Customer management delivery terms (Delivery Terms) are the core clauses in foreign trade contracts that clearly define the division of responsibilities, costs, and risks between the buyer and seller during the delivery of goods. They are usually based on International Commercial Terms (Incoterms), such as FOB, CIF, EXW, etc. Their usage scenarios cover quotations, contract signing, order execution, and logistics arrangements, directly affecting cost accounting and risk control. Precautions include: the version must be clearly specified (e.g., Incoterms 2020) to avoid disputes over responsibility caused by version differences; delivery terms must match the payment method and mode of transport, for example, under CIF the seller is responsible for insurance and freight, while under FOB the buyer bears the costs after loading; at the same time, a distinction must be made between delivery terms and payment terms (such as L/C, T/T), the former governing the transfer of title to goods, the latter governing the flow of funds. Unlike 'shipping terms', delivery terms emphasize the point of risk transfer rather than merely transport arrangements. Foreign trade practitioners should choose the most appropriate delivery terms based on customer creditworthiness, transport capacity, and destination port policies, and specify them in detail in the contract to prevent disputes.
📝 Examples
1. After negotiation, we agreed to adopt CIF Shanghai delivery terms, with our side responsible for chartering and booking space and paying insurance premiums, and the risk transferring to the buyer after the goods pass the ship's rail at the port of shipment. (Note: Under CIF, the seller bears freight and insurance, and risk transfers at the port of shipment.)
2. Because the customer requested to arrange transport themselves, we finally concluded the deal on FOB Ningbo delivery terms, with the buyer responsible for sending a vessel to pick up the goods and bearing all costs and risks after loading. (Note: Under FOB, the buyer is responsible for transport and insurance, and the seller only needs to deliver the goods to the designated port of shipment.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner