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Buying Offshore Info – Freight
Importing and exporting can be hard to navigate on your own. There are many freight terms used around international trade that are commonly misunderstood by entities new to the process. Some overseas companies take advantage of this lack of understanding by quoting a price based on “will-call.” Or worse, they will just ship your product to the port of export and expect your company to handle the rest. Here are some delivery terms that may be included within your direct-buy quote.
- EXW : This acronyms stands for Ex Works, with Ex meaning “from” and Works meaning “factory” or “mill.” In this case the goods are made available from the factory only, meaning the buyer is responsible for loading the goods on truck or container at the seller's premises, and for the subsequent costs and risks.
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- FOB : This acronym means “Free on Board.” There are two types of FOB:
- FOB Origin means that your product will be shipped to the port of export and you will be responsible for all subsequent transportation, oceanic and then domestic. If you have frequent, high-volume orders, this may be an idea shipping situation for you. If you’re only doing a one-time order, the amount of paperwork you’ll have to endure will not be worth the cost savings resulting in direct-buy printing.
- FOB Destination means the seller is responsible for the freight and other costs and risks until the goods are delivered to the buyer's premises, which may include the import customs clearance and payment of import customs duties and taxes at the buyer's country, depending on the agreement between the buyer and seller.
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- CIF : This acronym stands for Cartage, Insurance and Freight – it is used for ocean freight only. The cargo insurance and delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the import customs clearance and other costs and risks.
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- DDU : The term ""DDU"" stands for “Delivery Duty Unpaid.” With this kind of shipping, the product will be shipped directly to the buyer (all transportation costs included) with the buyer accountable for Duty fees.
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- DDP : The term ""DDP"" includes shipping to the buyer with duty paid for by the shipper (factory or trading company). DDP is generally offered with large-quantity orders, and is the most secure for U.S. customers.
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- Remember that when you’re importing goods from overseas, you are assuming all of the risk. When you work with Global Printing & Packaging, we assume the risk. We complete all of the paperwork, shipping and distribution for you. We take all of the hassle out of international shipping. We are a U.S. based company that has been in business for over 40 years – operating under the same laws as you and your company.
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