Wondershare EdrawMind
MindMap Gallery international trade
- 104
international trade
International trade, import and export, shipping and freight, common payment methods Payment documents, commonly used international trade terms, etc.
Edited at 2023-12-11 17:54:49
- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- Project Management Process Template
Project management is the process of applying specialized knowledge, skills, tools, and methods to project activities so that the project can achieve or exceed the set needs and expectations within the constraints of limited resources. This diagram provides a comprehensive overview of the 8 components of the project management process and can be used as a generic template for direct application.
international trade
- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- Project Management Process Template
Project management is the process of applying specialized knowledge, skills, tools, and methods to project activities so that the project can achieve or exceed the set needs and expectations within the constraints of limited resources. This diagram provides a comprehensive overview of the 8 components of the project management process and can be used as a generic template for direct application.
- Recommended to you
- Outline
international trade
Special vocabulary for sugar
ICUSMA
International Commission for Uniform Method of Sugar Analysis The International Commission for Uniform Method of Sugar Analysis supervises sugar classification throughout the entire sugar production process, from the output of sugar on the farm to through the processing plant and storage and transportation process and finally into commercial products.
A measure of the purity of sugar, an international standard for grading sugar quality.
Several international standard numbers for sugar products
ICUMSA standard number ICUMSA is the abbreviation of the International Sugar Association. This organization has developed a set of global sugar product quality standards, which includes sugar color, sugar content, clarity and other indicators.
ISO standard number ISO is the abbreviation of the International Organization for Standardization. The organization has formulated a series of standard numbers for sugar products, including the nutritional content of sugar, microbial limits, heavy metal content and other indicators.
GB standard number GB is the abbreviation of Chinese National Standards. my country has formulated a series of standard numbers for sugar products, including sugar types, quality indicators, packaging requirements, etc.
"White sugar GB317-2006"
Jointly released by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the National Standardization Administration of China
level
Four levels: exquisite, superior, first-class and second-class
Sensory requirements
The grains are uniform and the particle size should be no less than 80% within one of the following ranges
Coarse grain: 0.80mm~2.50mm
Large grain: 0.63mm~1.60mm
Medium grain: 0.45mm~1.25mm
Small particles: 0.28mm~0.80mm
Fine grain: 0.14mm~0.45mm
The crystal grains or their aqueous solution have a sweet taste and no peculiar smell.
Dry and loose, white and shiny, without obvious black spots
Physical and chemical requirements
Sucrose content (%) ≥
Refined 99.8, excellent grade 99.7, first grade 99.6, second grade 99.5
Reducing sugar (%) ≤
Refined 99.8, excellent grade 99.7, first grade 99.6, second grade 99.5
Conductivity ash (%) ≤
Refined 0.02, excellent grade 0.04, first grade 0.10, second grade 0.13
Loss on drying (%) ≤
Refined 0.05, excellent grade 0.06, first grade 0.07, second grade 0.10
Color value/IU ≤
Refined 25, excellent 60, first level 150, second level 240
Turbidity/MAU ≤
Refined 30, excellent 80, first level 160, second level 220
Water-insoluble impurities (mg/kg) ≤
Refined 10, excellent 20, first level 40, second level 60
hygiene standard
Sulfur dioxide (calculated as SO2) (mg/kg) ≤
Refined 10, excellent 20, first level 40, second level 50
Arsenic (calculated as As) (mg/kg) ≤
Refined 0.5, excellent grade 0.5, first grade 0.5, second grade 0.5
Lead (calculated as Pb) (mg/kg) ≤
Refined 1.0, excellent grade 1.0, first grade 1.0, second grade 1.0
Copper (calculated as Cu) (mg/kg) ≤
Refined 2.0, superior grade 2.0, first grade 2.0, second grade 2.0
Total number of colonies (pieces/g)≤
Refined 200, superior grade 350, first grade 350, second grade 350
Coliforms (individuals/100g)≤
Refined 30, Superior 30, First Class 30, Second Class 30
Pathogenic bacteria (referring to intestinal pathogenic bacteria and pathogenic cocci)
Refined, premium, first-grade, and second-grade products are not allowed to be detected.
Mites (in 250g white sugar)
Refined 6, excellent 15, first level 30, second level 30
All indicators, including yeast, mold and other items, should comply with the requirements of GB 13104
Commonly used international trade terms
LOl
Letter of Intention
Letter of intent to purchase issued by the buyer
ICPO
Irrevocable Corporate Purchase Order
Irrevocable purchase order
BCL
Bank Capacity Letter / Bank Conform Letter
Bank certificate of funds issued by the buyer
FCO
Full Corporate Offer
A responsible intention contract issued by the seller, an informal contract. Generally, "This is not to becirculated and is only for the purpose of this transaction only" should be noted in the contract.
POF
Proof of Funds
A certificate of funds issued by the buyer, indicating that the letter of credit issued by him has financial guarantees, while BCL can only indicate the company's credit standing.
POP
Proof of Product
Product certificate, issued by a lawyer, kept by a third party with conditional entrustment and sealing of the contract, and delivered to the buyer's bank
PB
Performance Bond
Performance Bond, a key term of LOl. The letter of credit issued by the buyer is valid only after PB is paid. A letter of credit is generally an irrevocable confirmed sight letter of credit.
After the buyer and seller sign the contract, the seller's bank will first issue a 2% contract performance deposit that has not yet taken effect within seven working days, and send it to the buyer's bank via SWIFT as a letter of credit (LC).
After confirmation by the buyer's bank, an irrevocable, transferable demand documentary letter of credit (DLC) for 100% of the value of the goods will be issued within seven working days. SWIFT will be sent to the seller's bank, and the seller's standby letter of credit will take effect at the same time.
When the delivered goods arrive at the unloading port in China, the buyer will deliver all the documents of the commodity inspection report to the seller or the seller's bank within three working days after passing the CIQ inspection.
On the day when the contract performance bond and letter of credit are issued, the issuing bank will notify the receiving bank and the buyer and seller by email or fax of a copy of the letter of credit.
Starting from the second ship, the seller will issue a performance guarantee with a recyclable amount of 2% after the first ship has left the port and arrived at the port and the two parties have agreed on the price and will be valid for 3 months plus ten days; The buyer will issue a documentary letter of credit with a three-month notice cycle after the first ship arrives at the port.
Common payment methods
SBLC
standby letter of credit
A letter of credit is a written commitment issued by a bank to pay a certain amount of money to a beneficiary on behalf of the bank's client when the client/buyer is unable to fulfill its financial obligations to the beneficiary.
DLC
Documentary Credits
A document issued by a bank guaranteeing payment of a buyer's invoice within a specified period and amount.
RDLC
Revolving documentary credit
Same as DLC, but around the life of the contract.
ARDLC
revolving letter of credit
It is a single letter of credit covering multiple transactions over a long period of time. It is very specific and is used for regular shipments of the same goods between the same buyer (importer) and seller (exporter). This letter of credit is issued only once for a certain number of transactions. It avoids the need to repeatedly open a new letter of credit for each transaction.
TT
wire transfer
It is an electronic transfer method mainly used for overseas wire transfer transactions.
MT-103
Bank Transfer
Banks use SWIFT MT-103 when a customer of a bank wants to pay a customer of another bank in another country.
MT-700
A SWIFT message is the type of message used by a letter of credit issuing bank to issue a letter of credit.
MT-760
When an MT-760 is issued, the issuing bank places a pool of customer funds to guarantee that the funds have been used to pay the MT-760 beneficiary.
MT-799
An important part of international trade; a "free-form message" sent between banks to confirm proof of funds or deposit for a potential transaction. MT799 allows banks to communicate freely through the SWIFT system, rather than being a mechanism for transferring funds or making payments.
RWA
Readiness, willingness and availability
A banking term meaning: the readiness, allocation and availability of funds for a specific transaction.
BCL/POF
Bank comfort letter/proof of funds
A document, usually issued by an investment bank, in which the bank indicates that the customer has a good credit history, sufficient to support a large transaction, or the bank indicates that it is willing to grant the customer a loan sufficient to cover the value of an operation. In other words, it is a vote of confidence from the bank to help generate trust (comfort) among all parties. Typically sent with a LOI letter of intent to demonstrate the financial strength of the purchasing company.
BG
bank guarantee
Is a guarantee provided by a bank for a contract between two external parties (buyer and seller), or between the applicant and the beneficiary to whom the guarantee relates. A bank guarantee is a risk management tool for the beneficiary because the bank will bear the responsibility for completing the contract if the buyer defaults.
draft
A text, formal proposal, or drawing in its original state, usually containing the main ideas and intentions but not the developed form
SWIFT
is a secure messaging platform used by banks. Several types of SWIFT messages are used in different situations. What we are discussing here is the MT700 type SWIFT message.
payment documents
Unless otherwise stated, a complete set of the following documents shall be issued in three (03) originals and one (01) duplicate.
COMMERCIAL INVOICE
Displays merchandise name, standby letter of credit or documentary letter of credit (SBLC/DLC) number, bill of lading number and date, load quantity, commercial invoice value and port of loading
Both signed and stamped by the seller
Three originals and three copies
Bill of Lading LADING COVERING PORT-TO-PORT SHIPMENT
Provide a complete ocean bill of lading covering the transportation of goods from port to port, marked as "freight prepaid", issued to the consignee's designated party as the consignee, endorsed in blank, and notified of the buyer's designation parties to the contract, a contract bill of lading is also acceptable
Three originals and three copies
Certificate of Origin and Weight and Quality Certificate issued by SGS CERTIFICATE OF ORIGIN ISSUED BY S.G.S. AND INSPECTION CERTIFICATE OF WEIGHT AND QUALITY
The certificate of origin issued by S.G.S. (International General Technical Services Company) and the weight and quality inspection certificate issued by SOCIETE GENERALE DE SURVEILLANCE (S.G.S.) at the loading port prove that the quality and quantity of the goods comply with the provisions of this agreement (contract) specifications and conditions
One original and three copies
Phytosanitary certificate issued by government authority
Health certificate issued by a government agency
packing list
Three originals and three copies
Disinfection and cleaning certificate
Reinstallation inspection report
Issued and signed by the captain of the ocean-going vessel and a representative of the port authority
Certificate of Sampling/Analysis
Issued and signed by SGS
10. Weight certificate
Issued and signed by SGS
11. A full risk insurance policy will be issued on behalf of the buyer for 110% of the total value of the goods
12. The shipping company declares in the document that the ship is not more than twenty years old (20) and that the ship is registered with Lloyds Register of Shipping or a similar classification society.
One original and three copies
13. AQSIQ AND GACC CERTIFICATE REGISTRATION
AQSIQ represents the General Administration of Quality Supervision, Inspection and Quarantine of China
GACC represents the General Administration of Customs of China
AQSIQ and GACC certificates are certificates issued by the Chinese government to prove that imported goods comply with China's relevant quality, health, safety and other standards.
In international trade, especially import business related to China, some goods may need to obtain AQSIQ and GACC certificates for smooth import. These certificates will require the importing party to register and apply for relevant documents, and issue certificates in compliance with relevant Chinese standards.
14. CHARTER PARTY AGREEMENT
15. CUSTOMS EXPORT CLEARANCE CERTIFICATE
16. COVID-19 TEST REPORT COVID 19 TEST REPORT
Prove that the goods are essentially unaffected by COVID-19 and the results should be negative.
17. BENEFICIARY'S CERTIFICATE
Confirm that copies of all shipping documents have been sent to the buyer's bank and physical copies are emailed to all parties with a receipt of transmission.
18. If there are differences in spelling and typographical errors and similar nature between the documents issued by the bank and those issued by the beneficiary, these differences will be regarded as discrepancies as long as the author's intention is clearly expressed in the text. INCOTERMS2010 is incorporated into this Agreement as a copyrighted agreement and is subject to the provisions of INCOTERMS2010.
19. HALAL CERTIFICATE
20. If there are other certificates not listed but necessary to complete the transaction, they will be provided to the relevant parties as much as possible when requested.
Incoterms 2022 (Incoterms 2022)
Incoterms-2022 is a revision of the 2000 Incoterms by the International Chamber of Commerce after consulting with more than 30 countries and regions based on the development of international trade and transportation methods.
As the ICC has always emphasized, incoterms only relate to the relationship between the buyer and the seller in the sales contract, and only to some very clear aspects. It is of course essential for importers and exporters to consider the practical relationships between the various contracts required to complete international sales. Completing an international trade requires not only a sales contract, but also a transportation contract, insurance contract and financing contract, and ncoterms only involves one of them, the sales contract.
When both parties agree to use a specific trade term, it will inevitably have an impact on other contracts. For example, when the seller agrees to use the terms CFR and CIF in the contract, he can only perform the contract by sea transportation, because under these two terms he must provide the buyer with a bill of lading or other shipping documents, and if other transportation methods are used , these requirements cannot be met. Furthermore, the documents required for a documentary credit will necessarily depend on the mode of transport intended to be used.
Incoterms involve certain specific obligations set for the parties, such as the seller's obligation to place the goods at the buyer's disposal or to deliver the goods or deliver them at destination, as well as the division of risks between the parties.
Incoterms involve the obligations of customs clearance for import and export of goods, packaging of goods, the obligation of the buyer to take delivery of the goods, and the obligation to provide proof that all obligations have been fully fulfilled. Although incoterms are extremely important for the execution of the sales contract, there may be some issues in the sales contract. Many issues raised are not covered, such as the transfer of ownership of goods and other property rights, breach of contract, the consequences of breach of contract, and exemption from liability in certain circumstances. It should be emphasized that Incoterms do not cover the consequences of breach of contract or exemptions due to various legal obstacles. These issues must be resolved through other terms in the sales contract and applicable law.
As Incoterms are revised from time to time, it is important that if the parties intend to include Incoterms in a sales contract, it is important to clearly indicate the version of Incoterms being referenced.
The revised incoterms-2022 cancels the concept of "ship's rail" on the issue of risk transfer, that is, the seller bears all risks until the goods are loaded on the ship, and the buyer bears all risks after the goods are loaded on the ship from the port of shipment. The division of responsibilities and obligations for goods that are bought and sold multiple times during transportation (chain trade) has been added to terms such as FAS, FOB, CFR and CIF. Incoterms 2022 applies not only to international trade contracts, but also to domestic trade contracts.
There are still certain flaws in the FOB terminology, especially when containerized transportation becomes the main mode of transportation. Since buyers freely use the FOB term when signing contracts in the global market, the term cannot be explained in the payment of terminal operating fees. Clearly, shippers, especially those in Asia, have been victims of terminal surcharges. Currently, in FOB terminology, there are several methods of FOB deformation. For example, the FOB deformation term for container liner transportation is FOB liner term, and the pricing mechanism is determined based on (station to station) as the scope of responsibility. However, this deformation is not specifically reflected in the "Incoterms". Therefore, the dispute between liner companies and cargo owners over the terminal operating fee THC generated by this clause has become the biggest focus of controversy in global container liner shipping today.
INCOTERMS
When trading parties negotiate a transaction and conclude a sales contract, they must not only formulate terms on price, quantity, and quality of goods, but also clarify the division of risks, responsibilities, and expenses between the parties during the handover of goods. In order to clarify the responsibilities, costs and risks borne by both parties to the transaction, special trade terms are used to express them. The "International Commercial Term" is an international standard that provides a set of explanations for the most commonly used trade terms in international trade. rule. Buyers and sellers use trade terms in contracts to clearly stipulate, for example, who will pay for the transportation and insurance costs of the goods during transportation, who will pay for the loading and unloading of the goods, and who will bear the risks that may arise during the transportation of the goods. Natural disasters, accidents, various external risks and other matters. The application of trade terms in contracts also directly affects the customs valuation basis for imported goods.
Current Incoterms are arranged according to the seller's responsibility
Category E (departure)
EXW (any shipping type) Ex Works (Origin) EX Works
Departure or obligation on behalf of the importer. The Incoterms for this category are represented by the letters EXW. When this abbreviation appears, it means that the importer is responsible for picking up the goods at the manufacturer's address and assumes all costs and risks.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification
seller
Load at origin, Transport within the country of origin, Home country insurance, Export rights, Inspection, Expertise, Customs bureaucracies, Storage, Shipping expenses , stowage
buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
buyer
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading, Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
Category F (free)
Represented by FAS, FOB or FCA, in this category the exporter is not responsible for major freight charges and international insurance, while the importer is responsible for contracting and paying for these services.
FAS (Water Transport) Free Alongside Ship at the port of shipment
The seller terminates its obligation when the goods are placed alongside the carrier, at the dock, or on board the vessel used for loading at the named port of shipment. From that time on, the buyer bears all risks and expenses of loading, paying freight, insurance and other charges. cost. The seller is responsible for export customs clearance of the goods.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Customs Bureaucracies, Storage
seller
Inspection, expertise Expertise
seller and buyer
Shipping expenses, stowage
buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
buyer
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading, Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
The FOB transaction method must indicate the name of the export port (water transportation) Free On Board at port of shipment Free On Board
The seller's obligation ceases when the goods pass the ship's rail at the named port of shipment, and from that time the buyer assumes all liability for loss and damage, with delivery being consumed by the buyer on board the named ship, at all costs at the buyer's expense. The seller is responsible for customs clearance of the goods for export.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Customs Bureaucracies, Storage, Shipping expenses, Stowage
seller
Inspection, expertise Expertise
seller and buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
buyer
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading, Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
If the customs of the importing country uses CIF as the duty-paid value, then the duty-paid price will also add international freight and insurance on the basis of the FOB price.
Deformation of FOB
FOB Liner Terms(FOB liner terms)
It means that the shipping cost is handled according to the liner practice, that is, it is borne by the ship or the buyer. With this variant, the seller does not bear the shipping costs. (Container liner is handled according to this principle)
FOB Under Tackle(FOB hook delivery)
It means that the seller pays the cost to deliver the goods to the hook of the ship designated by the buyer, and the lifting and loading and other costs are borne by the buyer.
FOB Stowed (FOB Stowed)
It means that the seller is responsible for loading the goods into the ship's hold and bears the shipping costs including cargo handling fees. The cargo handling fee refers to the cost of placing and sorting the cargo after it enters the cabin.
FOB Trimmed (FOB trimming fee included)
The seller is responsible for loading the goods into the ship's hold and bears the loading costs including trimming charges. Leveling charges refer to the fees required for leveling bulk cargo loaded into the ship's hold.
According to the traditional practices of my country's foreign trade transportation, the practices of bulk cargo and container liner transportation are completely different.
Container liner freight rates are formulated based on the principle that Article 46 of the Maritime Law stipulates that the scope of responsibility of a container carrier is from the origin port to the destination port (CY-CY). According to this price terms, the container liner freight rate naturally also includes terminal operating fees at the port of origin and port of destination.
Nowadays, liner companies are violating these practices at will. Under FOB container liner terms, carriers widely charge non-transparent terminal handling charges (Terminal Handling Charge), documents, and documents in addition to freight charges to third parties unrelated to the transportation contract (ie, FOB exporters). Documentation Fee, Container Sealing Fee, etc.
The debate between FOB exporters and carriers is very fierce, but the disadvantaged group of FOB exporters can only be forced to pay THC that they should not pay. Container liner shipping is the most important mode of modern transportation in international trade, accounting for more than 90% of global trade. In order to avoid unnecessary disputes, the China Association of Foreign Trade and Economic Cooperation has made suggestions to the Ministry of Commerce and the International Chamber of Commerce when formulating new international trade terms, especially In FOB terminology, the costs and liability risks of FOB-container liner term must be divided and explained in particular.
At present, my country's traditional FOB exporters are still accustomed to using FOB price terms. In order to avoid liner companies' one-sided understanding of FOB terms, taking them out of context, and taking advantage of loopholes to charge arbitrary fees, it is recommended that Chinese container cargo exporters try to use FCA price terms to replace the traditional FOB terms. This is more straightforward and avoids unnecessary disputes.
FCA (any shipping method) Free Carrier
The seller completes its obligations when it delivers the export-cleared goods to the international carrier designated by the buyer at the designated place. From that point on, all liability of the seller ends and the buyer is responsible for all costs and any loss or damage that the goods may suffer. The chosen place of delivery is very important in defining the responsibilities regarding the loading and unloading of the goods: if the delivery takes place at the seller's premises, the latter is responsible for loading onto the buyer's collection vehicle; if the delivery is at any other agreed place, the seller is not responsible for unloading them. vehicle, the buyer may designate someone other than the carrier to receive the goods. In this case, the seller's obligations cease when the goods are delivered to the named person.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging Packaging, Identification, Cargo at the seller's domicile, Transport within the country of origin, Home country insurance, Export Rights
seller
Inspection, expertise Expertise
seller and buyer
Load elsewhere, Customs Bureaucracies, Storage, Shipping expenses, Stowage
buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
buyer
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading, Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
Category C (main freight paid)
Shipping costs are paid by the exporter. Represented by CFR, CIF, CPT and CIP. The exporter rents and pays the international freight, but the importer bears the risk and responsibility for damage during international transportation.
CFR (Water Transport) Cost And Freight Cost And Freight
The seller is responsible for paying the cost of loading the goods on the ship. The seller is responsible for paying the freight to the designated port of destination and is responsible for export customs clearance. The risk of loss of or damage to the goods and any other additional charges passes from the seller to the buyer when the goods pass over the wall of the ship.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights
seller
Inspection, expertise Expertise
seller and buyer
Customs Bureaucracies, Storage, Shipping expenses, Stowage
buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance (if required)
buyer
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading Download
seller
Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
CIF CIF (water transport) Cost Insurance And Freight Cost Insurance And Freight
Responsibility for the goods passes from the seller to the buyer when they pass the ship's rail at the port of shipment. The seller is responsible for paying the costs and freight required to transport the goods to the named port of destination. The buyer is responsible for paying the goods that must be received at the port of destination and is responsible for all cost. The seller is responsible for customs clearance of the goods for export and must sign a main transportation contract and pay insurance premiums. Insurance paid by the seller has minimum coverage so it is up to the buyer to evaluate the need for additional insurance and delivery (over the ship's rail) is at the buyer's risk.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Customs Bureaucracies, Storage, Shipping expenses, Stowage
seller
Inspection, expertise Expertise
seller and buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance (if required)
seller
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading Download
seller
Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
CPT (any mode of transport) Carriage Paid To
The seller enters into a contract and pays freight to transport the goods to the named destination. The risk of loss and damage passes from the seller to the buyer from the moment the goods are delivered into the custody of the carrier, as well as the possibility of additional charges arising therefrom. The seller is responsible for customs clearance of export goods
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Customs Bureaucracies, Storage, Shipping expenses, Stowage
seller
Inspection, expertise Expertise
seller and buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport
seller
International insurance International insurance (if required)
buyer
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading Download
seller
Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
CIP (any mode of transport) Carriage and Insurance Paid to
The seller's liability is the same as described in the CPT, plus insurance is contracted and paid until destination. The risk of loss and damage passes from the seller from the moment the goods are delivered to the carrier's custody. The seller provides services to the buyer, and may additional costs incurred. Seller pays for minimum insurance coverage so buyer can evaluate for themselves whether additional coverage is needed
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Customs Bureaucracies, Storage, Shipping expenses, Stowage
seller
Inspection, expertise Expertise
seller and buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
seller
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading Download
seller
Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
Category D (delivery on arrival)
DAP, DAT and DDP. The exporter bears all risks until the goods are delivered
DAP (any shipping method) Delivered At Place
Delivery at destination, delivery at the designated destination (replacing the three terms [DAF] Delivered at Frontier, [DES] Delivered Ex Ship and [DDU] Delivered Duty Unpaid), It means that the seller delivers the goods at the designated destination and only needs to prepare for unloading to complete the delivery without unloading the goods. The term refers to arriving vehicles including ships and destinations including ports. The seller shall bear all risks and expenses (except import charges) of transporting the goods to the named destination.
The seller must clear customs for export goods in his country, carry out international transportation and deliver the goods to the agreed location. Import customs clearance and unloading at the destination are the responsibility of the buyer.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Customs Bureaucracies, Storage, Shipping expenses, Stowage
seller
Inspection, expertise Expertise
seller and buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
seller
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading, Handling, Storage, Transport within the country of destination, Insurance in the country of destination
seller
Customs bureaucracies Import duties Unloading of goods
buyer
DAT (any shipping method) Delivered At Terminal
Delivery at the terminal at the destination or port of destination, delivery at the terminal at the designated destination or port of destination (replaces [DEQ] Delivered Ex Quay delivery at the port of destination, and is extended to apply to various modes of transportation), refers to Delivery is completed when the seller unloads the goods at the designated destination or terminal at the port of destination and hands the goods to the buyer. The term refers to the destination including the port. The seller shall bear all risks and expenses (except shipping charges) of transporting the goods to the named destination or terminal at the port of destination.
Upon delivery at the dock, the seller must, from the moment the seller makes the deposit, clear the goods for export in his country, carry out international transportation, unload the goods and deliver them to the freight terminal mentioned in the contract, his liability ends upon the arrival of the goods at the freight terminal. , the transportation risk is also borne by the buyer.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Customs Bureaucracies, Storage, Shipping expenses, Stowage
seller
Inspection, expertise Expertise
seller and buyer
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
seller
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading Download
seller
Handling, Storage, Customs bureaucracies, Import duties, Transport within the country of destination, Insurance in the country of destination, Unloading of goods
buyer
DDP (any shipping method) Delivered Duty Paid
Delivery after duty paid (delivery after duty paid) is one of the most complete responsibilities and obligations in international trade. It stipulates that the seller delivers the goods to the buyer and handles import customs clearance at the designated destination. INCOTERM establishes the highest level of commitment for the seller , the seller bears all risks and expenses associated with the transportation and delivery of the goods. Specifies the place of destination. This term should not be used when the seller is unable, directly or indirectly, to obtain the documents required to import the goods.
Division of responsibilities
Country of origin (country of seller) In the country of origin (seller's country)
Packaging, Identification, Origin load, Transport within the country of origin, Home country insurance, Export Rights, Inspection, Expertise, Customs Bureaucracies, Storage, Shipping expenses, Stowage
seller
between country of origin and country of destination Between the country of origin and the country of destination
Transport Transport, International insurance International insurance
seller
In the destination country (buyer’s country) In the destination country (buyer's country)
Unloading Download, Handling, Storage Customs bureaucracies, Import duties Import duties, Transport within the country of destination, Insurance in the country of destination
seller
Unloading of goods
buyer
Term applicable to Any Mode of Transport
EXW
FCA
CPT
CIP
DAT
DAP
DDP
Terminology applicable to Sea and Inland Waterway Transport Only
FAS
FOB
CFR
CIF
Information on safety approvals and the requirements for such approvals
Terminal handling charges
According to the "C" group of terms, the seller must be responsible for transporting the goods to the agreed destination: ostensibly the seller is responsible for the transportation costs, but in fact it is borne by the buyer because the seller has already included this part of the cost in the original price of the goods. Shipping costs sometimes include charges for loading, unloading and moving goods within a port, or container terminal facility fees, and the carrier or terminal operator may also charge these fees to the buyer accepting the goods. For example, in these cases, the buyer should be careful not to pay twice for a service, once included in the price of the goods to the seller, and once separately to the carrier or terminal operator. The 2022 General Regulations have detailed provisions on the allocation of this fee in the relevant terms A6/B6, aiming to avoid the above situation.
series sales
In the sale of goods, there is a sales method that is opposite to direct sales. Goods are frequently sold several times during the process of running along the sales chain. In this case, the seller in the middle of the chain does not "ship" the goods because they have already been shipped by the seller at the beginning of the chain. Therefore, the obligation of an intermediary seller in a series of sales to its buyer is not to ship the goods, but to "try to obtain" the goods that have been shipped. Focusing on the application of trade terms in such sales, the relevant terms of the 2022 General Regulations also stipulate the obligation to "try to obtain the goods that have been shipped" and to ship the goods.
carrier
Refers to the party who signs the transportation contract.
Export customs clearance
Comply with various regulations to handle export procedures and pay various taxes and fees.
delivery
Indicates the point at which the risk of defective goods passes from the seller to the buyer.
digital data
A series of information consisting of one or more electronic messages that are equivalent to corresponding paper documents
‘Packaging’ and ‘Storage’
Packaging of goods in compliance with all requirements in the contract
Packaging that makes goods suitable for transportation.
Packaged goods are transferred to containers or other means of transportation
The 2022 General Regulations do not involve who bears the obligation to load goods in containers. Therefore, the relevant parties should clearly stipulate this in the contract.
AGRIDERIA INDUSTRIAL LLC TRADE PROCEDURE
The buyer issues a complete LOI or ICPO on behalf of the supplier after agreeing to the transaction price and terms.
The Seller shall issue a Complete Company Offer (FCO) to the Buyer for signature and return to the Seller.
Buyer shall issue an Irrevocable Corporate Purchase Order (ICPO) to Seller.
The seller should issue a draft Sales and Purchase Agreement (SPA) to the buyer to sign with the company seal and return it to the seller. The seller should duly sign the sales and purchase agreement (SPA) with the company seal and send it to the buyer. It should be operable signed and stamped by the buyer and seller.
After submitting the signed contract with the bank, the buyer's bank shall issue an irrevocable divisible transferable DLC or demand SBLC to the seller's bank via SWIFT within five (5) banking days. MT700 or MT760 100% cash-backed, fully funded Operation of Letter of Credit Executing Sales and Purchase Agreement (SPA)
After the seller's bank receives the confirmed letter of credit, the bank notifies the seller that the bank will issue a 2% performance bond (PB) on behalf of the buyer for the first batch of goods within 7 to 10 days and start shipping. The seller's bank receives the letter of credit confirmation. The product will be shipped to the loading port within twenty (20) days for loading on the chartered vessel.
At the loading port, the buyer must complete cargo inspection by SGS (General Administration of Social Inspection) and CCIC. The parties irrevocably agree that SGS or Bureau Veritas is the officially authorized inspection agency and that its documented rules shall have final effect in this contract. Invite the buyer to visit the product at the loading port, or send your own inspection team to participate in the SGS inspection at the loading port at the buyer's expense. Once the inspection is completed and all shipping documents have been issued, the shipping document package will be sent to the seller's bank, which will forward it to the buyer's bank, who will process the payment and forward it to the seller's bank. Once payment has been received by the Seller, original shipping documents or equivalent documents for customs clearance will be sent to the Buyer via DHL.
The Buyer and Seller shall simultaneously sign and stamp four (4) original hard copies of the Sale and Purchase Agreement (SPA) with their company seals in a PDF format acceptable to both Buyer and Seller as the legally binding hard copy originals of the SPA. . The Seller shall distribute four (4) original hard copies of the signed Sale and Purchase Agreement (SPA) and the Seller shall provide one hard copy to the Seller's bank and the Seller shall retain one copy. The original hard copy in PDF format with company seal shall replace the draft copy of the Sale and Purchase Agreement (SPA) and shall become a legally binding document acceptable to the parties and their banks. Once full payment for the goods is received, a complete set of original documents will be sent to the buyer or his nominated bank to enable the goods to clear customs in the country of arrival, or if required, original documents will be sent from the seller's bank to the buyer's bank.
other
Sending confidential documents (such as submissions, contracts with suppliers and other purchasing companies) is extremely illegal under the international and national laws governing AGRIDERIA INDUSTRIAL LLC and causes us to violate the International Articles of Commerce of the International Chamber of Commerce. (OOO).
In the case of a contract, requirements for different procedures, such as requesting documents, visiting factories, warehouses and producers, and what is not negotiated between the buyer and seller will be considered speculative and beyond what has been agreed and signed May result in order cancellation agreement.
Never send physical samples
No photos or videos will be sent to avoid interfering with the privacy and identity of our vendors.
All payments must be made at the port of loading, payments at the port of destination are not accepted.
All inspections by SGS/CCIC-CIQ must be performed at the loading port. The SGS report at the shipping port is the only reference
AGRIDERIA INDUSTRIAL LLC will not conduct any inspection at the destination port after payment is made.
All procedures must be followed before negotiations can proceed.