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What is international trade?
International trade is the fair and deliberate exchange of goods and services across national boundaries.
international trade VS. foreign trade
International trade
generally refers to the exchange of goods and services among different countries. It is the aggregate of the import and export of all the nations.
Foreign trade
refers to the exchange of goods and services of one country (region) with another country (region). It comprises two parts - import and export.
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Responsibilities and expenses
Responsibilities include:
Carrying out customs formalities for the goods
Obtaining the import or export license
Chartering a ship or booking shipping space
Making insurance
Asking for inspection
Expenses comprise:
Freight
Loading and unloading expenses
Insurance premium
Warehouse charges
Duties and taxes
Miscellaneous expenses
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FOB: Free on Board (…named port of shipment)
The seller’s obligations
Provision of goods in conformity with the contract
Export licenses, official documents and customs formalities
Delivery
Proof of delivery
Costs and risks before the goods’ passing the ship’s rail
Notice to the buyer
The buyer’s obligations
Payment for goods
Import licenses, official documents and customs formalities
Contract of carriage and insurance
Taking delivery
Transport document or equivalent electronic message
Risks and costs after the goods’ passing the ship’s rail
FOB Liner Terms
FOB Under Tackle
FOB Stowed
FOB Trimmed
FOB Stowed and Trimmed
CIF: Cost, Insurance and Freight (…named port of destination)
The seller’s obligations
Provision of goods in conformity with the contract
Export licenses, official documents and customs formalities
Contract of carriage and insurance
Delivery
Risks before the goods’ passing the ship’s rail
Notice to the buyer
Proof of delivery, transport document or equivalent electronic message
The buyer’s obligations
Payment for goods
Import licenses, official documents and customs formalities
Taking
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