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What are the common delivery methods in foreign trade?

by:VIPUTRANS     2020-09-03
  Thirteen common delivery methods in foreign trade. Today, Suixin Logistics has sorted it out and shared it with everyone. It is worth understanding and collecting.





1Ex-factory delivery (EXW)



   The term English is 'EX Works (... named place)', that is, 'Ex Works (... named place)'. It means that the seller is responsible for delivering the prepared goods to the buyer at its location, namely workshops, factories, warehouses, etc., but is usually not responsible for loading the goods on the vehicles prepared by the buyer or clearing the goods. The buyer bears all costs and risks of transporting the goods from the seller’s location to the intended destination.





2 Cargo Delivery Carrier (FCA)



   The term English is 'Free Carrier (... named place)', that is, 'goods handed over to the carrier (... designated place)'. It means that the seller shall be responsible for the goods handed over by him, and after customs clearance, the goods shall be delivered to the carrier designated by the buyer to take care of them at the designated place. According to commercial practice, when the seller is required to cooperate with the carrier by signing a contract, the seller can do the same if the buyer bears the risks and expenses. This term applies to any mode of transportation.





3 Free Alongside Ship (FAS)



   The term English is 'Free Alongside ship (... named port of shipment)' that is 'Free Alongside ship (... designated port of shipment)'. It means that the seller delivers the goods to the side of the ship at the designated port of loading or barge. From then on, the buyer must bear all the costs and risks of loss or damage to the goods, and the buyer must go through export customs clearance procedures. This term applies to sea or inland water transportation.





4 Free on board (FOB)



   The term English is 'Free on Board (... named port of shipment)', that is, 'Delivery on board (... designated port of shipment)'. It means that the seller delivers the goods after passing the ship’s rail at the designated port of shipment. After the goods have passed the ship’s rail, the buyer shall bear all costs, risks, loss or damage of the goods, and require the seller to go through customs clearance procedures for the export of the goods. This term applies to sea or inland water transportation.





5Cost and freight (CFR or C&F)



   The term English is 'Cost and Freight (named port of shipment)', that is, 'Cost and Freight (...designated port of shipment)'. It means that the seller must pay for the expenses and freight required to transport the goods to the designated port of destination. However, after the goods are delivered to the ship’s deck, the risk of the goods, loss or damage, and the additional expenses incurred after the occurrence of an accident, will occur when the goods pass the designated port. After the ship's rail, the seller turns to the buyer to bear the burden. In addition, the seller is required to go through the export customs clearance procedures of the goods. This term applies to sea or inland water transportation.





6 Cost, insurance and freight (CIF)



   The term English is 'Cost, Insurance and Freight (...named port of shipment)', that is, 'cost, insurance and freight (... designated port of shipment)'. It means that in addition to the seller having the same obligations as the term 'cost and freight', the seller must also apply for marine insurance and pay the insurance premium for the loss or damage of the purchased goods during transportation. This term applies to sea or inland water transportation.





7 freight pay to (CPT)



   The term English is 'Carriage Paid to): tid to (... named place of destination)', that is, 'freight paid to (... specified destination)'. This term refers to the freight paid by the seller for the goods to the designated destination. The risk of loss or damage to the goods and any additional costs incurred after the goods have been delivered to the carrier shall be borne by the seller from the seller when the goods have been delivered to the carrier. In addition, the seller must go through customs clearance procedures for the export of goods. This term applies to all modes of transportation, including multimodal transportation.





8 Freight and insurance paid to (CIP)



The term English is 'Carriage and Insurance Paid to (... named place of destination)', that is, 'Carriage and Insurance Paid to (... named place of destination).' It refers to the seller in addition to the liability and 'Freight Paid to (... In addition to the same obligation as the term 'designated destination)', the seller must also apply for marine insurance against the risk of loss or damage to the goods that the buyer should bear during the transportation and pay the insurance premium. This term applies to any mode of transportation.





9 Delivery at Frontier (DAF)



   The English of this term is 'Delivered at Frontier (...named place)', that is, 'Delivered at Frontier (...named place)'. It means that the seller undertakes the following obligations to transport the prepared goods to a designated place on the border, go through customs clearance procedures for the export of the goods, and deliver the goods before the customs border of the neighboring country. This term mainly applies to goods transported by rail or road, and can also be used Other modes of transportation.



10Delivery on board the destination port (DES)



   The English term of this term is 'Delivered Ex Ship (... named port of destination)', that is, 'Delivered Ex Ship (... named port of destination)'. It means that the seller fulfills the following obligations to deliver the prepared goods to the buyer on the ship’s deck at the designated port of destination without going through customs clearance procedures for the import of goods. Therefore, the seller shall bear all costs including the transportation of the goods to the designated port of destination And risk. This term only applies to sea or inland water transportation.



11Delivery at the port of destination (DEQ)



   The English term of this term is: 'Delivered Ex Quay (Duty Paid)(...named port of destination)', that is, 'Delivered Ex Quay (Duty Paid)(...named port of destination)', that is, 'Delivered Ex Quay (Duty Paid)(...named port of destination)'. This term means that the seller fulfills the following obligations to deliver the goods prepared by the seller to the buyer after customs clearance at the designated port of destination, and the seller must bear all risks and expenses, including Guan Rui, taxes and other delivery Costs incurred. This term applies to sea or inland water transportation.





12Delivered Duty Unpaid (DDU)



   The English of this term is 'Delivered Duty Unpaid (... named place of destination)', that is, 'Delivered Duty Unpaid (... named place of destination)'. It means that the seller will deliver the prepared goods at the place designated by the importing country, and must bear all the costs and risks of the goods transported to the designated place (excluding customs duties, taxes and other official expenses that should be paid at the time of import). The costs and risks of customs procedures. The buyer shall bear the additional costs and risks caused by the failure to complete the customs clearance of the goods in time. This term applies to all modes of transportation.





13 Delivery after Duty Paid (DDP)



   The English of this term is 'Delivered Duty Paid (... named place of destination)', that is, 'Delivered Duty Paid (... named place of destination)'. It means that the seller delivers the prepared goods at the designated place in the importing country, and bears all costs and risks of transporting the goods to the designated place, and handles import clearance. This term can be applied to various modes of transportation.
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