Xuzhou Maofa Foreign Trade Import And Export Company

Common knowledge in foreign trade

2025-08-17



International trade terms:

FOB(Free On Board), That is to say, FOB price: The seller delivers the goods to the buyer's designated transportation vehicle at the designated loading port, completes the export customs clearance procedures, and at this time, the risk and cost of the goods are transferred to the buyer.
CIF(Cost, Insurance, and Freight), It is cost plus insurance and freight: the seller is responsible for transporting the goods to the destination port designated by the buyer, as well as for the transportation insurance of the goods, until the goods are handed over to the buyer.
EXW(Ex Works), This is called factory delivery price: the seller delivers at their own location, such as the factory or warehouse, and the buyer is responsible for picking up the goods from the seller's location. All costs and risks are borne by the buyer.
DDP(Delivered Duty Paid), The meaning is delivery after tax payment: the seller shall bear all costs and risks of transporting the goods to the buyer's designated location, including import tariffs and procedures.
B/L(Bill of Lading), This is a bill of lading: a transport document issued by the transport company or its agent, which can prove that the goods have been loaded onto the ship and also promises to be delivered to the consignee specified on the bill of lading at the destination port.
AWB(Air Waybill), It is an air waybill: a transportation document used for air freight of goods, which has functions such as contract proof, receipt proof, and cargo transportation guidance.
FCL(Full Container Load), Call it full container load: the quantity of goods is enough to fill a container.
LCL(Less than Container Load), This is LCL cargo: if the quantity of goods is not enough to fill a container, they need to be shipped together with other goods.
CFR(Cost and Freight), Cost plus freight: The seller is responsible for transporting the goods to the destination port, but the risk is transferred to the buyer when the goods pass through the ship's railing.
DAP(Delivered At Place), Delivery to the designated location: The seller is responsible for transporting the goods to the buyer's designated location, but does not unload them.
FAS(Free Alongside Ship), This is called side of the ship delivery: Side of the ship delivery refers to the seller's responsibility to deliver the goods to the ship designated by the buyer at the port. If the ship cannot dock at the port and needs to be transshipped, it will be handed over to the barge. The seller's risks, responsibilities, and expenses end here, and all risks and expenses thereafter will be borne by the buyer. This is a sales agreement.
DAT(Delivered At Terminal), The meaning is delivery to the terminal: the seller is responsible for transporting the goods to the destination port or other terminal and unloading them.

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