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International trade term explanation

In international trade, use a certain special trade terms, mainly is for sure delivery terms, explains namely buyers and sellers in the transfer of goods assume responsibility, expenses, and each other, the division of the risk. For example, according to F.O.B. conditions (FOB) according to clinch a deal with FOB port conditions (DES) clinch a deal, because different terms of delivery, the buyer and seller bear its own costs and risks of responsibility, have very big difference.Electronic Mosquito-Killer At the same time, trade term also can be used to express to clinch a deal the price of commodities constitute factors, especially shelves contain affiliate fees. Because its price formation factors is different, so clinch a deal valence should have difference.

Different trade terms show that both parties bear its own different responsibility, expenses and risks, and responsibility, expenses, and the size of the risk and influence to clinch a deal the price of goods. Generally speaking, all use of domestic delivery exporter trade terms, such as ex factory (EXW) and the port of shipment delivery (FAS) by the boat, Padded Hanger the responsibility of the seller, cost and risk is less, so the price is low; Conversely, who use all kinds of domestic delivery importing trade terms, such as destination port terminal delivery (DEQ) and tax payment after delivery (DDP), the responsibility of the seller, cost and risk is more big, these factors must reflect to clinch a deal the price of goods. So, in importing countries than in domestic delivery of high prices domestic delivery exporter, sometimes even a much higher. Due to the trade terms reflect commodity price structure, so some people he called it "the price terms".

This shows, trade terms with its dual nature:Extension cords namely on the one hand said delivery conditions; On the other hand, said the clinch a deal the price constitute factors. We must all the meaning from the trade terms to understand the nature of it.

Trade terms in the role of international trade, has the following several aspects:

(a) is beneficial to both parties the trading and to enter into a contract
Because each trade terms has its special meaning, therefore, both parties agree on what trade terms as long as according to clinch a deal, can clear each other in the handover to the responsibility, cost and risk. This simplifies the trading formalities, shorten the time of the transaction, which is beneficial to both parties reach a deal quickly and to enter into a contract.

(2) is beneficial to both parties accounting prices and costs
Due to the trade terms says price formation factors, so, both parties, sure clinch a deal the price, the inevitable to consider to use trade terms involve affiliate fees, it is beneficial to both parties parity and strengthen the cost accounting.

(3) to help resolve the dispute of the performance
Buyers and sellers business book contract, such as the terms of the contract consider owe weeks, make some matters shall not clear or incomplete, cause of the performance of disputes with not according to the stipulations of the contract, solutions, in this case, citing the trade terms can be the general explanation to deal with. Because,Solar lighting easy term general explanation has become the international practice, it is what we are followed a similar standards of behavior standards.

(4) to other relevant agencies in business activity
Business activity, cannot leave the ship companies, insurance companies and Banks and other institutions, and trade terms and related explain the trade terms of international conventions have started, for these institutions and business activities and processing business problems in the practice provides an objective basis and favorable conditions.

13 kinds of trade terms analytical
Group E trade terms EXW
Group F trade terms: FCA FAS FOB
Group C trade terms: CFR CIF CPT CIP
Group D trade terms: DAF DES DEQ DDU DDP


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