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Commonly used international trade terms
Jun 05,2024

### I. Common Foreign Trade Terms
1. **EXW (Ex Works)**: EXW is one of the international trade terms. It means that the seller fulfills the delivery obligation when the goods are made available to the buyer at the seller's premises or another named place (e.g., factory, warehouse). The seller does not clear the goods for export or load them on any transport vehicle. This term represents the minimum obligation for the seller. The buyer bears all costs and risks of taking the goods from the seller's location. However, if the parties wish the seller to be responsible for loading the goods at the beginning of the shipment and to bear all costs and risks of doing so, this should be clearly stated in the sales contract. If the buyer is unable to directly or indirectly handle the export procedures, the term should not be used, and FCA should be used instead if the seller agrees to load the goods and bear the costs and risks.

2. **FCA (Free Carrier)**: The seller fulfills the delivery obligation by delivering the goods to the carrier nominated by the buyer at the named place and clears the goods for export.

3. **CPT (Carriage Paid To)**: The seller pays for the carriage of the goods to the named destination and clears the goods for export. The buyer assumes all risks and additional costs after the goods have been delivered to the carrier.

4. **CIP (Carriage and Insurance Paid To)**: The seller pays for the carriage and insurance of the goods to the named destination and clears the goods for export. The buyer assumes all risks and additional costs after the goods have been delivered to the carrier.

5. **DAT (Delivered at Terminal)**: The seller delivers the goods, unloaded from the arriving means of transport, at the named terminal at the named port or place of destination. The seller bears all risks and costs associated with bringing the goods to and unloading them at the terminal (excluding import duties).

6. **DAP (Delivered at Place)**: The seller delivers the goods to the buyer at the named place of destination, ready for unloading. The seller bears all risks and costs associated with transporting the goods to the named place.

7. **CFR (Cost and Freight)**: The seller pays the costs and freight to bring the goods to the port of destination. However, the risk is transferred to the buyer once the goods have passed the ship's rail at the port of shipment.

### II. Price Terms
- Freight
- Unit price
- Wharfage
- Total value
- Landing charges
- Amount
- Customs duty
- Net price
- Stamp duty
- Price including commission
- Port dues
- Return commission
- Port of shipment
- Discount/Allowance
- Port of discharge
- Wholesale price
- Port of destination
- Retail price
- Import license
- Spot price
- Export license
- Forward price
- Current price
- World (International) Market price
- FOB (Free on Board)
- C&F (Cost and Freight)
- CIF (Cost, Insurance, and Freight)

### III. International Trade Terms
- Export credit
- Export subsidy
- Dumping
- Exchange dumping
- Special preferences
- Bonded warehouse
- Favorable balance of trade
- Unfavorable balance of trade
- Import quotas
- Free trade zone
- Value of foreign trade
- Value of international trade
- Generalized System of Preferences (GSP)
- Most-Favored-Nation Treatment (MFNT)

### IV. Delivery Terms
- Delivery
- Steamship (S.S)
- Shipment
- Charter (the chartered ship)
- Time of delivery
- Voyage charter
- Time of shipment
- Time charter
- Shipper/Consignor
- Consignee
- Regular shipping liner
- Lighter
- Shipping space
- Tanker
- Clearance of goods
- Cargo receipt
- To take delivery of goods
- Airway bill
- Original B/L
- Optional port
- Optional charges
- Optional charges to be borne by the Buyers
- Shipment during January/January shipment
- Shipment not later than Jan.31st/Shipment on or before Jan.31st
- Shipment during Jan./Feb./Jan./Feb. shipment
- Shipment during...in two lots
- Shipment during...in two equal lots
- In three monthly shipments
- In three equal monthly shipments
- Immediate shipments
- Prompt shipments
- Shipments within 30 days after receipt of L/C
- Partial shipment not allowed/Partial shipment not permitted
- Partial shipment not unacceptable

### V. Business Negotiation and Contract Signing
- Indent
- Book/Booking
- Cable reply
- Firm offer
- Bid/Bidding
- Bid firm
- Counter offer
- Offer
- Offer firm
- Inquiry/Enquiry
- Price indication
- Reply immediately
- Reference price
- Usual practice
- Business negotiation
- Without engagement
- Business discussion
- Subject to reply **
- Subject to reply reaching here **
- Time of validity
- Valid till **
- Purchase contract
- Sales contract
- Purchase confirmation
- Sales confirmation
- General terms and conditions
- Subject to prior sale
- Subject to seller’s confirmation
- Subject to our final confirmation

### VI. Trade Methods
- Auction
- Consignment
- Invitation of tender
- Submission of tender
- Agent
- General agent
- Agency agreement
- Accumulative commission
- Compensation trade (or counter trade)
- Processing on giving materials
- Assembling on provided parts
- Exclusive right
- Exclusivity agreement
- Sole agency/Sole agent/Exclusive agency/Exclusive agent

### VII. Quality Terms
- Quality
- Original sample
- Specifications
- Duplicate sample
- Description
- Countersample
- Standard type
- Reference sample
- Catalogue
- Sealed sample
- Pamphlet
- Tolerance
- Article No.
- Assortment
- Sample
- 5% plus or minus
- Representative sample
- Fair average quality (FAQ)

These terms and concepts form the foundation of international trade, and familiarity with them is crucial for effective cross-border trade.

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