Familiarity with common business terms
Familiarity with common business terms and domestic requirements
The chain of executive work in foreign trade includes various and at the same time interconnected matters that foreign trade managers and businessmen and all persons and companies that deal with the import and export of goods necessarily know and use it.
They are not unnecessary and, of course, knowledge of the information required in foreign trade is essential for them.
This booklet has been prepared with the aim of providing the most important information, regulations and various issues in foreign trade and contains information, concepts and key words in foreign trade executive issues. Which is hoped to be exploited by esteemed colleagues and the business community of the country.
1- INCOTERMS or international trade conditions:
In the 1930s, the International Chamber of Commerce (ICC) conducted a study of the interpretation of trade terms and laid down the rules for the uniform interpretation of international trade terms in 1936, known as the Incoterms. Incoterms, which includes international trade terms, actually determine the rules between a buyer and a seller in commercial transactions, the latest of which is Incoterms 2000, which has been published.
Incoterms 2000 is classified into four main groups:
1 Group E
In this group, only one word EXW means delivery of goods at the point of departure is used. (The point of departure may be the workplace, warehouse, factory, farm, or any other agreed location.) The seller does nothing but deliver the goods to the buyer at the designated location.
2. groups F
which has three words: FAS: Goods are delivered by ship and on the dock at the port of loading (origin).
FOB: The goods must be delivered on the deck of the ship and at the origin.
FCA: Delivery of goods to the shipping company at the designated point or location.
in which the seller is responsible for concluding a contract for transportation and payment of freight to the destination and includes the following components:
CFR: The seller accepts responsibility for paying the freight to the designated port of destination.
CPT: Delivery of goods by rent or any type of vehicle to the specified location at the destination. CIF: In addition to freight, the seller is responsible for concluding the insurance contract and paying for it up to the specified location at the destination.
CIP: Delivery of goods is done by freight and insurance without shipping to the designated place at the destination.
Group D: In this group, the seller has the most responsibility in the transaction, while the buyer has the least responsibility and its components are:
DES: The buyer must clear the goods to enter. (Delivery of goods on the deck of the ship and at the destination) DEQ: Clearance of goods at the destination customs is the responsibility of the buyer.(Delivery of goods at the pier and at the destination)
DAF: Clearance of goods for entry is the responsibility of the seller. (Delivery of goods at the specified border)
DDU: Delivery of goods to the designated place at the destination without clearance and without payment of customs duties.
DDP: Clearance of goods for entry is the responsibility of the seller. (Delivery of goods in the buyer’s warehouse or destination customs and payment of all relevant fees and charges.