Trade & Finance
Applicable Incoterms 2020: EXW, FOB, CFR, CIF
Core Principle: No credit period, payment terms match transportation liabilities, minimize trade and capital risks, applicable to candy food export in European, American and Southeast Asian markets.
1. EXW (Ex Works)
Payment Method
100% full payment by T/T (Telegraphic Transfer) in advance
Payment Nodes
Within 3 working days after the signing of the contract, the buyer shall remit 100% of the total contract payment to the seller’s designated bank account. The seller shall notify the buyer to pick up the goods at the seller’s factory/warehouse only upon receipt of the full payment.
2. FOB (Free On Board)
Option 1 — Recommended for Regular Orders / New Customers
Payment Method: T/T production deposit + balance prepayment in advance
Production Deposit: Within 3 working days after contract signing, 30%–70% of total contract amount.
Balance Payment: Within 3 working days after buyer confirms goods are qualified.
Option 2 — For Long-term Cooperative Customers
Payment Method: 100% T/T full prepayment OR Irrevocable Sight Letter of Credit (L/C)
3. CFR (Cost and Freight)
T/T production deposit (30%–70%) + balance prepayment including ocean freight. Ocean freight settled uniformly by seller.
4. CIF (Cost, Insurance and Freight)
T/T production deposit (30%–70%) + balance prepayment including ocean freight and marine cargo insurance premium.
Insurance: 110% of total contract amount, With Particular Average (WPA) + Fresh Water and Rain Damage Risk.
General Provisions
- Settlement Currency: US Dollar (USD)
- Document Delivery: All shipping, customs declaration, insurance documents delivered only upon full payment
- Breach of Contract: 0.5% liquidated damages per working day for delayed payment; termination rights after 15 working days
- Small Value Orders: Under USD 1,000 — 100% T/T full prepayment required for all terms
- Bank Charges: All bank charges borne by buyer