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Step 3: Understand International Trade Terms and Concepts

Become familiar with the common terms and concepts used in international trade. The Chamber of Commerce and the major trading banks have reference booklets. The most common Incoterms are listed below and a graphic guide to Incoterms is provided at the end of this document.

Term Definition


B/E      
     
     
 Bill of exchange; bill of entry
B/L        Bill of lading
C&F        Cost and Freight
CIF        Cost., insurance, freight
CIFE        Cost, insurance, freight and exchange
D/A        Documents against acceptance
D/P        Documents against payment
DDU        Delivered duty paid/Free into store (FIS)
DDU        Delivered Duty unpaid
EXW        Ex Works
FOB        Free on board
FAS        Free alongside ship
L/C        Letter of credit
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