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Case Explanation of EXW
2025-04-27
EXW is the trade term with the seller liability, focusing on “factory delivery, all subsequent responsibilities to the buyer.” It suits buyers with cross-border logistics capabilities, familiarity with import/export processes, or those wanting direct control over the supply chain (e.g., large importers, cross-border e-commerce self-pickup models).
Case Explanation of FOB
2025-04-25
In an FOB transaction, the seller is mainly responsible for the goods until they pass the ship's rail at the port of shipment, while the buyer takes on most of the responsibilities and risks related to transportation and import. This term is suitable when the buyer has better control over the transportation and insurance aspects and wants to handle these matters directly.
Case Explanation of CIF
2025-04-23
Under CIF, the seller covers freight and insurance from the port of shipment to the port of destination, providing "symbolic delivery" (delivery via documents), but risks transfer to the buyer at the port of shipment. It suits scenarios where the seller is familiar with sea freight and the buyer seeks simplified transport arrangements.
Case Explanation of DDU
2025-04-22
Under DDU, the seller handles "door-to-door" transportation but not import clearance or taxes, while the buyer manages destination customs procedures. Although this term has been replaced by DDP, old contracts or specific scenarios may still require clarity on liability: the seller has heavy logistics responsibilities but light tax liabilities, and vice versa for the buyer.
DDP Case Analysis
2025-04-21
Under DDP, the seller provides a “one-stop service” to deliver goods to the buyer’s designated location, simplifying the buyer’s role but demanding strong logistics and customs capabilities from the seller. It suits scenarios where the seller is dominant or the buyer seeks to minimize import risks. In practice, both parties must clearly define the destination address, tax calculation methods, and liability boundaries to avoid disputes.
How to Calculate EXW Charges?
2025-04-18
Under EXW, seller costs are simple and transparent (only goods and agreed services), while buyers manage all subsequent logistics, clearance, and insurance. Ideal for buyers with mature supply chain capabilities or those wanting full control. Define delivery details, packaging, and extra service fees clearly in contracts to avoid disputes.
How to Calculate FOB Charges?
2025-04-17
In summary, the calculation of FOB costs focuses on the costs incurred by the seller in the exporting country until the goods are delivered on board the vessel. Understanding the components of FOB costs and the responsibilities of each party is crucial for a smooth international trade transaction.
How to Calculate CIFCharges?
2025-04-16
CIF cost calculation centers on seller-covered costs up to the destination port, with risk transferring at shipment. Sellers must accurately estimate goods, domestic, freight, and insurance costs while clarifying unloading fees and documentation in contracts. Ideal for sea/inland waterway transport when buyers want seller-managed logistics, CIF requires clear cost allocation to avoid disputes over destination port and import responsibilities.
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