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| The buyers and sellers of international trade are separated by two countries. They are far apart. In the process of seller's delivery and buyer's receiving, there are many issues involved, such as: Who should negotiate the transportation , Loading, unloading, payment of freight insurance, application for import and export permits and customs declaration and taxation; etc .; who pays for freight, loading and unloading, insurance, taxes, and other costs, and who can bear the goods that may occur during transportation Risk of damage and loss. If each transaction requires buyers and sellers to negotiate the above procedures, fees and risks item by item, it will consume a lot of time and costs and affect the conclusion of the transaction. For this reason, in the long-term practice of international trade, various trade terms have gradually formed. Dongguan hardware gimmicks believe that in an export or import trade, trade terms should be used, that is, the responsibilities of buyers and sellers in terms of procedures, costs and risks should be clearly divided to promote the conclusion of the transaction. 1. Trade terms are also known as terms of trade and prices. Dongguan Hardware Manju believes that it is an important part of the price of import and export goods. It uses a short concept (such as FREE ON BOARD) or a three-letter abbreviation Example: FOB) to explain the place of delivery, the price of the goods, and the division of costs, risks, and responsibilities between the buyer and seller, and determine the obligations of the seller and the buyer when receiving the goods. In the international trade, a special trade term is used to determine the delivery conditions, that is, the division of responsibilities, costs, and risks between buyers and sellers in transferring goods. 2. Factors to consider when choosing trade terms: There are many trade terms to choose from in international trade. According to statistics, the most frequently used terms in countries are FOB, CIF and CFR. In recent years, with the development of international trade and changes in transportation methods, the use of FCA, CPT and CIP terms has also increased. |
