Foreign trade transactions, also known as “foreign trade” or “import and export trade”, referred to as “foreign trade”, refers to the exchange of goods, services, and technologies between a country (region) and another country (region). Technology exchange activities. Imported plastic toys and our regular foreign trade are the same way.
Imported plastic toys consist of two parts: import and export.
For the country (region) where the goods or services are shipped in, it is the import; for the country (region) where the goods or services are shipped out, it is the export.
The imported plastic toys transaction process is described as follows.
Quotation, order, payment method, preparation, packaging, customs clearance procedures, loading, transportation insurance, bill of lading, settlement of foreign exchange.
Common transaction methods for imported plastic toys are as follows.
1、 This term is “EX Works (… named place)”, i.e. “factory delivery (…… named place)”. It means that the seller is responsible for the delivery of ready goods to the buyer at his place, i.e. workshop, factory, warehouse, etc., but is usually not responsible for loading the goods onto the vehicle prepared by the buyer or for customs clearance of the goods. The buyer assumes the entire cost and risk of transporting the goods from the seller’s premises to the intended destination. This term is the least responsible for the seller’s trading term, such as the buyer can not handle the goods out of the formalities, it is not appropriate to use this method.
2、 goods to the carrier (FCA) This term is “Free Carrier (… named place)”, that is, “the goods to the carrier (…… named place)”. It means that the seller shall be responsible for delivering the goods handed over by him to the carrier designated by the buyer for care at the named place after customs clearance. In accordance with commercial practice, when the seller is required to cooperate with the carrier by contract, the seller may do so at the risk and expense of the buyer. This term is applicable to any mode of transportation. It should be noted that the choice of the place of delivery has an impact on the obligation to load and unload at that place. If Seller delivers at its location, Seller shall be responsible for loading, if Seller delivers at any other location, Seller shall not be responsible for unloading.
3、 delivery alongside ship (FAS) This term is “Free Alongside Ship (… named port of shipment)”, that is, “delivery alongside ship (…… named port of shipment)”. It means that the seller delivers the goods to the ship’s side at the terminal or barge of the named port of shipment, from then on the buyer shall bear all the costs and risks of loss or damage of the goods, in addition to the buyer shall go through the export customs clearance procedures. This term is applicable to sea or river transportation.
4 、delivery on board (FOB) The term in English is “Free on Board (… named port of shipment)”, that is, “delivery on board (…… named port of shipment)”. It refers to the seller in the named port of shipment to send the goods over the side of the ship after delivery, the goods over the side of the ship after the buyer shall bear all the costs, risks, loss or damage to the goods, in addition, to require the seller to handle the export of goods customs clearance procedures. In other words, the buyer is responsible for sending a ship to receive the goods, and the seller shall load the goods onto the ship designated by the buyer at the port of shipment and within the period specified in the contract, and notify the buyer in time. When the goods are loaded on the designated vessel at the port of shipment, the risk is transferred from the seller to the buyer. This is also the most common way to import plastic toys importers, importers can avoid the cumbersome process and costs of the container before shipment, but also their own control of freight and shipping time.
5、 Cost and Freight (CFR or C&F) The term in English is “Cost and Freight (named port of shipment)”, that is, “Cost and Freight (…… named port of destination)”. It means that the seller must pay the expenses and freight required to transport the goods to the named port of destination, but from the time the goods are delivered to the deck of the ship, the risk of loss or damage to the goods and additional expenses caused by accidents, after the goods cross the ship’s side of the named port, the seller to the buyer to bear. In addition, the seller is required to handle the export customs clearance of the goods. In other words, the seller is required to pay the cost of transporting the goods to the named port of destination for delivery on board the ship at the port of shipment. However, the risk of the goods is transferred at the time of delivery on board the ship at the port of shipment.
6 、Cost, Insurance and Freight (CIF) This term is “Cost, Insurance and Freight (…named port of shipment)”, that is, “Cost, Insurance and Freight (…… named port of destination)”. It means that the seller has the same obligations as the “cost and freight” term, but the seller must also take out marine insurance for loss of or damage to the goods in transit, which should be borne by the buyer, and pay the insurance premium. Therefore, the seller has the same obligations with the CFR term, but also for the buyer to handle freight insurance, pay the insurance premium, according to general international trade practice, the seller should be insured by the CIF price plus 10% of the insurance amount. If the buyer and seller do not agree on the specific insurance, the seller is only required to obtain the lowest limit of insurance coverage, such as the buyer’s request for additional war insurance, the seller should be insured under the premise that the insurance premiums are borne by the buyer, the seller to ensure, if possible, must be insured in the contract currency. This term is applicable to sea or river transportation.
7、Carriage Paid to (CPT) This term is “Carriage Paid To): tid to (… named place of destination)”, that is, “freight paid to (…… named destination)”. This term means that the seller pays the freight for the shipment of the goods to the named place of destination. Risk of loss of or damage to the goods and any additional costs arising from events occurring after delivery of the goods to the carrier shall pass from the seller to the buyer from the time the goods are delivered to the care of the carrier. In addition, the Seller shall clear the goods for export. “Carrier” means any person who, in the contract of carriage, undertakes to perform the carriage by rail, road, air, sea, inland waterway, or a combination of these modes of transport or to have the carriage performed by another person. If a receiving carrier is also used to transport the goods to the agreed destination, the risk passes from the moment the goods are handed over to the first carrier. The term applies to all modes of transport, including multimodal transport.
8、Carriage and Insurance Paid to (CIP) The term “Carriage and Insurance Paid to (… named place of destination)”, i.e. “Carriage and Insurance Paid to (…… named place of destination). ” It means that in addition to the obligations of the seller under the CPT term “Carriage and Insurance Paid to (… named place of destination)”, the seller must also take out and pay for marine insurance against the risk of loss of or damage to the goods in transit, which shall be borne by the buyer. During this period the seller must pay the freight charges for transporting the goods to their destination and the buyer assumes all risks and additional costs after delivery by the seller. This term applies to any mode of transport.
9、Delivery at Frontier (DAF) The English term “Delivered at Frontier (…named place)” means “Delivery at Frontier (…… named place)”. It means that the seller undertakes the obligation to deliver the goods ready for delivery to the named place on the border, before the customs border of the adjoining country. Delivery is completed when the goods, which are still on the means of transport for delivery, have not yet been unloaded and placed at the disposal of the buyer, and when the goods have been cleared for export but not for import. The term “border” can be used at any border, including the border of the exporting country. Therefore, it is extremely important to define the border precisely by the designated place and the specific delivery point. The term applies primarily to goods transported by rail or road, but can also be used for other modes of transport.
10、Delivered Ex Ship (… named port of destination)”, i.e. “Delivered Ex Ship (…… named port of destination)”. It is the seller’s obligation to deliver the goods ready for delivery to the buyer on the deck of the ship at the named port of destination without customs clearance of the goods, and therefore the seller shall bear all costs and risks including the delivery of the goods to the named port of destination. If the parties wish the seller to bear the risk and costs of unloading the goods, the DEQ terminology shall be used. The trade term DES is used only when the goods are unloaded on board a vessel at the port of destination by sea or inland waterway transport or multimodal transport. The terminology is only applicable to sea or river transportation.
11、Delivered Ex Quay (Duty Paid) (…named port of destination)”, i.e. “Delivered Ex Quay (Duty Paid) (…… named port of destination)”. Port of destination)”. This term refers to the seller’s obligation to deliver the goods ready for delivery to the buyer at the terminal of the named port of destination, and the seller assumes all risks and expenses, including customs duties, taxes, and other charges incurred in the delivery. Given the fact that the DEQ terminology is not fully harmonized worldwide in terms of who is responsible for the import formalities, care must be taken when using the DEQ terminology. This term is applicable to sea or inland waterway transportation.
12、Delivered Duty Unpaid (DDU) The English term “Delivered Duty Unpaid (… named place of destination)”, that is, “Delivered Duty Unpaid (…… named place of destination)”. It means that the seller will be ready to deliver the goods in the importing country at the named place, and shall bear all the costs and risks of transporting the goods to the named place (excluding customs duties, taxes, and other official fees payable at the time of importation), and shall also bear the costs and risks of customs procedures. The buyer shall bear the additional costs and risks arising from the failure to clear the goods for import in time. It is generally recommended that when dealing with countries where import clearance is difficult and time-consuming, it is better for the seller not to use DDU in order to avoid the transaction being affected by the buyer’s failure to clear the import in time. This term is applicable to all modes of transportation.
13、Delivered Duty Paid (… named place of destination)”, that is, “Delivered Duty Paid (…… named place of destination)”. It means that the seller will be ready to deliver the goods at the named place of destination in the importing country, bear all the costs and risks of transporting the goods to the named place, and handle the import customs clearance. In other words, the seller will complete the import customs clearance procedures at the designated destination and hand over the unloaded goods to the buyer on the delivery means of transportation to complete the delivery. The seller must bear all the risks and costs of transporting the goods to the named destination, including any “taxes” payable at the destination when customs formalities are required (including the responsibility and risk of customs formalities, as well as the payment of fees, duties, taxes and other charges). Under the DDP terminology, the seller bears the maximum liability.
