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Winper Logistics Inc.
Beijing, China
Tel: 86-10-82563855
Fax: 86-10-82563856
Email: service@winper.com
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Resources >> Trade Terms
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Trade Terms |
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In international trade, importer and exporter need special terms to communicate effecively on related right, bilateral responsibility, risk and obligation. Normaly we use terminology of " 2000 International trade Terminology Explanation General rule" (INCOTERMS2000). INCOTERMS2000 altogether has 13 trade terminologies. They are divided into four groups according to the different categories. Below we introduce three of most commonly used terminologies- FOB, CFR, and CIF.
- FOB (Free On Board- named port of shipment)
: the seller ships the cargo to the assigned port, seller's responsibility is limited to the side of the boat. The buyer gets up from the cargo delivery point, bears all expenses and the risk. Seller will bear all the risk and cost afterwards.
- CFR (Cost and Freight-named port of destination)
: The only difference with FOB is that seller needs to pay freight, but all the risk and other cost are still on buyer.
- CIF (Cost Insurance and Freight-named port of destination)
: Seller will bear all the cost including freight to destination, seller also needs to cover insurance for the shipment. But the risk afterwards has been transferred to buy after cargo is on the boat.
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