CFR Delivery : Cost and Freight
CFR is the abbreviation of ''Cost and Freight'' term and it is a delivery type which includes cost of goods and freight. The main part of this delivery term is payment of cost and taxes of export operation and freight by seller within the time specified in the agreement. Seller is not obliged to pay the insurance. All risks until goods are loaded to ship in loading port belong to seller. Purchaser is obliged to pay all costs ( transit passage fees, unloading costs and etc) excluding handling cost of goods to the board of ship. Insurance cost for shipping, import taxes and all costs made in importing country belong to the purchaser.
CIF Delivery : Cost, Freight and Insurance
CIF is the abbreviation of ''Cost Insurance and Freight'' term and expresses the delivery type including cost of goods, insurance and freight. Used only in river and sea transportation. Seller makes export operations of goods. Costs and risks related to loading goods to the board of ship and unloading in its destination belong to seller. Also insurance and freight are paid by seller. Purchaser is obliged to pay all costs within importing country after received goods in the board of ship in the destination port. Also, customs clearance in importing country, acquiring import permit are under liability of purchaser. Purchaser is not obliged to make transportation agreement.
CIP Delivery : Cost, freight and insurance paid
CIP is the abbreviation of ''Carriage and Insurance Paid To...'' term and entails delivery of goods freight and insurance costs. Seller is obliged to make export operations of goods, to pay freight and insurance costs and to deliver goods to the purchaser at the destination determined in the agreement. All risks until the delivery of goods belong to seller. Purchaser receives goods shipped by seller at the destination place. Purchaser pays any cost if occurred after goods loaded to the ship board. Also purchaser is obliged to pay cost of goods, import tax and other fees occurred within importing country.
CPT Delivery : Freight paid delivery
CPT is the abbreviation of ''Carriage Paid To...'' term expresses the delivery type including delivery of goods in destination freight paid. Seller is obliged to pay all costs and taxes of export operation and all costs including freight until delivery of goods at the destination. However seller is not obliged to pay insurance cost. All risks occurred until delivery of goods belongs to seller. Purchaser is obliged to pay cost of goods he received at the destination and pay also other costs occurred afterwards. Also all costs in importing country and import taxes must be paid by purchaser.
DAF Delivery : Delivered At Frontier
DAF is the abbreviation of ''Delivered At Frontier'' term and entails delivery at frontier. The term frontier may mean the frontier of the country where importing company locates or it may also mean the frontier of the country where exporting company locates. Therefore, it should be specified in agreements which frontier will be used. This type of delivery is generally used in land and railways transportation. Purchaser is obliged to pay cost of goods according to agreement and is under liability of making import operations. Risks and costs after delivery of goods at frontier belong to purchaser. Import tax is paid by purchaser as well.
DDP Delivery : Delivered duty paid
DDP is the abbreviation of ''Delivered Duty Paid'' term and means delivery after duty paid. It entails delivery of goods at the destination in importing country according to agreement. It may be used in all kinds of shipping. Seller prepares goods according to conditions of agreement and issue the invoice. Seller makes a sales agreement for shipping goods to the destination in importing country. Seller is liable for all risks and costs until the delivery place. Seller is also obliged to pay taxes and costs and make all operations related to export and import. Purchaser is obliged to pay cost of goods according to agreement. Purchaser receives goods within specified time and pay all costs occurred after receive of goods.
DDU Delivery : Delivery duty unpaid
DDU ''Delivered Duty Unpaid'' is the abbreviation of delivery without paying duty. The main basis of this type of delivery is making goods ready at the destination in importing country. Risks until delivery to purchaser belong to seller. Seller issues invoice and prepares goods according to conditions of agreement. Cost of goods and export operation should be paid by seller. It is under the obligation of seller to make agreement for shipping goods and paying freight. Purchaser is obliged to pay cost of goods, to make import operations and pay customs duty. Purchaser also has to pay costs occurred after import.
DEQ Delivery : Delivery Ex quay
DEQ is the abbreviation of "Delivered Ex Quay'' term and means delivery in destination port duty paid. Seller issues invoice and prepares goods according to conditions of agreement. Seller pays all related costs including taxes. Goods will be delivered at destination port on predetermined date to the purchaser. Purchaser is obliged to pay cost of goods and pay other costs occurred after delivery of goods. Purchaser has no much liability in this type of delivery.
DES Delivery : Delivered Ex Ship
DES is the abbreviation of "Delivered Ex Ship" and means delivery ex ship. Basis of this type of delivery is to deliver goods at destination port in the board of ship. Seller makes import operations in importing and exporting country and pays all related costs and taxes and seller is liable for all risks in this period. Agreement liability and related costs of shipping belong to seller. Purchaser is obliged to pay cost of goods according to agreement conditions, to make import operations and pay related costs and taxes. Purchaser is not liable for making shipping agreement.
EXW Delivery : Ex works delivery
EXW is abbreviation of ''Ex Works'' term and means delivery in manufacturing plant. Plant is the factory of seller here. Goods are delivered under suitable conditions for shipping in facilities of seller. Seller's obligation finishes after delivery of goods in its workplace. All risks until the delivery of goods to purchaser belong to seller. Purchaser receives goods from the workplace of seller after paid cost of goods. Also purchaser is obliged to complete export and shipping operations and pay related costs. Purchaser should pay import duty and other costs occurred in importing country.
FAS Delivery : Free alongside ship
FAS is the abbreviation of ''Free Alongside Ship'' term. It entails delivery of goods on the board of the ship. Seller is obliged to deliver goods to loading port according to conditions of agreement. Purchaser makes export operations. All risks and costs occurred until delivery of goods at the port determined in agreement belong to seller. Seller must inform purchaser when goods are ready to be delivered. Purchaser must pay cost of goods, make export operation, to pay freight and insurance, import duty and all other costs occurred after import.
FCA Delivery : Free Carrier
FCA is the abbreviation of ''Free Carrier'' term. It entails delivery of goods to carrier. Goods must be delivered to purchaser after customs operations completed. Carrier is obliged to ship goods according to a shipping agreement. All costs and risks until the delivery of goods to carrier belong to seller. Freight must be paid purchaser. All costs occurred after delivery of goods belong to purchaser. Purchaser is obliged to make import operation , to pay import duty and pay other costs occurred after import. Also purchaser has to notify seller when receives goods.
FOB Delivery : Free on board
FOB means deliver of goods in the delivery port determined according to agreement between seller and purchaser. It is the abbreviation of the term "Free on board." In such deliveries, export operation must be completed by seller. With the condition of seller being liable for all risks and costs seller is obliged to prepare invoice according to agreement, to deliver the invoice to related organizations and to complete all license and permits. Also seller must notify purchaser when to deliver goods at the destination. Purchaser must pay cost of goods, freight and insurance. Purchaser must notify seller about the name of vessel, loading port and delivery process. Purchaser must indemnify losses of seller in cases such as late arrival of vessel. Purchaser is obliged to make all legal operations related to import, to pay import duty and to pay all other costs occurred after import.
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