Detailed explanation of cross-border e-commerce inquiry and transaction terms

As a new form of international trade, cross-border e-commerce has developed rapidly around the world in recent years. It not only promotes global economic integration, but also provides more market opportunities for small and medium-sized enterprises. However, for businesses and individuals who are new to cross-border e-commerce, it is crucial to understand the relevant professional terms. This article will introduce in detail some commonly used cross-border e-commerce terms to help readers better understand and participate in cross-border e-commerce business.

Trading terms and delivery conditions

1. Free Alongside Ship (FAS)

The seller delivers the goods to the shipside at the designated port of shipment dock or on a barge. From then on, the buyer shall bear all costs and risks of loss or damage to the goods. In addition, the buyer must go through export customs clearance procedures. This term applies only to sea or inland waterway transport.

2. Free On Board (FOB) delivery on board

The seller delivers the goods to the buyer after sending them across the ship’s rail at the designated port of shipment. From this point on, the buyer is responsible for all costs, risks, loss or damage to the goods; at the same time, the seller is responsible for handling the export clearance procedures for the goods. This term applies equally to sea or inland waterway transport.

3. EX Works (EXW) ex-factory

The seller delivers the prepared goods to the buyer at his location (such as workshop, factory, warehouse, etc.), but is usually not responsible for loading the goods on the vehicle prepared by the buyer or handling customs clearance of the goods. The buyer is responsible for all costs and risks of transporting the goods from the seller’s location to the intended destination.

4. Free Carrier (FCA) freight carrier

The seller shall be responsible for delivering the goods handed over to the carrier designated by the buyer at the designated location after customs clearance. Under commercial practice, when a seller is required to collaborate with a carrier by entering into a contract, the seller may do so at the buyer’s risk and expense.

5. Carriage Paid To (CPT) Freight paid to

The seller pays the freight for shipping the goods to the designated destination. The risk of loss of or damage to the goods, and any additional costs arising from events occurring after the goods have been handed over to the carrier, passes from the seller to the buyer from the time the goods are handed over to the care of the carrier. In addition, the seller must handle customs clearance procedures for the export of goods. This term applies to all modes of transport, including intermodal transport.

6. Cost and Freight (CFR or C&F) cost plus freight

The seller must pay the expenses and freight required to transport the goods to the designated port of destination. However, the risk, loss or damage to the goods, and additional expenses incurred after the accident occurs after the goods are delivered to the deck of the ship, will not occur until the goods cross the designated port. After the ship’s rail is removed, it will be the responsibility of the seller to the buyer. In addition, the seller must handle export customs clearance procedures for the goods. This term applies to sea or inland waterway transport.

7. Cost, Insurance and Freight (CIF) cost, insurance and freight

In addition to having the same obligations as in the “cost and freight” term, the seller must also obtain marine insurance and pay the insurance premium for loss or damage of the purchased goods during transportation, which is borne by the buyer. This term applies to sea or inland waterway transport.

8. Carriage and Insurance Paid to (CIP) Freight and Insurance Paid to

In addition to having the same obligations as in the term “freight paid to (named destination)”, the seller must also apply for marine insurance and pay the insurance premium for the risk of loss or damage to the goods that should be borne by the buyer during transportation.

9. Delivered Duty Paid (DDP) delivery after duty paid

The seller will deliver the prepared goods at the designated place in the importing country, bear all costs and risks of transporting the goods to the designated place, and handle import customs clearance.

Commonly used vocabulary in inquiries

1. inquiry, inquiry form, inquiry

Example: make some inquiries.

2. offer quotation, offer

Example: to make an offer asking price, bidding.

3. order order, order

Example: place an order for sth. Order…

4. negotiate negotiation

Example: We have been negotiating for more pay. We have been negotiating for a higher salary.

5. quotation quotation, quotation

Example: to invite quotation or offer from the seller to request a quotation from the seller.

6. offeror/offerer Offeror, quoter, offeror

Example: The 23rd acceptance shall reach the offeror within the period prescribed in the offer. Article 23 The acceptance shall reach the offeror within the period prescribed in the offer.

7. offeree, offeree, receiver, offeree

Example: The notice of withdrawal shall reach the offeree before or at the same time as the offer.

8. firm offer, fixed quotation

Example: Well, to compensate a part of the loss, as you suggested, may I ask you to make us a firm offer for 50,000 glazed wall tiles C.I.F., Manila including the risk of breakage, Nov. shipment? As you said He said, in order to compensate for part of the losses, could you please quote us the CIF Manila price of 50,000 pieces of glazed tiles for shipment in November, including breakage insurance?

9. counter-offer buyer’s counteroffer, counteroffer

Example: We hope you will consider our counter-offer most favorably and tell us your decision at your earliest convenience. Please tell us as soon as possible.

The above are the common transaction terms and inquiry terms in cross-border e-commerce. Being familiar with these terms can help improve transaction efficiency and reduce problems caused by miscommunication. I hope this article can provide some help to those who are engaged in or are about to engage in cross-border e-commerce.