I.What 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(ExWorks)Factorydelivery
• FCA(FreeCarrier)Freecarrier
• FOB(FreeOnBoard)Freeonboard
• CFR(CostandFreight)Costandfreight
• CIF(CostInsuranceandFreight)Cost,insurance,andfreight
• DAP(DeliveredAtPlace)Deliveredatplace
• DDP(DeliveredDutyPaid)Delivereddutypaid

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
  • Thesellerisonlyresponsibleforpreparinggoodsatthespecifiedlocation
  • Thebuyerbearsalltransportationrisksandcosts
• FOB
  • Thesellerisresponsibleforcostsbeforegoodscrosstheshipsrail
  • ThebuyerbearsMainfreightandinsurancecosts
• CIF
  • Thesellerpaysfreighttothedestinationportandbasicinsurance
  • Risktransferstilltakesplaceattheshipsrailattheportofshipment

How to avoid misunderstandings in term usage?

Common issues in practice and corresponding suggestions:

• Mismatchedtransportationmethods

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

How should companies of different scales choose agency methods?

• Preferredsolutionforsmallandmediumexporters
  • RecommendFOBmodetocontroldomesticsegmentcosts
  • Suggestpurchasingdomesticfreightinsuranceassupplementarycoverage
• Applicable model for large manufacturers
  • AdoptDDPtoenhanceend-customerexperience
  • Needtoestablishprofessionaloverseascustomsclearanceteams

What are the considerations regarding the latest policies?

According to the new international trade regulations of 2025:

• ThelegalvalidityofelectronicbillsofladingrequiresspecialagreementunderDAP/DDPterms
• CarbonemissionsurchargesmustclearlyspecifyallocationmethodsinCIF/CFR
• B2BtransactionsarerecommendedtoprioritizeFCAterms