When making imports from China or any other parts of the world, to avoid disputes or any misunderstandings, standard international delivery terms are used when making any agreement. The standard international delivery terms that are used in international trading these days are the INCOTERMS 2000, the same standard terms that our company is also using in its agreements with customers.
Totally the Incoterms 2000 Standard has more than 13 different delivery terms, but on a day to day basis we only use about nine: EXW, FCA, FOB, CFR, CIF, CPT, CIP, DDU, DDP.
Below we will explain the obligations of both seller and buyer for each of these delivery terms, we also have a chart of what buyer needs to cover for you according to each delivery term, and what you need to cover for your self...
SERVICES |
EXW |
FCA |
FOB |
CFR |
CIF |
CPT |
CIP |
DDU |
DDP |
Ex Works |
Free Carrier |
Free On Board Vessel |
Cost & Freight |
Cost Insurance & Freight |
Carriage Paid To |
Carriage Insurance Paid To |
Delivered Duty Unpaid |
Delivered Duty Paid |
Warehouse Storage |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Warehouse Labor |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Export Packing |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Loading Charges |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Inland Freight |
Buyer |
Buyer/
Seller* |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Terminal Charges |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Forwarder's Fees |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Loading On Vessel |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Ocean/Air Freight |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Charges On Arrival At Destination |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
Seller |
Seller |
Duty, Taxes & Customs Clearance |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Delivery To Destination |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Buyer |
Seller |
Seller |
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* There are actually two FCA terms: FCA Seller's Premises where the seller is responsible only for loading the goods and not responsible for inland freight; and FCA Named Place (International Carrier) where the seller is responsible for inland freight.
Above terms in details:International Carriage NOT Paid by seller
EXW - buyer is responsible for pickup from seller's factory or warehouse.
FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded.
This term can be used for any mode of transport.
FOB - Free On Board vessel, named ocean port of shipment.
This term is used for ocean shipments only where it is important that the goods pass the ship's rail.
International Carriage Paid by the seller
CFR - Cost and Freight, Named ocean port of destination.
This term is used for ocean shipments that are not containerized.
CIF - Cost, Insurance and Freight, named ocean port of destination. This term is used for ocean shipments that are not containerized.
CPT - Carriage Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.
CIP - Carriage and Insurance Paid To, named place or port of destination.
This term is used for air or ocean containerized and roll-on roll-off shipments.
Arrival At Stated Destination
DDU - Delivered Duty Unpaid, named place of destination, not unloaded, not cleared.
This term is used for any mode of transportation.
DDP - Delivered Duty Paid, named place of destination, not unloaded, cleared.
This term is used for any mode of transportation.
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