Trade termsThere are 13 kinds of trade terms of INTERNATIONAL COMMERCIAL TERMS (INCOTERMS), but we usually take 4 kinds from them as bellow:

EXW-Ex Works

“Ex works” means that the seller fulfils the obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse, etc) to the buyer. In particular, he is not responsible for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination. This term thus represents the minimum obligation for the seller. In the other way it identifies that the price for the products are most competitive.

FOB-Free on Board-(named port of shipment)

“Free on Board” means that the seller fulfils his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point.The FOB term requires the seller to clear the goods for export.

CFR-Cost and Freight

“Cost and Freight” means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel is transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment.The CFR term requires the seller to clear the goods for export.

CIF-Cost, Insurance and Freight

“Cost, Insurance and Freight” means that the seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.The buyer should note that under the CIF term the seller is only required to obtain insurance on minimum coverage.The CIF term requires the seller to clear the goods for export.

Above terms are usually used for higher order volume, for sample order or small cargo, we can also take the way of Express or Air shipment, if by express service that means door to door service, if by Air shipment, we usually take responsibility to handle the shipment from our factory to your destination airport, we will make the export docs and then you only have to do is to clear your cargo from your import customs.