Common transaction methods for international freight

If it is determined in international trade that goods will be exported, the affairs related to the goods can be entrusted to freight forwarders. Firstly, it is necessary to understand several common transaction methods in international freight.

1. FOB price is based on the general public. Foreign customers have designated freight forwarders, and only the sender needs to prepare trailers and customs declaration forms at the port of departure. There are EXW factory prices, with direct delivery from the factory and delivery to the customer's designated location. The customer prepares the customs declaration form, and then the customer extracts the product and delivers it from the factory.

2. The popular understanding of CIF cost plus insurance and freight is door-to-door. Nowadays, insurance is usually not included. If the customer needs to calculate insurance based on the value of the goods, the term CIP only refers to CIF, and CIP is only used for sea transportation, applicable to multiple modes of transportation, including multimodal transport such as air transportation.

3. DDU Double Clearance Unpaid Delivery DDP represents double clearance and delivery. The popular understanding is that the one-stop dual customs service for visitors includes departure port trailer+customs declaration+delivery+customs. The delivery of goods mainly depends on the customer's needs. Since taxation is based on the value of goods, DDP must provide the value of the goods.