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When you are involved in importing into your country from a foreign country, you need to be familiar with key global trade market terms. In the import export glossary terms, there are two main categories, sales shipping terms and payment terms. Sales and shipping term defines how the goods importing from China are logistically handled and how product liabilities are classified in the entire process of importing into your destination from the origin, i.e., China in this case. On the other hand, payment terms define payment formats for the importing goods from China as well as when and how transactions are made in the process of importing from the origin to your destination on a contractual basis. All these global trade market terms will have legal biding. As importing and exporting involve product changing hands between two different parts of the world where banking financing and credit systems can be quite different, traditional domestic trade market terms such as pre-paid and cash on delivery are very difficult to enact. As a results, a series of standardized international trade market terms became available to protect the interests of both importing and exporting parties. Obviously, the risk for an importing party will be a security for the exporting party. Therefore, when you are importing from country A into county B, you will always have to negotiate with the exporters in country B to reach mutually agreeable trade terms.

Glossary Terms - Import Market Terms - Importing from China into America

Free On Board - FOB,  least secured way of importing into America from China from importer's stand

Cost and Freight - CFR or CNF,  medium secured way of importing into America from China from importer's stand 

Cost, Insurance and Freight - CIF, most secured way of importing into America from China from importer's stand

Ex works - EXW,  an idea option for importing into America from China if the importer has own freight agent

Free Alongside -FAS, a similar to term to "free on board" except your supplier is not responsible for loading vessel

Free Carrier - FCA, most secured way of importing from China into America from exporter's stand

 Glossary Terms - Import Market Terms - Importing From China Payment Terms

Glossary terms of importing from China: Documentary Credit - Letter of Credit - L/C

Glossary terms of importing from China: Documentary Credit - Leased Bank Guarantee   or   Demand Guarantee

Glossary terms of importing from China: Bill For Collections - DP and DA

Glossary terms of importing from China: Advance Payment - Wire Transfer  - T/T   or   Cashier's Check

Glossary terms of importing from China: International Trade Credit - Open Account

  Importing From China Into America - Payment Risk Analysis

  Main Types of Money Transfer - Importing from China Market Terms Glossary

SWIFT Inter-Bank Transfer - now firmly established as standard practice in importing from one nation into the other.  The importing party will instruct their bank to make payment to any bank account specified by the exporting party. So it would be good practice for the exporter to include their account details on their invoice heads.

Buyer's Check -  unsatisfactory trade market terms of settlement for the exporter as it carries the risk of dishonor upon presentation as well as the added inconvenience of being slow to clear. There is also the very real danger of the check being lost in transit as well. A check is also unsatisfactory if it is in the currency of the buyer, as this will take longer to clear and will involve additional bank charges. Exporters only use this method if they have an established trading history with the importing party or in cases where the profit margin has been increased to offset cash flow problems anticipated by the delay in receiving payment.

Banker's Draft - this is arranged by the importing party who asks their bank to raise a draft on its corresponding bank in the exporting country. This term provides additional security to a buyer's check, but they can be costly to arrange.

International Money Orders - these are similar in nature to postal orders. They are pre-printed therefore cheaper to obtain than a Banker's Draft, although again there is the risk of loss in transit.

Glossary Tags: importing, glossary terms, market terms, importing into, importing from, importing, China importing

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