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    Analysis Of Terms Used In 7 Different Modes Of Foreign Trade Delivery

    2014/8/9 21:12:00 16

    Foreign TradeDelivery MethodTerminologyAnalysis

    < p > foreign trade will involve different ways of delivery. This article introduces the terms used in different ways: < /p >
    < p > 1. < a > factory < /a > delivery (... Designated place): this term is expressed in EXW (named place) < /p >.
    < p > the Seller shall deliver the goods to the buyer at the place of origin or the place of storage of the goods, that is, the delivery obligation is fulfilled, and the buyer is responsible for loading the goods on his own and bearing all the risks, responsibilities and expenses thereof. Including cargo entry and exit formalities and costs. < /p >
    The term "P" is the trade term which the seller bears the least obligation. If the buyer can not directly or indirectly handle the exit formalities of the goods, this method is not suitable. < /p >
    < p > 2. ship by ship (named port of shipment): this term is expressed in FAS (named port of hipment) < /p >
    < p > the seller is responsible for delivering the goods to the ship's side nominated by the buyer at the port of shipment. If the ship sent by the buyer can not be landed, the Seller shall be responsible for transporting the goods to the side of the ship by barge, and the Seller shall fulfill the obligation of delivery at the side of the ship. < /p >
    < p > loading and export clearance formalities and expenses shall be borne by the buyer. < /p >
    < p > if the buyer can not handle export formalities directly or indirectly, it is not appropriate to adopt this method. < /p >
    < p > 3. delivered at frontier (...) Designated location): the term is DAF (...) Named place) means < /p >.
    < p > the seller is responsible for handling the export clearance formalities of the goods, and delivers the goods to the designated delivery place at the border (the border of the exporting country or the importing country), and the goods are disposed of by the buyer, that is, the delivery obligation is fulfilled. This term is mainly applicable to land transport transactions between neighboring countries. But the term itself restrictens the mode of transportation. < /p >
    P > 4. port of destination (...) Named port of destination): the term is DES (... Named port of destination) means < /p >
    < p > the seller is responsible for transporting the goods to the designated port of destination and placing the goods under the buyer's control at the port of destination, that is, the delivery obligation has been fulfilled. < /p >
    < p > DES and CIF have similarities in main price composition, that is, freight rates and insurance premiums are included in the price. However, the seller and the buyer differ in the division of freight transfer procedures, charges and risks. Mainly in the following four aspects. < /p >
    < p > CIF is a symbolic delivery, the buyer should pay the bill, and DES is the actual delivery. The seller must place the goods under the buyer's actual control and the buyer is responsible for the payment. < /p >
    < p > the division of responsibilities between costs and risks is different. CIF is bounded on the side of the port of shipment; DES is the limit of liability transfer after the actual delivery at the port of destination. < /p >
    < p > the nature of insurance is different. In CIF, the seller's insurance is an obligation, which should be performed according to the same rules or regulations. But the DES seller is buying insurance for himself, not a duty. < /p >
    < p > CIF the contract is the same as the loading port, it only stipulates the shipping time; the DES contract is the delivery contract. The arrival time must be specified. < /p >
    P > 5. ex port ex port (... Named port of destination): in this term, DEQ (...) Named port of destination) means < /p >
    < p > the seller is responsible for transporting the goods to the named port of destination and discharging it to the wharf. The Seller shall also be responsible for obtaining the relevant documents for import customs clearance, for import formalities, and then placing the goods under the control of the buyer. < /p >
    < p > normally, the "Duty Paid" should be added after DEQ, which is to be paid by the seller, such as import duties, import value-added tax and so on. < /p >
    < p > if the parties agree that the seller does not pay the value added tax (VAT), the "VATUnpaid" should be added. < /p >
    < p > if the parties agree that the buyer shall be responsible for the import customs formalities and pay customs duties, the "Duty Un Paid" should be added. < /p >
    < p > 6. undelivered duty (...) Designated destination): the term is DDU (...) Named place of destination) means < /p >
    < p > the seller delivers the goods to the designated place of the importing country and is disposed of by the buyer. The seller also assumes the cost and risk of the goods being delivered to the place (excluding customs duties, taxes and other official fees payable for import, and the costs and risks of handling the customs formalities). The buyer must bear the additional costs and risks arising from his failure to process customs clearance procedures in advance. < /p >
    < p > the term is applicable to all modes of transportation. In actual business, goods are loaded in containers. < /p >
    < p > 7. delivery after duty paid. Designated place of origin): this term is expressed in DDP (. Named Place of destination) < /p >
    < p > the seller delivers the goods to the designated place of the importing country and is disposed of by the buyer. The Seller shall also bear all risks, responsibilities and expenses before delivery, including the procedures and charges for import declaration, and import duties and other taxes. < /p >
    P is contrary to EXW. DDP is the trade terminology of the seller. < /p >
    < p > this term applies to all modes of transportation. In actual business, goods are loaded in containers. < /p >
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