Supply

Supply

DAF stands for Delivered at the Border. This term is used in international trade, as delivered to the border, to describe who bears the risks and costs of transporting goods in international transactions. There are a variety of terms for various methods of transportation. Delivered to the border is most often used when using land transport, such as truck or train, to deliver the goods.

It is important to understand that its exact definition is very complicated and differs by country. It is advisable to contact an international trade lawyer before using a trade term.

DDC means delivery charges at destination.

CPT stands for carriage paid to. The seller delivers the goods to a carrier or other person designated by the seller, at a location mutually agreed upon between the buyer and the seller, and the seller pays the transport costs to transport the goods to the specified destination. The risk of damage or loss of the transported goods passes from the seller to the buyer as soon as the goods have been delivered to the carrier. The seller is only responsible for organizing the freight to the destination and not for ensuring the shipment of the goods during transport.

If using D / P as a means of payment, the exporter ships the goods and then hands over the documents (including the bill of lading needed to claim the goods at the foreign port) to their bank, which will forward them to a bank in the store of the buyer. country, as well as instructions on how to collect the money from the buyer. When the foreign bank receives the documents, they will contact the buyer and will not provide the documents to the buyer until the buyer pays. And the risk is mainly on the seller’s side

The supplier named CIF will pay “the cost of the product + the insurance costs + the transport costs (sea or air freight)”

FOB means free on board that the supplier will have to pay “cost of the product + internal delivery costs”, no insurance and transport costs higher than CIF.

Cost, Insurance and Freight (CIF) and Free on Board (FOB) are international shipping agreements used in the transport of goods between a buyer and a seller. The specific definitions are different for each country, but CIF and FOB have similar uses. They differ as to who takes responsibility for the goods during transit. Both contracts specify the origin and destination information that is used to determine where liability officially begins and ends.

In CIF agreements, insurance and other charges are borne by the seller, with the responsibility and costs associated with successful transit being paid by the seller until the goods are received by the buyer. The goods are not considered delivered until they are in the possession of the buyer.

FOB contracts release the seller from liability once the goods have been dispatched. Once the goods have passed the rail of the ship, they are considered delivered under the buyer’s control. When shipment to the buyer begins, then the buyer assumes all responsibility.

MOQ is the abbreviation for Minimum Order Quantity which refers to the minimum quantity that a supplier agrees to sell to their customer in a single order.

Some suppliers will list the MOQ of the product directly and some will not. It is kindly advised that you

The unit price is the unit price of the product. It is always determined by the quantity you purchased and set by your supplier.

ODM stands for Original Design Manufacturing, and OEM stands for Original Equipment Manufacturing.
An OEM company is responsible for designing and building a product to its own specifications and then selling the product to another company or company, which is responsible for its distribution. An ODM company or company is responsible for designing and building a product to the specifications of another company.

FOB stands for Free on Board or Freight on Board. FOB specifies which party (buyer or seller) pays the shipping and loading costs, and / or where responsibility for the goods transfers. The buyer assumes the risks, including payment of all costs of transport and insurance once delivered on board the vessel by the seller. It is used for sea or river transport.

Joint venture is a type of business partnership involving joint management and sharing of risks and rewards between companies sometimes based in different countries.

The metric ton, known as cargo ton or freight ton, is a measure of space, usually 40 cubic feet or one cubic meter.

ISO 9000 is a series of voluntary international quality standards.

What is ISO 9000? A Consular Invoice – A document required by some countries describing a shipment of goods and showing information such as the sender, recipient, and value of the shipment. Certified by a consular official, a consular invoice is used by customs officials across the country to verify the value, quantity and nature of the shipment.

Particular average (PA) means partial loss or damage to the goods.

Customs clearance work involves preparing and submitting the necessary documents to facilitate export or import into the country, representing the customer during customs examination, valuation, payment of duty and receipt of cargo after customs clearance with documents.

The customs clearance process

  1. The customs officer will review the documents relating to your shipment.
    Some of the documents involved in customs clearance are:
    Export documents:buyer’s purchase order, sales invoice, packing list, shipping invoice, bill of lading or air waybill, certificate of origin and any other specific documentation specified by the buyer, or as required by financial institutions or LC conditions or according to the regulations of the importing country.
    Import documents: voucherbuyer’s order, supplier’s sales invoice, bill of lading, bill of lading or air waybill, packing list, certificate of origin and any other specific documentation required by the buyer, financial institution or regulatory importing country.
  2. The customs officer will see if any taxes and duties apply to your shipment.
    This will depend on the type of goods, their value and the laws of the importing country. If it is determined that the value of the goods is greater than the tax threshold, the agent will check whether these taxes and duties have been paid.
  3. Customs will request payment of taxes and duties, if they have not been paid.
  4. Once it is confirmed that the unpaid taxes and duties have been paid, the shipment is released and continues to its final destination.

An import license is a certificate issued by countries with import controls that authorizes the importation of the items mentioned in the license and often authorizes and releases funds for payment for the import.

FAS is the abbreviation for Free Alongside Ship. The risk of shipping passes to the buyer, including payment of all freight and insurance costs, once the order has been delivered alongside the ship (realistically to a designated port terminal) by the supplier. The obligation for export customs clearance rests with the supplier.

At the beginning there are two parts that we should notice:
1. The collection bank
2. The importer

D / P means document against payment.
The collecting bank will forward the relevant documents and receipts to the importer until the importer makes their payment.
D / A means document against acceptance .
The collecting bank will forward the relevant documents and receipts to the importer as long as the importer agrees to make the payment by a certain date.

So the difference between the two is the promising date implying that the importer can pay at any time as they wish under D / A which also means that the collecting bank should be at greater risk. Most importantly, the importer is allowed to delay their payment.

Please understand that HEYDEPOT is only a platform for buyers and suppliers. For customs charges, please consult your supplier or the customs authorities directly.