Foreign trade terms: what do price $ TERM and EXW mean respectively? Thank you.

The foreign trade terms price $ TERM and EXW refer to price terms and ex-factory price respectively.

1, price $ TERM: price term, which is produced in long-term international trade practice, is used to express the composition of transaction price and delivery conditions, and to determine the division of risks, responsibilities and expenses between buyers and sellers.

Commonly used price terms are:

FOB: English abbreviation for free on board or freight, which means "Free on board at the port of shipment (... named port of shipment). Using this term, the seller is responsible for export customs clearance, delivering the goods to the ship designated by the buyer at the port of shipment stipulated in the contract and within the specified time limit, bearing all risks before the goods cross the ship's rail at the port of shipment, and notifying the buyer in time.

C&F: English abbreviation of "cost plus freight", which means "cost plus freight" in Chinese. Under this term, the seller is responsible for chartering and booking the shipping space according to the usual conditions, paying the freight to the port of destination, loading the goods at the port and within the time limit stipulated in the contract and notifying the buyer in time.

CIF: English abbreviation for "cost insurance and freight", which means "cost insurance and freight" in Chinese. Using this term, the seller is responsible for chartering the ship, booking the shipping space according to the usual conditions, paying the freight to the port of destination, loading the goods at the port of shipment and within the time limit stipulated in the contract, handling the cargo transportation insurance and paying the insurance premium.

CPT: English abbreviation for "freight paid to", which means "freight paid to the designated destination" in Chinese. Using this term, the seller should conclude a transportation contract at his own expense and pay the freight for transporting the goods to the destination. After the goods are cleared for export, the goods shall be handed over to the carrier at the agreed time and the designated place of shipment, and the buyer shall be informed in time.

EXW: English abbreviation for EXWorks, which means "ex works (designated place)" in Chinese. Using this term, the seller is responsible for handing over the goods to the buyer at its location (factory, workshop, warehouse, etc.). ), that is, to fulfill the delivery obligation.

2.EXW: (ex-factory delivery) means that when the seller delivers the goods to the buyer at the buyer's place or other designated places (such as workshops, factories or warehouses), the delivery is completed, and the seller does not go through the export customs clearance procedures or load the goods on any means of transport. This term is the term for which the seller bears the least responsibility.

The buyer must bear all the expenses and risks of receiving the goods at the seller's place. However, if both parties want the seller to be responsible for loading and bear all the costs and risks of loading at the time of shipment, it must be clearly stipulated in the sales contract.

Extended data:

Problems needing attention in using EXW

(1) After the EXW period, the delivery point within the delivery place shall be specified as clearly as possible. If there is no specific delivery point at the designated delivery place and there is more than one delivery point, the seller can choose the delivery point that is most convenient for him.

(2) The seller does not need to load the goods on any means of transport to receive the goods. If it is more convenient for the seller to load, FCA should be used.

(3) When customs clearance is required, the seller does not need to go through the export customs clearance procedures. Only when the buyer makes a request and bears the risks and expenses, the seller has the obligation to assist the buyer in handling the export formalities. Therefore, when the buyer cannot go through the export formalities directly or indirectly, the term should not be used, but FCA should be used.

(4) When the buyer makes a request and bears the risks and expenses, the seller is obliged to provide or assist the buyer to obtain the relevant documents and materials for the import and export of the goods, including safety information. The buyer is only responsible for providing the seller with limited export information of the goods.

Baidu encyclopedia -EXW

Baidu encyclopedia-trade terms