General terms of International trade explanation

2019-08-02 14:21:48 handler 900

EXW - factory delivery (...designated location)

FCA - cargo delivery carrier (...designated location)

CPT - Freight paid to (...specified destination port)

CIP - freight and insurance paid to (...specified destination)

DAT - terminal delivery (...designated destination port or destination)

DAP - destination delivery (...specified destination)

DDP - post-tax delivery (...specified destination)

FAS - shipside delivery (...designated port of shipment)

FOB - on board delivery (...designated port of shipment)

CFR - cost plus freight paid to (...specified destination port)

CIF - cost, insurance and freight paid to (...specified destination port)

 

EXW - factory delivery (...designated location)

This rule has nothing to do with the mode of transport chosen by the (party), even if the (party) chooses multiple modes of transport. This rule is more suitable for domestic transactions. For international transactions, the FCA[1] “Cargo Carrier (...Designated Location)” rule should be selected.

“Factory delivery (---designated location)” means when the seller delivers the goods to the buyer at the location or at another designated location (such as a workshop (emphasis on manufacturing sites), factories (manufacturing sites) or warehouses, etc.) , that is, the delivery is completed. The seller does not need to install the goods on any means of transport. When it is necessary to carry out export clearance procedures, the seller does not have to carry out export clearance procedures for the goods.

Both parties should specify the delivery location of the goods as clearly as possible, as the costs and risks at this time (before delivery) are borne by the seller. The buyer must accept the full cost and risk of receiving the goods at the place agreed by the parties or at the designated place.

EXW is the term that the seller bears the least responsibility. It should follow the following rules of use:

The seller is not obliged to load the goods for the buyer, even though it may be more convenient to load the goods by the seller in practice. If the goods are loaded by the seller, the risks and expenses are also borne by the buyer. If the seller is in a dominant position in loading the goods, it is usually more appropriate to use the FCA term that bears the cost and risk of loading by the seller.

The buyer should be aware of the use of the EXW term with the seller, and the seller is only obliged to assist in the export formalities (more in line with the term trait): (but) the seller is not obligated to take the initiative (more emphasis on minimum obligations, absorbed into 2010) The meaning of the year itself) for export customs clearance procedures. Therefore, if the buyer cannot directly or indirectly handle the export customs clearance, the buyer is advised not to use the EXW terminology.

The buyer assumes a limited obligation to provide the seller with information about the export of the goods. However, the seller may need these information for purposes such as taxation (declaration of taxes), customs declaration, etc.

 

A THE SELLER’ OBLIGATIONS

Seller obligation

B THE BUYER’ OBLIGATIONS

Buyer obligation

General obligations of the A1 seller

The seller must provide the goods and commercial invoices in accordance with the sales contract, as well as any other evidence that the contract may require to prove that the goods are in compliance with the contract.

All documents mentioned in the provisions of A1-A10 may be electronic records or formalities that are agreed upon by the parties or agreed to be equivalent.

General obligations of the B1 buyer

The buyer must pay the price of the goods in accordance with the terms of the sales contract.

All documents mentioned in the provisions of B1-B10 may be electronic records or formalities that are agreed upon by the parties or agreed to be equivalent.

A2 permit, approval, security clearance and other formalities

When the customs formalities are required, the seller shall assist the buyer in handling the export license or other official license necessary for exporting the goods at the buyer's request and at the buyer's risk and expense.

At the buyer's request and at its own risk and expense, the seller must provide any information required by the cargo security inspection at the time of customs formalities.

B2 permit, approval, security clearance and other formalities

In the event that customs formalities are required, the buyer must at his own risk and expense, obtain any export and import licenses or other official licenses, and handle all customs formalities for the export of the goods.

A3 transportation contract and insurance contract

a) Shipping contract

The seller has no obligation to sign a contract of carriage for the buyer

b) Insurance contract

The seller is not obliged to enter into an insurance contract with the buyer. However, when the buyer requests or is responsible for the risks and (or contingent) expenses, the seller must provide the buyer with the information he or she needs to obtain insurance.

B3 transportation contract and insurance contract

a) Transportation contract

The buyer has no obligation to sign a contract of carriage for the seller

b) Insurance contract

The buyer has no obligation to enter into an insurance contract with the seller

A4 delivery

The seller shall deliver the goods not placed on any transport vehicle to the buyer at the agreed point or at the designated place. If a specific delivery point is not agreed within the specified location, or if there are several delivery points available, the seller may choose the delivery that best suits its purpose. The seller must deliver the goods at the agreed or agreed time.

B4 receiving goods (receiving goods)

The buyer must receive the goods when the seller delivers in accordance with A4 and A7.

A5 risk transfer

Except in the event of loss or damage described in B5, the seller must bear all risks of loss of or damage to the goods until they have been delivered in accordance with A4.

B5 risk transfer

From the time the seller delivers in accordance with A4, the buyer must bear all risks of loss of or damage to the goods.

If the buyer fails to notify the seller in accordance with the provisions of B7, the buyer must bear all risks of loss of or damage to the goods from the date of the agreed delivery date or the expiration of the delivery period, but the goods have been clearly identified as under the contract. The goods are limited.

A6 cost division

Except for the B6 preset fee payable by the buyer, the seller must bear all costs associated with the goods until they are delivered in accordance with A4.

B6 cost division

The buyer must pay:

All costs relating to the goods from the time of delivery in accordance with A4;

Any additional costs incurred when the goods have been disposed of by the buyer and the buyer has not received the goods or has not given the seller the corresponding notice in accordance with B7, but only if the goods have been officially placed under the contract;

All customs duties, taxes and other fees payable for the export of goods, as well as the cost of customs formalities, when customs formalities are required.

All costs and expenses incurred by the seller in accordance with A2.

A7 informs the buyer

The seller must provide the required notice to enable the buyer to pick up the goods.

B7 informs the seller

Once the buyer has the right to determine the specific time and/or location of the goods received within the agreed time limit, the seller shall be given sufficient notice

A8 delivery document

The seller has no obligation.

B8 proof of delivery

The buyer must provide the seller with appropriate evidence of the goods that have been received.

A9 inspection, packaging, signs

The seller must pay the cost of checking the goods for the purpose of delivering the goods in accordance with the provisions of A4 (such as checking the quality of goods, measuring, weighing, points).

The seller must pay for the packaging of the goods, unless it is a special cargo that can be transported without packaging. The seller shall adopt a packaging method suitable for transportation unless the buyer informs the seller of the specific packaging requirements before signing the sales contract. Packaging should be properly marked.

B9 Inspection of goods

The buyer must pay a mandatory fee for pre-shipment inspections, including mandatory inspections by the authorities of the exporting country.

A10 information help and related costs

At the buyer's request and at the risk and expense, the seller shall provide the buyer with timely assistance where appropriate to assist the buyer in obtaining any documents required for the export and/or importation of the goods and the delivery of the goods to their final destination. And information, including information about security.

B10 information help and related costs

In order for the seller to fulfill the requirements of A10, the buyer must promptly notify the seller of its requirements for the relevant transaction security information.

The buyer must compensate the seller for all costs and costs incurred as a result of providing the buyer with the information and documents mentioned in A10.

FCA - cargo delivery carrier (...designated location)

This rule can be applied to a variety of modes of transport (individual use), as well as to the simultaneous use of multiple modes of transport.

“Cargo carrier” means that the seller delivers the goods to the carrier or the buyer’s nominee at its location or at another designated location. It is advisable for the parties to clearly indicate as clearly as possible the specific point of delivery, and the risk will be transferred to the buyer at this point.

If the party intends to deliver the goods at the seller's location, the address of the location, ie the designated place of delivery, shall be determined. On the other hand, if the parties intend to deliver the goods at other locations, a different specific delivery location should be clearly identified.

The FCA requires the seller to go through export clearance procedures when needed. However, the seller does not have the obligation to enter the customs clearance procedures, nor does it have to pay any import duties or go through other import customs procedures.

When it is necessary to go through customs formalities (when necessary/appropriate), the DAP rules require that the seller handle the export clearance of the goods, but the seller is not obliged to handle the import customs clearance of the goods, pay any import duty or handle any import customs procedures. If the parties wish the seller to handle the import clearance of the goods, pay any import duties and handle any import customs procedures, the DDP rules shall apply.

A THE SELLER’ OBLIGATIONS

Seller obligation

B THE BUYER’ OBLIGATIONS

Buyer obligation

General obligations of the A1 seller

The seller shall provide the goods and commercial invoices in accordance with the sales contract and any other documents that may be required by the contract to prove that the goods comply with the contract.

The documents referred to in A1—A10 may be electronic files or programs that are agreed by the parties or have become customary and have equivalent validity.

General obligations of the B1 buyer

The buyer shall pay the price of the goods specified in the sales contract

The documents referred to in B1-B10 may be electronic files or programs of the same nature as the parties have agreed or have become customary.

A2 permit, approval, security clearance and other formalities

The seller shall bear the risks and expenses at his own expense and obtain any export license or other official license when necessary, and handle all customs formalities required for the export of the goods at the time of customs formalities.

B2 permit, approval, security clearance and other formalities

When necessary, the buyer can obtain all import licenses or other official licenses, as well as customs procedures for importing goods and all related procedures for transit through other countries, at their own risk and expense.

A3 transportation contract and insurance contract

a) transportation

The seller has no obligation to enter into a contract of carriage for the buyer. However, if requested by the buyer, or in accordance with commercial practice and the buyer fails to give the seller the opposite direction in due course, the seller may enter into a contract of carriage for the risk and expense of the buyer in accordance with normal conditions. In either case, the seller can refuse to enter into the contract; if it is rejected, the buyer should be notified immediately.

b) Insurance

The seller is not obliged to enter into an insurance contract for the buyer. However, the seller shall, at the request of the buyer, provide the buyer with the information required to purchase the insurance, and any risks and expenses arising therefrom shall be borne by the buyer.

B3 transportation contract and insurance contract

a) transportation

The buyer shall, at his own expense, enter into a contract for the carriage of the goods from the designated place of delivery, unless the seller enters into the contract in accordance with A3 a).

b) Insurance

The buyer is not obliged to enter into an insurance contract for the seller.

A4 delivery

If there is a specific delivery point agreed, the seller shall, in accordance with the contract, deliver the goods to the carrier or other person designated by the buyer at the appointed place on the agreed date or time limit.

Delivery is completed in the following cases:

a) if the designated place is the location of the seller, when the goods have been loaded with the means of transport provided by the buyer;

b) Any other condition when the goods loaded on the seller's means of transport have reached the conditions of unloading and are at the disposal of the carrier or other person designated by the buyer.

If the buyer fails to notify the seller of the specific delivery location within the designated area in accordance with B7 d) and there are several specific delivery points to choose from, the seller may select the one that best matches its purpose. trading locations.

Unless otherwise notified by the buyer, the seller may deliver the goods in an appropriate manner, depending on the quantity and/or nature of the goods.

B4 receiving goods (receiving goods)

The buyer shall collect the goods when the seller delivers in accordance with A4.

A5 risk transfer

The seller bears all risks of loss of or damage to the goods until the seller has delivered the goods in accordance with A4, except in the case of loss or damage caused by B5.

B5 risk transfer

The buyer shall bear all risks of loss of or damage to the goods from the time the seller delivers in accordance with A4.

If

a) The buyer did not inform the seller or remind him of the designation of the carrier or other person in accordance with A4 in accordance with the provisions of B7; or

b) If the carrier or other person designated by A4 does not take over the goods, the buyer shall bear all risks of loss of or damage to the goods as follows:

i) From the date of the appointment. If there is no agreed date,

Ii) From the date the seller has notified the buyer in accordance with the A7 provisions during the agreed period. If you do not tell the date,

Iii) from the expiration of any agreed delivery period,

However, the goods have been clearly identified as being limited to the goods under the contract.

A6 cost division

The seller should pay

a) All costs associated with the goods until they have been delivered in accordance with A4. Except for the fees paid by the buyer as specified in B6; and

b) Customs handling fees and all duties, taxes and other charges payable for export, where applicable.

B6 cost division

The buyer should pay:

a) All costs relating to the goods from the time of delivery in accordance with A4, except for the customs formalities for the export of goods and the tariffs, taxes and other charges payable for the export of other goods as specified in A6 b).

b) Any additional costs incurred as a result of any of the following:

(i) the buyer failed to designate the carrier or other person in accordance with A4;

(ii) or because the carrier or the person designated by the buyer has failed to take over the goods;

 (iii) or because the buyer failed to give the seller a corresponding notice in accordance with B7,

However, the goods have been clearly identified as being limited to the goods under the contract.

c) all duties, taxes and other charges payable for the import of goods, as well as fees for customs formalities and transit through other countries, if necessary.

A7 informs the buyer

In the case of the buyer's own risk and expense, the seller shall deliver the goods in accordance with the provisions of A4, or the carrier or other person designated by the buyer may not fully inform the buyer of the information of the goods within the agreed time.

B7 informs the seller

The buyer should:

a) promptly inform the seller of the name of the carrier or other person designated by A4, so that the seller can deliver the goods in accordance with the provisions of A4;

b) inform the seller, when necessary, of the specific time at which the designated carrier or other person collects the goods within the agreed time limit;

c) inform the seller of the mode of transport adopted by the buyer's nominated person;

d) in the covenant


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