Summary of Foreign Trade Terms

（1） The term 'EXW' in English is' EX Works (... named place) ', which means' EXW (... named place)'.

It refers to the seller's responsibility to deliver the prepared goods to the buyer at their location, such as workshops, factories, warehouses, etc., but usually not responsible for loading the goods onto the vehicle prepared by the buyer or handling customs clearance of the goods. The buyer shall bear all costs and risks of transporting the goods from the seller's location to the expected destination.

（2） The term 'Free Carrier (... named place)' in English means' Free Carrier (... named place) ', which means' Free Carrier (... named place)'.

It refers to the responsibility of the seller to deliver the goods they have handed over to the buyer's designated carrier for care at the designated location after customs clearance. According to commercial practice, when the seller is required to cooperate with the carrier by signing a contract, and the buyer bears the risk and cost, the seller can proceed accordingly. This term applies to any mode of transportation.

（3） The term 'Free Alongside Ship (... named port of shipment)' in English means' Free Alongside Ship (... named port of shipment) '.

It refers to the seller delivering the goods to the ship's side at the designated loading port dock or barge. From then on, the buyer must bear all costs and risks of loss or damage to the goods, and in addition, the buyer must handle export customs clearance procedures. This term applies to sea or inland waterway transportation.

（4） The term "Free on Board (... named port of shipment)" means "Free on Board (... named port of shipment)" in English.

It refers to the seller delivering the goods over the ship's rail at the designated loading port, and the buyer must bear all the costs, risks, loss or damage of the goods after the goods pass the ship's rail. In addition, the seller is required to handle the export customs clearance procedures for the goods. This term applies to sea or inland waterway transportation.

（5） The term 'Cost and Freight (CFR or C&F)' in English is' Cost and Freight (named port of shipment) ', which means' Cost and Freight (... designated destination port)'.

It refers to the seller having to pay the expenses and freight required to transport the goods to the designated destination port. However, after the goods are delivered to the deck of the ship, the risks, loss or damage to the goods, as well as additional expenses caused by accidents, are borne by the seller to the buyer after the goods cross the ship's rail at the designated port. In addition, the seller is required to handle the export customs clearance procedures for the goods. This term applies to sea or inland waterway transportation.

（6） The term "Cost, Insurance and Freight (... named port of shipment)" in English means "Cost, Insurance and Freight (... named port of shipment)".

It refers to the seller having the same obligation as the term "cost and freight", and also having to purchase marine insurance for the loss or damage of the goods during transportation that should be borne by the buyer and pay the insurance premium. This term applies to sea or inland waterway transportation.

（7） Carriage Paid to (... named place of destination)

This term refers to the seller's payment of the freight for transporting the goods to the designated destination. The risk of loss or damage to the goods and any additional costs incurred after the goods are delivered to the carrier shall be borne by the buyer from the time the goods have been delivered to the carrier for care. In addition, the seller must handle the customs clearance procedures for the export of the goods. This term applies to various modes of transportation, including multimodal transportation.

（8） The term 'Carriage and Insurance Paid to (... named place of destination)' in English means' Carriage and Insurance Paid to (... named place of destination) '.

It refers to the seller having the same obligation as the term "freight paid to (designated destination)", and also having to purchase marine insurance and pay insurance premiums for the risk of loss or damage to the goods that should be borne by the buyer during transportation. This term applies to any mode of transportation.

（9） The English name for the term 'Delivered at Frontier (... named place)' refers to 'Delivered at Frontier (... named place)'.

It refers to the seller's obligation to transport the prepared goods to a designated location on the border, handle export customs clearance procedures, and deliver the goods before the customs border of adjacent countries. This term mainly applies to goods transported by railway or road, and can also be used for other modes of transportation.

（10） The English version of the term 'Delivered Ex Ship (... named port of destination)' means' Delivered Ex Ship (... named port of destination) '.

It refers to the seller's obligation to deliver the prepared goods to the buyer on the deck of the designated destination port without handling the import customs clearance procedures. Therefore, the seller must bear all costs and risks including transporting the goods to the designated destination port. This term only applies to sea or inland waterway transportation.

（11） The English version of the term 'Delivered Ex Quay (Duty Paid) (... named port of destination)' means' Delivered Ex Quay (Duty Paid) (... named port of destination) '.

This term refers to the seller's obligation to deliver the prepared goods to the buyer at the designated port of destination after customs clearance, and the seller shall bear all risks and expenses, including customs duties, taxes, and other expenses incurred during delivery. This term applies to sea or inland waterway transportation.

（12） The English term for DDU is "Delivered Duty Unpaid (... named place of destination)", which means "Delivered Duty Unpaid (... named place of destination)".

It refers to the seller delivering the prepared goods at the designated location in the importing country, and bearing all costs and risks of transporting the goods to the designated location (excluding customs duties, taxes, and other official fees payable at the time of import), as well as the costs and risks of handling customs procedures. The buyer shall bear the additional costs and risks incurred due to the failure to handle the import customs clearance of the goods in a timely manner. This term applies to various modes of transportation.

（13） Delivered Duty Paid (... named place of destination) "is the English term for" Delivered Duty Paid (... named place of destination) ", which means" Delivered Duty Paid (... named place of destination) ".

It refers to the seller delivering the prepared goods at the designated location in the importing country, bearing all costs and risks of transporting the goods to the designated location, and handling import customs clearance. This term can be applied to various modes of transportation.

（14） The English term for letter of credit (L/C) is "Letter of Credit", which means letter of credit.

The importer issues a letter of credit to the exporter. After the exporter presents the document to the importer's bank, the importer will first settle the payment to the exporter, which is fair to both parties, but it is not safe for a few rogue state. The handling fee required for letter of credit is higher than that for other transaction methods.

（15） The English term for telegraphic transfer (T/T) is "Telegraphic Transfer", which means wire transfer.

There are two types of pre shipment and post shipment, and pre shipment telegraphic transfer is of course cost-effective for exporters, and vice versa.

（16） The English term for D/A is "Documents against payment", which means payment redemption order.

After the exporter ships the goods, they obtain the bill of lading from the freight forwarder, and then submit the complete set of documents to the bank. The bank commissioned by the exporter reviews the documents and sends the complete set of documents to the importer's commissioned bank. The importer's commissioned bank will notify the importer to make payment. Only after the importer pays the full payment to the importer's commissioned bank can they receive the documents for customs clearance. This payment method is quite common, but I'm afraid the importer and its bank may be too familiar, so I'll either take the order first and make the payment or not make the payment.

（17） Bill of Lading (B/L) is the main document used by importers to pick up goods.