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Knowledge Of Foreign Trade Must Be Familiar With Freight Forwarding.

2010/12/9 17:10:00 104

FOB CFR Terminology Distortion Foreign Trade Knowledge

FOB


(Free On Board... Named Port of shipment)


Shipment on board means that the seller delivers the goods to the ship nominated by the buyer at the agreed port of shipment.

According to the International Chamber of Commerce

FOB

Explanation:


 

Seller's basic obligations:


 


(1) handle export clearance procedures and bear all costs and risks until the goods are shipped to the port of loading port.


(2) at the agreed time of shipment and the port of shipment, the goods are loaded on the ship designated by the buyer according to the customary rules of the port, and a notice of shipment has been issued to the buyer.


(3) to submit the agreed documents or corresponding electronic information (EDI) to the buyer.


 

Buyer's basic obligations:


(1) hire the ship on time, open the agreed port of shipment, pay the freight, and inform the seller of the name of the vessel and the date of loading.


(2) all risks arising from the cost of goods passing the ship's port and the risk of loss or damage to the goods.


(3) receiving documents or corresponding electronic information according to the contract stipulations and paying the loan.


 

FOB

term

Of

deformation


(1) FOB FOB Liner Terms means that the loading fee is handled according to the liner method, that is, the seller does not bear the loading charge, but it does not mean that the goods sold by the FOB must be shipped by liner. As for the loading fee, who will bear it depends on the Charter conditions adopted by the buyer.


(2) the seller delivers the goods to the hook of the buyer's designated ship only when the goods are delivered under the FOB hook (FOB Under Tackle). The seller will not be liable for the subsequent loading cost.


(3) FOB FOB (Stowed), in order to make the cargo loaded on board loaded properly and reasonably distributed, the cargo should be padded and arranged after shipment, that is, the cabin is to be sold, and the seller must bear the shipping charge.


(4) in order to maintain the pressure balance and navigation safety of the FOB FOB Trimmed cargo, loading and loading the bulk cargo into the cabin must be mobilized and leveled, that is to say, the seller should bear the cost.


 

 

CFR


(Cost and Freight... Named port of destination)


Cost plus freight means that the seller must bear the cost and freight required to deliver the goods to the agreed port of destination, where the cost is equivalent to the FOB price.


  

Seller's basic obligations:


(1) to provide the goods stipulated in the contract, to charter the ship, to book the cargo and to pay the freight, to ship the goods at the port of shipment on time, and to give the buyer sufficient notice of the shipment after shipment.


(2) pact the customs formalities for export, and assume all the risks until the goods arrive at the port of shipment at the port of loading and the cost of delivering the goods to the port at the port of shipment.


(3) to provide relevant documents or corresponding electronic information according to the contract stipulations.


  

Buyer's basic obligations:


(1) assume the risk of loss of or damage to the goods arising from the passing of the ship at the port of shipment and the additional costs arising from the occurrence of the goods after shipment.


(2) receiving goods at the port of destination stipulated in the contract, and importing customs formalities and paying import duties.


(3) accept the documents or corresponding electronic information provided by the seller and pay according to the contract.

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