I am new to International trade. Can you please explain some terms to me. With regard to Price terms what does FOB Shanghai and Fob Ningbo mean. Also with regard to payment terms what does T/T and T/C ect... mean?
Any other advice and help would be welcome.
Thanks for your time
Peter J
![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif){kind=icon}
Replying To [Peter J]:Towards the top of page one inthis forum, you will see a Topica called:
EVERY TRADE TERM (FOB, CIF, L/C, etc.)
Read and you shall learn.
Dear Friend,
It is really very happy to know you also become the member of this wide traders group.And i am wishing you on behalf of the all members of the alibaba.com that you will become good traders and get good quality Suppliers or Purchaser.
In Net Trading business it is very important to know the basic term which the traders are using like FOB, CIF, CNF etc. Mostly thease term used.
FOB :- Freight on Board. In this codition if you purchasing a materil then the Freight from the seller port to your port is from your account, means you have to pay the sea freight. In this condition you have to pay only the materil price to the seller.
CIF:- Cost Insurance and Freight.In this condition seller's materil price is included the Insurance and Freight from seller's port to Purchaser's port.
CNF:- Cost and Insurance. It is same as CIF but not included the Insurance.
I am always suggest the person that they will naver do the business in T.T payment term. It is a tele transfer means advance payment.Some party says give some advance like 10%,20% etc, so naver beleive such parties.
Always use the payment term 100% Irrevocable L/C at Sight.Which is secure for both the parties.
Regards,
Friend
![[em13]](http://img.alibaba.com/images/eng/style/icon/emoticons_bye.gif){kind=icon}
i hope you get a lot of answers , and you are satisfied now, but one thing i understand with out taking advacne no party is ready to make your shipment,but lc is the best
Quoting from [Peter J]:
Hi
I am new to International trade. Can you please explain some terms to me. With regard to Price terms what does FOB Shanghai and Fob Ningbo mean. Also with regard to payment terms what does T/T and T/C ect... mean?
Any other advice and help would be welcome.
Thanks for your time
Peter J
In the above you have alibaba hoem you will find articles tab
click and find different articles about "Import and export trade'
You learn shipping,payment terms & etcs in each forum availabel here
then come here to ask your question
Quoting from [Peter J]:
Grigo has given you the place to start reading..... PLEASE spend time reading lots of the Basics and Due Diligence forums before you start paying money out for products!!!To answer you question fairly basically....... The supplier will deliver the porduct to the named port (Ningbo/Shanghai) for the price they have quoted you. (Instead of you having to pay for a shipping cost from the factory to the wharf). That is 100% normal........ That price does NOT include:
1> Shipping from China to Ireland
2> Insurance for the shipment
3> Customs fee in Ireland
4>VAT or other duties required by Irish law.
You need to get that all worked out BEFORE you buy anything so you can get a true cost price of the product.
There are a few other minor fees as well probably that need to be paid...so it all adds up.