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Magical function of trade terms to reduce costs
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When the export products of industrial enterprises, clever choice trading terms willbe able to reduce liability and cost saving.
Export the goods, exporters shifting to CIF or CIP deal. This is because, in the CIF condition, three involved in the international sale of goods contracts (sales contracts, contracts of carriage and insurance contracts) by the selleras his client, he canarrange stock according to the circumstances, shipping, insurance and other matters, and guarantee that the process connection. As a last resort the FOB conditionsupon completion, the buyer sent the ship to the port of loading time should be clearly defined in the contract, so as to avoid seller's goods have been prepared, shipping delays, delay shipment happens.
FOB, CFR and CIF terms only for maritime transport and inland waterway transport,and does not apply to air, rail and road transport. As buyers and sellers intendingto use the air, rail and road transport, FCA, CPT and CIP term should be used. In our country, with the expansion of container and multimodal transport developmentand to adapt to this trend, you can expand the use of FCA, CPT and CIP-terms.
In addition, the varying transport requirements, also varied the size of freight costs. Some goods of lesser value, but freight accounts for a large proportion of theprice, for this type of goods, exports FOB terms should be used. The size of the volume, and issues related to ease of transport arrangements and economic accounting, therefore, also taking into account the choice of trade terms.
Ports of loading and unloading conditions, different States, charges are also diverse, port handling habits also differ. Poor conditions of loading and unloading, loading and unloading costs higher and Customs shall be borne by the buyer on shipment fees, port of landing charges for the seller, enterprises in the export CIF or CFR Exship'sh01d Exship'sh 01d trade terms should be used.
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