargo terminal, we should not use the term FOB, FCA term is more appropriate to switch.
(1) the seller basic obligations
for export customs clearance, and the burden of the port of shipment of goods to the ship until all the costs and risks.
at the agreed port of shipment and the shipment, according to the usual way to the port, the cargo is loaded into the ship named by the buyer, issued to the buyer's notice board.
agreed to submit to the Buyer the documents or equivalent electronic information.
(2) the basic obligations of the buyer properly
ship bound for the agreed rent on time shipment HK pick up the goods, pay the freight, cargo and vessel name and date of arrival to give the seller sufficient notice.
bear side port of shipment when the goods pass from the various expenses and loss or damage of goods all risks rings.
according to the contract, take delivery of the delivery and payment by spots.
business with the United States and Canada, FOB import contract provides, in addition to the port of shipment must indicate the name, but also must be FOB after Vessel) words, if only set at .
in the allocation of risk, not on the side of the ship to the port of shipment for the sector, but in the cabin for the sector, the burden of the seller until the goods are loaded on board the vessel with the loss of what has happened damaged.
the cost burden on the purchaser to help provide the seller to pay the costs of export documents for exports and export taxes and other costs incurred.
Moreover, the FOB transaction should be clear who will pay the loading fee, under the conditions of the FOB, the buyer to send vessels pick up goods, in the case of groceries, usually in liner shipping, and the characteristics of the liner is one of the burden of handling charges by the ship, so the buyer does not pay an additional loading fee, no need for buyers and sellers who pay the agreed fee loaded .
However, if the transaction is bulk cargo, in order to save on shipping, often contact rent tramp transport, contact the rental tramp in the transportation, loading fees not included in the rent, such as rent does not include installation cargo fees, the cost of loading the ship does not pay, in this case, the loading charges shall be the buyer or the seller to bear, it should be stipulated in the contract of sale, that is, after FOB loading fee on who to add the burden of additional conditions, to clarify responsibilities, which led to the deformation of FOB. in the actual business, the common deformation are the following:
FOB Liner terms (FOB Liner Terms)
liner FOB transactions concluded by means liner approach by loading fee, does not refer to goods sold on FOB shipment must use liner, buyers and sellers negotiate the contract, if the seller do not want to pay the loading fee, you can ask for an increase in the FOB after the Liner Terms) words, to clear the seller does not pay the loading charges, as costs of loading the ship, or whether the burden on the buyer, the buyer depends on the time charter charter adopted conditions.
FOB hook deliveries ( FOB Under Tackle)
transactions under these conditions, the seller named by the buyer only to deliver the goods beyond the reach of the ship's hook, after the loading charges, Seller shall not pay, as to whether the subsequent loading charges made by the selling or by ship burden depends on the charter contract, this term transactions, such as the port due to shallow draft cargo ships can not dock, then the seller should ship cargo barge to a cargo hook reach of place, the right cost of lightering goods, the seller still burden, the term used in the practical business much.
FOB including stowed (FOB Stowed)
loaded on board in order to place the proper compounds and reasonable distribution, shipment, you need to pad across and finishing, this operation is called stowed, Who will bear the cost of stowage, port States have different regulations and interpretation, in order to clarify responsibilities and to avoid controversy, business buyers and sellers place a contract, the deal stowed who pays fees to make it clear that if the buyer do not want to pay shipping and stowage equipment costs, you can press the FOB Stowed conditions of the transaction, trading under these conditions, the seller should not only pay the loading fee, but also To stack the cargo loaded into the well and make good yards and finishing pad compartment, stowage costs that have to pay, such as FOB, not adding party does not pay the loading time, the stowage costs for the buyer.
FOB including trimming (FOB Trimmed)
shipment, in order to maintain the pressure balance of the ship and navigation safety, piled into the cabin bulk cargo, such as coal, grains, etc., the need for mobilization and formation. This operation is called trimming. transactions under these conditions, loading fees and trimming costs will be borne by Seller, as a general practice, such as post-FOB did not add loading time, it trimmed costs paid by the buyer.
FOB stowed and trimming, including (FOB Stowed and Trimmed)
when fitted to the ship's cargo stowage and it takes both to be trimmed, then we should clear who will pay two fees, where the FOB, add column costs, as a general practice, where the FOB is not added after the explained in terms
CFR translated as CFR (..... named port of destination), the Original Cost and Freight (...... named port of destination). This term means that the seller must the burden of the goods to the agreed destination and the cost of domestic freight, referred to here cost the equivalent of FOB price, so the basic meaning of the term CFR is based on the FOB price plus shipping to the port of destination, usually Hong Kong shipping. < br> by CFR term transactions, components in the prices of goods, including shipping to the port from the normal freight, that is, the main freight prepaid, so the seller is responsible for signing contracts and arrangements for delivery of goods transport, but because it is the same FOB also belong to the same terms of delivery port of shipment, the goods allocation of risk, but also to the port of shipment ship for the sector, so the loss of or damage to goods, intermediate risk and events in the middle after shipment for any additional costs arising, almost with the buyer. < br> CFR term can only for sea and inland shipping, but the goods by sea and inland shipping situation, such as requiring the seller to deliver the goods before the arrival of the ship arrival station, or roll-on/roll-off or container traffic conditions , the use of the term is more appropriate CPI.
International Chamber of Commerce of the CFR according to the interpretation of the basic obligations of their commitment to buyers and sellers, summed up, can be divided as follows:
1. seller's basic obligation to
(1 ) to provide the goods specified in the contract, is responsible for charter booking and paying for shipping, in time for the port of shipment and was sent to the buyer after shipment on board a sufficient notice.
(2) for export customs clearance, and commitment to ship the goods reach the port of shipment until all the risks and the Port of the cost of the goods to the ship.
(3) according to the contract to provide relevant documents or equivalent electronic information.
2. the buyer's basic obligations
(1) take over the ship's rail cargo in the port of shipment of goods from the time the risk of loss or damage as a result of events occurring after shipment, the extra costs arising.
(2) the port of destination specified in the contract by the leading cargo and customs clearance of imports plus management and payment of import duties.
(3) to take delivery of the documents provided by the Seller in accordance with the contract payment.
is worth noting that when the transactions concluded by CFR by the seller to arrange for transport, cargo insurance handled by the buyer, such as the seller does not give timely notice of shipment, the buyer can not be in time for cargo insurance, there may even be the case of leakage insurance cargo insurance, so be sure to prompt the seller to the buyer after shipment give a shipping notice, otherwise, the seller should bear the risk of goods lost in transit.
in the import business, transactions concluded by CFR, the view of the shipment by foreign investors, from our side is responsible for insurance, it should choose a good credit foreign customer transactions, and to make appropriate requirements of the ship, to prevent collusion between foreign and the ship, issue a false bill of lading, hire unseaworthy vessels, or forged quality certificates and certificates of origin, because, if such cases arise, we will suffer undue loss.
In addition, the need to point out that the conditions of commodities traded by CFR, easy unloading costs controversial issue, because, usually charter transportation of bulk commodities, and in less occasions the burden of loading and unloading the ship conditions by not leasing of vessels, where it is unloaded from the burden of what costs, buyers and sellers should be stipulated in the contract, in order to clarify responsibilities and to avoid disputes, the parties negotiate the contract, the terms attached to the next show in the CFR Who will bear the costs of discharge specific conditions:
CFR Liner Terms (ie CFR liner terms)
This refers to the unloading costs by liner approach, that the buyer does not pay for unloading costs.
CFR Landed (ie CFR unloading to the shore)
This is borne by the Seller unloading costs including lighterage included.
CFR Ex Tackle (ie CFR hook deliveries)
This refers to goods from the seller is responsible for the cabin lifting hook reach of the ship unloading place (the pier or barge) of the cost of lifting the ship can not dock the ship unloaded case, the cost of renting the barge and cargo unloaded from the barge to the shore of the cost of these for the buyer).
CFR Ex shiprs Hold (CFR bilge delivery)
This refers to the goods to the port of destination, the buyer start their own cabin, and the burden of goods from the bilge to the terminal costs. < br> It should be noted that in the back of another column CFR additional conditions, just to further clarify where the burden of unloading fees paid by the issue, although the CFR is the same distortion, but the delivery location and boundaries of the allocation of risk, there is no change.
need to stress that, according to CIF term deal, though by the seller arrangements for cargo transportation and cargo insurance, but the seller does not undertake to guarantee that the goods to the agreed port of obligation, because the CIF delivery terms are shipped, not the destination delivery terms, that CIF is not CIF appropriate.
in China's export trade, according to CIF, the more common transactions, in order to correctly use the CIF term, with special attention to the following:

must be carefully accounted for by CIF, freight turnover, because the prices of goods components include the freight, so the seller of foreign quote, should be carefully accounted for freight, the freight factor to take into account that, regardless of the prices of goods sold in the region, regardless of distance, are sold by the same approach is clearly inappropriate The.
seller freight accounting, the main consideration should be given the following factors:
(1) transport distances, the same goods, such as the transport distance is different, the transportation costs are bound to do, so the conditions at CIF completion, should be accounted for transportation costs to reflect regional price differences.
(2) the need for transshipment, in general, direct transport costs than the transit vessel traffic is low. Therefore, when the transaction by CIF conditions, from time to time should consider whether need to turn the ship, as in the two-volume no less the case of direct liner shipping, the goods must midway transhipment, which is bound to increase the cost of a trans-shipment, the costs, transportation costs should also be included in the exchange to consider the arrival to the CIF price of the condition, without regard to transshipment or not, are sold by the same regardless of the cost of this approach is unreasonable.
(3) the trend of tariff changes, buyers and sellers according to CIF, completion, in determining the prices of goods at the same time, consider changes in market trends and various additional freight charges, risk of changes in the tariff to go hit the prices of goods, to prevent Zhigu transaction, regardless of the prices of goods transport and just, regardless of action price bias.
2. must correctly understand and deal with the relationship between risk and insurance risk and insurance is both
contact, and differences between the two different concepts. in the CIF condition, as described above Buyer bear the risk of goods in transit, the buyer to shift the risk, the insurance should the insurance company. However, in order to save the buyer, in negotiating the transaction, require the seller to insurance agents and insurance included in the purchase price agreed upon, due to CIF prices of goods including insurance, so the seller must agree conditions at their own expense insurance, the interests of the seller to the buyer carried out such insurance, the nature of a purely agent, if after the underwriting loss, submitted by the buyer by the seller of insurance claims directly to insurance companies, can claim hand, the seller is not responsible.
3. must be clear under the commodity trading where the burden of unloading fees from
in international trade, commodities generally consistent rent tramp transport, in most cases, carriage of bulk cargo shipping company, usually do not pay handling fees and, therefore, in the CIF condition, easy to discharge fee from both buyers and sellers where the responsibility is always on the controversy, in order to clarify responsibilities, buyers and sellers should be in the contract to discharge fees the issue of who should bear clear and specific provisions.
time when buyers do not want to discharge the burden in the negotiate the contract may be asked to be added after the CIF Liner Terms (liner condition) or Landed (unloading to the shore) or Under Shipr Tackle (hooks under the ship delivery) words.
when the seller was unwilling to discharge the burden, in the negotiate the contract may be asked to be added after the CIF Ex shipr Hold (Bilge delivery) words.
After the CIF to add various additional conditions, as the CFR, listed as a variety of conditions, just to clear who pays for discharge costs, it does not affect the delivery location and the boundaries of risk transfer.
4. to do a good job one according to the CIF card work
traditional interpretation of the terms, CIF is a symbolic delivery, the seller to the buyer bear the shipping documents submitted to the agreed obligations, the buyer bears the obligation of payment against shipping documents, that is, in the CIF conditions, documents and payment by the buyer is the principle of convection, so even if the seller shipped this time after a single close friend, loss of or damage the goods, as long as meet the requirements submitted by the seller, the buyer may refuse to accept documents and refused to payment for the goods, but only to give you not redeem, then the relevant documents obtained by the ship or the insurance company to claim to recover losses, CIF sale transaction is actually a document, we can see, shipping documents in the CIF transactions of particular significance, so in practical work prior to the issue, should pay attention to and improve the document, of course, CIF is trading documents say, does not mean that the seller can therefore reduce the responsibilities of delivery, CIF's Seller, in addition to the agreed shipping documents to be submitted, but should also ensure that the agreed delivery of the goods.
(iv) the interpretation of
FCA FCA terms in the translation of the term for the freight carrier (... named place) The text for the Free Carrier (... named Place). This term means that the seller to the buyer the goods specified in terms of the carrier. When the seller will take care of the goods to the carrier, and customs clearance for export, even if performed its delivery obligations. If the buyer does not specify the exact location. the seller may in the prescribed area or place of delivery within the selection, care of the goods by the carrier, it should be noted that the carrier referred to here, which includes the actual performance of transport contract carrier, including the contract of carriage entered into this term trading shipping agent, even if the shipping agent refused to accept the responsibility of the carrier, the seller must also be instructed by the buyer, the goods to transport agents, if the seller is left with an individual, such as a non-carrier freight forwarder when the goods placed under the care of the person, you can view the seller to fulfill its obligation to deliver.
FCA applies to the broadest terms, it applies to all kinds of mode of transport, including multimodal transport, which plays a very important trade terms of its position in international trade business, will be sent an increasing role.
order to facilitate the people to use this important FCA term In the , freight stations, container station or terminal, multi-purpose cargo terminal or the like by the cargo terminal. body, ro-ro equipment, air cabinet, and applies to all modes of transport.
FCA terms, not only for the seller to deliver the goods by the carrier named by the buyer to fulfill the meaning of the conditions of its delivery. and expect it to will also apply to the goods is not in the traditional way handed over the ship's sea transport ship. If the ship requires the seller to deliver the goods arrive before the arrival of the station, apparently, the use of traditional FOB terms are not suitable, because according to FOB conditions of the transaction, since the goods in fact, the seller can not control the goods or to issue any instructions concerning custody of the goods, so the ship is no longer meaningful, in addition, the introduction of ro-ro, roll unloading and container transport conditions, in FOB terms should not be used, The FCA term should be used more appropriate.
term transactions by FCA, the basic obligations of buyers and sellers can be summarized by the following:
the basic obligations of the seller
(1) for export clearance procedures, as agreed at the designated locations the date the goods to the carrier nominated by the buyer, and give the buyer sufficient notice that the goods have been delivered. (2) to take goods to the carrier all costs and risks before. (3) agreed to the buyer or the equivalent of electronic documents information.
2. the buyer's basic obligations
(1) own expense for the carriage of goods from the named place of contract, and will promptly notify the vendor name of the carrier. (2) from the seller to deliver the goods since the goods were lost bear all risks of damage or (3) under the contract to take delivery of certificate of delivery or equivalent electronic message, in accordance with the contract payment.
by FCA term deal, the cost borne by the buyer, to make carrier from the designated locations goods contracts, and specify the carrier, the seller has not entered into the contract of carriage obligations, but if in accordance with international trade practices, when the seller is required to assist with the carrier contract (such as rail or air transport), as long as the buyer cost and risk , the seller may also apply, of course, the seller can refuse to enter into a contract of carriage, should refuse, they should immediately notify the Buyer to make other arrangements.
in FCA terms, the seller would have no need to detail how to deliver the goods transport people, however, in order to facilitate buyers and sellers in the use of F-terms , air transportation multimodal transport and delivery are not usually named in the practice, are also explained, respectively, for specific details about the different modes of transport and delivery of different situations and the correct understanding of the specific practices of the meaning of completion of delivery is conducive to the parties performance of the contract and draw the transfer of responsibility for the goods.
(v) the interpretation of the term
CPT CPT terms translated as freight paid to the designated destination, the original for the Carriage Paid to (... named place lf destination ). this term transactions, the prices of goods form factors including the purpose of shipment to the agreed contract of carriage, and should be within the appointed time the goods to the carrier, as long as the seller take care of the goods delivered to the carrier, that is considered completed delivery obligations, and in the risk of loss or damage of goods and the goods delivered to the carrier after the events of any additional costs incurred. Since the care of the goods have been delivered to the carrier from the time of transfer from the seller by the buyer, in a multi- intermodal conditions, such as by the subsequent carrier of the goods to the agreed destination, the risk in the goods to the first carrier, by rail, road, sea, air, inland waterway or that this method of combined transport, bear commitment to fulfill the contract of carriage or any person for transport operations.
CPT term is applied to include any mode of transport, including multimodal transport, this term transactions, the seller can place of delivery of any shipment in the exporting country land sites, can also in the exporting country along the Yangtze River, coastal ports, irrespective of the external delivery, the seller must apply for clearance of export goods.
by CPT term deal, the basic obligations of buyers and sellers can be summarized by the following:
seller's basic obligations.
(1) for export customs clearance, is responsible for a contract of carriage of the goods to the named place of destination agreed upon, and give the buyer the goods have been delivered magnetic sufficient notice. (2) to take goods to the carrier before Answer all costs and goods and the damage to destroy all the risks and costs of loading and shipment to the destination from the usual freight. (3) the buyer agreed to the document or equivalent electronic information.
2. Buyer basic obligations
(1) from the seller to deliver the goods since the goods bear all risks of loss and damage to the items of fees and discharge fees. (2) addition to the usual additional to the freight paid on goods in transit fees arising and unloading costs. (3) in the destination of taking delivery from the carrier in accordance with the contract to take delivery of documents and payment.
transactions concluded by CPT, because the seller to pay from the shipment to the agreed destination responsibility and can often freight transport, it is the seller of foreign quote, you should carefully accounting freight, be sure to factor shipping costs into account in the prices of goods to shipping in accounts should be considered when transport distances, the usual transport routes and a variety of ...