Those who want to import Used cars from Japan cheap!!
In this article, we will introduce three trade terms that you should know when importing used cars.
For cross-border transport, there must be no difference in the interpretation of trade terms and conditions between importers and exporters.
It is necessary to clarify who will bear the transportation risks and costs of trade transactions.
Whether it is a used car or not, when you make a trade transaction, some costs will incur, for example, the cost of transportation troubles, product charges and shipping fees, insurance, customs clearance fee, and import charges.
Therefore, the terms of trade are negotiated between the importer and the exporter, and they are determined by the three letters of the alphabet.
This is called the Incoterms, and the International Chamber of Commerce, which is headquartered in Paris, France, has set the cost allocation and the range of trade transactions as an international rule.
Incoterms can be divided into two groups,
1. Trade terms applicable only to marine transportation
2. Trade terms applicable to all types of transport
The most frequent import method for used cars is by ship, so here are three trade terms that you should know about marine transportation.
※Please refer to the trade terms that are regulated to a certain extent by the importing country.
FOB is an abbreviation for Free On Board and refers to the terms of delivery and price.
The contract will be completed when the vehicle is loaded on the ship at the port of export, and the buyer will be responsible for the risk and costs after that.
※Main importing countries are New Zealand, FIJI, etc.
2. C&F (CFR)
“C & F is an abbreviation for” Cost & Freight “, which means the conditions including fare.
The terms and conditions of delivery of the vehicle and the risk are the same as FOB, but the shipping cost to the exporting country will be borne by the seller.”
※Major importing countries are Africa, Palau, etc.
CIF is an abbreviation for Cost, Insurance & Freight and refers to the conditions including freight insurance.
The difference between FOB and C&F is that the seller bears the cost of transportation and insurance premiums for the vehicle.
※Main import countries are Sri Lanka, Malaysia, Europe, and Canada, etc.
Trade conditions and others
CPT is an abbreviation for Carriage Paid To. The cost is the same as Cost & Freight (C & F), except that C & F is applicable only to marine transportation, whereas CPT is applicable to any transportation type.
For example, when importing a used car by plane, not by ship.
CIP is an abbreviation for Carriage and Insurance Paid to. The cost is the same as CIF (Cost, Freight and Insurance), but CIF is applicable only to marine transportation, whereas CIP can be applied to any transportation type.
For example, when importing used cars by cargo railway or plane, rather than by ship.
What are your thoughts?
This time we have summarized the trade terms that are useful when importing used cars from Japan.
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Our professional sales team will suggest the car you are looking for.