According to current customs regulations, there are 7 types of transaction method codes:
Code
Transaction method
Core Features
1
CIF
Cost + Insurance + Freight (CIF)
2
C&F
Cost + freight (excluding insurance)
3
FOB
Free on Board (FOB)
4
C&I
Cost + Insurance (excluding freight)
5
Market Price
Market-based pricing mechanism
6
Padding
Ex Godown
7
EXW
Ex Works (minimum seller responsibility)
Introduction to Extended Transaction Methods
Terminology Classification
Term Name (Chinese)
English full name
Abbreviations
Detailed explanation
Group E
Ex works
Ex Works
EXW
The seller delivers the goods to the buyer at its location or other designated place (such as a factory or warehouse), completing the delivery. ● The seller does not handle export customs clearance and does not bear the transportation risk. ● The buyer shall bear all costs and risks of accepting the goods.
Group F
Free Carrier
Free Carrier
FCA
The seller delivers the goods to the carrier designated by the buyer at the designated location and completes delivery after completing export customs clearance.
● The risk is transferred when the goods are handed over to the carrier.
● The buyer is responsible for the subsequent risks and costs of transportation.
Free Alongside Ship
Free Alongside Ship
FAS
The seller delivers the goods to the vessel at the designated port of shipment.
● The buyer bears the risk of loss of or damage to the goods.
● The seller handles export customs clearance.
Free on Board
Free on Board
FOB
The seller loads the goods onto the vessel designated by the buyer at the designated port of shipment, and the risk is transferred when the goods are loaded onto the vessel.
● The buyer is responsible for sending a ship to pick up the goods, and the seller needs to notify in time.
Group C
Cost and freight
Cost and Freight
CFR
The seller pays the freight to the named port of destination and the risk is transferred when the goods are loaded on board the vessel at the port of shipment.
● The seller handles export customs clearance, and the buyer bears the transportation risks and import costs.
CIF
Cost, Insurance and Freight
CIF
The seller pays freight and insurance to the named port of destination, and the risk is transferred when the goods are loaded on board the vessel at the port of shipment.
● Freight insurance is included, and the seller is responsible for chartering the ship and booking the cargo space.
Freight paid to
Carriage Paid to
CPT
The seller pays the freight to the named destination and the risk is transferred when the goods are handed over to the first carrier.
● A variety of transportation methods are available, and the buyer bears the risk after delivery.
Freight and insurance paid to
Carriage and Insurance Paid to
CIP
The seller pays freight and insurance to the named destination, and risk passes when the goods are handed over to the first carrier.
● Includes freight insurance, and the buyer bears the risk after delivery.
Group D
Delivered at designated destination
Delivered at Terminal
DAT
Delivery is completed when the seller delivers the goods at the named destination (port/terminal).
● The seller bears the transportation risks and costs, and the buyer is responsible for import customs clearance.
Delivery at designated location
Delivered at Place
DAP
The seller delivers the goods at the designated destination (without unloading) and bears the transportation risks and costs.
● The buyer is responsible for import customs clearance and taxes.
Delivered Duty Paid
Delivered Duty Paid
DDP
The seller completes import customs clearance at the designated destination and delivers the goods to the buyer.
● The seller bears the greatest responsibility, including taxes, import procedures and transportation risks.
Additional notes:
English full name format:
Capitalize the first letter and follow the official naming rules of Incoterms® 2023 (for example:CIFFull nameCost, Insurance and Freight).
Pay attention to the use of commas and conjunctions in some terms (for example, the full name of CIP contains a comma).
Correspondence between abbreviations and full names:
The abbreviations are all internationally accepted three-letter codes (such as EXW, FOB) to avoid confusion with other domestic codes.
Practical application suggestions:
Use in contractFull name + abbreviation(For example: "FOB Shanghai") to avoid ambiguity.
When filling in the customs declaration form, abbreviations (such as "FOB") must be uniformly used and must be consistent with the requirements of the "Valuation Methods".
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