Tag List for trade term

This is the easiest explanation of FOB condition!

Logistics Column

What’s FOB? ・ Terms and conditions of transfer of responsibility on the deck of the ship FOB is one of the International Commercial Terms which is called Incoterms as abbreviation. FOB refers to the terms and conditions under which the responsibility for costs and risks transfers on the deck of a ship staying at the port of export. FOB stands for Free On Board, and in this case “Board” refers to the deck of a ship. So, FOB means, “On the deck of a ship, the exporter is free from the responsibility (the responsibility is transferred to the importer)”. In the shipping documents, the name of the export port is […]

What is CIF? Here is the easiest explanation of CIF and CFR!

Logistics Column

What’s CIF? CIF stands for Cost, Insurance, and Freight. And it usually followed by the name of the destination port / import port specified after. It refers to the conditions under which freight and insurance are prepaid by the exporter. In CIF terms, exporter pay the ocean freight and insurance to the destination port. The insurance required by CIF for sellers (exporters) are defined as the ICC’s tax payment amount (C), which is the minimum coverage. If the buyer (importer) is seeking a wider coverage of insurance terms, they need to be agreed in the contract. Characteristics of CIF ・ In terms of the cost and risk of the shipment, […]

What is DDP and DDU? Here is the easiest explanation of DDP, DDU, and also DAP!

Logistics Column

What is DDP ? ・In DDP, Exporter pay freight and insurance DDP are Initials of “Delivered Duty Paid”. It is one of Incoterms for trading. DDP refer to the term that Exporters pay freight and insurance. It included to Group D in Incoterms. Characteristic of DDP ・DDP requires Exporters maximum work and risk. For Importer, it requires minimum work and risk. DDP is only term that Exporters do import customs procedures For Importer, DDP is the easiest term in Incoterms. In contrast, Exporters have to do a lot of work in DDP. Exporters should cover freight and insurance until the cargo delivered to the designated destination in importing country. Further […]

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