I.Export RepresentationWhat are the common abbreviations for methods?

The commonly used export agency method abbreviations in international trade mainly originate from the International Commercial Terms (Incoterms? 2025) formulated by the International Chamber of Commerce:

• EXW(Ex Works) Factory delivery
• FCA(Free Carrier) Free carrier
• FOB(Free On Board) Free on board
• CFR(Cost and Freight) Cost and freight
• CIF(Cost Insurance and Freight) Cost, insurance, and freight
• DAP(Delivered At Place) Delivered at place
• DDP(Delivered Duty Paid) Delivered duty paid

How are responsibilities divided for these abbreviations?

According to the latest version of Incoterms? 2025, the division of responsibilities for major trade terms is as follows:

• EXW
  • The seller is only responsible for preparing goods at the specified location
  • The buyer bears all transportation risks and costs
• FOB
  • The seller is responsible for costs before goods cross the ships rail
  • The buyer bearsMaritime TransportationMain freight and insurance costs
• CIF
  • The seller pays freight to the destination port and basic insurance
  • Risk transfer still takes place at the ships rail at the port of shipment

How to avoid misunderstandings in term usage?

Common issues in practice and corresponding suggestions:

• Mismatched transportation methods

  For example, FOB is only applicable to sea transport,Air TransportationFCA should be chosen instead

• Confusion over risk transfer points

  The 2025 edition particularly emphasizes risk definition during electronic document exchange

• Inadequate insurance coverage

  CIF defaults to minimum coverage only; it is recommended to add additional coverage based on cargo characteristics

How should companies of different scales choose agency methods?

• Preferred solution for small and medium exporters
  • Recommend FOB mode to control domestic segment costs
  • Suggest purchasing domestic freight insurance as supplementary coverage
• Applicable model for large manufacturers
  • Adopt DDP to enhance end-customer experience
  • Need to establish professional overseas customs clearance teams

What are the considerations regarding the latest policies?

According to 2025 international trade regulations:

• The legal validity of electronic bills of lading requires special agreement under DAP/DDP terms
• Carbon emission surcharges must clearly specify allocation methods in CIF/CFR
• Cross-border E-commerceB2B transactions are recommended to prioritize FCA terms