Doing electric scooter business with Chinese factory need to be familiar with the incoterm .the following will make simple explaination about incoterm
Incoterms, also known as terms of trade, price terms. In international trade, the obligations undertaken by buyers and sellers will affect the price of commodities. In the long-term international trade practice, a mode of directly linking certain trade conditions closely related to prices with prices has gradually formed, forming several quotation models. Each model stipulates the obligations of buyers and sellers in certain terms of trade. The terms used to describe this obligation are called trade terms.
The terms of trade expressed in trade terms are mainly divided into two aspects: first, explain the price composition of the commodity, whether it includes the main subordinate expenses other than the cost, that is, freight and insurance; The division of responsibilities, costs and risks borne by each other in terms of handing over the goods.
Trade terms are essential to express prices in international trade. The trade terms are used in the opening quotation, which clarifies the responsibilities, expenses and risks that both parties should bear in the delivery of goods, and explains the price structure of the goods. This simplifies the transaction negotiation procedures and shortens the transaction time. Since the international practice of stipulating trade terms has made a complete and precise interpretation of the obligations that the buyer and the seller should undertake, thus avoiding some disputes that may arise during the performance of the contract due to inconsistent understanding of the terms of the contract.www.guoweimoto.com
