FOB (Free On Board)
Commonly known as "FOB price", the domestic local expenses (domestic trailer + customs declaration + warehouse) are borne by the buyer. After the ship sails, the buyer shall bear the ocean freight, customs clearance at the destination port, trailer fees and other expenses.
CIF (Cost, Insurance and Freight)
The CIF price = FOB price + I (Insurance Premium) + F (Freight). Commonly known as "CIF price" or "arrival price". The buyer bears the trailer fees at the port of shipment, customs declaration, ocean freight and insurance premiums. Generally speaking, insurance is not included nowadays. If the customer requests to buy insurance, it will be calculated according to the value of the goods. The term CIP can also be used. However, CIF is usually only used in ocean transportation, while CIP is applicable to various modes of transportation including multimodal transportation, such as air transportation.
DDU (Delivered Duty Unpaid)
DDP means Delivered Duty Paid (including taxes). To put it simply, it's a door-to-door service. The so-called "one-stop dual clearance" includes trailer at the port of shipment, customs declaration, ocean freight and customs clearance at the destination port. Whether delivery to the door is needed mainly depends on the customer's requirements. It should be noted that for DDP, the value of the goods must be provided because the tax payment is based on the value of the goods.
DDP (Delivered Duty Paid)
To put it simply, it's a door-to-door service. The "one-stop dual clearance" includes trailer at the port of shipment, customs declaration, ocean freight and customs clearance at the destination port. Whether delivery to the door is needed mainly depends on the customer's requirements. It should be noted that for DDP, the value of the goods must be provided because the tax payment is based on the value of the goods.
EXW (Ex Works)
It means that when the seller hands over the goods to the buyer at its own premises or other designated locations (such as workshops, factories or warehouses) for disposal by the buyer, the delivery is completed. The seller does not handle the export customs clearance procedures or load the goods onto any means of transport.
CFR (Cost and Freight)
It refers to the delivery on board at the port of shipment. The seller shall pay the expenses required to transport the goods to the designated destination port. The difference from CIF is that it lacks the insurance premium.
如何计算CIF价？
FOB和CIF有什么风险？
外贸常用术语还有哪些？
