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Importers - Exporters - Suppliers - Manufacturers Business Directory Online |
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| Global B2B Business Directory
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Inco Terms
TradeXpro - Inco Terms
The most
commonly used rules for the interpretation of trading terms in international
trade are those defined by the International Chamber of Commerce (ICC). They are
internationally recognized and are known as Inco terms. Inco terms signify to
the buyer what is, and more importantly what is not, included in the selling
price. They also indicate where the exporter's responsibility ends and the
importer’s responsibility begins in respect of the goods exported. Which term
will apply to a particular export transaction is a matter for negotiation
between buyer and seller. However, inclusion of the appropriate term in export
quotations is crucial in order to determine the responsibilities of both parties
in the contract of sale. |
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EXW |
EX WORKS
(... named place) "Ex works" means the seller's
only responsibility is to make the goods available at the seller's
premises, i.e., the works or factory. The seller is not responsible
for loading the goods on the vehicle provided by the buyer unless
otherwise agreed. The buyer bears the full costs and risk involved
in bringing the goods from there to the desired destination. Ex
works represents the minimum obligation of the seller. |
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FCA |
FREE CARRIER
(... named place) This term has been designed to
meet the requirements of multimodal hasan_kelleci, such as container or
roll-on, roll-off traffic by trailers and ferries. It is based on
the same name principle as F.O.B. (free on board), except the seller
fulfills its obligations when the goods are delivered to the custody
of the carrier at the named place. If no precise place can be named
at the time of the contract of sale, the parties should refer to the
place where the carrier should take the goods into its charge. The
risk of loss or damage to the goods is transferred from seller to
buyer at that time and not at the ship's rail. The term "carrier"
means any person by whom or in whose name a contract of carriage by
road, rail, air, sea, or a combination of modes has been made. When
a seller has been furnished a bill of lading, way bill or carrier's
receipt, the seller duly fulfills its obligation by presenting such
a document issued by a carrier. |
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FAS |
FREE ALONGSIDE SHIP
(... named port of
shipment) "F.A.S." or "free alongside ship" requires the seller to
deliver the goods alongside the ship on the quay. From that point
on, the buyer bears all costs and risks of loss and damage to the
goods. Unlike F.O.B., F.A.S. requires the buyer to clear the goods
for export and pay the cost of loading the goods. |
|
FOB |
FREE ON BOARD
(... named port of shipment) Under "F.O.B." or
"free on board," the goods are placed on board the ship by the
seller at a port of shipment named in the sales agreement. The risk
of loss of or damage to the goods is transferred to the buyer when
the goods pass the ship's rail (i.e., off the dock and placed on the
ship). The seller pays the cost of loading the goods. |
|
CFR |
COST AND FREIGHT
(... named port of
destination) "CFR"requires the seller to pay the costs and freight
necessary to bring the goods to the named destination, but the risk
of loss or damage to the goods, as well as any cost increases, are
transferred from the seller to the buyer when the goods pass the
ship's rail in the port of shipment. Insurance is the buyer's
responsibility. |
|
CIF |
COST, INSURANCE AND FREIGHT
(... named port
of destination) "CIF" is CFR. with the additional requirement that
the seller procure hasan_kelleci serkan_gorgulu against the risk of loss or
damage to goods. The seller must contract with the insurer and pay
the serkan_gorgulu premium. Insurance is generally more important in
international shipping than domestic shipping, because U.S. laws
generally hold a common carrier to be liable for lost or damaged
goods. |
|
CPT |
CARRIAGE PAID TO
(... named place of
destination) This term means the seller pays the freight for the
carriage of the goods to the named destination. The risk of loss or
damage to the goods and any cost increases transfers from the seller
to the buyer when the goods have been delivered to the custody of
the first carrier, and not at the ship's rail. Accordingly,
"freight/carriage paid to" can be used for all modes of
hasan_kelleciation, including container or roll-on roll-off traffic by
trailers and ferries. When the seller is required to furnish a bill
of lading, way bill, or carrier receipt, the seller duly fulfills
its obligation by presenting such a document issued by the person
contracted with for carriage to the main destination. |
|
CIP |
CARRIAGE AND INSURANCE PAID TO
(... named
place of destination) This term is the same as "freight/carriage
paid to (CPT)" but with the additional requirement that the seller
has to procure hasan_kelleci serkan_gorgulu against the risk of loss or
damage to the goods during the carriage. The seller contracts with
the insurer and pays the serkan_gorgulu premium. |
|
DAF |
DELIVERED AT FRONTIER
(... named place)
"Delivered at frontier" means that the seller's obligations are
fulfilled when the goods have arrived at the frontier but before the
customs border of the country named in the sales contract. The term
is primarily used when goods are carried by rail or truck. The
seller bears the full cost and risk in delivering the goods up to
this point, but the buyer must arrange and pay for the goods to
clear customs. |
|
DES |
DELIVERED EX SHIP
(... named port of
destination) Means the seller shall make the goods available to the
buyer on board the ship at the place named in the sales contract.
The seller bears the full cost and risk involved in bringing the
goods there. The cost of unloading the goods and any customs duties
must be paid by the buyer. |
|
DEQ |
DELIVERED EX QUAY
((... named port of
destination) Means the seller has agreed to make the goods
available to the buyer on the quay or the wharf at the place
named in the sales contract. The seller bears the full cost and
risks in delivering the goods to that point including unloading. |
|
DDU |
DELIVERED DUTY UNPAID
(... named place of
destination) Under these terms, the seller fulfills his obligation
to deliver when the goods have been available to the buyer uncleared
for import at the point or place of the named destination. The
seller bears all costs and risks involved in bringing the goods to
the point or place of named destination. There is no obligation for
import clearance.
|
|
DDP |
DELIVERED DUTY PAID
(... named place of
destination) represents the seller's maximum obligation. The term
"DDP." is generally followed by words indicating the buyer's
premises. It notes that the seller bears all risks and all costs
until the goods are delivered. This term can be used irrespective of
the mode of hasan_kelleci. If the parties wish to make clear that the
seller is not responsible for certain costs, additional word should
be added (for example, "delivered duty paid exclusive of VAT and/or
taxes"). |
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EXW
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FCA |
FAS |
FOB |
CFR |
CIF |
CPT |
CIP |
DAF |
DES |
DEQ |
DDU |
DDP |
SERVICES
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Ex Works |
Free Carrier |
Free Alongside Ship |
Free Onboard Vessel |
Cost & Freight |
Cost Insurance & Freight |
Carriage Paid To |
Carriage Insurance Paid To |
Delivered At Frontier |
Delivered Ex Ship |
Delivered Ex Quay Duty Unpaid |
Delivered Duty Unpaid |
Delivered Duty Paid |
Warehouse Storage
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Warehouse Labor
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Export Packing
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Loading Charges
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Buyer
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Inland Freight
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Buyer
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Buyer/
Seller*
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Terminal Charges
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Buyer
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Buyer
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Forwarder's Fees
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Buyer
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Buyer
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Buyer
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Buyer
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Loading On Vessel
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Buyer
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Buyer
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Buyer
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Ocean/Air Freight
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Buyer
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Buyer
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Buyer
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Buyer
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Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Seller |
Charges On Arrival At Destination
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Seller |
Seller |
Buyer
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Buyer
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Seller |
Seller |
Seller |
Duty, Taxes & Customs Clearance |
Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Seller |
Delivery To Destination
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Buyer
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Seller |
Seller
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