How to understand and choose suitable Incoterms

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I am Nancy whom from Chinese the greatest and most professional manufacturer which producing led neon signs.
More and more businessmen like to do import & export businesses because of all kinds of factors. Special is COVID is coming , the international trade business is the most important recently . They will meet too much incoterms as buyer and seller, such as EXW , FOB , CIF, DDP, DAP …etc. They can have some contradictions during cooperation , because they have no understand these incoterms deeply between buyer and seller . what is more ,they terminate cooperation because of these contradictions. How to understand and choose suitable incoterms ? At first , let me shown one picture to everybody.

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You will know their different definitions after you see the above form. Today, I would like to introduce 5 kinds basis incoterms to you . EXW, FOB, CIF , DDP and DAP
The first is EXW, its meaning is that EX works (named place) . it means that buyer need to find someone to pick up cargoes at seller’s warehouse. The product price quoted in EXW term is just the product cost , and seller didn’t offer any shipping or exporting service .
The second is FOB . FOB is short for Free On Broad. Seller should paid all the cost of deliver goods to a seaport or seaport in China.and also pays the exporting cost. buyer only need to find own freight forwarders to pick up cargoes at the port.
The third is CIF . The CIF term means that seller will find a freight forwarder by himself and pays all the cost from his warehouse in China to a seaport or airport in buyer country.
The fifth is DDP and DAP, the seller will find a freight forwarder and pays all the cost to deliver to buyer. The only difference between these two terms are weather the seller needs to pay the import duty .
Sure, Welcome to check these contents in picture 2 if you would like to know more knowledges.

Post time: Aug-25-2022