Frequently Used Trade Terms

Oct 12, 2022 Leave a message

1. DDP

Delivered Duty Paid(… named place ofdestination)。 It means that the seller delivers the prepared goods at the place designated by the importing country, bears all the costs and risks of transporting the goods to the designated place, and handles import customs clearance. This term can be applied to various modes of transportation.

2. FCA

Free Carrier(… named place)。 It refers to that the Seller shall be responsible for delivering the delivered goods to the carrier designated by the Buyer at the designated place for custody after customs clearance. According to commercial practice, when the seller is required to cooperate with the carrier by signing a contract, the seller can do so at the buyer's risk and expense. This term applies to any mode of transport.

3、FAS

Free Alongside ship(… named port of shipment)。 It means that the seller delivers the goods to the ship's side at the wharf or barge of the designated port of shipment. From then on, the buyer must bear all the costs and risks of the loss or damage of the goods. In addition, the buyer must go through export customs clearance procedures. This term is applicable to sea transportation or inland waterway transportation.