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HOW TO CHOOSE APPROPRIATE TRADE TERMS
When making imports from China or any other parts of the world, to avoid disputes or any misunderstandings, standard international delivery terms are used when making any agreement. The standard international delivery terms that are used in international trading these days are the INCOTERMS 2000, the same standard terms that our company is also using in its agreements with customers.
Below we will explain the obligations of both seller and buyer for each of these delivery terms, we also have a chart of what buyer needs to cover for you according to each delivery term, and what you need to cover for your self.
The common incoterms are as follows:
EXW - buyer is responsible for pickup from seller's factory or warehouse.
FOB - Free On Board vessel, named ocean port of shipment.
CFR - Cost and Freight, Named ocean port of destination.
CIF - Cost, Insurance and Freight, named ocean port of destination.