2FOB FREE ON BOARDCost of freight & insurance to a certain point in the transportation link (usually within the exporting country) is included in the seller’s price.Buyer must pay for freight beyond that point.Specification of fob location is critical.Ex-factory, Ex-city, Ex-port.
3CIF COST, INSURANCE, & FREIGHT Cost of freight and insurance to a port in the importing country is included in the seller’s price.Buyer must pay for freight beyond the port.Specification of CIF location is useful.Ex-port.
4C&F COST & FREIGHTCost of freight to a port in the importing country is included in the seller’s price.Buyer must pay for insurance from the originating point and freight beyond the port.Specification of C&F location is useful.Ex-port.
5LANDED PRICEUsually refers to the ultimate cost of the product to the buyer at his/her place of business after paying for cost, freight, insurance, and customs fees and duties.Useful benchmark for comparing quotes from different suppliers.
6EXPORT LICENSE THE U.S. HAS TWO TYPES OF LICENSES: VALIDATED LICENSE GENERAL LICENSE
7IMPORT LICENSE THE IMPORTER MAY NEED TO OBTAIN AN IMPORT LICENSE. MAKE SURE YOUR BUYER HAS ONE IF NECESSARY.
8EXPORT DOCUMENTS Shipper’s export declaration with Export license Commercial (and Consular) InvoiceBill of lading (airway bill)Packing listInsurance certificateSpecial purpose certificatesEx: Country of origin, Quality, Standards, etc.
11COLLECTION DOCUMENTS Consignment Open Account Documents against acceptance D/ADocuments against payment D/PLetter of CreditCash in advance
12LETTER OF CREDITA letter issued by a bank to guarantee payment to the seller on proof of shipmentIrrevocable: A L/C that is irrevocable.Confirmed: A L/C that is endorsed by a second bank, that takes up the responsibility to pay the seller.