INFORMATION PORTAL > INCOTERMS


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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