Some specified goods are sold at ECONOMIC prices

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TRADE TERMS

EXW (Factory Delivery)

It refers to the seller's responsibility to deliver the prepared goods to the buyer at their location, such as workshop, factory, warehouse, etc., but usually not responsible for loading the goods onto the vehicle prepared by the buyer or handling customs clearance. The buyer shall bear all costs and risks of transporting the goods from the seller's location to the expected destination.

FOB (Free on Board)

Offshore price/In short, it means that the manufacturer is responsible for transporting the customer's products to the ship. From the moment the goods leave the ship's rail, the manufacturer no longer assumes responsibility for the customer's goods. During the process, the supplier needs to bear the inland freight, warehousing fees, customs clearance fees, operating fees, port construction fees, and other expenses incurred locally (excluding certificates of origin and insurance)

CNF (CFR) Cost and Freight

Cost plus shipping. It means adding Shanghai freight and other expenses incurred by the shipping company on FOB. During this period, the supplier needs to provide the purchaser's commercial invoice (CI), packing list (PL), bill of lading (BL), certificate of origin (CO/Form A), fumigation certificate (wooden box packaging) for customs clearance at their port.

 

Note: There are two types of certificates of origin: Form A is required to go to the US Canada region, and CO is required to go to other regions

CIF (Cost Insurance and Freight)

Namely: Cost+Shipping+Insurance. It means adding ocean freight, insurance premium, and other expenses incurred by the shipping company on FOB. During this period, the supplier needs to provide the purchaser's commercial invoice (CI), packing list (PL), bill of lading (BL), as well as certificate of origin and fumigation certificate (wooden box packaging) for customs clearance at their port.

DDP (Delivery after tax payment)

Delivery after tax payment (this risk is extremely high and we generally do not use it)

 

DDP refers to the seller completing import customs clearance procedures at the designated destination, delivering goods that have not yet been unloaded from the delivery transportation vehicle to the buyer, and completing the delivery. The seller must bear all risks and costs of transporting the goods to the designated destination, including any "taxes" that should be paid at the destination when customs procedures are required (including the responsibility and risks of handling customs procedures, as well as paying handling fees, tariffs, taxes, and other fees)

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