Enterprises or individuals who want to engage in foreign trade must pay attention to the real-time exchange rate and leave themselves a conversion space。And should be indicated in the quotation table, if the exchange rate fluctuation is too large, "float more than 2%" need to re-quote, and indicate the time limit。Here is some relevant knowledge。
One is the price clause。
At present, the most commonly used price terms in international trade are FOB, CFR, CIF, EXW four pricing methods。
FOB (Free on board)
That's FreeOnBoard, also known as FOB。In FOB transaction, the buyer will appoint a freight forwarder or shipping company to transport the goods, and the seller only needs to deliver the goods to the ship within the specified time and inform the buyer in time。The risk shall pass from the seller to the buyer upon shipment。
CFR Freight Charges
After loading the goods, the seller still needs to bear the expenses for transporting the goods to the port of destination, which CostandFreight company still needs to bear。However, the risk is transferred upon delivery on board at the port of shipment。
CIF(Fees, insurance and freight)
CostInsuranceandFreight(namedportofdestination)，After the seller has shipped the goods to the ship，In addition to assuming the same obligations as the CFR，Also handle freight insurance and pay insurance premium，According to international trade practice，CIF insured by seller plus 10%。
EXW (ex Works)
EXWorks means that delivery is completed after the seller delivers the goods to the buyer at the location of the product (such as a factory or warehouse), and the seller is not responsible for the transportation of the goods and does not perform export procedures。This approach minimizes the seller's liability。
These FOB are the most commonly used payment methods for goods delivery by businesses or individuals in international trade。
Payment method。
There are usually L/C,T/T,D/P and D/A。
L/C: Payment by letter of credit is a payment method that relies on bank credit. After delivery, the documents will be delivered to the bank, so that the documents are consistent, the issuing bank can be required to pay. In order to obtain the documents, the purchaser needs to pay the issuing bank。
Collection: that is, telegraphic transfer, the buyer and the seller settle the payment by bank transfer. Generally, we will pay 30% of the collection fee as required by the customer, and the remaining 70% will be paid before delivery。
D/P: i.e. collection, the bank collects the payment from the buyer on your behalf, then gives the documents to the bank, and the bank requires the buyer to pay。
D/A: Documents against acceptance, the exporter's bank delivers the documents to the importer's bank, the customer only needs to accept the exporter's documents, get the original documents, and then pay after maturity。
In these aspects, L/C belongs to the bank credit, pay attention to the credit of the issuing bank;T/T, D/P and D/A are all commercial credits, and should pay attention to their credibility。