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Terms and conditions for invoice example for Shipping

this is presented by hps trade japanese freight forwarder in thailand this time let us explain about inca terms to understand very well incoterms is the trade term and condition and it describes three english letters such as cfr and fob there are 11 kinds of encoders in total it is not easy to remember all 11 kinds of inco terms but please do not worry as a beginner course let's focus on remembering six kinds which are used very often it's okay to remember the rest of the others after remembering those basic six kinds of inco terms first of all what is inca terms we need to understand this first in trade terms and conditions inc terms is mentioned clearly who pays the freight in the different steps of the cargo delivery and who has the responsible for those cargos in the different steps of the cargo delivery between sellers and buyers please understand those two points first as international trades there are different steps and procedures for the cargo's delivery through those steps we decide to mention in in terms about the range of the money payment and the timing of the cargo release when the cargo trouble happens it will be difficult to have the good business deal as long as both the seller and buyer do not recognize and follow the clear rule mutually for avoiding the troubles sellers and buyers must make deals based on the international rule for this time we will explain to you about six basic inc terms which are used very often in trade business ex works fob cfr cif dap ddp these six are today's topics let us explain one by one first of all it's x works x works is also called ex works as well sellers pass the cargos to the buyers at the factory in exporting place buyers importers make all payments such as transportation fee from the factory to the delivery places an importing site the responsibility of the cargo is moved from the seller to the buyers as soon as sellers finish to load the cargo from the factory to the containers in other words x works as the easiest trade condition for the sellers next it's fob fob is the trade terms and conditions that the responsibility of the cargos move from sellers to buyers after the cargos are on the board of exporting side sellers pay the local transportation fee in exporting side buyers pay the ocean freight and delivery fee in the importing site in this terms and conditions the next is cfr cfr is used to call as cost and freight but cfr is the correct word in cfr sellers pay all freight costs from the factory at exporting signed to the port in import side importers pay the rest of cost such as shipping fee and transportation fee from the importing port to the delivery place before talking about the movement of the cargo responsibility in cfr let us explain about cif cif is the same as cfr sellers pay all freight costs from the factory at exporting signed to the port in import side the different point between cfr and cif is an insurance in cif i stands for insurance sellers have to arrange the insurance for the cargo delivery we are now explaining about the cost and the cargo responsibility in cfr and cif in both cfr and cif the delivery cost is on exporters from the factory at exporting signed to the port in import side however the responsibility of the cargo and handling the cargos are the same as fob those are moved from exporters to importers once the cargo is loaded on the board of the vessel this point makes us to misunderstand so please be cautious to remember this point we talk about the insurance a little in international logistics the cargo is handing by the crane swinging in the vessel and then it takes long voyage time to be delivered to the importing side in the container vessel there are other containers with dangerous cargos we have sometimes heard about the story that the dangerous cargo was on the fire and the fire burned out the other containers unfortunately no one does not guarantee for the cargos if you don't get the cargo insurance we will feel so much secure as we get the insurance no one knows what happens in the international logistics we strongly recommend to our customers to get the cargo insurance every time let us talk back about inca terms the fifth one is dap dap is the trade term and condition that sellers pay all cost and take all responsibility for the cargo until it is delivered in the certain places in other words this trade terms is called door-to-door let's take a look with the dp together ddp is the same as dap sellers arrange all logistics from the factory and exporter side to the specific delivery places an importer side seller exporter will take both delivery cost and cargo responsibility until the specific delivery places in import side the different point between dap and ddp is the payment of the import tax which exporters or importers pay for it in dap import custom tax and consumption tax is paid by the importers on the other hand in ddp sellers as exporters pay both import custom tax and consumption tax sellers will pay all transportation costs including taxes now let's look back about the cost and responsibility in incoterms x works is the trade term that importers will arrange all logistics from picking up the cargos at the factory and exporting places to the specific delivery places in importer side importers pays all the delivery cost until the delivery places and take all responsibility for the cargo delivery fob is the trade term that exporters will arrange to pay the cost and take the responsibility until the cargos will be loaded on the vessel in the exporter side and then importers will arrange to pay all costs including ocean freight and delivery fee to the importing places and the importers will take cargo responsibility as well in cfr and cif exporters will pay all cost for the cargos until the cargo will be delivered in the port of importing site importers pay local cost in importing side until the cargo will be delivered in the specific places the attention point is the switching step of the cargo's responsibility it is the same as fob that the cargo's responsibility is moving from sellers to the buyers when the cargos are on the board of the vessel lastly in dap and ddp exporters take all delivery cost and cargo responsibility until the cargos will be delivered in dap importers pay the taxes but in ddp exporters pay the taxes payment of the cost is all listed as like this and then the cargo's responsibility is all listed as like this how was those about inca terms those six inca terms are very often to be used importantly the decision of using inca terms is based on the agreement between sellers and buyers in all trade terms and conditions if you are working at manufacturing companies or trading companies you need to think which trade terms have the advantages for your own logistics if you are working at the forwarding company let's understand those trade terms and conditions very well and let's make the best suggestion to your customers it's not like that difficult as you understand those well once in this channel i explain about international logistics knowledge for your better understanding i hope this video will be a good support for your logistic job if you have any shipment from thailand or to thailand please feel free to contact me also i'm very motivated to keep updating this video if you subscribe press good or comment anything well thank you see you next time [Music] you