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EXW - Ex Works
"Ex Works" means the suppliers performing his handing
over duty by getting ready the goods for the consignee's command
in his management (factory ,warehouse etc.) . Supplier, if
the contrary is not determined is not responsible of loading
to the vehicle provided by the consignee or from the goods
transmition from export customs. From this point the consignee
is responsible of all about transport expenses and risks till
the arrival. This term is the selling term which indicates
the least responsibility for the seller among all the other
incoterms .
With this incoterm only packed goods selling price is included
to the selling contract. Means from the delivery date all
transport , loading , unloading and insurance expenses should
be paid by the consignee.
FCA - Free Carrier
With this term the sellers responsibility, the goods passing
from export custom, the consignee. With this term the responsibility
of seller ends at the point that the customs clearance of
export is done and left at the port or warehouse that the
consignee arranges… If the consignee has not determined a
certain delivery address , seller can determine a place around
the delivery address with the carrier . Commercial applications
to be able to make an agreement with the carrier requires
the sellers assist(like railway or air transportations) the
seller can move as the risks and expenses belonging to the
consignee. Commercial applications to make an agreement with
the carrier if the sellers help is needed (for example rail
way or the help of seller is needed to make an agreement with
the carrier (for example railway or air transportations) the
seller can act accordingly when the risks and costs are on
consignee s account…
FAS - Free Alongside Ship
With this term, the sellers responsibility ends at the determined
port, as the goods put on dock or barge direct the ship. This
means, from this point , all the expense of goods , loss or
damage risks are on the consignee s account. Loading , unloading
, transport and insurance expenses are paid by the consignee.
In FAS to the cost at the sell agreement both good worth,
the transport up to the port and the invoice amount of the
goods are included. This term means, the consignee's responsibility
to release the goods from the customs for export. This term
should not be used if the receiver will not apply the export
operations directly or indirectly .This term is used only
with sea transports.
FOB - Free On Board
With this term the sellers responsibility ends, as the goods
are in determined load port, as the ship gunwale board is
opened. All the loss or damaged risks of the goods are on
the consignee from this point. If ship gunwale doesn't mean
anything practically (for example as roll-on/roll-off or container
transportation) ,it is better to use FCA term.
CFR - Cost & Freight
With this term seller has to pay all the essential expenses
and freight to send the goods to the determined arrival port.
But all the loss about the good the increase can be seen on
loading port from the loading port the goods passing ship
gunwale the responsibility will be passed from the seller
to the consignee and the rise that can be seen in damage risks,
in load port from the moment that tha container is loaded
on the vessel the responsibility is transferred to the consignee
from shipper .
CFR term declares that the seller has to pass the goods from
the customs for exportation.
CIF - Cost Insurance & Freight
With this term the seller has the same responsibilities as
CFR. But additionally, has to assure sea insurance for the
loss or damage risks during the transport. Seller makes the
insurance agreement and pays the insurance bonus. The consignee
should know with this term the seller has responsibility to
ensure only minimum provision.
This term means the seller has to pass the goods from the
customs for export. This term is used just for sea and inner
water transportation. If ship gunwale doesn't mean anything
practically using CIP term is more appropriate.
CPT - Carriage Paid To
This term means that the seller has paid the freight to the
agreed final destination… The responsibility for damage or
loss is on consignee's account after the shipper sends the
cargo to the transportation company…
Carrier is the company who is getting the responsibility of
railway, road, seaway and air transportation or the combining
of these transport skills…
CIP - Carriage Insurance
Paid To
With this term the seller has the same duties as CPT. But
additionally has to assure cargo insurance to avoid damaged
or missing risks during the transport. Seller makes the insurance
agreement and pays the insurance premium.
DAF - Delivered At Frontier
This term means the sellers deliver the goods passing from
export customs This term means that the sellers responsibility
ends after the goods delivers to the frontier for all transports…
Border term , can be used for any border including export
country. Consequently, in the term all the time a point or
stating the definite place is vital. For this kind of shipment
not to have problem the certainity of the point that the goods
will be delivered has very big importance .
DES - Delivered Ex Ship
With this term seller's delivery duty ends after the cargo
arrives to the final destination on vessel and before the
goods are delivered to the import customs. Seller, takes the
responsibility till the goods arrive to the import customs..
This term can be used only in seaway transports.
DEQ - Delivered Ex Quai Duty Paid
With this term the duty of the seller, ends after the goods
leave the import customs at the final destination on the harbour.
Seller takes the responsibility of the all costs till the
goods deliver to that port.
If this term won't give the chance of getting the certificate
of approval for import then this term needn't be chosen. If
both buyer and seller agree that the goods will pass the customs
and the custom charges on the responsibility of seller then
duty unpaid should be written in stead of duty paid... If
both side want to subtract the costs from the total import
cost of the goods (for example VAT) the certain words that
will cause this action should be added to the agreement.
DDU - Delivered Duty Unpaid
With this term seller's delivery duty is over when goods are
ready in import country and in the place that has been agreed.
Seller has to take up the risks, expenses of transport and
custom formalities up to that point. (Except for the fees
and taxes paid for import)
Consignee has to take up the additional expenses and risks
of the goods not clearing from the customs on time.
If the sides want seller to assume custom formalities, expenses
and risks they should add the words that will give this effect.
This term can be used independently from transport way.
DDP - Delivered Duty Paid
With this term delivery duty of the seller ends with getting
the goods ready at the determined place in the import country.
Seller has to take on the risks and expenses of transport
to the determined point, the essential fees, picture and import
customs including all the expenses. EXW term means how less
duty for the seller, DDP term means that much big responsibility
for the seller.
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