Discount

In foreign trade, discount refers to a price reduction granted by the seller to the buyer based on the original price, usually expressed as a percentage, such as '5% discount'. It is a common promotional or incentive tool used in price negotiations between buyers and sellers, applicable to scenarios such as bulk purchases, long-term cooperation, seasonal sales, or favorable payment methods. When using discounts, note: 1) Clarify the discount basis (e.g., FOB price or CIF price); 2) Distinguish discount from commission, which is remuneration to intermediaries, while discount is a direct price reduction to the buyer; 3) Distinguish discount from rebate, which is typically returned after the transaction is completed; 4) Clearly specify discount conditions, calculation methods, and payment timing in the contract to avoid disputes. Additionally, discounts may affect the importing country's customs valuation and tariffs, requiring compliant declaration. Unlike 'allowance', which is mostly used for compensation for quality or quantity discrepancies. Mastering discount terminology helps in flexible quoting and enhancing competitiveness.