Commonly used foreign trade terms are as follows.
Also known as "FOB", it is one of the common trade terms used in international trade. The buyer is responsible for sending a ship to receive the goods, and the seller shall load the goods on the ship designated by the buyer in the port of shipment and within the period specified in the contract, and notify the buyer in time. The risk is transferred from the seller to the buyer when the goods cross the ship's rail at the time of loading.
This term applies to one or more of any mode of transport and means that delivery of the goods at the named destination is at the seller's disposal when the goods are placed at the disposal of the buyer on the arriving conveyance ready for unloading, and the seller bears all the risks of transporting the goods to the named place. It is advisable for the parties to clearly specify the place within the agreed destination, since all risks to that place are borne by the seller.
Attention Tips ：
(1) DAP is a new term in INCOTERMS 2010, which is designed to replace the terms DAF, DES and DDU in INCONTERMS 2000. In other words, the place of delivery of DAP can be either at the designated place at the border between the two countries, or on board the ship at the port of destination, or at a place inland in the importing country.
(2) The seller delivers at the named destination, but the seller is not responsible for unloading the goods from the arriving means of transport, which is similar to DAF, DES and DDU in INCOTERMS 2000. The buyer is responsible for unloading the goods from the arriving means of transport at the named destination, but the seller ensures that the goods are available for unloading. The seller should pay attention to the coordination of the contract of carriage with the place of delivery related to the contract of sale when signing the contract of carriage. If the seller incurs unloading costs at the named destination in accordance with the contract of carriage, the seller is not entitled to claim reimbursement from the buyer unless the parties agree otherwise.
(3) Since the seller assumes the risk before delivery at the specified place of delivery, the buyer and seller shall clearly specify the delivery address at the specified destination as far as possible, preferably to a specific point within the specified destination. If no specific delivery point is agreed upon or the delivery point cannot be determined, the seller may choose the delivery point at the designated destination that best suits its purpose.
(4) The seller has no obligation to the buyer to conclude an insurance contract, but since the risk of the entire transportation process is to be borne by the seller, the seller usually hedges the risk of transportation of goods by taking out insurance.
(5) If the buyer and seller wish to have the seller handle the permits or other official authorizations required for importation, as well as all customs formalities required for the importation of the goods, including the payment of all import duties, the DDP term should be used.
