Common trade terms and customs declaration differences for international shipmentsIn international trade, if it is determined that the goods are to be exported, you can hand over the relevant matters of freight to the freight forwarder, and you must first understand several common ways of international freight. 1. FOB FOB FOB price on board In layman's terms, foreign customers have designated freight forwarders, and only the shipper needs to arrange the trailer and customs declaration at the port of departure. There are also EXW ex-factory prices directly delivered in the factory or the customer's designated place delivery, the trailer customs declaration is arranged by the customer, the customer picks up the goods by himself, and the factory delivery can be. 2. CIF cost plus insurance and freight The popular understanding is that the door to the port (including the port of departure trailer + customs declaration + sea freight) is now generally said not to be insurance, the customer requires to buy insurance according to the value of the goods, you can also use the term CIP is just CIF is generally only used in sea transportation, CIP is suitable for various modes of transport including multimodal transport, such as air transport. 3. DDU Shuangqing unpaid delivery DDP is Shuangqing after tax delivery (tax included) popular understanding is door to door, often said Shuangqing one-stop including port trailer + customs declaration + sea freight + destination port customs clearance, whether you need to deliver to the door mainly depends on the needs of customers. It is important to note that DDP must provide the value of the goods, as the tax is paid according to the value of the goods. Therefore, when inquiring from the freight forwarder, it is best to explain that it is FOB/CIF/DDU/DDP, etc. If it is FOB, you need to provide: goods name/container type/quantity/weight/loading address/port of departure/purchase order or document. Of course, it may also be bulk cargo, and you don't need to provide the type of container, you only need to provide the quantity: a few squares. The difference between paying for customs declaration and document customs declaration: Only the enterprise/factory with the right to export has the document, and the document declaration needs to provide a complete set of customs declaration information to the freight forwarder/customs broker. The state encourages exports, and tax rebates are provided to enterprises with export rights. Therefore, enterprises with documents and customs declarations can mainly apply for tax refunds, and the specific amount of refund depends on the corresponding national policies of the goods. Paying for customs declaration refers to enterprises that do not have the right to export and use other people's documents for customs declaration, so they do not need to provide documents for customs declaration. Of course, there is no right to a tax refund. Beijing World Enterprise United Company has been focusing on training in the field of foreign trade for 12 years, and the company's service tenet is: "focus on actual combat, professional leading" training concept. In August 2019, three foreign trade topic trainings were arranged in August 16-17, August 22-24 in Beijing, and August 30-31 in Shanghai, respectively. CIF needs to provide: cargo name/container type/quantity/weight/loading address/port of departure/purchase order or document, and DDU/DDP at the port of destination needs to be based on the specific requirements of customers, on the basis of CIF information, it may be necessary to provide the value of the goods/detailed address of the destination/consignee information, etc. When the freight forwarder receives the above information, it will give the consignor (customer) a quotation to confirm the quotation and receive the order, which generally requires the customer to provide the following: packing list/provide a manifest for the customer to fill in the information and confirm with the customer (including packing list information/shipping schedule, etc.) Take CIF as an example: the freight forwarder books with the shipping company to arrange a trailer (listing the cabinet number, license plate number, driver and contact number) and other shipping companies to issue SO (booking list/bill of lading), the bill of lading to the trailer driver, the driver takes the bill of lading to the yard to make a single, after the order, he will get an "equipment handover order" (in duplicate) and a sealed driver to take the information to the designated yard to pick up the empty container, and then go to the factory to load, after the factory loads the goods, seal the box with a lead seal (generally take pictures for evidence) and then pull the sealed container back to the wharf. After the container arrives at the yard, the yard arrives according to the pre-allocated manifest provided by the freight forwarder, and after the "pre-allocated manifest" and "arrival information", the customs broker can declare the customs, and it is usually best to leave two days for the customs declaration (before the ship cuts off). After customs clearance, the shipping company issues a bill of lading according to the cargo carrier, and the general process of settlement costs is like this, and other matters depend on the specific situation, and the customer can pick up the container after the goods arrive at the port, customs clearance, etc. The most common transaction methods are: EXW, FOB, CFR, CIF [EXW]: EXW (Ex Works), which means "factory delivery" in Chinese, means that when the seller hands over the goods to the buyer at the disposal of the buyer at its location or other designated place (such as a factory, factory or warehouse), the delivery is completed, and the seller does not go through export customs clearance procedures or load the goods on any means of transport. [Note]: Under this trade mode, the seller generally cannot obtain the export goods transport documents. In the column of the transaction method of the customs declaration, the customs will generally print it as "FOB". [FOB]: FOB (Free On Board), which means "free on board price" in Chinese, also known as "FOB price", refers to the transaction carried out at the FOB price, the buyer is responsible for sending the ship to pick up the goods, and the seller shall load the goods on the ship designated by the buyer within the port of shipment and the specified time limit specified in the contract, and notify the buyer in time. [CFR(C&F)]: CFR (Cost and Freight), which means "cost and freight" in Chinese, refers to the delivery of goods on board the ship at the port of shipment, and the seller needs to pay the cost of transporting the goods to the specified destination port. [CIF]: CIF (Cost, Insurance and Freight) means "cost plus insurance plus freight" in Chinese, according to this term, the constituent factors of the price include the usual freight from the port of shipment to the agreed port of destination and the agreed insurance premium, so the seller has the same obligations as CFR terms, but also for the buyer to apply for freight insurance and pay insurance premiums. Summary: The risk transfer under the transaction methods of FOB, CFR and CIF is bounded by the side of the ship at the port of shipment, and CFR (C&F) usually refers to FOB + freight, and CIF usually refers to FOB + freight + insurance. The difference between the four transaction methods: |