Latest incoterms

In the long-term international trade practice, the price, transportation, risk, and other factors of the goods are integrated and categorized to facilitate the grasp and application by buyers and sellers of different countries and regions to form a common understanding, thus giving rise to the Incoterms. Each term corresponds to the obligations assumed by buyers and sellers in certain trade conditions. The latest Incoterms are the Incoterms 2023 (INCOTERMS 2023) prepared by the International Chamber of Commerce (ICC), which will be implemented worldwide on January 1, 2023.

  1. EXW (Ex Works)

EXW” factory delivery means that when the seller delivers the goods to the buyer at his location or other designated place (such as workshop, factory, or warehouse) for disposal, that is, the delivery is completed and the seller does not handle export customs clearance or load the goods onto any means of transport.

  1. FCA (goods to the carrier)

FCA is a free carrier, that is, “goods to the carrier means that the seller as long as the goods are in the designated location to the buyer’s designated carrier, and export customs clearance procedures, that is, the completion of delivery.

  1. FAS (ship-side delivery at the port of shipment)

FAS trade term is ship-side delivery (…… designated port of shipment), which means that the seller will deliver the goods to the ship-side at the designated port of shipment, that is, to complete the delivery. The buyer must assume all risks of loss or damage to the goods from then on. The seller is required to go through export customs clearance procedures.

  1. FOB (Free On Board at Port of Shipment)

FOB (Free On Board acronym), also known as “FOB”, is one of the common trade terms used in international trade. The buyer is responsible for sending the ship to receive the goods, the seller shall, within the contracted port of shipment and the specified period, load the goods on the ship designated by the buyer, and notify the buyer in time. The risk is transferred from the seller to the buyer when the goods cross the ship’s rail during loading.

  1. CFR (Cost and Freight)

The seller must pay for the expenses and freight required to transport the goods to the designated port of destination, but from the goods to the ship’s deck, the risk of loss or damage to the goods and additional expenses caused by the accident, in the goods to the ship’s deck, the seller to the buyer to bear. In addition, the seller is required to handle the export customs clearance of the goods.

  1. CIF (cost, insurance plus freight)

CIF is COST, INSURANCE, AND FREIGHT (NAMED PORT OF DESTINATION) the first letter of the three words composed of capital, meaning cost plus insurance plus freight (designated port of destination), also known as “CIF”, refers to when the goods in the port of shipment over the When the goods cross the ship’s rail at the port of shipment (actually in the hold of the ship), the seller completes the delivery. Freight and insurance from the port of shipment to the port of destination are paid by the seller, but the risk of damage and loss of the goods after shipment is borne by the buyer.

  1. CPT (Carriage Paid To)

Freight Paid to (CPT) English for Carriage Paid to)tid to (… named place of destination), that is, freight paid to (…… designated destination). Refers to the seller shall bear the same obligations under the term CIF in addition to the buyer’s risk of loss or damage to the goods in transit to obtain cargo insurance, enter into an insurance contract, and pay the insurance premium.

  1. CIP (freight, insurance paid to)

Freight and Insurance Paid to (CIP) This term in English for Carriage and Insurance Paid to (… named place of destination), that is, freight and insurance paid to (…… designated destination). In addition to the same obligations of the CPT term, the seller must also handle the risk of loss of or damage to the goods in transit by the buyer’s marine insurance and pay the insurance premium.

9.DAT (delivered at destination)

DAT (delivered at terminal), refers to the seller in the designated destination or port of destination of the goods to the buyer’s disposal that is completed delivery.

  1. DAP (delivered at place)

DAP (delivered at place), refers to the seller having used the means of transport to transport the goods to the buyer’s designated destination, the goods loaded on the means of transport (without unloading) to the buyer’s disposal, that is, to complete the delivery.

  1. DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid), refers to the seller at the designated destination, after import clearance procedures, the goods are not yet unloaded on the delivery vehicle to the buyer to complete delivery. The seller must bear all risks and costs of transporting the goods to the designated destination, including any “taxes” payable at the destination when customs formalities are required (including the responsibility and risk of customs formalities, as well as the payment of fees, duties, taxes, and other charge

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